City plans to underwrite bus losses for a year

The Taipei City Government yesterday approved a measure that would charge a flat fare of NT$15 per person and provide NT$1.3 billion to offset bus operators' losses.

Although the full-price fare is NT$15, students and military and police personnel pay NT$12, while seniors, children and the handicapped pay NT$8.

The NT$1.3 billion subsidy and the price hike is to "fairly reflect operational costs" of bus operators and "upgrade the quality of bus services," the Taipei City Government said.

The proposal will go to the Taipei City Council for further examination and possible approval.

Tsao Shou-min (曹壽民), director of the city's Bureau of Transportation (交通局), yesterday told reporters after a weekly closed-door city affairs meeting that the change made good business sense.

"It's been over three years since the bus fares were last adjusted ? The change is necessary and fair to not only the industry but also the public," he said.

The adjustment is fair, Tsao said, because it mirrors the increasing operating costs bus companies are facing.

"It makes perfect sense to make these changes because the past three years saw a dramatic increase in fuel prices, vehicle and health insurance premiums, while no change has been made to bus drivers' wages," he said.

In return, the new scheme will lead to improvements in service quality, Tsao said.

The bureau has drawn up a plan for the bus companies to follow. Guidelines include replacing at least 350 old buses, adopting an electronic card reading system and enforcing the 40kph speed limit.

The city government's subsidy program will last just one year, Tsao said, and after that, agencies related to those who benefit from the subsidies -- military and police units, social and educational groups and the Taipei County Government -- will have to foot the bill until the bus services reach the break-even point.

"Our ultimate goal is to reach zero subsidies," he said.

DPP City Councilor Chou Po-ya (周柏雅) said he would not endorse the proposal.

"It's not practical and simply doesn't make any sense," Chou told the Taipei Times.

Chou said that although he was not against the idea of subsidies, it did not make sense to give discounts only to those of particular social groups such as the police and military personnel.

"Discounts should be given to frequent commuters," seniors and the disadvantaged, he said.