A transportation crisis was resolved yesterday as the Provincial Bus Association secured a promise from the government that up to 80 percent of its operational losses would be compensated.
Five bus operators from the south had threatened to cancel the operations of 150 bus routes in southern areas, which mainly serve passengers living in remote areas.
The Directorate General of Highways (DGH) had been in negotiations with representatives from the association and did not announce the results until yesterday.
DGH Director-General James Chen (陳晉源) said that bus operators decided to continue their services and called off a protest scheduled to take place on Dec. 22, when they were to suspend the bus routes.
Chen said that the policy will take effect at the beginning of the next fiscal year. To compensate the bus operators, the directorate has allocated NT$550 million (US$16.7 million).
The Executive Yuan promised to add NT$170 million, he said, adding that it would draw the funds from its reserve.
Chen said that the directorate could only subsidize bus operators this year by providing them with NT$630 million. The sum accounted for approximately 71 percent of their operational losses, he said.
Chen also said that the directorate will overhaul the mechanism used to mete out subsidies.
The subsidy was given when the cost of each kilometer was set at NT$3.6. However, the cost may be lower than the stated sum, he said.
Chen said the directorate normally gives out subsidies in June for losses accumulated between December and May, but is now considering partial payments in March.
The directorate is also planning to invite representatives from local governments to talk about a more effective way to sort out overlapping bus services, he said.
Premier Chang Chun-hsiung (
"The Executive Yuan was very concerned about the problem. We hope that we can ensure the public's right to transportation," Chang said.
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