TRA fares the answer
Consumers’ Foundation honorary chairman Cheng Jen-hung (程仁宏) on Saturday last week weighed in on the debate over whether the Taiwan Railways Administration (TRA) should raise fares to stabilize its business model and make more funds available to improve safety.
Cheng called on the TRA to implement a comprehensive review of its operating model before adjusting fares.
Cheng’s argument contains a logical fallacy, as adjusting fares and implementing a review are not mutually exclusive. They can be done in parallel.
The TRA last adjusted its fares 26 years ago. Does Cheng really mean that until a review is carried out by the Executive Yuan, fares should continue to be frozen into eternity?
There are several reasons to support a reasonable increase in fares:
As regards the nearly three-decade fare freeze, there is an old saying that “you cannot expect a horse to gallop on an empty stomach.”
The TRA’s financial model is clearly broken. A reasonable fare hike would relieve pressure and help quicken the pace of reform. TRA Director-General Du Wei (杜微) has said that “increasing fares would be an important measure to allow the TRA to maintain normal operations.”
If the public wants high-quality services, then it must accept a reasonable increase in fares. Demanding safe and high-quality service when the TRA loses NT$4 million (US$143,113) a day is completely unreasonable.
Moreover, the TRA’s losses are being plugged by the central bank. In other words, the public is subsidizing rail travel through general taxation, whether they use the TRA or not. Surely, those who use the service should pay for it.
The government should establish a stable and transparent long-term fare adjustment structure for the TRA, similar to how gasoline and electricity prices are regulated, which would return the TRA to being a market-oriented organization.
In the same way that a rising tide lifts all boats, fare increases would help elevate the service quality and safety on the network.
Tsai Chi-keng
Taipei
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