SUNBIZ

Commission Asked To Clarify Formula

A local inter-island shipping operator claims that their loan repayment to the bank has been affected because of the changes to the fare structure issued by the Commerce Commission. Operators
07 Sep 2016 10:00
Commission Asked To Clarify Formula
MV Uluinabukelevu

A local inter-island shipping operator claims that their loan repayment to the bank has been affected because of the changes to the fare structure issued by the Commerce Commission.

Operators of MV Uluinabukelevu, Valesasa Transport Company Limited, have requested the Commission to clarify the formula used to determine the fares to Kadavu.

Company manager Ilaitia Caginavanua said there were two sets of adult fares: $43 to part of Nabukelvu district, Yawe, part of Tavuki, Sanima, Yale and $34 to Ono district, Naceva, part of Tavuki, Ravitaki and part of Nabukelevu.

“We are not really satisfied with the formula the Commission is using,” Mr Caginavanua said.

He said he had written to the Commission for an explanation but there was no reply.

According to Mr Caginanavua, they had provided the Commission with records of logistics and operations that included time taken for sailing their routes, fuel used, distanced travelled, etc.

“From our calculations, it means that the fare should be between the $67 for Lomaiviti and the $98 for Moala.”

Mr Caginavanua said the Commission’s formula had really affected their loan payment to the bank.

He said the bank had approved their loan on the basis that the fare would $65.

From that amount, Mr Caginavanua said they could pay their loan and also save money for the company.

Acting Chief Executive Officer of the Commerce Commission, Seymour Singh says they would be making a response to Valesasa Transport Company Limited soon.

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