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Operators Not Forthcoming With Cost Structures

The bus industry will not be deprived an increase if warranted, nor will consumers be deprived of a decrease if also warranted. And the Fijian Competition and Consumer Commission is
21 Dec 2018 09:56
Operators Not Forthcoming With Cost Structures
Joel Abraham

The bus industry will not be deprived an increase if warranted, nor will consumers be deprived of a decrease if also warranted.

And the Fijian Competition and Consumer Commission is all about fairness.

These were the sentiments of the Bus Fare Review Committee chairman, Joel Abraham who is also the of Fiji Competition and Consumer Commission chief executive officer.

He was responding to a Fiji Bus Operators Association press report which said that the committee was dragging its feet in reaching a conclusion on the issue.

“We will not deprive the bus industry an increase if warranted, nor will we deprive the consumers a decrease if also warranted.

“Now the decision whether to increase or decrease is on them to provide relevant information regarding their cost structure.”

Mr Abraham said that the Fiji Bus Operators Association had not come back to him on the matter.

“Bus operators are not forthcoming with their cost structures; the two elements determining revenue and cost,” he said.

“Revenue data is coming through the e-Ticketing system that we have been monitoring, but the cost data information needs to be provided by bus operators in order to see the level of profitability.

However, the Fiji Bus Operators Association, in its statement, said that the authorities responsible for reviewing bus fares were dragging

their feet on the issue, one year after it was due to return for decision. The association said the comments by Mr Abraham showed there was no urgency, they were misguided and he had avoided the real issue of unsustainable costs affecting operators.

It claimed that if the process was to continue, many businesses would be forced to stop providing services.

Meanwhile, the association has tried to file an application with LTA, the body solely responsible for setting bus fares, but this has been unsuccessful.

Edited by Percy Kean

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