MANILA, Philippines — A commuter network on Wednesday warned that a potential privatization of the Metro Rail Transit-Line 3 will only lead to eventual fare hikes without guaranteeing improved mass transportation services.
This comes after the Department of Transportation confirmed in a report by The STAR that while all options are being considered, the "direction is to privatize the MRT-3."
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In a statement sent to reporters, The Passenger Forum pointed out that while the government admitted that the rail line is losing money, the Department of Transportation failed to cite the reasons for the train system’s financial woes.
“Filipinos have a lot of experiences on privatization and it always tends to work against ordinary folks’ interests. Once the government sells MRT to the private sector, we are sure it will make fares higher while commuters continue to experience subpar services...The government wants to serve MRT 3 on a silver platter while commuters suffer," TPF Convener Primo Morillo said.
The MRT-3's line runs parallel to Epifanio Delos Santos Avenue, the busiest thoroughfare in Metro Manila. The only other mass transportation option along the major road — the EDSA Busway Carousel — is also being eyed for privatization, Transportation Secretary Jaime Bautista disclosed earlier.
Morillo urged the national government to disclose the reason for the latest direction.
Data obtained by The STAR showed that the government had spent an average of at least P8.93 billion every year to operate and maintain the MRT-3 for over two decades now.
“They should inform commuters why they are losing money. If they are suffering from financial hemorrhage now, why would any private company, in their right mind, buy MRT 3? Unless, they are looking at increasing fares, or the government will sell MRT 3 assets at an ultra-bargain price, or, worst case scenario for passengers, a combination of the two," Morillo said.
Both the MRT-3 and the EDSA Carousel are among the most congested transport modes as of late with more industries and schools reverting back to on-site operations.
Group wants cash aid, fuel subsidy for transport workers
Meanwhile, transport group Piston said in a separate statement that the recent P0.50 per liter diesel rollback is "futile" in the face of soaring inflation which the group said did little to offset.
Piston national president Mody Floranda called for the immediate suspension of VAT and excise tax on fuel and basic commodities as well as substantial hikes on emergency cash aid such as the Pantawid Pasada fuel subsidy program of the DOTr.
“In addition to our long-standing call to remove the VAT and excise tax on oil, the ballooning price of goods only shows that the immediate and wider distribution of aid is urgently needed to prevent the sliding of the drivers' livelihood, small operators, and millions of poor Filipinos,” Floranda said in Filipino.
To recall, the country’s inflation rate soared to a 14-year high of 7.7 percent in October 2022.
In response, the Marcos administration included a P206.5 billion fund for ayuda in the 2023 budget — including a P2.5 billion fuel subsidy for 377,443 jeepney, UV, taxi, TNVS, and trike drivers.
But Piston said that the subsidies should be further expanded to include all PUV transport workers since the prices of fuel are still expensive and food prices are still rising.
Transport groups have said that road congestion is largely an effect of the lack of transport capacity available to service commuters — which is in part worsened by transport workers leaving their jeepneys to seek more profitable ways to provide for their families amid rising inflation.
As it currently stands, Piston estimated that there are currently around 2 million public utility vehicle transport workers nationwide that should be allotted fuel subsidies.
“These anomalous billions of funds should be allocated to aid and financial assistance to the poor. If Marcos Jr. really wants to solve the persistent ballooning of inflation, it must primarily ease its burden on the people. Immediate action is needed such as the rapid distribution of aid, lowering the price of oil and commodities, and increasing the wages of workers!” Floranda said.
— Franco Luna with a report from The STAR/Elijah Felice Rosales