SPAD: Meet state government to settle woes

STAR, 9 January 2012

PUTRAJAYA: The Land Public Transport Commission (SPAD) has urged the Malacca Omnibus Operators Association to meet the state government to resolve its financial woes.

SPAD chairman Tan Sri Syed Hamid Albar said the problem could be settled if the group discussed the matter so that an agreement could be reached.

He said there was a need to review the public transport system in the state.

“We need to examine the whole system, including the ticketing system, routes and fares, among others, to improve the current situation. Bus operators should also be financially ready to compete with one another,” he told The Star.

The Government, he said, had come up with short-term measures to help keep bus services, particularly on unprofitable routes in rural areas, afloat.

On Dec 19, the Government pledged a RM400mil fund to support troubled stage bus companies. SPAD began receiving applications on Jan 3.

Stage bus operators in Malacca had threatened to halt their services from Feb 1 in protest over the state government's failure to solve the concessionaires' woes.

Malacca Omnibus Operators Association president Razali Endun said 10 of the concessionaires decided to halt their buses after no financial lifeline was rendered as pledged by the state government.

“The impending strike was aimed at forcing the state government to pay compensation to the ailing bus operators as promised in July.

“We have waited for the monetary assistance until Dec 31 but there was no response from the state government,” he said.

Last November, the Malacca Government agreed to buy all 10 stage bus companies servicing about 130 routes in order to alleviate the financial burden faced by the local concessionaire.

Razali said the bus operators suffered huge financial losses as much of their earnings were allocated for maintenance of their aging fleet, besides salary payments to about 1,500 staff.

“Our woes are further compounded by the existence of state government-funded bus service Panaroma which services lucrative routes.

“We are forced to ply the social route that is not covered by Panaroma, which is unfair to us,” he added.