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Incentives, high toll rates good for bus firms

I AM pleased that the New Straits Times ran a story about express bus drivers admitting that they have to rush to do more shifts for long-distance driving as they are paid by commission on the number of trips they do.

Land Public Transport Commission (SPAD) chairman Tan Sri Syed Hamid Syed Albar said this was not a good way of paying drivers because it encouraged dangerous driving and contributed to fatal accidents, like what happened in Muar, Johor, on Saturday.

It’s a familiar tragedy that happens so frequently when the driver falls asleep at the steering wheel because of a lack of rest.

Controlled prices and tariffs, in the long run, hurt the economy.

The more controlled the price, the more difficult for companies to make profits and to forecast their earnings.

Why would express bus companies commit themselves to fixed- salary structures for their drivers when they are not sure what fare structure will be decided? To play it safe, companies reduce their operating expenditure, often at the expense of safety requirements.

Syed Hamid said the agency had recommended a flexible fare structure, which hopefully will be approved to create an incentive for express-bus companies to improve working conditions for their drivers, including employing local drivers instead of foreigners, and paying them higher monthly salaries instead of exploiting them with unfair treatment.

Bus travel is the most affordable mode of transport for the low-income groups, especially for long journeys.

To save money, some will switch to bus travel if they have to pay higher toll rates on the North-South Expressway.

The government can encourage the switch by allowing the concessionaire to increase toll rates.

Higher toll rates leading to fewer car owners will be good for road safety and the environment.

For bus companies , the higher toll rates will be a blessing in disguise as it will give them the opportunity to increase their fares without worrying about losing passengers, thus, opening a better revenue stream and more certainty of profits.

As many of the express bus companies are operated by Malays, or employ mostly Malays, there is every reason for the government to create the incentives for bus operators to be viable.

There is no need for subsidies that will do more harm than good.

Bus companies will find it easier to comply with high safety standards and pay better salaries.

TAN SRI MOHD SHERIFF
KASSIM, 
Kuala Lumpur

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