TRANSPORT COOPERATIVE’S TWG VIS-A-VIS PUV MODERNIZATION

Representatives from the different transport coops gathered at the Manahan Hall of the PCC headquarters on February 20, 2020 to share inputs as well as experiences and solutions with agencies like the LTFRB (Land Transportation Franchise and Regulatory Board), DOTr (Department of Transportation) as well as in the Senate and Congress vis-à-vis the Public Utility Vehicles Modernization Program (PUVMP).

This meeting was a prelude to a meeting by representatives of the movement spearheaded by PCC with Chairman Martin Delgra III that had been set on March 6. Prior to this meeting, consultations among stakeholders in the movement had been conducted by PCC vis-à-vis the order of the 20/20 modernization program.

The PUVMP has its roots in the early 1990s during the administration of then President Fidel V. Ramos, but for some inexplicable reason, this fell on deaf ears in succeeding administrations—only to be revived vigorously under the leadership or President Rodrigo Roa Duterte.

In as much as transportation modernization is inevitable and is welcomed by cooperatives, what is needed is a more holistic approach for it to be beneficial to coops on one hand as well as the commuting public and the transport sector on another. In as much as the PUVMP is being accredited by the OTC (Office of Transport Coops) which comprises three out of ten participants vis-à-vis corporation-based transport groups, the OTC is strengthening its support on the issue of consolidation and building of the coop movement.

The painful reality in the scenario is on policy implementation of franchising and route allocation and consolidation which, under the current set-up with the LTFRB, is a very tedious process, especially with regard to records. Plus there is the penalty fee of P1,000 per unit per month. What was proposed by the group is to have a standard consolidation fee/amnesty fee that suits the transport coop set up as well as the demand by the subsector to make guidelines simpler, especially via a one-stop-shop at the LTFRB. Not to mention the need to waive old penalties which could be burdensome for transport coops with several units, some of which may be deemed inoperable due to age or condition.

As for route rationalization, those present noted how the LTFRB shows preference for transport corporations over cooperatives, plus the issue of corruption where a five-digit lagay (P50,000) will help speed up facilitation, based on the ‘who you know, how much you have’ syndrome. What the transport coops propose is to have preferential treatment for cooperatives, especially in existing routes; the need for a program/forum to help curb/limit the implementation of developmental routes while, at the same time, calling for a classification system for the different routes to be plied; and to come up with a route system that will not clash with existing ones.

As the adage goes, when the franchise is surrendered, the cooperative will be the one to manage it, which looks very good on paper. But in tandem with PUV modernization, how can this be more effective, especially with the June 30, 2020 deadline fast approaching?

For one, there are still not many new units that can replace the older ones to be phased out. And secondly, there is the dilemma on the need to have an area where these old vehicles can be scrapped, especially for environmental purposes. Thirdly, there is the need to increase subsidy from the present P80,000 to that based on the actual cost of the unit.

On another angle, there were also representatives from the taxi cooperative subsector, recommended a separate meeting between them and concerned authorities to discuss and develop programs for their services.

The group also raised the issue of lifting the number coding for cooperative-owned units via a separate meeting with the Metro Manila Development Authority (MMDA) in line with the pressing needs of commuters who demand more transport units especially during rush hours. They were also eager to propose the need for checks of safety standards that will benefit not only the drivers and operators, but the commuting public as well.

Not to be outdone, there was strong clamor for the groups to press the Bureau of Internal Revenue (BIR) to abolish the tax in the purchase of PUV units by coops which at present is being levied at 12 percent. In line with this is the need to have assistance from LTFRB in seeking customs exemptions for parts not available locally.

Then, they also agreed that their entities purchase units that are sturdier, safer, environment-friendly and Euro-compliant with regard to the latest emissions standards.

Also to be prioritized is a dialogue between PCC and transport services cooperatives on one hand and with the LTFRB and local government units on the other hand concerning route planning, plus the implementation of fleet management and franchising with LTFRB as well as capacity-building and massive education—with the need to have more trainers accredited by OTC.

Ending the TWG session was a presentation by Nueva Segovia Consortium of Cooperative of their Q-MI lubricants which they exclusively market, discussing the benefits of their multi-grade oil products in terms of vehicle operational efficiency and its environment-friendly properties that could well benefit these transport coops in search of innovative technical-support products, from within the movement.