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Suspension of the Modernization Program Will Do More Harm Than Good– Coop Chamber PH

Photo courtesy: ManilaStandard.net

QUEZON CITY– The Philippine Chamber of Cooperatives Inc. supports the call of the ANGAT KOOPERATIBA AT KORPORASYON NG ALYANSANG PILIPINO PARA SA MODERNISASYON (AKKAPMO) to oppose Senator Raffy Tulfo’s proposal to suspend the Public Transport Modernization Program during the Senate Committee hearing on July 23, 2024.

It’s important to note that the modernization program has been in the works for some time, gaining momentum in 2017 and continued by President Ferdinand R. Marcos Jr. upon assuming office. The program has not been poorly planned, despite some senators’ attempts to portray it as such. President Marcos himself expressed his support for the program on December 12, 2023, stating that his administration will fully back the Public Transport Modernization Program.

According to the Department of Transportation and Land Transportation Franchising and Regulatory Board, 83.3% of the nationwide Industry Franchise Consolidation has been completed, with the cooperatives operating and meeting the public’s transportation needs. However, these cooperatives face challenges when starting, including accessing loans and meeting fleet management and personnel hiring requirements.

The coops have already invested huge amount of money on monthly amortization to financial institutions such as Landbank and DBP; therefore, suspending the program will only create more financial problems for the cooperatives.

With the modernization program well underway and many cooperatives already consolidated, it is puzzling why the Senate would consider suspending it. Suspending the program would only bring hardship to individual operators and drivers who have found success by forming these cooperatives.

While the program may have shortcomings, the solution is not to suspend it, but to institutionalize it through legislation This would involve providing more subsidies and tax incentives, especially for those interested in setting up local manufacturing or assembly of modernized vehicles in the Philippines. It is also critical to lower the cost of the vehicles and finalize the Local Public Transport Route Plan, as well as provide free common terminals by the Local Government Units (LGUs).

it should be noted that the government in developed countries, public transport is provided and managed by the government.

The Coop Chamber stated that in the Philippines, the private sector, represented by transport cooperatives in partnership with the government, plays a crucial role in creating a modern, well-managed, and environmentally sustainable transport sector. This allows drivers and operators to have stable, sufficient, and dignified livelihoods while ensuring that commuters arrive at their destinations safely and comfortably.

The passage of a law institutionalizing the Public Transport Modernization Program will benefit more the riding public.

Thus, the Public Transport Modernization Program must proceed.

NO TO SUSPENSION OF PUBLIC TRANSPORT MODERNIZATION PROGRAM!

YES TO PROGRESS SA BAGONG PILIPINAS!

Contact Person:



Edwin A. Bustillos

Executive Director

09178017309

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