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VOL. 27, NO. 40, June 20 , 2008 (Ashadh 06 2065 B.S.)
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TRANSPORT
Knee-jerk Hike
Transport entrepreneurs master the art of seizing the moment
By A CORRESPONDENT
No sooner had the state-owned Nepal Oil Corporation (NOC) hiked the price of fuel by around 20 percent, the transport entrepreneurs seized the moment and, unilaterally, hiked the transport fares by up to 40 percent.
After the government declared that the unilateral hike was not acceptable, they resorted to strike forcing the government to back-pedal.
After a few round of talks, the transporters called off their indefinite strike but not before forcing the Transport Fare Fixing Committee to recommend 25 to 35 percent increase in transport fares.
According to Khagendra Mani Pokharel, director general of the Department of Transport Management, the fare fixing committee will recommend the new increase to the Ministry.
Their strike on Sunday had affected the movement of commuters in Bagmati zone including the capital valley.
The government's softened stance is a turnaround after it had earlier stated in clear terms that the move by transport entrepreneurs to unilaterally raise their fares won't be acceptable. Stating that the fares were increased massively without first seeking its approval, the government had also asked the commuters not to pay the increased charges.
"The transport entrepreneurs have raised the fares unilaterally and it won't be acceptable to the government," Uddhav Baskota, spokesperson at the Ministry of Labor and
Transport Management had told reporters, adding that it was done without giving time to the government to adjust fares.
Citing hike in prices of petroleum products and soaring cost of vehicles and their spare parts, the Federation of Nepalese National Transport Entrepreneurs (FNTTE) had on Tuesday decided to increase the charges by 30 to 40 percent depending on the distance.
A statement issued by FNTTE said long-route bus/microbus fares have been increased by 30 percent while short-route fares including that of taxi have been increased by 35 percent. Likewise, travel by LPG-operated vehicles and tourist buses will cost 35 percent and 40 percent costlier, respectively.
Earlier, with the government's permission, the NOC had announced POL price hike. The price of petrol has been increased to Rs 100 per liter from Rs 80 while the prices of diesel and kerosene have been fixed at Rs 70 and Rs 65 per liter, respectively. The price of cooking gas per cylinder has been increased from Rs 1100 to Rs 1200 (for Kathmandu valley) and Rs 1180 (for outside Kathmandu).
All in all, the round one of this tug-of-war between the government and the transporters has gone in favor of the transporters. At the end, it is the consumers who have been left high and dry
FNCCI
Private Commitment
The umbrella body of private sector comes up with its vision for economic development
By SANJAYA DHAKAL
At a time when politicians are only talking about new Nepal without explaining their plans on economic development to achieve the new Nepal, the private sector has come up with its vision.
Held two weeks after the establishment of republic, the special convention of the Federation of Nepalese Chamber of Commerce and Industry (FNCC), passed a 20-year vision forwarded by the private sector.
The vision document has been forwarded amid claims by some parties to attain prosperity equal to the status of developed countries within two decades.
The FNCCI has adopted strategies to attain 20 percent GDP growth rate. During the special annual general meeting held in Pokhara, Saturday (June 14), its president Kush Kumar Joshi demanded leading role for the private sector for economic revolution.
The 20-year vision developed by the FNCCI states that 10,000 MW hydroelectricity can be generated within the next 15 years and another 10,000 MW in next five years. This is in line with the agenda raised by the Maoists during the Constituent Assembly election campaign.
Similarly, the private sector has also vowed to provide employment to half a million people within the next five years and raise the per capita income to US$ 1,500. The vision paper also expects to achieve 15 percent growth in the export sector and to increase private sector investments by 45 percent during that period.
The FNCCI proposed the concept of build-operate-own and transfer and public-private partnerships in construction of physical infrastructures for electricity, education, roads, health, and fast track projects among others.
The FNCCI has, however, called on the government and the political parties to pay heed to their repeated calls for according priority to economic agenda; ensure security and create business-friendly atmosphere.
They have urged the concerned parties and groups to cease organising bandhs and strikes and guarantee the safety of their properties and investment.
Among others, the federation has also recommended expanding the tax net rather than tax rate. It has suggested dividing the existing VAT into three categories.
The FNCCI, as per the demands of its district chambers and local businessman, has also strongly demanded scrapping of Kabadi tax.
It has warned the authorities of strike if the Kabadi tax is not scrapped within two weeks.
Even as he unveiled grandiose vision and plans for economic development, FNCCI president Joshi reiterated that their immediate and most important concern is very basic – related to security of the businessmen.
"The businessmen have been threatened and displaced. In Terai areas like in Birgunj, they are compelled to change mobile numbers every so often due to fear of calls of extortion. No one can conduct business in such an environment of fear and terror," said Joshi.
The federation has also called for flexible labor policies and safeguard of their rights in the new constitution.
Inaugurating the assembly, Finance Minister Dr. Ram Sharan Mahat had said that it is high time the political parties give more importance to development works by putting the economic agenda of the country on their priority list.
Dr. Mahat said expressed concern over the "atrocities and highhandedness" of the radical leftist groups in the country, saying that their "extreme activities" are pushing industries and businesses to the brink of a collapse. "There are parties that are keeping the businessman and industrialists in great illusion promising that they would develop capitalism in the country," Minister Mahat claimed, referring to the Maoists regular meetings with the business community in the country.
He also cautioned the political parties that if they fail to turn around the country with rapid economic development even now then they will not be able to get away with it by laying all blames on the king like they have been doing in the past.
Around 450 FNCCI delegates from across the country took part in the special assembly that was held on June 13 and 14 in Pokhara.
