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Kathmandu,Monday March 20, 2000 Chaitra 07, 2056.
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Dial transport system hits consumers
By Bhaskar Sharma
KATHMANDU, March 19 - Though the law has allowed
transporters to adopt dial system of management for consumer benefit, consumers, however,
complain of inconvenience in the outmoded syndicate buses, especially plying through long
distances.
A majority of transport entrepreneurs in the
country has formed local syndicates, allowing plying only for syndicate members. They have
not only prevented new entrepreneurs from entering the transport business, but are also
involved in vandalizing buses which trespass the demarcation of different syndicates.
Ironically, while the government adopted
liberalized and free market economy about a decade ago, it also made a provision in the
Transportation Act, 2049, in 2050, allowing the practice of dial system, which is against
the philosophy of free market.
"The government’s bowing to bus
entrepreneurs and allowing them to operate on a dial system was a big mistake. Formation
of syndicates are against consumer interest since they do not uphold the spirit of free
competition," says Dhrubesh Regmi, a consumer activist at Forum for Protection of
Public Interest (Pro-Public),
Harendra Bahadur Shrestha, Chairman of Consumer
Forum Nepal (CFN), claims, "Although the government has repeatedly held talks with
various syndicates to eradicate the system and to open avenues for new and competitive
entrants, nothing has been achieved." Shrestha calls for amendments in the Act in
line with free market.
However, officials with the Department of Transport
Management (DTM) claim that the provision in the act has confined the role of the DTM that
has hindered in ensuring consumers’ free choice of buses for long distance travels.
"Long distance buses must be well maintained.
The syndicate system is not healthy in a free environment," comments Krishna Murari
Sharma, Director General with DTM, .
"The department is trying to discourage such a
system where consumers cannot exercise their right to choice, but the provision in the Act
and the lack of alternative has rendered our efforts unfruitful," he added.
However, he also said that to enhance the doctrine
of free market economy, the department is encouraging new entrepreneurs in operating their
buses without being a member of the syndicate.
Amrit Baral, an employee of Prithvi Highway Bus
Operators’ Committee (PHBOC), says, "The Committee does not allow non-member
buses to ply on this highway. In case they do, they are fined heavily."
Certain buses, however, do operate outside the dial
system. A handful of long distance non-syndicate bus operators run them during the day.
Managing Director of Makalu Travels, Tulsi Man
Singh, a company not affiliated with the syndicate, says, "Syndicate system creates
problems for our operation. Everyone knows about its monopoly in the market, yet no one
does anything."
"If syndicate system is done away with, the
old buses plying in the highways will be replaced by comfortable new ones," he says.
Many transporters affiliated with the syndicate
also agree that the system is not good. "While each bus can provide employment to
more than 5 people, the syndicate system with its ticket counters has reduced the number
of job offers," says Dharmendra R K, an official with Central Region Bus Operators.
"To delete the dial system, the government
should carry out study and determine the number of buses required in different
routes," says Sharad Uprety of Federation of Nepalese Transporters (FNT).
Birgunj is the only place where the dial system
does not exist. Other places like Rajbiraj, Janakpur, Gaur and Malangwa are slowly moving
towards adopting competitive policy.
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