Saving RNAC

THAT an overwhelming number of speakers at an interaction on National Civil Aviation Policy and RNAC’s Future favoured privatisation of the national flag carrier should come as no surprise. The suggestion for privatising RNAC has come forth from tourism entrepreneurs and aviation experts over the years regularly because of the gross mismanagement that the national airlines has functioned under especially during the 1990s. Telling facts and figures that reinforced the downward slide that RNAC has experienced over the past decade again emerged at the interaction. RNAC’s fleet has come down to nine—two Boeing 757s and seven Twin Otters—from 18 including a pair each of Boeing 727s and Boeing 757s in 1987. Truncated fleet drove it to cut out European, Singapore and Dubai routes last September. It has an overdraft of Rs. 1 billion and another Rs. 1.5 billion liability. Monthly loss in its domestic sector runs a huge Rs 10.5 million. It has not brought out its balance sheets for the past four years.

The above makes it pretty clear that RNAC is in dire financial straits and faces an uncertain future. Hence a call for privatisation seems reasonable. But there are other considerations too that need to be taken into account. RNAC suffers a huge loss on its domestic sector precisely because it sends its planes to places in remote Nepal where other private airlines would not go because of lack of financial viability. In that sense, it provides an important national transportation service. How’s that factored into a privatised RNAC? This is clearly one of the concerns behind Minister for Tourism and Civil Aviation Bal Bahadur K. C.’s assertion that the country does need a national flag carrier and that restructuring of its internal management should be a priority. Proponents of RNAC privatisation would do well to realise that the choice is not just between wholesale privatisation and wholesale governmental ownership. There are a number of ways of privatising a public sector undertaking without relinquishing all the social responsibilities of a carrier of this nature. In fact the national policy on civil aviation brought in soon after restoration of democracy clearly stated that international operation of the national flag carrier should be gradually privatised. In any case, it has become quite crystal-clear that RNAC needs a life-saving operation if it is to stand on its feet again, either as an autonomous, restructured and well-functioning public enterprise or as an entity in the private sector.

Forests Receive Attention

FORESTS, which have been called the wealth of the nation, is under dire threat not only due to encroachment to make room for the population which is growing at a high rate but also from haphazard and detrimental human activities like timber smuggling. A recent revelation had it that forests in the country covers about five million hectares, which is about 29 per cent of the total area of Nepal. As per the statistics provided by the Ministry of Forests and Soil Conservation, the average denudation rate is 1.7 per annum. It is an alarming situation which has to be tackled with both the short and long term strategies. The higher rate of deforestation in the hills at 2.3 per cent per year is a greater cause to worry about. Compared to the past, the formation of the forest users’ groups in various parts of the country has somewhat stemmed the destruction of forests as the users themselves are responsible for managing the forests. There are 1.1 million households involving 10,000 users’ groups working for the conservation of about 700,000 hectares of forests. This, though a small effort, is encouraging when it comes to protecting our natural heritage.

Considering the threat that the forests face, the government has decided to send three surveillance teams across the country to delve into the actual situation of the forests and submit their report within fifteen days. That the government is sensitive for the preservation of forests for posterity is reflected in this urgent move. As actual data is not available, the teams will be able to come up with the updates so that measures could be taken for stopping the forests from further deforestation. Forests have their multiple uses but unwanted destruction can lead to desertification of the areas where this is taking place. Once the teams present their reports, a clearer picture would emerge and the government could take specific measures to see that deforestation is checked. The example that the forest users’ groups have provided must be given continuity. The forests provide us with valuable timber, fuel wood, herbs and medicinal plants so their protection is very essential. The trees have to be cut down according to the needs of the local community but at the same time vigorous afforestation activities have to be carried out. Afforestation just on formal occasions means nothing unless steps are taken so that the new plants grow into strong big trees. The tendency to do nothing for planting trees is a common phenomenon here. This has to be uprooted and awareness generated among the people that afforestation as well as protection to the trees is necessary both for our welfare and for the future.