River transportation gets dearer
On the face of it, increase in the rates of state-run ferry and passenger services by 25 and 35 percent respectively may sound reasonable. It can even be soft pedaled on the plea that the hikes are still below the cumulative fuel price rise at 42 percent. But on a closer scrutiny, this is a harsh step for the government to take.
Over the last three and a half years the government could do without an increase in the rates despite fuel price hike from time to time. What then compelled the authorities to increase rates, that too by such wide margins at one go? It is argued by a director of Bangladesh Inland Water Transport Corporation (BIWTC) that the organisation was incurring loss in passenger vessel services. Even allowing for such a loss, BIWTC has been reportedly making profit since 2001 grossing around Tk 330 million last year alone. We can only deduce that profits accrued from the ferry services. Why then the rates of cross-river transportation have been raised along with those of passenger vessels?
We seem to be caught up in a flurry of rate increases oblivious to a two faceted fall-out. One, the losses through corruption and high operating and maintenance costs are never factored in the costing. In other words, what falls through the cracks of the system can be staved off to take the burden off the users of the services. Through an infusion of efficiency and a cut-back on wastes, the latter seemingly nurtured by vested quarters to keep a finger in the pie, the very basis for arbitrary hikes will be obliterated.
The second and most important consideration that must weigh with the government is the unbottling of the genie of higher prices across the board. Already the private operators are charging more than the BIWTC and they would be raring to go for further increase unless effectively discouraged.
With a high rate of inflation and consequent depreciation in income and purchasing power, the cost of living has reached a critical threshold for a vast majority of people. To give them relief alternative options as indicated above will have to be exercised.
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