Fares to Go Up

Fares go up
By ASHWINI PRASAD

www.fijitimes.com - Tuesday, August 04, 2009

COMMUTERS will have to dig deeper to meet transportation costs from tomorrow. Yesterday the Transport Ministry announced bus fares would increase by an overall average of 13 per cent, with taxi flagfalls and waiting rates to also increase. This follows a decision to cut back on the number of fare stages across the country by, in most cases, merging fare stages. The changes will result in an increase in some areas by up to 25 per cent. For example, fares in Suva and Lautoka will now cost either 70 cents or $1 for adults, with school bus fares at 50 per cent of the new adult fare. This follows the merging of the Suva and Lautoka stages 1 and 2 50 cents and 70 cents into a single stage. That single stage (the new Stage 1) will cost 70 cents from tomorrow. The current Suva and Lautoka City Stage 3 (75 cents) will from tomorrow be called Stage 2 and cost $1.

In other parts of Viti Levu, adult fares for stages 1 and 2, previously 50 cents and 70 cents, will now be counted as a single stage Stage 1 attracting a fare of 70cents. The current Viti Levu stages 3 and 4 (85 cents and $1.05) will be merged into a new Stage 2, attracting a charge of $1.15. The bus fare changes continue merging in this manner right through to the current Viti Levu Stage 79 $16.90 which from tomorrow will become Stage 40, attracting a fare rate of $17.75. For Vanua Levu the current 64 fare stages have been merged into 32 stages. Taxi fares will also rise, with the industry granted an increase in the flagfall of 50 cents, while the waiting rate will be 10 cents per minute. The Transport Ministry said the increases were the result of the devaluation and increases in fuel prices.

Fiji Bus Operators Association president Zain Dean welcomed the increase but refused to comment any further on the matter. Attempts to contact Fiji Taxi Union general Secretary Rishi Ram remained unsuccessful last night.

Electricity Users to Pay More

Consumers to pay more for electricity bills over $50
www.fijitimes.com - Tuesday, August 04, 2009

ALL electricity consumers whose bills are higher than $50 will have to pay 15 per cent more come September 1. This after the Fiji Electricity Authority was given the green light yesterday to increase its tariff by an average of 3.2 cents per unit (a 15 per cent increase) on September 1.
The increase will go across the board for all customer categories, except those considered "Life-line" domestic customers - whose monthly bills are less than $50 - and some institutions such as religious bodies, schools, council street lights and other non-profit organisations. A statement released by the Information Ministry said around 90 per cent of FEA's domestic customers fell into the "Less than $50/month" category, which means they would see no increase.

But it says for someone whose current consumption is around $60/month, the tariff increase would see their bill increase by $9 a month. This would mean that the 15 per cent increase in tariff is charged over the entire bill, not just the amounts over $50. "For a bill of $80/month - an increase of $12/month, for a bill of $100/month - an increase of $15/month," the statement said. The Transport Ministry justified the tariff increase, saying it was necessary because of the adverse financial impacts of devaluation of the Fiji dollar on April 15 this year, as well as the Commerce Commission's decision to remove the FEA fuel surcharge rate from March 11.

The increasing price of diesel and a possible El Nino later in the year were also contributing factors to this increase, the Transport Ministry said. It said the 15 per cent increase in the tariff rate would see the FEA gain additional revenue of about $2million per month. "This will help to improve FEA's cash flow as well as its financial covenants in its offshore loan agreements." The Transport Ministry said increases in customers' power bills could be mitigated if they reduced their consumption levels by using energy efficient fittings, changing electricity consumption habits and being energy-efficient. It said "the tariff increase was modelled as part of the Corporate Planning by FEA for 2009 to 2011".

Opportunities in Pacific - EC DG

Crisis offers region opportunities: EC regional director-general
www.fijitimes.com - Tuesday, August 04, 2009

"A SERIOUS crisis should never be allowed to go to waste... they hold real opportunities to refocus priorities, to make quantum leaps in terms of regional integration, to invest more and better, to stimulate economies, to achieve green growth and to redesign the international economic, financial and environmental architecture." This was the view of the European Commission's Director-General for Development and Relations with African, Caribbean and Pacific States, Stefano Manservisi.

He made the comment at yesterday's Lowy Institute conference on the impact of the global economic crisis on the Pacific Islands region in Brisbane. The conference was a lead-up to the Pacific Island Forum, which opened in Cairns, Australia today. "The global economic crisis shows how deeply the prosperity and the future of advanced economies and developing countries are linked through globalisation and that a global system of rules was needed for equitable sharing of benefits and costs," he said. Mr Manservisi stressed that advanced countries must create the conditions for a more inclusive and regulated globalisation, and to fight poverty and exclusion as a necessary element of a sustainable global recovery.

Mr Manservisi said participation of poor countries must be promoted in global forums such as the G20 where economic and political decisions were taken. "But," he said. "developing countries also needed to take measures to mobilise their domestic resources and stimulate private sector activities and growth". A statement released after his speech said the EU, that is the Commission and the Member States, remained a strong supporter of Pacific regional integration, being the second largest donor of aid in the Pacific region with $449.55m ($US227.7m) in 2007.

It said last year the Commission alone tripled its financial support for regional cooperation in the Pacific. The EC was also adminsitering a new financial instrument, dubbed the EU Vulnerability FLEX to assist ACP countries to the tune of $1423.8m (500m Euro) by 2010. "The EU also stands ready to support social safety nets and to promote investments in coordination with other donor countries in the region such as Australia and New Zealand", he said. The statement said the EU was interested in joining the Pacific Regional Infrastructure Facility that Australia, New Zealand, the World Bank and the Asian Development Bank launched at last year's Pacific Forum.