50% taxi fare hike 'illegal'
50% taxi fare hike 'illegal'

50% taxi fare hike 'illegal'

A rival taxi association has warned that NTTU's actions are provoking disorder and lawlessness in the sector, by ignoring existing regulations and not following the correct procedures.
Jana-Mari Smith
Members of the Namibia Taxi and Transport Union (NTTU), who plan to impose their union's 50% taxi fare increase announced for September, could have their driver's permits revoked, transport officials have warned.

Despite taxi users and economists expressing concern that the 50% fare hike is uneconomical and no official authorisation for the increase has been given, the NTTU is set to announce the hike at a press conference today.

In a media invitation issued over the weekend, the union said the 50% price hike “will be effective 1 September 2018” and challenged works and transport minister John Mutorwa to “take legal action if the minister feels the NTTU is contravening the law by increasing the fare with 50% instead of 10%.”

The NTTU further said it welcomed the transportation board and “all public transport associations” to legally challenge the 50% increase if they are not happy with it.

The NTTU's mandate to order and enact an increase has been described as illegal by the ministry and the Namibia Bus and Taxi Association (Nabta).

Januarie yesterday shot back, saying the union has the “mandate to increase” taxi fares, because according to him the union “represents drivers in the industry”.

He said further the NTTU does not “have a recognition agreement with anybody who states that we cannot ask for that increment”.

He added the increases in taxi fares in Rundu, implemented last year, and the increase of Windhoek small bus fares, without “any approval or consent from the ministry” did not result in any permits being revoked or any other backlash.

Januarie also said the taxi union does not recognise the current Transportation Act, which defines taxi fare increase procedures.

“So why should we obey a law that we say is unconstitutional?”

Illegal

Damien Mabengano, the deputy director responsible for transportation regulations within the ministry, explained that applications for taxi fare increase can only be approved and endorsed by the transportation board, if the increase is more than 10%.

The NTTU's unilateral decision to increase taxi fares by 50%, without a green light from the transportation board is “illegal if not approved by the board”.

“They don't have the mandate to increase the fares,” he said.

He warned that NTTU members who decide to hike their rates come September, without prior transportation board approval, “are not complying to permit conditions and the board might or may withdraw their permits”.

He said the board has received the application for a 50% increase from the NTTU, in addition to a request for a 20% increase by Nabta, although Nabta yesterday said they are still consulting on the issue.

All increase applications received by the board are first assessed to investigate the “economic effect of the requested increase”, Mabengano said.

“You can't just jump up and say today we increase the fare.”

At issue is the affordability for commuters, and the trick is to balance the needs of the taxi operators, including owners and drivers, and the users of taxis, to ensure the fare hike is favourable to “to all parties”, he added.

He warned that an increase has ripple effects on the cost of living for the poorest of the poor, including students and families who rely heavily on taxis for transport to get to their jobs or obtain an education.



Sowing chaos

Nabta secretary-general Pendapala Nakathingo said the NTTU, under the leadership of Januarie, is deliberately “sowing total chaos” in the transport sector through their unapproved increase.

He warned that Januarie's actions are provoking disorder and lawlessness in the sector by ignoring existing regulations and not following the correct procedures.

He said the NTTU is setting a dangerous and unsustainable precedent, which could lead to other unions following suit and simply implementing much higher fare increases.

“Where will this end?”

Nakathingo said Nabta has to date not agreed on a fare increase proposal to put forward to the transportation board, adding a consultative conference was planned for this week, but was postponed due to the NTTU's announcement.

Nabta has previously supported a call for a 20% increase.

Januarie said he would address the concerns of affordability by commuters at today's press conference.

JANA-MARI SMITH

Comments

Namibian Sun 2024-04-25

No comments have been left on this article

Please login to leave a comment

Premier League: Manchester United 4 vs 2 Sheffield United | Everton 2 vs 0 Liverpool | Crystal Palace 2 vs 0 Newcastle | Wolves 0 vs 1 Bournemouth | Arsenal 5 vs 0 Chelsea LaLiga: Sevilla 2 vs 1 Mallorca SerieA: Udinese 1 vs 2 AS Roma | AC Milan 1 vs 2 Inter Milan | AS Roma 1 vs 3 Bologna European Championships Qualifying: Coventry City 2 vs 3 Hull City | Leicester City 5 vs 0 Southampton | Middlesbrough 3 vs 4 Leeds United English Championship: Coventry City 2 vs 3 Hull City | Leicester City 5 vs 0 Southampton | Middlesbrough 3 vs 4 Leeds United Katima Mulilo: 15° | 34° Rundu: 15° | 34° Eenhana: 15° | 35° Oshakati: 17° | 34° Ruacana: 17° | 35° Tsumeb: 18° | 33° Otjiwarongo: 14° | 31° Omaruru: 17° | 34° Windhoek: 15° | 29° Gobabis: 17° | 31° Henties Bay: 15° | 21° Wind speed: 22km/h, Wind direction: S, Low tide: 10:02, High tide: 04:02, Low Tide: 22:08, High tide: 16:27 Swakopmund: 15° | 16° Wind speed: 27km/h, Wind direction: SW, Low tide: 10:00, High tide: 04:00, Low Tide: 22:06, High tide: 16:25 Walvis Bay: 15° | 23° Wind speed: 35km/h, Wind direction: SW, Low tide: 10:00, High tide: 03:59, Low Tide: 22:06, High tide: 16:24 Rehoboth: 16° | 31° Mariental: 19° | 32° Keetmanshoop: 19° | 32° Aranos: 20° | 33° Lüderitz: 14° | 25° Ariamsvlei: 18° | 31° Oranjemund: 14° | 21° Luanda: 26° | 29° Gaborone: 18° | 31° Lubumbashi: 12° | 26° Mbabane: 15° | 20° Maseru: 12° | 26° Antananarivo: 14° | 26° Lilongwe: 14° | 27° Maputo: 20° | 27° Windhoek: 15° | 29° Cape Town: 16° | 24° Durban: 18° | 23° Johannesburg: 18° | 25° Dar es Salaam: 23° | 26° Lusaka: 18° | 29° Harare: 15° | 29° Currency: GBP to NAD 23.74 | EUR to NAD 20.38 | CNY to NAD 2.62 | USD to NAD 19 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.34 | EGP to NAD 0.39 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.72 | ZWL to NAD 0.04 | BRL to NAD 3.72 | RUB to NAD 0.21 | INR to NAD 0.23 | USD to DZD 134.41 | USD to AOA 834.06 | USD to BWP 13.85 | USD to EGP 47.85 | USD to KES 134.48 | USD to NGN 1277.03 | USD to ZAR 19.01 | USD to ZMW 26.4 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 74513.94 Up +0.68% | Namibian Stock Exchange (NSX) Overall Index 1545.38 Up +1.53% | Casablanca Stock Exchange (CSE) MASI 13346.81 Up +0.49% | Egyptian Exchange (EGX) 30 Index 25917.59 Down -3.21% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 332.76/OZ UP +0.71% | Copper US$ 4.51/lb UP +1.74% | Zinc US$ 2 867.60/T UP 0.22% | Brent Crude Oil US$ 88.81/BBP UP +0.92% | Platinum US$ 914.39/OZ UP +1.36% Sport results: Premier League: Manchester United 4 vs 2 Sheffield United | Everton 2 vs 0 Liverpool | Crystal Palace 2 vs 0 Newcastle | Wolves 0 vs 1 Bournemouth | Arsenal 5 vs 0 Chelsea LaLiga: Sevilla 2 vs 1 Mallorca SerieA: Udinese 1 vs 2 AS Roma | AC Milan 1 vs 2 Inter Milan | AS Roma 1 vs 3 Bologna European Championships Qualifying: Coventry City 2 vs 3 Hull City | Leicester City 5 vs 0 Southampton | Middlesbrough 3 vs 4 Leeds United English Championship: Coventry City 2 vs 3 Hull City | Leicester City 5 vs 0 Southampton | Middlesbrough 3 vs 4 Leeds United Weather: Katima Mulilo: 15° | 34° Rundu: 15° | 34° Eenhana: 15° | 35° Oshakati: 17° | 34° Ruacana: 17° | 35° Tsumeb: 18° | 33° Otjiwarongo: 14° | 31° Omaruru: 17° | 34° Windhoek: 15° | 29° Gobabis: 17° | 31° Henties Bay: 15° | 21° Wind speed: 22km/h, Wind direction: S, Low tide: 10:02, High tide: 04:02, Low Tide: 22:08, High tide: 16:27 Swakopmund: 15° | 16° Wind speed: 27km/h, Wind direction: SW, Low tide: 10:00, High tide: 04:00, Low Tide: 22:06, High tide: 16:25 Walvis Bay: 15° | 23° Wind speed: 35km/h, Wind direction: SW, Low tide: 10:00, High tide: 03:59, Low Tide: 22:06, High tide: 16:24 Rehoboth: 16° | 31° Mariental: 19° | 32° Keetmanshoop: 19° | 32° Aranos: 20° | 33° Lüderitz: 14° | 25° Ariamsvlei: 18° | 31° Oranjemund: 14° | 21° Luanda: 26° | 29° Gaborone: 18° | 31° Lubumbashi: 12° | 26° Mbabane: 15° | 20° Maseru: 12° | 26° Antananarivo: 14° | 26° Lilongwe: 14° | 27° Maputo: 20° | 27° Windhoek: 15° | 29° Cape Town: 16° | 24° Durban: 18° | 23° Johannesburg: 18° | 25° Dar es Salaam: 23° | 26° Lusaka: 18° | 29° Harare: 15° | 29° Economic Indicators: Currency: GBP to NAD 23.74 | EUR to NAD 20.38 | CNY to NAD 2.62 | USD to NAD 19 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.34 | EGP to NAD 0.39 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.72 | ZWL to NAD 0.04 | BRL to NAD 3.72 | RUB to NAD 0.21 | INR to NAD 0.23 | USD to DZD 134.41 | USD to AOA 834.06 | USD to BWP 13.85 | USD to EGP 47.85 | USD to KES 134.48 | USD to NGN 1277.03 | USD to ZAR 19.01 | USD to ZMW 26.4 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 74513.94 Up +0.68% | Namibian Stock Exchange (NSX) Overall Index 1545.38 Up +1.53% | Casablanca Stock Exchange (CSE) MASI 13346.81 Up +0.49% | Egyptian Exchange (EGX) 30 Index 25917.59 Down -3.21% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 332.76/OZ UP +0.71% | Copper US$ 4.51/lb UP +1.74% | Zinc US$ 2 867.60/T UP 0.22% | Brent Crude Oil US$ 88.81/BBP UP +0.92% | Platinum US$ 914.39/OZ UP +1.36%