NTTU steps back from 50% fare hike
The Namibia Transport and Taxi Union (NTTU) has taken a more cautious stance on its demand for a 50% taxi fare increase effective this Saturday.
Earlier this month, the Namibia Competition Commission (NaCC) had warned taxi operators to desist from any price increases without the approval of the Road Transportation Board, as that would amount to prohibited price fixing in terms of the Competition Act.
The board is expected to announce its decision by the end of the week.
NTTU president Werner Januarie yesterday told Namibian Sun that although the union still wanted a 50% increase, it was trying to negotiate its way around the Competition Act.
“There's now the competition commission and there's also Nampol to consider. The taxi drivers can charge what's fair and we'll be there to speak on their behalf,” he said.
Januarie challenged the transportation board to indicate where in the Road Traffic and Transport Act it is stipulated that taxi drivers cannot charge more, in agreement with customers, than what is approved by the transportation board.
“In the absence of that, taxi drivers can charge even the amount of N$15 or any other higher amounts and also we're trying to assure taxi drivers that they have nothing to worry about,” he said.
Januarie argued that it was the Competition Commission's role to promote healthy competition and that it had “no role if businesses charge clients according to their own needs”.
Nevertheless, he denied any collusion or price fixing and said proof should be provided if that was the case.
He said taxi operators had nothing to worry about. “If anyone is accusing them of anything, it's for their accusers to prove their case beyond a reasonable doubt.”
Previously Januarie had insisted that a 50% increase would be effected on 1 September “whether someone likes it does not like it”.
Yesterday he said taxi drivers should continue to charge “any amount they wish” after informing their customers of the price.
He urged taxi drivers to “avoid fighting with customers at all cost”.
Januarie said customers should be informed of the fare before a trip, “as per the usual norms and practices, and if a customer doesn't agree with a set price, then just leave them there”.
He argued that neither the Road Traffic and Transport Act, nor the permit conditions for taxi drivers, prohibit negotiations between taxi drivers and commuters on non-standard routes.
“Neither the police nor any other persons can interfere as it would be a private agreement between two parties,” he said, arguing that such negotiations for special trips were part of the industry already.
Decision imminent
Damien Mabengano, the deputy director responsible for transport regulations at the ministry of works and transport, yesterday confirmed that an announcement on the fare increase was expected this week.
He said the Road Transportation Board had received three requests for fare increases. The Namibia Public Passenger Transport Association (NPPTA) requested a 10% increase, the Namibia Bus and Taxi Association (Nabta) 20%, and NTTU 50%.
Mabengano said the board had consulted widely, including with the various associations and unions, and with a new association representing commuters.
“They have consulted each association to discuss and to try and understand in terms of the sectors why they are calling for those increases.”
He added that the board had undertaken independent analysis and research to ensure all factors were considered, including the impact on commuters dependent on public transport.
Mabengano warned that taxi operators who increased fares by more than the percentage approved by board could lose their public transport permits.
“If they charge the 50% that is not agreed upon, they are not complying with permit conditions and if they are not complying, it's a good reason to withdraw the permit,” he said.
JANA-MARI SMITH
Earlier this month, the Namibia Competition Commission (NaCC) had warned taxi operators to desist from any price increases without the approval of the Road Transportation Board, as that would amount to prohibited price fixing in terms of the Competition Act.
The board is expected to announce its decision by the end of the week.
NTTU president Werner Januarie yesterday told Namibian Sun that although the union still wanted a 50% increase, it was trying to negotiate its way around the Competition Act.
“There's now the competition commission and there's also Nampol to consider. The taxi drivers can charge what's fair and we'll be there to speak on their behalf,” he said.
Januarie challenged the transportation board to indicate where in the Road Traffic and Transport Act it is stipulated that taxi drivers cannot charge more, in agreement with customers, than what is approved by the transportation board.
“In the absence of that, taxi drivers can charge even the amount of N$15 or any other higher amounts and also we're trying to assure taxi drivers that they have nothing to worry about,” he said.
Januarie argued that it was the Competition Commission's role to promote healthy competition and that it had “no role if businesses charge clients according to their own needs”.
Nevertheless, he denied any collusion or price fixing and said proof should be provided if that was the case.
He said taxi operators had nothing to worry about. “If anyone is accusing them of anything, it's for their accusers to prove their case beyond a reasonable doubt.”
Previously Januarie had insisted that a 50% increase would be effected on 1 September “whether someone likes it does not like it”.
Yesterday he said taxi drivers should continue to charge “any amount they wish” after informing their customers of the price.
He urged taxi drivers to “avoid fighting with customers at all cost”.
Januarie said customers should be informed of the fare before a trip, “as per the usual norms and practices, and if a customer doesn't agree with a set price, then just leave them there”.
He argued that neither the Road Traffic and Transport Act, nor the permit conditions for taxi drivers, prohibit negotiations between taxi drivers and commuters on non-standard routes.
“Neither the police nor any other persons can interfere as it would be a private agreement between two parties,” he said, arguing that such negotiations for special trips were part of the industry already.
Decision imminent
Damien Mabengano, the deputy director responsible for transport regulations at the ministry of works and transport, yesterday confirmed that an announcement on the fare increase was expected this week.
He said the Road Transportation Board had received three requests for fare increases. The Namibia Public Passenger Transport Association (NPPTA) requested a 10% increase, the Namibia Bus and Taxi Association (Nabta) 20%, and NTTU 50%.
Mabengano said the board had consulted widely, including with the various associations and unions, and with a new association representing commuters.
“They have consulted each association to discuss and to try and understand in terms of the sectors why they are calling for those increases.”
He added that the board had undertaken independent analysis and research to ensure all factors were considered, including the impact on commuters dependent on public transport.
Mabengano warned that taxi operators who increased fares by more than the percentage approved by board could lose their public transport permits.
“If they charge the 50% that is not agreed upon, they are not complying with permit conditions and if they are not complying, it's a good reason to withdraw the permit,” he said.
JANA-MARI SMITH
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