[sustran] comments on profitability, subsidies, and more

[RVerzola]

>The big issue i see here is how to offer the subsidies to transit operators
>to ensure that they don't result in the massive inefficiencies that plague
>many systems with poor subsidy structures.

There are situation where a subsidy can result in inefficiencies, but
there are situations where it may not. Examples:

1. If the government subsidized (or even offered it for free) dental
services like tooth-filling or extraction, people will probably NOT
visit the dentist unnecessarily for an extraction. So, a subsidy may
work in this example.

2. If it cost less (or even free) to take a rail-based system (or even
a bus) because it is subsidized, people will probably NOT travel
beyond their destination simply because it won't cost them more. So,
here's another example where subsidy can work.

For everybody's information:

As was pointed out earlier, privately-owned public transport (like
buses and jeepneys -- jeepneys are essentially micro-buses, about 16
passengers per vehicle) are commercially viable in Manila as well as
in the provinces.

The light rail transit, which is operated by a government corporation,
is losing money (due to its huge foreign debt payments).


Obet
(Roberto Verzola)
Philippine Greens