the free transport allocation paid to bus operators in respect of students and beneficiaries of the Basic Re…
(No. B/694) Mr F. Quirin (Third Member for Beau Bassin & Petite Rivière) asked the Minister of Land Transport whether, in regard to the free transport allocation paid to bus operators in respect of students and beneficiaries of the Basic Retirement Pension, he will state – (a) the quantum thereof paid to bus companies and private bus owners in Financial Year 2024-2025, and (b) if consideration will be given for a review of the formula for the payment thereof.
Mr Deputy Speaker, Sir, with regard to part (a) of the question, I am tabling the requested information which was obtained from the National Land Transport Authority (NLTA). As regards part (b), I am informed that the regulator has already started working on the proposals to review the existing methodology used for the calculation and payment of the Free Travel Subsidy. I am made to understand that the current formula, which dates back to the introduction of the Free Travel Scheme in 2005, is primarily based on fixed amounts for different routes and the estimated fleet utilisation for each operator.
76 As such, payments to the bus operators are made as follows – Bus Company Estimated Rate of Utilisation NTC 78% UBS 77% TBS 88% RHT 77% MBT 90% Individual Bus Operators including Rodrigues 90% The monthly free travel compensation per bus for Individual Bus Operators for the different routes including Rodrigues, range from Rs35,750 to Rs71,500 monthly. However, with the forthcoming implementation of the Fleet Management System (FMS) which will enable real-time monitoring of bus operations including number of trips performed and distance travelled, the NLTA will be able to effect the payment of the free travel compensation more rationally, fairly and judiciously since such payments would be on a trip basis. As such, Deputy Speaker, Sir, the Fleet Management System will undoubtedly allow for subsidy calculation based on the actual number of trips completed, thereby ensuring greater accountability, transparency, and alignment with level service delivery and therefore, better value to money to taxpayers. Thus, the revised payment formula along with the support of the FSM will soon put a full stop to the current state of chaotic affairs – it is quite chaotic, hon. Members will know – which has perpetuated and worsened over the last decade. Here, I would like to emphasise on statistics which showcase that – (i) there has been an increase of 51% in our vehicular fleet since 2015 to date with vehicles which registered at the NLTA – it was 486,000 plus, now it is 736,000 plus. Therefore, one would expect more people to use vehicles than buses. So, therefore, nothing has been done during the past 10 years and I am questioning that now; (ii) the number of buses licensed with Road Service Licences has decreased by over 100 buses in the last 10 years, and (iii) the metro express has been introduced since 2020 and it commutes some 40,000 passengers per day. So, one will expect less people travelling by the bus.
77 Despite the aforementioned figures, the payment mechanism and quantum for free travel compensation have remained almost unchanged and I condemn this irresponsible disbursement of funds over the last 10 years. This is why Mr Deputy Speaker, Sir, I maintained that the Fleet Management System will be a “Gamechanger”. A sum of Rs70 million, for the first time ever has been catered for this current budget exercise. The Consultant has finalised the document and same expected to be launched soon. Furthermore, a consultation exercise has been fixed for Thursday 24 July 2025 wherein all concerned stakeholders including bus operators mostly will be briefed on the Fleet Management System, the forthcoming Bus Services Bill as well as an introduction on the Cashless Ticketing System which is also in the list of projects in the pipeline for my Ministry. The above will undeniably bring a paradigm shift in the quest for the modernisation of the land transport, as provided for in the Government Programme 2025-2029.
Yes, hon. Member!
Merci, M. le président. Par rapport à la décision du gouvernement de repousser la pension de vieillesse à 65 ans, l’honorable ministre peut-il nous dire comment il compte s’y prendre en ce qui concerne les personnes du troisième âge, justement, qui voyagent gratuitement par autobus, il y aura-t-il des changements à ce niveau ?
In so far as this is concerned, I think there is no need for concern on this. There is no change.
The hon. First Member for Montagne Blanche and GRSE! BUS ROUTES 16, 80, 113 & 113A – TRANSPORT SERVICES – REMEDIAL MEASURES