Narube: Fare increase to hit the poor hard

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Unity Fiji party leader Savenaca Narube Picture: FILE

The recent increase in bus fares will worsen the deteriorating living conditions of people who are already struggling daily to make ends meet, says Unity Fiji Party leader Savenaca Narube.

“The suffering of the people, especially the poor, has worsened with the large rise in bus fares,” the former governor of the Reserve Bank of Fiji said.

He said the Minister for Economy Aiyaz Sayed-Khaiyum was praising his smart borrowing in Parliament last week and a few days later, the higher bus fares blindsided the people.

While the reason for the increase was understandable, he said he was shocked that the Government was allowing the full brunt of higher international prices of fuel and food to be fully borne by the people when they were trying to emerge from the impact of the pandemic on their lives.

“No doubt, this will hit the poor very badly and push a lot of people below the poverty line.

“We had suggested possible actions that the Government could take to share the load equitably amongst consumers and businesses. Yet, the Government has refused to act.

“With this Government’s inaction, people must brace for things to get much worse

. “With the possibility of the war in Europe escalating, and the decision by India who is the second largest exporter of wheat to stop exports, this Government has seriously underestimated their impact on inflation and economic growth.

“Higher inflation will increase government expenses, raise interest rates and suppress demand. As had happened a few times during the pandemic, the rosy economic outlook that the Minister for Economy announced last week in Parliament is bound to come tumbling down.”

He said the e-ticketing system made this increase worse because people had to pay their bus fares in advance before they travel. This locks in the money that the people desperately need for other necessities like food. ”

Like it did during the COVID-19 pandemic, this government has grossly underestimated this inflationary crisis. Its inflation projection of 5 per cent is too optimistic.

“The increase in bus fares and fuel will trigger increases across all sectors.

“People must prioritise spending very tightly, stick to their budgets and grow their own food crops where possible.”

Questions sent to Mr Sayed-Khaiyum remain unanswered.

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