Philippines
National
Public urged to join existing transport cooperative groups instead of starting new venture
Public urged to join existing transport cooperative groups instead of starting new venture
By Sonny Daanoy
The Cooperative Development Authority (CDA) urged the public on Thursday, Nov. 23, to consider joining existing transport cooperatives instead of establishing new ones for franchises.
During a televised interview on "Bagong Pilipinas Ngayon" of PTV, Board Member III and CDA Acting Administrator Assitant Secretary Myrla B. Paradillo highlighted the risks associated with establishing new transport franchises amid the ongoing modernization.
"Many still intend to register, but we encourage others to join existing groups instead of forming new ones so that we don't end up scattered everywhere," she said in a mix of English and Filipino.
"Because the requirements are somewhat burdensome due to modernization. If you establish a modernized transport cooperative, you might not have enough capital to purchase vehicles since the government subsidy is relatively small," Paradillo explained.
The assistant secretary pointed out that by the end of October, the number of cooperative registrants had increased from 900 to more than 2,000 transport cooperatives due to conversion, "and some others want to avail of modernization."
"This is a very huge responsibility so that support will be provided to our fellow citizens in the transport cooperative industry," she noted.
However, for those who insist on initiating their franchise in a specific area, Paradillo ensured that "we are assessing whether it is indeed necessary, and we are providing assistance."
"But if there's already an existing one in that area, they can't share a franchise because it might cause confusion. So, to avoid any trouble in the future, we need to start looking at those areas now," she pointed out.
READ:
Amid tension between various transport groups and the Department of Transportation (DOTr) regarding the Public Utility Vehicle Modernization Program (PUVMP), where the agency has stipulated Dec. 31 as the consolidation deadline, Paradillo elucidated their jurisdiction.
"Since there are cooperatives seeking assistance, although we shouldn't be involved in the franchise issue, there are times when we go to the LTFRB (Land Transportation Franchising and Regulatory Board) to help a specific cooperative that seeks assistance," she said.
"So, in modernization, the LTFRB and the CDA are working together to address the problems of the cooperatives," she added.
Moreover, Paradillo emphasized the ongoing cooperation between CDA, LTFRB, DOTr, and the Department of the Interior and Local Government (DILG).
"For the involvement of local governments in releasing the required route plans so that the LTFRB can issue their franchises," Paradillo said.
"Because without a routing map or plan, the LTFRB cannot issue a franchise," she explained.
"Our ongoing discussions are aimed at expediting the establishment of our transport cooperatives because we anticipate the implementation of modernized units in December," Paradillo added.