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House resolution seeks to junk PUV modernization program, scrap franchise consolidation deadline

Metro Manila (CNN Philippines, December 7) — Lawmakers from the Makabayan bloc filed a resolution in the House of Representatives seeking to repeal the Omnibus Franchising Guidelines, the core policy of the government’s plan to modernize public utility vehicles (PUV).

Filed by Gabriela Partylist Rep. Arlene Brosas, Kabataan Partylist Rep. Raoul Manuel, and ACT-Teachers Partylist Rep. France Castro, House Resolution 1506 also urged the Land Transportation Franchising and Regulatory Board (LTFRB) to scrap the upcoming franchise consolidation deadline.“It is hereby resolved that the House of Representatives urge the LTFRB to revoke Department Order 2017-011, and to immediately remove the Franchise Consolidation Deadline on Dec. 31, 2023,” the resolution filed on Thursday read.According to the lawmakers, the Public Utility Vehicle Modernization Program (PUVMP) is “taking away livelihoods” of small and single vehicle operators and “giving it to big corporations and cooperatives.”The resolution said the policy “requires steep requirements” when qualifying PUV units on a route, citing the need for “a fleet of modernized jeepneys and terminals with modern amenities, among others.”“These requirements are available only to those with huge capital to begin with, like big corporations and cooperatives, who can easily acquire the needed facilities without going into financial ruin,” it said.The representatives cited a study showing that the cost of a modern jeepney is at P2.5 million which would require a PUV driver to have a daily income of P6,899.On average, a jeepney driver earns around P500 in daily take home income while an operator earns around P2,500 to P3,000 per day.The resolution also said PUV organizations like the Pinagkaisang Samahan ng mga Tsuper at Operators Nationwide (PISTON) have launched multiple transport strikes to protest the “phaseout disguised as a modernization program.”

READ: TIMELINE: The government’s PUV phaseout program

In a statement, PISTON said PUV operators are being forced to surrender their individual franchises to be consolidated into a single franchise per cooperative or corporation.

“This could result in a monopoly…concentrating market control in the hands of a few corporate entities,” the group said.

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