If we do not start to improve the situation immediately, in the next
two or three years the Ukrainian transport system will collapse completely.
This was the key point at a conference held by the Ukrainian Transport
Union.
Regression in the automotive transport sector has been especially dramatic
in recent years. The bus fleet has shrunk by 80% and transport enterprises
lack the funds to buy new equipment. According to Vitaly Reva, President
of the All-Ukrainian Association of Professional Automobile Drivers, 54,000
new buses urgently need to be bought. With an average price is $40,000
per bus, it is not difficult to figure out that this means serious money.
Even the subway system, is now facing serious financial problems. As reported
by Kiev Metropolitan Director Mykhailo Balatsky, since last autumn electricity
costs had risen by a million hryvnias.
Another aspect of the transport problem is losses from carrying passengers
legally entitled to free transportation. Currently, they number about 12
million which is 60% of all passengers. The transporters get practically
no compensation for transporting them: instead of Hr 1 billion needed in
1998 they received only 75 million. Under the circumstances, there is nothing
left for them to do but demand higher fares from those who pay. But will
our impoverished population sustain a new fare, say, one hryvnia?
As People's Deputy and President of the Ukrainian Transportation Union
Yevhen Marchuk put it, figuratively, there is a vicious circle in the transport
sector: Hr 1 billion is required as compensation for transporting privileged
passengers, and Hr 1 billion is the amount necessary to freeze transport
tariffs. Thus, the government ought to allocate Hr 2 billion to the transporters.
And to tackle the problem without infringing on the interests of the transport
enterprises and those who really need privileges requires political wisdom
which will one day win out, Mr. Marchuk thinks.
For the time being, the 1999 state budget does not provide one red cent
for this. Nonetheless, the UTU has developed specific proposals to improve
passenger transportation. Mr. Marchuk believes introducing a system of
mutual offsets with the Chornobyl and Pension Funds on the one side, and
the transporters on the other, as top-priorities. In addition, it is proposed
to exempt road transportation enterprises from the VAT, excise duties on
fuel, and to leave at their disposal all depreciation charges. As far as
the problem of transportation privileges is concerned, this should be dealt
with at the legislative level. All these measures would help prepare the
ground for further transformation of the transport sector, thinks UTU President
Marchuk.







