The private bus operators seek to increase bus fares due to the increase in fuel prices. A reasonable increase, no doubt, is justified and cannot be opposed.

The price of diesel was raised by Rs. 3.00, furnace oils were increased by Rs. 1.90 and the price of kerosene was upped by a rupee. All that to cover losses incurred by the Petroleum Corporation!

Sri Lanka Telecom increased charges and will be free to continue to do so. The customers may soon be called upon to pay for repairs to telephone instruments and lines. Who knows, at this rate a day will come when you may have to collect your bills from the billing centre and effect payment to avoid disconnection of the lines. All these not to decrease profits.

Electricity charges were increased to cover losses. Water rates were upped. Prices of all goods and services have been increased and continue to rise. The ten rupee bread (not the 3.50!) has not been increased, but the weight and the quality are likely to decrease.

All these increases have been accepted as justified and have not been opposed. It is therefore not fair to oppose private bus fare increases when other increases have been allowed without a murmur.

The argument advanced in favour of a private sector dominated economy based on price mechanism, which is now in operation in our country, is that it is highly efficient in allocating resources and maximising productivity whilst affording maximum individual freedom and satisfaction. What we have however experienced is the ‘productivity’ in price increases, either due to mismanagement or the yearn to maximise profits.

It was Adam Smith, the economist, who argued that the driving force behind a capitalist system is nothing but self-interest as it is not from the benevolence of the baker or the butcher, that we expect our dinner but from their regard for their own interest. So why expect anything else from private bus operators? After all, they are plying buses to earn a living and gain some profit!

The Minister of Transport, who is bound to safeguard the principles governing the operation of the open economy, instead of opposing the increase in private bus fares, should increase the fleet of SLCTB buses and operate services without increasing bus fares. The private bus operators who will face competition from the SLCTB will then be compelled not to increase fares. That is competition in an open economy!

Upali S. Jayasekera
Colombo 4