TAWAU: Member of parliament Datuk Chua Soon Bui questiened how long and how much more could the government afford to continue subsidizing AirAsia and MASwings.
Chua said in a short span from 2008 to 2010, the government through the Ministry of Transport, had subsidized RM400 million for its Rural Air Seivices (RAS) in Sabah and Sarawak.
She was responding to Datuk Jejaing Mersat's reply in parliament that the ministry had paid RM250 million in subsidy to AirAsia for its RAS in Sabah and Sarawak for its operation for 14 months from August 1, 2006 to September 30, 2007, but the service was terminated due to the poor services and high costs incurred by AirAsia.
Jejaing said the services had improved after MASwings took ever such RAS route.
In addition to the cost over ran by MASwings last year, the minister had also replied to Chua's question in June that the Transport Ministry had further paid out another RM150 million, making the total cost of RM400 million to AirAsia and MASwings in subsidies.
Chua said in view of the bankruptcy warning as announced by Senator Datuk Idris Jala on subsidy, it was very unfair to cut direct subsidies and increase the prices of essential items to the people in Sabahand Sarawak when subsidies to the corporate sector were running even higher.
"How much more can the government sustain on providing the subsidies to MASwings now on RAS from the pockets of the taxpayers," she asked.
She proposed that the government’s Auditor Genetal investigate such a huge subsidy as the public deserve to know how much public fund was utilised.
Chua also proposed that the Ministry of Transport should study on the long-term policy on RAS route for Sabah and Sarawak or whether the government should keep it as a monopoly, especially with the merging of MAS and AirAsia recently.
"Any open policy will surely open up more competition, lower the fares, and consumers will have a choice " she said.
The Borneo Post
Wednesday, November 9, 2011
Page A11
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