No rise in bus fares

THE Windhoek City Council (WCC) will not increase its bus fares following last week’s hike in fuel prices.

This is despite the city expecting the bus service to run at a loss of N$12,5 million this year. Last year it cost the Municipality N$11 million to run the bus service.Chief of Corporate Communications at the WCC, Ndangi Katoma, said that in terms of a Council agreement when the budget for this financial year was approved, it was decided that the price of bus tickets would remain at N$5 per trip.Municipal bus fares have remained unchanged since 2002.By the end of the 2004-05 financial year, the Municipality would have suffered a total accumulated loss of N$104,5 million.At present, the losses are covered by income from property tax.Despite placing a burden on the municipal budget, the Council says the service is both critical and social in nature.Last month, the Council agreed that the city investigate the possibility of outsourcing the service.For the past three years the bus service has operated without any capital expenditure.The city’s bus service relies on old buses which, since 2003, have cost ratepayers more than N$3 million a year in repairs and maintenance.Salaries for bus drivers and other staff in charge of the fleet are expected to cost more than N$10 million this year.Bus drivers are appointed on a contract basis only.Last year it cost the Municipality N$11 million to run the bus service.Chief of Corporate Communications at the WCC, Ndangi Katoma, said that in terms of a Council agreement when the budget for this financial year was approved, it was decided that the price of bus tickets would remain at N$5 per trip.Municipal bus fares have remained unchanged since 2002.By the end of the 2004-05 financial year, the Municipality would have suffered a total accumulated loss of N$104,5 million.At present, the losses are covered by income from property tax.Despite placing a burden on the municipal budget, the Council says the service is both critical and social in nature.Last month, the Council agreed that the city investigate the possibility of outsourcing the service.For the past three years the bus service has operated without any capital expenditure.The city’s bus service relies on old buses which, since 2003, have cost ratepayers more than N$3 million a year in repairs and maintenance.Salaries for bus drivers and other staff in charge of the fleet are expected to cost more than N$10 million this year.Bus drivers are appointed on a contract basis only.