The Land Transportation Office (LTO) said the new motorcycle taxi law should not set caps on the number of units but said data and evidence will be the basis of limits, if needed, as well as the Local Public Transport Route Plan.
Vigor Mendoza II, assistant secretary and LTO chief said this is the position of the technical working group (TWG) assigned to finalize the provisions of the motorcycle taxi bill.
“To put a cap at this early stage would be premature considering that there are so many factors of consideration in determining demand. Population is one, the need in a certain area is one——and all this is a matter of evidence that has to be proven,” Mendoza said.
No hard caps on the number of motorcycle taxi franchises and units will be set under the motorcycle taxi law now being finalized by the House of Representatives, as any limits to be imposed will be subject to the evaluation of the Land Transportation Franchising and Regulatory Board (LTFRB).
This was revealed during the deliberations , which on Thursday tackled the substitute bill that would pave the way for the legalization of motorcycles-for-hire, including motorcycle taxis.
During the hearing of the House Committee on Transportation last week, chair and Antipolo 2nd District Rep. Romeo Acop said it would be unwise to set caps in the proposed motorcycle taxi law as this would be addressed by competition among players in the motorcycle taxi industry.
“Business is all about competition. I do not see the wisdom of limiting … or putting in the law a provision to set the number of tricycles … or motorcycles in certain areas,” said Acop, who pointed out that the Department of the Interior and Local Government currently lets local government units (LGUs) determine the caps on the number of tricycles in their respective jurisdictions.
According to 1-RIDER Party-list Ramon Rodrigo Gutierrez, the members of the TWG were unanimous that limits should be determined by LGUs, and “will stand by not having hard caps on the proposed bill.”
Ronald Gustilo of Digital Pinoys said his group was pushing for caps in the law due to the dangers of the oversupply of motorcycle taxis.
Gustilo expressed fears an oversupply would mean less booking and thus less earnings for the motorycle riders.
But Gutierrez assuaged concerns regarding the oversupply of motorcycle taxis and emphasized that in the bill hammered out by the TWG, “in determining the number of franchises to be issued, the LTFRB shall take into consideration the LPTRP.
“The LTFRB shall approve the routes and number of units that may be allowed … there is no question on the fact on whether or not there will be limits, because there will be limits,” added Gutierrez.
The LPTRP is a plan detailing the route network, mode and required number of units per mode for delivering land transport service.