Hike in bus fares and electricity rates

[posted 5 August 2009, 1530]

A 30% increase in bus fares approved by the government is exorbitant and will make life even more difficult for workers and the poor.

It is going to add to the hardship suffered by the majority of our people as the cost of living has risen markedly since the beginning of this year.

The Party feels the increase is unwarranted since the whole nation is reeling from the impact of devaluation, not just the bus owners.

FLP had warned at the time Devaluation was announced that it would have a devastating impact not only on the price of imports, but on all goods and services. We are seeing the effects of this now.

FLP welcomes the decision to directly protect families in the lower income bracket from increases in electricity tariff approved by government this week but fears that in the long term industries and the business community will simply pass off the increased cost to consumers through higher prices for goods and services.

The Party hopes that the Commerce Commission will review this 15% increase in electricity tariff, as it will have a damaging impact on the already troubled economy, and ultimately increase the suffering of families in the middle and lower income brackets.