|
By JASON SOM KAUT
RESIDENTS and visitors to Lae will dig deeper into their pockets in
order to have a smooth ride on the city streets.
The business community in Lae has hatched a plan to add the cost of
fixing the road onto goods and services accessible to the general public
in the city.
The plan follows the frustrations and failure by both the provincial and
national government to release funds or front up with concrete plans to
fix the deteriorating roads in the nation’s second largest city.
President of the Lae Chamber of Commerce and Industry Allan McLay
confirmed yesterday that business houses in Lae were seriously
considering this option.
Mr McLay said bad road conditions were certainly adding to expenses but
many businesses had not yet passed the cost on as they were waiting for
the relevant authorities to act.
“Of course, if it continued any longer, it would become harder for
businesses and they would have to pass the cost to the consumers by
increasing the prices of their products,” Mr McLay said.
A study carried out recently said it would cost over K100 million to
improve the city’s roads to withstand its weather conditions. Recent
heavy rain has added to the damages to the roads.
While campaigning in Lae during the elections, Prime Minister Sir
Michael Somare promised to release K50 million to fix the roads. This
has not happened, and Lae MP Bart Philemon has questioned whether this
was another election gimmick.
Levi Takua, manager of a trucking company ABCO Transport, said they were
facing high overhead costs because of the bad roads and were passing the
added costs to their clients.
“We depended on running around and it is costing a lot to replace parts
because of poor roads,” Mr Takua said.
“The bad roads are cutting into our overhead costs and this is being
passed to our clients who, in turn, will no doubt, pass it on to their
customers,” he said.
It is estimated that spare parts alone now accounts for 60-70% of
maintenance costs, and this is the rate at which prices of goods and
services in Lae could rise.
Mr Takua said that trucks made turn-around trips in a day previously but
now had to wait for two to three days as they regularly go to the
workshops for maintenance.
Managing director of Hornibrooks Ltd Mal Lewis said the cost of owning
and keeping a vehicle in Lae was too high and the roads were unsafe.
He said small businesses and PMV operators were feeling the pinch of the
poor roads and could not make enough money to sustain their operations.
“The Industry is paying taxes to the Government to maintain roads and
Government must do its part,” he said.
The Lae Chamber of Commerce is likely to meet with Morobe Governor
Luther Wenge in the next few days to discuss their plan.
 
|
