An analysis of subsidies policy for public transport in UK
“subsidy means money given as part of the cost of something, to help or encourge it to happen” (cambridge dictionary, 2015). In transport,..
Main Body
Organisation and Policy
Glaitser et al (2006) stated In Great Britain, Department for Transport responsible to include posts covering public transport, transport in London, roads and traffic national policy and aviation and shipping or logistic. They also suggest to public transport there is a 3 tier of government in charge of that are department for transport, sub-state goverment and local authorities. For rail services, the authority and accountability exist in Great Britain and sub-state government. While bus service, sub-state and local government authorities play the role. Subsidy given by the government through several ways, among others for the bus, a government subsidy to all buses operating with the distribution of three areas: rural areas, metropolitan and territories except london london. The subsidy for train through two ways are the operation and maintenance of infrastructure (White, 2009).
Why government do subsidy? goeverden et al (2006) stated subsidy is necessary for public transport. First, vulnerable groups such as low-income households, those without driver’s license, people with disabilities need to be motivated to avoid the problem of social exclusion. In this case the subsidy serves as a 'social function’. Second, limit the use of private
Amongst the many choices we have to make today, we also must make a decision on how we will get from point A to point B - utilizing public transportation or our own vehicles. Public transportation generally includes busses or trams for getting around town, and many large cities have commuter trains. While there are other forms of transportation such as taxis and for hire cars such as Uber, they can only move much smaller groups of people at a time. Public transportation in the United States and other developed countries is relatively safe, but recent issues regarding accidents is also taken into consideration. Some things to consider are comfort and convenience, cost, and environmental effects.
Public transportation has come to be something that many people of all backgrounds, ages, and statuses rely on. Without public transportation, it would be very hard for many to get around, especially students. It really is hard to imagine a world without public transportation, however, there once was a time.
Subsidies are defined as a sum of money granted by the government to support an industry or business so that the price of a good or service remains low and therefore competitive. (Oxford Online Dictionary, n. d.) Nevertheless, subsidies can vary in their form and the most common ones are for example direct payments in cash or kind, governmental provisions of goods or services of prices below the normal market price, governmental purchases of goods or services in excess of the market price and tax concessions. (Britannica, 2014) Consequently, subsidies are crucial for business sectors, such as agriculture, energy and transportation as a way of financing their operations and thus offering products to affordable prices. Especially, the primary
Transportation in the region has a long and successful past. However, public transportation has consistently taken a back seat to the personal automobile. There has been a strong core of persons who rely on public transportation to achieve mobility, and governmental
There are two main culprits of the public transport industry responsible for this mess. These are namely the bus and rail companies who despite, receiving large government subsidies, simply can't rectify their problems.
use the train to get to work. Our Government is responsible as it regulates 60% of train fares and these have
Often, buses are more convenient because they can use the widespread roads rather than be limited to the rails.
I would like to focus and investigate the lack of age appropriate transportation services for the elderly and people with disabilities. The issue of transportation becomes a major concern when the elderly and people who are disabled develop uncontrollable age related illnesses and are no longer healthy to drive. Losing the privilege to drive brings independence to an end and forces the elderly to stay at home which may lead to despair and other emotions. Therefore, it is essential to provide our senior citizens and people with disabilities with reliable transportation to help them maintain their independence. It is important to create reliable services to support them in making choices about how they want to live the last years of their
Reliable transportation would be important to any individual with a job, whether they have a disability or not. However, one in poverty could be at a disadvantage by not having reliable transportation (Vallas, et al., 2018). If one did not own a vehicle or have reliable transportation, it could lead to consequences at their work place. Some individuals who are capable of having jobs, are unable to because of not having the transportation resources. Not every town has city buses, taxi’s or other public transportation for individuals to use. Not having a job, can lead to an individual in poverty. As a result of unreliable transportation, this could lead to losing a job, meaning a loss of income for an individual. Besides work, transportation is needed to get to and from doctors’ appointments or therapy
Government subsidies are the benefits provided by the government of the country to specific products, businesses, or individuals in form of cash or the reduction of tax in order to back those products, enterprises, or people. There are usually static and gynamic effects of government subsidies. If to speak about the government subsidies in the United States, the biggest amount of them are given to energy companies that invest in US evergy facilities. These are companies that operate in the following areas: fossil fuels, renewable energy, nuclear energy, and energy efficiency.
The average amount of money the driver gets paid is $13 per hour, if they worked for 12 hours everyday they would get paid $156 each day. Without that money they wouldn’t really be able to live off of it they start making transit rides free. This shows that even though lots of people would be saving money from riding them for free it wouldn’t really be good for the transit driver because, if people stop paying the driver wouldn’t get paid anything and that's not fair. Ridership has increased from approximately $500 million in 2011 to $540 million in 2014, remarkably many people use the bus and if they start making it free there won’t be any revenue to pay the driver. Instead they would be driving people around town for free. To put it in another way already so many people have been using public transits that if they were to become free the transits would be filled with so many people. Additionally if people won’t pay for their transit ride, the driver also won’t get paid. For example if the driver doesn’t get paid he/she won’t have any money to buy and do so many different things that are necessary in life. Such as have food, water, and shelter. It won’t be fair to the drivers to drive so many people around town without even getting paid to do
(1) Kuala Lumpur has one of the lowest public transport passenger amount levels in Asia due to the rising ownerships and usage rate of private cars. The recently-launched Kuala Lumpur Structure Plan 2020 revealed that only 20 percent of total Kuala Lumpur passenger movements take place by public transport while 80 percent by private transport (Kuala Lumpur City Hall. Kuala Lumpur Structure Plan 2020, 2004). The public transportation has modern facilities, but with the poor system and low-quality service, therefore, more and more people are shifting from public transport to private cars and motors. Although the local government made efforts to introduce rails as public transport in the 1980s, expecting to slow down the speed of increasing motor vehicles, their popularity remained (Aldukali et al, 2011). The low efficiency also contributes to the shift. The buses and metros always arrive late, consuming more time for passengers to travel from house to work, which in turn further aggravates the low usage rate.
Public transportation is serious need of a massive overhaul in this nation. We are in desperate need to catch up to the European standard of public transportation in this country. In Europe, citizens can travel across cities, bodies of water, and even counties with their state of the art public transportation system. Europeans are not nearly as reliant on cars and oil as the United States is because they have the much more practical option of taking the transportation provided to them by the government to where ever they need to go. They have set a model that the United States needs to strive for and meet in the near future.
Public transportation can help reduce stress caused by driving, save money, and also protect our environment by reducing the number of vehicles on the road. In order to get more people off the road and into the public transportation system we must increase the number of buses and taxis that are available. We must also increase the number of stops available for daily bus routes. With more stops on the map more people are likely to use the bus system. Each city or town will be able to decide where more bus stops are needed and make the adjustments necessary to provide better service for the taxpaying citizens. Of course, none of this is possible without adequate funds in each town/city and the gas tax is guaranteed to provide those funds. Providing more public transportation will help us reach our ultimate goal of protecting the environment and ourselves.
(i) Subsidies: Subsidies are monetary payments government budget to lower their prices Long-term, low-interest loans and tax reductions are examples of subsidies.