With a joint document that they made this Wednesday after a virtual meeting, mayors of the main cities in the interior of the country asked national legislators to intercede to manage funds of the central administration destined to settle the transportation dispute.
The Rosario president, Pablo Javkin, held a video conference meeting with his peers Santa Fe, Emilio Jatón; from city of Córdoba, Martín Llaryora; and of San Carlos de Bariloche, Gustavo Enrique Gennuso.
Then they were pronounced in conjunction with a letter for national deputies and senators to “make known the delicate situation economic and financial of the public service of automotive transport “in different large cities except for Buenos Aires and its metropolitan area, where subsidies are maintained, wages were paid on time and the service was not interrupted.
“We are strongly affected by the historical asymmetries of national compensation distribution”, The signatory mayors complained in this regard, and note the suspension of fixed and monthly quotas of the Interior Compensating Fund that expired last April 30.
They warn that urban and interurban transport companies in the interior “have suffered really significant losses” from the beginning of the mandatory isolation due to the pandemic of coronavirus. They speak of a fall in demand that “has reached 90%, with zero income.”
In this framework, the mayors remind legislators that the services are unemployed –in Rosario they are more than two weeks– and they mention that, in addition, the situation “will demand a comprehensive restructuring of the system so that it is sustainable over time”.
“In the case of the city of rosary beads –Details the document–, Losses due to rate revenues exceeded 10 million pesos per day, estimating a drop in the collection of 680 million pesos in the first 65 days of isolation ”.
Thus, “It is requested that it be treated equally –The distribution of funds– as they have been with other activities, injecting resources that allow us to return to the activity, ”and they ask each national legislator “That the extension and reinforcement of national compensations be managed.”
In this context, an online meeting that was considered key to unlock the public transport strike failed on Wednesday. The measure of force in Rosario and other cities continues and would extend at least until Friday, thus completing three weeks without groups in the city and the entire department.
The complete document
To whom it May concern
S / D
From my highest consideration:
Hereby, we address you. In order to inform about the delicate economic and financial situation of the public automotive transport service in the cities of Rosario, Córdoba, Santa Fe and Paraná that we are strongly affected by the historical asymmetries of distribution of national compensations with respect to the National Jurisdictions and those destined for the interior of the country.
With the latest modifications in the structure of national subsidies, companies in the interior of the country accessed fixed and monthly installments of the Internal Compensation Fund, which expired on April 30 of this year. Meanwhile, companies that provide services in national jurisdictions maintain and access subsidies that compensate for the monetary differences between technical rates and current rates.
In other words, currently, inland cities with and without SUBE do not have current national subsidies that allow the provision of this public service, also considering that SUBE is a subsidy to demand but that it is inefficient in this particular situation that is requires attending the benefit offer. At the same time, the rendering companies in AMBA (National Jurisdiction) have subsidies that contemplate the differences in costs and rates. Without considering yet, that the service coexists with alternative and complementary transport systems with high subsidy rates as well, such as trains and subways.
In the current context of Health Emergency against the COVID-19 and before the different measures adopted by the National Government, the transport sector has suffered economic imbalances, which have been overcome with the joint effort of the operating companies, the Municipal and Provincial States , which has made possible the continuity in the provision of services, guaranteeing mobility for the excepted personnel who fulfill essential functions within each city.
Companies have suffered truly significant losses since the start of ASPO, which have accumulated due to the continuity of the operation. Operating costs are difficult to sustain without genuine income. The fall in demand that has reached 90%. Being the null income from the beginning of the cessation of the benefit and the fixed expenses; mainly wages; they continue to accumulate month by month. & nbsp.
The situation of public transport service providers in the interior of the country prior to isolation was already complex due to the cut in national subsidies in 2019, the successive devaluations and increases in the prices of the main inputs.
This situation strongly impacted many of the cities in the interior, which are today without transportation, due to non-compliance with labor obligations, caused by the lack of resources. The efforts were many to fulfill the services, but extra resources are needed to get out of this particular situation and it will require a comprehensive restructuring of the system so that it is sustainable over time, without affecting job sources and can be converted in pursuit of sustainability.
In the case of the city of Rosario, the losses due to fee income exceeded 10 million pesos a day, estimating a drop in the collection of 680 million pesos in the first 65 days of isolation. In the city of Santa Fe, the losses amount to an average of $ 2,200,000 pesos per day, since the dictates of the isolation state, overcoming a deficit of more than 120 million pesos.
In the city of San Carlos de Bariloche, losses amount to $ 1,500,000 per day, including a 70% decrease in service, and cannot afford administrative expenses.
It is key to clarify that urban passenger transport has been made available and all the recommendations have been taken in terms of prevention, requirements and solidarity that are necessary to face this exceptional situation, it is requested that it be treated equally as They have been with other activities, injecting resources that allow them to return to the activity, as well as allowing their continuity in the subsequent months.
For all the above, you are requested. take into account the delicate economic context in which the activity continues to be developed, requesting that the extension and reinforcement of national compensations be managed so that they allow the support of the borrowing companies of many of the cities of the interior of the country.