Transportation Regulation: The LTFRB versus TNVS Compact Cars

Jonathan Vegamora
3 min readFeb 7, 2018

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On the 17th of January, the Land Transportation Franchising and Regulatory Board (LTFRB) struck another blow to the transport network vehicle services (TNVS) sector by warning the owners of hatchbacks and compact cars that they must have their vehicles changed by March of this year. The spokesperson of the LTFRB claimed that such vehicles are uncomfortable and unsafe for passengers citing the lack of space inside, especially for tall people.

By the way, a hatchback/compact car looks like this. From Motor Trend.

Words from A Senator

Senator Grace Poe recognized that safety is a “paramount concern in any mode of public transportation” but she was not able to understand the point of the LTFRB: since the vehicle is safe for family and personal use then how is it not safe for passengers? She then added that such “stringent measures” should be imposed on all public utility vehicles for passenger safety besides compact cars and hatchbacks.

She also reasoned that fewer TNVS operators would mean fewer provided services for the TNVS-riding population, which led her to predetermine the policy steps of the LTFRB: with fewer TNVS operators on the road, does that mean that the moratorium on TNVS applications will be lifted?

The senator also spoke about the human-side of this policy measure arguing that the LTFRB must “act humanely” when it comes to enforcing its regulations. In the past, TNVS operators with hatchbacks and compact cars were able to operate for two years under the old guidelines without incident and so the agency should consider the livelihood of the drivers who will be affected. Their livelihood cannot just be suddenly revoked. She said that the agency must provide a “considerable amount time” for the operators to replace their now banned vehicles.

The Affected

The sentiment among the affected TNVS operators regarding the LTFRB’s new policy measure was pessimistic. They feared the loss of their livelihood, worried about feeding their families, and tried to come to terms with the financial cost of acquiring a sedan while paying off the existing car loan on their newly acquired compact vehicle. Not only are finances and basic necessities at stake but familial relationships as well. A former Overseas Filipino Worker (OFW) is now able to work close to home after 20 years of work abroad thanks to the TNVS sector. However, given the new policy measure, he might just have to return overseas to provide for his family.

The vice president of the Metro Manila Hatchback Community said that besides nullifying the livelihood of drivers, the new policy measure will also increase the magnitude of surge pricing from TNVS providers and the waiting times of the riding public. He further added that the regulation can be less punitive and more considerate by expanding the transition period from 3 months to several years for drivers replacing their compact cars with sedans.

Change of Policy

Last Monday, February 5th, the LTFRB announced that it would temporarily permit the use of compact cars and hatchbacks by TNVS providers but on two conditions: the trips have to be within Metro Manila and the fares must be lower, a mandated price ceiling. The basis of this slight change in policy came from considering the welfare of the drivers’ families if its original policy proceeded in its current form and recognizing the benefits to the driver of having a hatchback or compact car. These kinds of vehicles consume less fuel, release less emissions, and is easily within reach for a small family budget.

A Long Sigh

The TNVS operators who drive hatchbacks and compact cars should serve their customers freely even if they have limited resources. They also have families to sustain. These vehicles may not be the safest, most comfortable, or most advantageous when driving with much larger vehicles but they fulfill their transport roles just fine for both drivers and passengers.

Paid drivers and transported passengers are the benefits of economic freedom in the TNVS sector. Restricting it will not only impoverish those who are willing to provide a service but also leave stranded those who demand that service.

References

http://www.philstar.com/metro/2018/01/17/1778465/ltfrb-no-compact-cars-tncs

http://newsinfo.inquirer.net/961049/breaking-poe-to-ltfrb-act-humanely-review-plan-to-bar-hatchbacks-compact-cars-as-tnvs

http://www.philstar.com/metro/2018/01/18/1778807/ltfrb-ban-small-cars-tncs-hit

http://www.gmanetwork.com/news/news/nation/640519/grab-uber-drivers-unhappy-with-ltfrb-rsquo-s-plan-to-ban-hatchbacks-limit-tnvs-units/story/

https://news.mb.com.ph/2018/02/05/ltfrb-allows-use-of-hatchbacks/

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Jonathan Vegamora

Roman Catholic | Isko | Americanized Filipino Expatriate | Economics | Swing Dance | Bookworm