By JAY WHY
ThePenangStateGovernmentplanstotakeoverthelossmakingferryservices linkingGeorgeTownandButterworthwhiledeservingconsiderationshouldonly be allowed if the interests of all the stakeholders are taken care of.
Proponents for the privatisation argue that the ferry service, the oldest inthe country since1920,whichisdeterioratingcannotbelefttoworsenwhilethevestedparties including theoperatorPenangPortSdn Bhd(PPSB),PenangPortCommissionand the state government bickers on the matter.
TheFederalGovernment,astheregulator, mustlookaftertheinterestofallparties involved and not just from the interest of any single party.
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Theferryserviceshave alwaysbeencross-subsidisedbythe PenangPortoperator even when it was under the Federal controlled Penang Port Commission and later by PPSB after it was corporatised in 1994.
Theundertakingoftheferryserviceswaspartoftheconditionoftheport’s corporatisationunderitscorporatesocialresponsibilitytoPenangheritageand tourism.
From the peakof a dozen ferries inthe 1970s and 1980s plying the route before the openingofthePenangBridge,theiconicferryserviceshasdeterioratedoverthe years and now serviced by 4 vessels.
WhilethereareencouragingsignsthattheFederaliswillingtositandlistento PenangState Government’slatestproposal,theformershoulddemandthatthe interestofallstakeholdersincludingthestaff andmanagement oftheferryservices and commuters are safeguarded.
ChiefMinisterLimGuan Eng wasreported innewsreport that thestate wasinvited bytheTransportMinistrytoattendthepresentationledbytheministrydeputy secretary-generalofplanningDatukRuhaizahMohamedRashidthisweek.
State Secretary Datuk Seri Farizan Darus will represent Penang at the briefing.
“InourletterdatedDec8totheministry,wehavestatedveryclearlythatweare willing to take over the ferry services, provided all theconditions we set arefulfilled,” he said at a press conference in Komtar recently.
Limshouldunderstandthatinanybusinessnegotiationsthereshould be roomsfor compromise betweenallparties.Heshouldnotmakedemandthatonlythestate’s conditionsaremet.Itis unliketheunconditional termsofsurrenderdemandedbya victor in war!
TheinterestoftheFederalGovernmentthroughPPC,PPSB,theferryemployees and commuters must also be considered.
Thequestionsarewhowillbearthedebtandlossesoftheferryoperations, employmentoftheexistingstaffandmanagementaswellasinvestmentinnew assets such as ferries and upgrading of terminals?
Inmostmergeroracquisitions,thepartytakingoveranotherwillassumeallthe assets and debts as well as other obligations. The Penang Government cannot have the cake and eat it! WillthePenang StateGovernmentcallfora publictendertobidtheright tooperate the ferry services?
Willitsubsidisetheferryfaresandensurenoarbitrarilyfarehikes?WillPenang imposeaheritagetaxoneverytouristvisitingtheislandtosubsidisetheprivatised ferry operations?
Itwasearlierreportedthatthestategovernmentwantedtotakeovertheferry services, without bearing the debts incurred by the present management. It had also requested 30 more licences from the Federal Government to operate mini ferries or water taxis.
Thestategovernmentiswillingtoabsorballnon-managementworkersofPenang Port SdnBhd (PPSB)butthe servicesof managementstaff would bereviewed ona case-by-case basis.
SoCMLimpleasemakeyourprivatisationplansforPenangFerrypublicafter sharingitwiththeTransportMinistryasyouhavealwaysdemandedtheFederal Government to do so with any its privatisation proposals.
Good governance works both ways!
ThePenangStateGovernmentplanstotakeoverthelossmakingferryservices linkingGeorgeTownandButterworthwhiledeservingconsiderationshouldonly be allowed if the interests of all the stakeholders are taken care of.
Proponents for the privatisation argue that the ferry service, the oldest inthe country since1920,whichisdeterioratingcannotbelefttoworsenwhilethevestedparties including theoperatorPenangPortSdn Bhd(PPSB),PenangPortCommissionand the state government bickers on the matter.
TheFederalGovernment,astheregulator, mustlookaftertheinterestofallparties involved and not just from the interest of any single party.
Theferryserviceshave alwaysbeencross-subsidisedbythe PenangPortoperator even when it was under the Federal controlled Penang Port Commission and later by PPSB after it was corporatised in 1994.
Theundertakingoftheferryserviceswaspartoftheconditionoftheport’s corporatisationunderitscorporatesocialresponsibilitytoPenangheritageand tourism.
From the peakof a dozen ferries inthe 1970s and 1980s plying the route before the openingofthePenangBridge,theiconicferryserviceshasdeterioratedoverthe years and now serviced by 4 vessels.
WhilethereareencouragingsignsthattheFederaliswillingtositandlistento PenangState Government’slatestproposal,theformershoulddemandthatthe interestofallstakeholdersincludingthestaff andmanagement oftheferryservices and commuters are safeguarded.
ChiefMinisterLimGuan Eng wasreported innewsreport that thestate wasinvited bytheTransportMinistrytoattendthepresentationledbytheministrydeputy secretary-generalofplanningDatukRuhaizahMohamedRashidthisweek.
State Secretary Datuk Seri Farizan Darus will represent Penang at the briefing.
“InourletterdatedDec8totheministry,wehavestatedveryclearlythatweare willing to take over the ferry services, provided all theconditions we set arefulfilled,” he said at a press conference in Komtar recently.
Limshouldunderstandthatinanybusinessnegotiationsthereshould be roomsfor compromise betweenallparties.Heshouldnotmakedemandthatonlythestate’s conditionsaremet.Itis unliketheunconditional termsofsurrenderdemandedbya victor in war!
TheinterestoftheFederalGovernmentthroughPPC,PPSB,theferryemployees and commuters must also be considered.
Thequestionsarewhowillbearthedebtandlossesoftheferryoperations, employmentoftheexistingstaffandmanagementaswellasinvestmentinnew assets such as ferries and upgrading of terminals?
Inmostmergeroracquisitions,thepartytakingoveranotherwillassumeallthe assets and debts as well as other obligations. The Penang Government cannot have the cake and eat it! WillthePenang StateGovernmentcallfora publictendertobidtheright tooperate the ferry services?
Willitsubsidisetheferryfaresandensurenoarbitrarilyfarehikes?WillPenang imposeaheritagetaxoneverytouristvisitingtheislandtosubsidisetheprivatised ferry operations?
Itwasearlierreportedthatthestategovernmentwantedtotakeovertheferry services, without bearing the debts incurred by the present management. It had also requested 30 more licences from the Federal Government to operate mini ferries or water taxis.
Thestategovernmentiswillingtoabsorballnon-managementworkersofPenang Port SdnBhd (PPSB)butthe servicesof managementstaff would bereviewed ona case-by-case basis.
SoCMLimpleasemakeyourprivatisationplansforPenangFerrypublicafter sharingitwiththeTransportMinistryasyouhavealwaysdemandedtheFederal Government to do so with any its privatisation proposals.
Good governance works both ways!