The Interim Minister for Transport Timoci Natuva said the decision of the Fiji Bus Operators Association to withdraw its services is unwarranted.

Natuva said in January this year, the LTA granted a 10 percent increase in bus fares and on the first of this month, the government absorbed a further increase by paying 10 percent VAT Exclusive subsidy to all Fiji bus operators, based on the monthly revenue.

He said in the last six months, the fare increase and subsidy totaled to 20 percent increase in all bus operators' revenue which is a total increase in revenue of 12.5 million dollars for the bus industry.

Natuva said the Fiji bus industry on top of this, already enjoys a 18 cents per litre diesel rebate, basically buying diesel, duty free. He reveals that since January to May 2008, the interim government has paid out to the Fiji bus industry 2.7 million dollars fuel and tyre rebate.

Natuva said since 1974 to 2008, there has been a 197.6 percent increase in bus fares by LTA and the former Transport Control Board and no other private industry in Fiji has enjoyed such fare increases or rebates, concessions and subsidies. The Interim Transport Minister also confirmed that on 1st July, cabinet approved an automatic adjusting mechanism where increases in fuel price will automatically be increased in the 10 percent subsidy paid to registered operators. He said this is for the first time that any government has done this for the benefit of the bus industry.