Haddad says that revoking the readjustment will cost R$ 1,4 billion.
The mayor showed a cost spreadsheet to members of the Free Fare Movement and the City Council; "If the fare is revoked and frozen at R$ 3,00 until 2016, as demanded by the movement, R$ 1,4 billion will be needed this year and a total of R$ 8,6 billion in subsidies until then," said Fernando Haddad; "Regardless of the decision I make, I have to inform the city about the costs"; MPL called for a new demonstration today at 17:00 PM in Praça da Sé; Haddad is expected to announce whether he revokes or maintains the fare increase this week.
247 - The repeal of the R$ 0,20 increase in bus fares in São Paulo and the freezing of fares at R$ 3,00 will cost R$ 1,425 billion in subsidies in 2013. Another R$ 2,085 billion will have to be spent in 2014 to keep the system running. For 2015, the amount of funding needed to keep the fare at R$ 3,00 will be R$ 2,392 billion, and another R$ 2,714 billion in 2016. These figures were presented by Mayor Fernando Haddad to members of the Free Fare Movement and the City Council at a meeting on Tuesday morning, the 18th, at City Hall. Before the presentation of the costs, the council members who spoke unanimously asked the mayor to reverse the fare increase.
"I have to be transparent and show the city what this decision means," the mayor replied, closing the meeting. "This subsidy money will have to come from somewhere, otherwise the system will not continue to function."
Before Haddad, the municipal Secretary of Transportation, Jilmar Tato, demonstrated the proportional weight of the costs of the capital's bus system in the composition of the fare. More than 48% of the price of a ticket goes towards paying personnel, such as drivers and conductors. The profit of public transport companies does not exceed 7% of the fare, according to information from the City Hall.
"You squeeze and squeeze, but you won't be able to extract all the necessary subsidies from the system itself alone. I'll have to see what needs to be cut from the budget," the mayor indicated.
Tato demonstrated that, with the introduction of the single ticket in São Paulo during Mayor Marta Suplicy's administration between 2001 and 2005, the average price of bus tickets in the city today is just over R$ 2,00.
NEW MEETING - Haddad declined an invitation from the MPL to attend a meeting of the movement tomorrow at the headquarters of the journalists' union in downtown São Paulo.
I will meet with you again this week. But I prefer it to be here at City Hall. I was elected, and as long as I'm here, this will be the people's house, open to everyone.
After opening the meeting by stating that "a political decision will have to be made," the mayor was followed by six speakers from the Free Fare Movement. Then, in a reversal of the original agenda, the members of the City Council spoke first, followed by Tato, to explain the fare structure, and Haddad.
"I'm not going to use any of those student assembly tricks you're learning now, which I've known for a long time," the mayor began in his closing remarks. He wanted to remind everyone of his past as a leader of a student organization.
Dodging interruptions from MPL members, Haddad concluded his presentation by making it clear that he might even revoke the fare increase – the initial reason for the march of approximately 100 young people on Monday evening, the 17th, from Largo da Batata to Avenida Paulista – but that he has not yet made that decision.
I will reflect on it, but I want the city to know the cost that revoking the fare increase will have.
The mayor pointed out that the R$0,20 fare increase was the smallest in recent years. He criticized the lack of mass protest, such as the ongoing student marches, at the time these fare increases occurred.
"Except for you from the Free Fare Movement, I didn't see anyone complain in the past when the price of bus fares went up," he complained, referring to the increases that occurred during the administrations of José Serra and Gilberto Kassab.