NewsWhore
01-27-2011, 04:30 PM
The National Business Council (Conep) has expressed its opposition to the government's planned legislation aimed at introducing a RD$1 tax on fuel to benefit select unionized transport business owners, and the announcement by unionized truckers under the National Federation of Dominican Transporters (Fenatrado) of a 30% increase in cargo freight charges. Conep president Manuel Diez Cabral said that entity is studying what legal recourses the organization may have to move beyond talk against the imposed 30% hike in freight transport tariffs, as reported in Diario Libre.
Diez Cabral said that Fenatrado's monopolistic actions have serious consequences in the shape of cost increases for companies that are becoming less competitive. Fenatrado truckers are known to use vandalism and violent actions to impose themselves on cargo owners as the forced transporters with the indifference of the government and law enforcement agencies.
"The business sector does not recognize Fenatrado's legitimacy to establish monopolistic practices that violate the Constitution, undermine the rule of law and affect not only the competitiveness of companies in the country, but also the price of items," said Diez Cabral. He said that on several occasions, business representatives have asked the government to put a stop to the Fenatrado monopoly but nothing is ever done to tackle the situation.
The Conep president said that the business group was now studying possible legal action against the forced monopoly. "Talk has obviously not been enough", he said.
Diez Cabral said that if the government established conditions that allowed the free hiring of transport services, this would mitigate some of the inelastic variables such as the cost of petroleum and inputs that are subject to international prices and are increasing. He said that the cost of transport is passed on to final consumers. "If you will export a product and it costs you 30% more to take it to port, that will have a direct impact on the price of items," he stated.
More... (http://www.dr1.com/index.html#4)
Diez Cabral said that Fenatrado's monopolistic actions have serious consequences in the shape of cost increases for companies that are becoming less competitive. Fenatrado truckers are known to use vandalism and violent actions to impose themselves on cargo owners as the forced transporters with the indifference of the government and law enforcement agencies.
"The business sector does not recognize Fenatrado's legitimacy to establish monopolistic practices that violate the Constitution, undermine the rule of law and affect not only the competitiveness of companies in the country, but also the price of items," said Diez Cabral. He said that on several occasions, business representatives have asked the government to put a stop to the Fenatrado monopoly but nothing is ever done to tackle the situation.
The Conep president said that the business group was now studying possible legal action against the forced monopoly. "Talk has obviously not been enough", he said.
Diez Cabral said that if the government established conditions that allowed the free hiring of transport services, this would mitigate some of the inelastic variables such as the cost of petroleum and inputs that are subject to international prices and are increasing. He said that the cost of transport is passed on to final consumers. "If you will export a product and it costs you 30% more to take it to port, that will have a direct impact on the price of items," he stated.
More... (http://www.dr1.com/index.html#4)