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The Ministry of Social Policy suggests monetizing the public transport fare benefits

Monday, 23 February 2015 14:46

The Minister for Social Policy Pavlo Rozenko is advocating the monetization of benefits relating to public transport fares, he said in his interview with Delova Stolytsia weekly, the ministerial press-office reports.

“In Ukraine, above 11 million people obtain fare discount benefits. It’s clearly that the government cannot give the money in cash to all of them so that they can travel by public transport definite times a month. But applying a reasonable approach to monetization – if the money will be given to the most unprotected strata of the population – the government can pay  the fare for the most poorest citizens and avoid unreasonable expenditure“, - said Pavlo Rozenko.

He is of the opinion that reimbursement of those entitled to discounts is a big problem, because, according to the annual reports, some motor vehicle companies carry up to 90% aided persons a month. “That’s wrong. I’m an absolute opponent of the current model of set-offs between the government and transport companies. So, we should ensure free travel on public transport for certain categories of citizens, but only through monetization of benefits”, - said the Minister.

Pavlo Rozenko also noted that under prevailing conditions he cannot be a supporter of social welfare ID cards, because their issue and processing can instigate and form another corruption scheme.

“The approach to how better implement the social security benefit system should be thoroughly weighted. The issue of ID cards, instalment of POS terminals will cost billions of hryvnias that will leak out of the budget through tenders”, - he said.

‘The simplest scheme is when people pay fare in cash at the discounted rate, and government compensates in cash some part of expenses. There is no set-offs, everything is transparent”, - said Pavlo Rozenko, having added that the final decision on monetization of benefits applicable to transport fares had not been passed already, and the government is working out an efficient model of reimbursement for fares.

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