Public Utility Charges Will Be Frozen
By Lee Hyo-sik
Staff Reporter
The government plans to freeze public utility and transportation fees to rein in surging consumer prices in the wake of the growing costs of crude oil and other raw materials, to help improve the livelihoods of the low-income bracket.
It is also considering extending low-interest housing loans to low-wage earners amid rising housing costs, while lifting or lowering tariffs levied on 82 major import items, including grain and oil products.
The government announced these and other anti-inflation measures Thursday after an emergency meeting of economy-related ministers, presided over by President Lee Myung-bak at Cheong-Wa Dae. Strategy and Finance Minister Kang Man-soo, Financial Services Commission Chairman Jun Kwang-woo and senior presidential secretary for economic policy Kim Choong-soo were among the participants
The gathering was the second of its kind this year. President Lee held a Cabinet meeting early this month and instructed ministers to take all possible measures to tame inflation. At the time, the government decided to lower taxes on oil products by 10 percent, while scrapping excise taxes levied on liquefied petroleum gas used by taxis and slashing commuting costs by 50 percent.
Cheong Wa Dae spokesperson Lee Dong-kwan said the government decided to convene the emergency meeting to map out appropriate measures aimed at countering high costs of goods and services because of surging oil and other international raw material prices and the rapid depreciation of the local currency.
``The government will freeze all public services charges, including tap water and public transportation fees, by making public utility companies operate more efficiently and reduce costs. If necessary, we will provide financial help to provincial governments that are negatively affected by such measures,'' he said.
To help stabilize prices of nonferrous metals, the government plans to increase the weekly release of aluminum, copper, nickel and other metals to 4,800 tons. Currently, it supplies 3,500 tons of such metals to the market every week.
The spokesman said the government has selected a tentative list of 50 major items that it will closely monitor to ease the inflationary burden on the general public. ``The items are most frequently consumed daily necessities by the low-income bracket. We will finalize and announce the list soon after more inter-ministerial meetings and public hearings,'' Lee said.
The government also plans to overhaul the distribution channels of agricultural and livestock products to lower prices, benefiting both producers and consumers.