A passenger swipes his Jamaica Urban Transit Company Smartcard on a bus in downtown Kingston yesterday. - Ricardo Makyn/Staff Photographer
Taxi and private bus operators across the island spent late yesterday in meetings trying to craft their response to the Government's decision to approve a 20 per cent fare increase come January 16, and to freeze the new fare for two years.
The taxi and bus operators had requested a 30 per cent fare increase and baulked at the recommendation of the Office of Utilities Regulation (OUR) that they be granted an 18 per cent hike.
Transport Minister Mike Henry yesterday announced that he decided to add two per cent to the OUR's recommendation, based on what he said was the looming increase in the tax on petroleum products.
However, this has failed to satisfy the taxi operators, whose initial reaction to the announced increase has been disappointment.
Late yesterday, executives of the Jamaica Association of Transport Owners and Operators (JATOO) were meeting to discuss the announcement, but the initial indication was that its members would reluctantly accept the Government's decision.
Most other taxi groups seemed to be awaiting the signal from JATOO before announcing their reaction.
No to two-year freeze
However, an obviously dis-appointed Dane Miller, president of the St Ann's Bay Taxi Association, told The Gleaner that while he could understand the 20 per cent increase, the two-year freeze would not fly.
"I know the commuters can't afford more, but I wonder if the transport minister knows that taxi operators will be paying more for gas, tyres, spare parts and lubricants next week," Miller said.
"I don't understand the approach of this Government which don't call us in to talk. It just tells us its decision and imposes it on us. That can't work," Miller added.
He was supported by Wicliffe Addison, president of the Port-more branch of the Jamaica Transport and Taxi Association.
"The 20 per cent might be fair but the two-year freeze is a no-no because inflation keeps climbing," Addison told The Gleaner.
In its release yesterday, the transport ministry noted that the 20 per cent increase would not apply to persons using the Jamaica Urban Transit Company (JUTC) bus service.
Henry also defended his decision not to approve any other fare increase until 2012.
"In keeping with the wage freeze recently announced in respect of the public sector workforce over the next two years, no further bus or taxi fare increases will be granted for the same period," Henry said.
He claimed that "the Government was cognisant of the limits to which the consumer - in this case the commuters - could cope with increases in the cost of living, and with a wage freeze being imposed, it was only fair that a similar freeze be imposed on transportation costs".
According to Henry, "The JUTC's application and the applicable recommendation from the OUR will be examined by the Cabinet early in the new year, with a decision to be announced thereafter."
Henry noted that the JUTC last received a fare increase in August 2005, almost five years ago, while the private bus and taxi operators were granted a 25 per cent increase last year.
He said the Government had charged the JUTC's management to target improved efficiency before any fare increase is considered, and that objective has now been met.
"The company is now in line for the promised (fare increase) consideration," Henry said, as he indicated that it would cost more to travel on the state-owned buses early in the new year.
The JUTC's present fares are $50 for adults and $15 for concessionary passengers, inclusive of the elderly, the disabled and school children.
arthur.hall@gleanerjm.com
Passengers board a Jamaica Urban Transit Company (JUTC) bus at South Parade, downtown Kingston, yesterday. JUTC passengers will not be affected by the announced fare increase. - Ricardo Makyn/Staff Photographer