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THE JUTC dilemma

THE PUBLIC transportation provided by the Jamaican Urban Transit Company (JUTC) is an essential service. It replaces the ramshackle mish-mash which was inflicted on the Corporate Area and parts of St. Catherine after the demise of the Jamaica Omnibus Service (JOS).

A review of the operation carried out by the management consulting firm KPMG Peat Marwick points to losses of more than $3 milliona day. The review also points to competition from illegal operators outnumbering the total JUTC fleet of 575 buses; ineffective management and financial controls; and lapses in the systems relating to collection of revenue.

Initial public acceptance and support when the fleet of shiny new buses was launched in 1998 has declined over time. The annual projections of passenger volumes have fallen from 182,500,000 to 102,024,000 a decrease of 45 per cent. Taken on a per bus basis the riders have dropped by 33 per cent.

The situation is compounded by the fact that public policy has fostered the importation of second-hand vehicles from Japan many of which end up legally and illegally in the public transport sector.

Because of smaller size, these vehicles are better able to manoeuvre the congested streets than the JUTC buses, which suits commuters who want quicker transportation.

The KPMG review of the JUTC has also identified weaknesses in the recruitment processes, which resulted in persons being employed in positions for which they were not qualified.

This particular weakness first came to public attention two years ago when the then Minister of State in the Transport Ministry, Mr. Dean Peart, admitted that persons had been employed to the bus company because of their affiliation to the governing PNP. Mr. Peart had explained at the time that a key party functionary who held a senior position with the JUTC had used that to influence the employment of members of the party. This has now come back to haunt the company by affecting the efficiency of its operations.

Public transportation services must be maintained; but obviously not at a daily loss of $3.6 million. If illegal operators are to blame, then they must be removed from the system. If revenues are not being collected, proper systems must be put in place to plug the leaks.

More than $4 billion in public funds was used to set up the JUTC. That alone should guarantee that the bad old days do not return. The Government must move swiftly to correct the problems at the JUTC.

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