By Lynford Simpson, News Editor
ABOVE: Robert Pickersgill, Minister of Transport and Works, addressing reporters at a press briefing yesterday at his Pawsey Road offices, New Kingston, where he announced a 45 per cent increase in bus fares from Saturday, August 16. - Ian Allen/Staff Photographer
COMMUTERS USING Jamaica Urban Transit Co. (JUTC) buses will begin paying more for that service from this Saturday, August 16.
Announcement of the hike in bus fares which range from 33 per cent to 50 per cent, was made yesterday by Robert Pickersgill, Minister of Transport and Works, at his Pawsey Road office, New Kingston.
The average increase is 45 per cent and will see adults travelling in Zone 1 the Corporate Area of Kingston and St. Andrew paying $30, up from $20. For adults who commute in Zone 2, which comprises the communities of Portmore and Spanish Town in St. Catherine, the fare moves up by $10 to $40.
Concessionary fares for children, students in uniform, the disabled and senior citizens move to $15 from $10.
But, despite the level of the increase and the fact that the Government's subsidy will amount to $1.487 billion over the next 12 months, there will still be a shortfall of roughly $200 million in the JUTC's operating expenses. Sixty-three per cent or $2.4 billion of this amount will be covered by the fare increases, while Government's contribution will cover the remaining 37 per cent. The company will realise $544 million in revenues as a result of the increases.
"What we have promised the Cabinet is that we will be instituting cost-effective measures to get rid of the shortfall and we will be looking at it again after another three months," Mr. Pickersgill told reporters.
