PICKERSGILL
MINISTER OF Transport and Works, Robert Pickersgill yesterday said the Government will be considering introducing a Price Adjustment Mechanism (PAM) on fares for the Jamaica Urban Transit Company (JUTC).
The Minister explained that "all the inputs in the JUTC are foreign exchange inputs (but) we don't have a Price Adjustment Mechanism. I think it is something we need to look at instead of having an increase every two or three years."
RISING OPERATIONAL EXPENSES
He said implementing a PAM would be a more transparent way of increasing bus fares to meet rising operational expenses.
J. Paul Morgan, director-general of the Office of Utilities Regulation (OUR), which acts in an advisory capacity on regulatory matters for the transportation sector, said the minister has the authority to implement such a mechanism if necessary. He said, however, that the minister had not asked the OUR for advice on the matter.
Yesterday, Mr. Pickersgill lamented that the activities of illegal bus and taxi operators continue to affect the revenues of the JUTC. In his contribution to the 2005/2006 Sectoral Debate in Parlia-ment, the minister said there was a 12.5 per cent drop in total ridership in 2004 when compared with the previous year. In 2004, some 77.4 million passengers travelled on the JUTC buses which operate in the Kingston Metropolitan Transport Region (KMTR). This compares with the 88.46 million who travelled in 2003. Mr. Pickersgill said the reduction was due to a combination of factors, including the "increased, intense competition from illegal operators due primarily to the absence of the regulatory requirements."
INCREASE IN FINES AND PENALTIES
The Transport Minister pointed out that Governor-General Sir Howard Cooke has now given accent to the recently amended Road Traffic and Transport Authority Acts, which give authority for a substantial increase in fines and penalties for persons who operate in contravention of these Acts. Under the amended Acts, persons operating illegally are liable to a fine of up to $120,000, depending on the frequency of the offence.
The minister was adamant that "it has to stop" (illegal taxis and buses), we have spent billions to provide the best in a transportation system."
