Mobile Site | About Us | Newsletter

News

Big fare hike

Cost for JUTC bus ride could jump to $110

BY INGRID BROWN Senior staff reporter ?browni@jamaicaobserver.com

Thursday, March 11, 2010

COMMUTERS in the Kingston Metropolitan Region could begin paying as much as $110 to travel on Government-run Jamaica Urban Transit Company (JUTC) buses, effective April 1, a reliable Observer source said last night.

“The decision has already been taken at Cabinet for an increase of $110 and $30, but that is only ‘in principle’ as nothing has been set out on paper as yet,” the source said.

The fare hike will be a 120 per cent increase on the $50 commuters have been paying to ride on JUTC buses since 2005.

Fares for children, the disabled and senior citizens, regarded as members of the concessionary grouping, will see their fares go up by 100 per cent, moving from $15 to $30, also from April 1.

“The whole focus is to have the adults paying the larger amount and you still somewhat protect the concessionary groups,” the source said.

However, another source said further consultations will be held on the matter, which could see a downward movement of $20 in the adult fare before the official announcement is made.

The increase in bus fares forms part of the agreement under the International Monetary Fund (IMF) for Government to sharply reduce its subsidy to the state-owned bus company, which has been operating at a loss for several years.

The JUTC last year asked the Office of Utilities Regulation (OUR) to approve a fare increase of $20 for adults, which would see it moving to $70, and that the rate for persons in the concessionary groups be moved from $15 to $20.

The OUR last November gave approval for a 40 per cent bus fare increase, but warned that despite the increase the Government would have to provide between $1.3 billion and $3 billion in subsidy to the state-run bus company.

In its recommendation to Transport Minister Mike Henry, the OUR said the subsidy would only be applicable if the JUTC was granted its request for adult fares to be increased from $50 to $70, and the fares for concessionary passengers moved from $15 to $20.

However, our source said with the IMF’s push for Government to lessen its subsidies to the bus company, a $20 increase for adult fares could no longer be considered.

The struggling bus company has projected an operating loss of $1.3 billion this year, and an increase in bus fares is expected to significantly reduce the JUTC’s burden on the public purse.

Last night, Reginald Allen, the JUTC’s communications manager, told the Observer that last year’s request to the OUR for a 40 per cent fare increase related to the existing level of subsidies from the Government to the stateowned company.

“But going forward under new dispensation with the IMF agreement, the indications to the company are that subsidies will be sharply reduced so there has to be an examination of other pertinent figures in respect of the company’s fare structure,” Allen said.

When pressed about the final figures for the fare increase, Allen said it was a decision for the Cabinet, which he said the company was awaiting to “act accordingly in terms of implementation”.

POST A COMMENT

You must first register and then login to be able to post a comment.

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper – email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy, and before commenting you need to register, conveniently, by clicking the link above.

COMMENTS (10)

Cee Dubya
3/11/2010

So, the JUTC has been operating at a loss for “several years”.
JUTC approached the OUR “last year” to approve a fare increase and the OUR “last November gave approval for a 40 per cent bus fare increase.”
We pretty much expect that the cost of bus fares will be increased – even by just looking at the trend in oil and gas prices over the past several years.
But, instead of asking for whopping 40 to 100 per cent increases at one go, could the company not request much smaller increases over a stretch of time?
Maybe the JUTC didn’t ask because they didn’t want to “pressure poor people.” Noble thought. Who knows what led to the seeming inactivity in that area. What I do know is that it is far more pressure when you are faced by a daunting 120% – one time!
(Sigh.) Just one more thing to blindside you on some idle Thursday!

3/11/2010

Earl Brown,,,,u misread

James Ozermann
3/11/2010

A 120% increase to go on top of an increase of GCT from 16.5% to 17.5%, 10% GCT on electricity, as well as a 15% ad valorem tax on those who can afford to drive a car. When bus fares go up, (route) taxi fares go up as well.
How long will it be that we hear that the JUTC has been or is in the process of divestment? Successive governments have pretty much tried to sell off (eg the sugar companies, the wharves) or has sold off (Air Jamaica, the cement company, utilities) virually everything else of value in this country.
The only thing left to sell off are the Jamaican people! I'm not sure what would be worse, being sold by your own government or being sold out by them.
Then again when there's nothing left to sell, the government can consider setting a price for the US to get their hands on Dudus. Just a suggestion...

Tanya Redwood
3/11/2010

I am sorry for us. Rice will be increase in April too. What a government???

ricardo johnson
3/11/2010

why every entity the government runs incur losses? If these people (government) were running a private company they would be all fired

Earl Brown
3/11/2010

In which civillized country a puplic transportation company increase their fare 120 per cent?

Earl Brown
3/11/2010

Do poor Jamaicans fly to Miami? I would like to Know.

oswald melville
3/11/2010

we need to shut down our country until who has the power to do better done so we are the back bone of our country we are the only ones feeling it, it seems like the government want to turn every honest citizen in to CRIMINAL

Roger Hutton
3/11/2010

I am sorry for the ordinary Jamaican who finds it already hard to commute on a bus system that needs a whole lot of work, what about the Prime Minister's promise of "no stringent measure from the IMF" how will john public react, when public sector groups are asked to hold stain for two years HOW ARE WE GOING TO COPE WITH THIS AND OTHERS TO COME!!!

3/11/2010

I hope the PSOJ comes out in support of the poor Jamaicans who will not be able to afford these increases. Well I might be wrong because it wont affect them directly, they dont take the bus to get to the airport when they want to fly to Miami.

Did you watch American football's Super Bowl on Sunday?
	Yes, but just for the advertisements
	Yes, just for the game itself
	Yes, for both the game and advertisements
	No, I did not watch the Super Bowl.

View Results
Results published weekly in Sunday Finance

Username:
Password: