PRESIDENT of the Jamaica Rent-A-Car Association Limited, William McCalla has called for the return of concessions on motor vehicles, without which, he said, would result in an almost 50 per cent increase in car rental costs to the tourism sector.

“Minister, the concession is absolutely important. The blood of our association is based on the concessionary arrangements being reviewed by the government. If we don’t get it back, it is going to result in the cost to rent our smallest unit … to increase by at least 50 per cent,” said McCalla.

He was speaking yesterday at the association’s 40th annual general meeting held at the Terra Nova All-Suite Hotel in Kingston.

With Minister of Information Daryl Vaz as the guest speaker at the luncheon, McCalla used the opportunity urge the return of their concession agreement, warning that members of the association and ultimately the tourism industry will face harsh consequences.

Since the beginning of August, the concession agreement between the association and the government, was suspended.

In his address, Vaz remarked that no one would want to see duties decreased on motor vehicles more than he does.

He told members of the association that he was currently looking at waivers and incentives as mandated by the International Monetary Fund.

“We face our own realities and we carry a large debt burden. This has forced us to seek financing and support of agencies that have strict fiscal guidelines. These guidelines limit the policy options of the government,” said Vaz; adding that a study is currently being pursued on the issue which will be available by the first quarter of 2011. He said he, too, was waiting to see what the analysis shows so that the policy recommendations can be established.

“I am adamant as you are that it should be as clear, efficient and supportive of growth for your industry,” said Vaz.

With this being the first annual general meeting, since the change of the organisation’s name from Jamaica U-Drive Association, McCalla also used the opportunity, to outline changes he wants to see within the association.

“As an association we need to look to finding financing that is more competitive in the market. We as an organisation, must find sources of funding that can assist our members to purchase motor vehicles, at reasonable rates,” McCalla said, while encouraging his members to seek the best interest rates when funding their operations.