TODSS calls on Gov’t to provide loans for its members

While welcoming the announcement on Tuesday by transport minister Daryl Vaz that the Government has reintroduced its aged-vehicle policy to assist public passenger vehicle (PPV) operators, one taxi association is urging the administration to also revisit the loans that had been earmarked for the sector but were not taken up owing to the high interest rates.

Describing the reintroduction of the aged-vehicle policy as “good news”, President of the Transport Operators Development Sustainable Services (TODSS) Egerton Newman said a significant per cent of the current fleet of taxis and buses on the roads was in need of replacement.

“We are now waiting for the Government to provide some kind of financial support through loans,” he said.

He recalled that the Government had announced a $200 million revolving loan fund two years ago to help public-transport operators to retrofit their vehicles.

Newman said the transport operators did not get a dollar from the loans owing to what he described as red tape in addition to the elevated interest rates.

The Gleaner reported on May 11 last year that thousands of public passenger vehicle (PPV) operators had been priced out of the $200 million loan that was set aside for the sector after microfinance institutions proposed a raft of requirements for loan take-up, including interest rates ranging - from seven to 13 per cent - that were reportedly beyond their reach.

The Development Bank of Jamaica (DBJ), in an emailed response, acknowledged that no one from the estimated 37,000 PPV operators had benefited from the loan at the time.

Finance and the ublic service minister Dr Nigel Clarke announced the initiative during his contribution to the 2022-23 Budget Debate. He said the Government would make the loan available through microcredit and approved financial institutions by way of the DBJ.

Resources not available

Newman told The Gleaner yesterday that PPV operators have asked the Government to reopen the offer but increase it to $500 million to allow players in the sector to retool by importing cars and buses under the aged-vehicle policy.

“We are waiting on that second announcement because yes, the door is now open for the 10-year old and the 20-year vehicles, but the resources are not available to purchase those units, so we are saying to the Government, ‘Every other sector can get money to borrow, why we can’t, too?’”

In his contribution to the Sectoral Debate in Parliament on Tuesday, transport minister Daryl Vaz said the Government is moving to reintroduce its aged-vehicle policy to help PPV operators to upgrade and retool their fleet.

“This policy will allow existing PPV operators to import motor cars up to 10 years old and buses up to 20 years for use in the PPV sector. In order to ensure that the vehicles are used for their intended purpose, a three-year lien will be placed on the vehicles by the Trade Board,” he said.

Vaz also announced that 16 new routes would be offered to the PPV sector. Additionally, he said five of that number would be stage carriage routes, which will operate under a subfranchise from the Jamaica Urban Transit Company Limited and will be set aside for Coaster and minibuses only.

Operating through Half-Way Tree and terminating in Downtown Kingston, Vaz said the routes would originate from Shortwood, Barbican, Whitehall, Havendale, and Harbour View.

He said the balance of the routes would be offered to taxi operators who have also been requesting additional routes to provide improved service to the public. These routes will be distributed throughout the Kingston Metropolitan Transport Region.

edmond.campbell@gleanerjm.com