A RESULT of the increases in bus fares which were announced yesterday by Robert Pickersgill, Minister of Water and Housing, will be a 0.9 per cent movement in the Consumer Price Index, putting further pressure on the Government in its bid to contain inflation.
Noting that the bus fares could have been higher, Mr. Pickersgill said the decision to grant an average increase of 45 per cent was aimed at protecting the "most vulnerable" in the society. "The Cabinet has opted for this new formula in financing the public bus system because we are aware that a higher increase at this time would have been very burdensome on low-income wage earners."
The last fare increase was granted in May 2001.
A survey conducted earlier this year by the Office of Utilities Regulation (OUR) found that roughly 70 per cent of Jamaicans rely on taxis or buses as a means of transport.
COMMUTERS
The remaining 30 per cent use private motor vehicles. Also, the survey found that bus commuters spend an average of just over $500 per week on transportation, while those who travel via taxi spend an average of $657.12 per week. It said commuters' average expenditure on public transportation accounts for roughly 18 per cent of their weekly or monthly income.
Apart from its 37 per cent contribution, the Government is moving to shore up the bus company by transferring some $6 billion of capital assets owned by Metropolitan Management Transport Holdings Ltd., to the JUTC. Confident about the future of the company, the Transport Minister said: "As one of the largest companies in Jamaica, the JUTC will now be properly capitalised, resulting in a restructured balance sheet."
However, further staff cuts are also likely as the JUTC moves to achieve the industry standard of six employees per bus. It now has 6.5 employees per bus, down from 8.3 in 2001.
The island's 1,703 rural bus operators and more than 15,000 taxi operators will have to wait a while longer before being granted an increase. Discussions with this group are ongoing and an increase is not likely before the middle of September.
Referring specifically to the 13,000 route taxis, Mr. Pickersgill said: "This will be the first effort of the Transport Authority to establish a fare structure (for this group)."
