Bus Association signs Agreement with Government

Contact: Rose Marie Harris

November 11, 1998 - In keeping with a request from the National Council on Public Transportation for assistance in improving their operations, Prime Minister, Hon. Dr. Kenny Anthony held a series of consultations with the Council. As a result, the parties agreed with the following basic principles.

1. To allow all minibus operators who have applied for a route permit the necessary approval;
2. No new route bands will be issued in the next three years;
3. The route band fee will be increased to an acceptable level;
4. In the closed period, defaulters (that is operators who have not renewed their route permit) will be given a grace period of one month to become current (pay the route permit fee). However, they will be required to pay the higher fee;
5. An operator with a valid route permit (i.e. Who has renewed his permit) and is desirous of going out of the minibus business will be accorded the privilege of selling his route right. However, the buying party must satisfy all existing procedures and laws in force and governing the issuance of route permits. The price of the route right is to be determined by the parties;

In keeping with the above, the following conditions will apply:

1. The National Council on Public Transportation agrees to the basic principles subject to rationalizing the existing routes on the ground with the Minister of Transport;
2. There will be no increase in passenger fares for the next four and a half years;
3. New applicants will pay a route permit fee of seven hundred dollars;
4. The increased fee will be applicable to renewals and become effective from June 1999;
5. The rationalization of the routes with the Minister will be facilitated by way of the analysis of the national transport survey which was undertaken by the Department of Statistics;
6. New routes will be established to accommodate new registrants;
7. A mini bus operator who has not paid his route permit by that time will automatically loose it;

Government will :

1. Extend a consumption tax concession of $0.75 per gallon for up to 5000,000 gallons of gasoline purchased by the Cooperative’s membership; and
2. Offer a reduction of 10 percent of the applicable consumption tax in respect of vehicle replacement purchased through the Cooperative;

8. The reporting mechanism for the gasoline concession and the applicable rules for the vehicle replacement concession are to be finalized;
9. A minibus purchased in accordance with the concession at h (ii), whether new or used, must remain in the ownership of the concession holder for a period of five years. If the minibus is sold prior to the five years the consumption tax liability will be repaid to government on a protracted basis;
10. Fifty percent (50%) of all existing applications for route permits as at the date of the signing of this agreement, shall be immediately recommended for approval on a first come basis. The remainder will be determined by the outcome of existing studies no later than May 31, 1999;
11. Government will endeavor to introduce a new numbering system for approved minibuses with a registration letter "M" and a unique background colour.

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