Minister of Transport Daryl Vaz (second left), in discussion with (from left) managing director, Transport Authority, Ralston Smith; acting managing director, Jamaica Urban Transit Company, Owen Ellington; and director general, Island Traffic Authority, Colonel Daniel Pryce, during a press conference at Half-Way-Tree Transport Centre on Tuesday. (Photo: JIS)
KEY players in the public transportation sector have welcomed the Government’s plan to reimplement a policy which allows for the importation of 10-year-old cars and 15-to-20-year-old buses for use in the sector.
Minister of Transport Daryl Vaz, who made the announcement at a press conference last Tuesday, said, “Expansion of the age limit for imported vehicles will broaden the affordable options for PPV [public passenger vehicle] operators while not compromising safety, as confirmed by the Island Traffic Authority (ITA).”
Last Thursday Egeton Newman, president of the Transport Operators Development Sustainable Services (TODSS) told the Jamaica Observer that this move would do great justice to the sector as the current fleet is badly in need of replenishing.
“We in the public transport sector are elated to know that the policy which was in place before has been reintroduced. We have 75 per cent of our fleet breaking down and we want to replenish our fleet. Having this policy where we can get these vehicles in the sector, it is an excellent move by the Government. It is one of the best moves right now in the public transportation sector,” said Newman.
“It is more of a reasonable cost and it is what we can manage, because we cannot buy the brand new vehicles and even some of the second-hand vehicles we can’t afford. These vehicles are coming in at the right price that the transport sector can afford, and I think the age of them is alright. We will work with that for now. Putting a brand new car on the road to run as a taxi is not a one, two, three. It is a costly affair,” Newman added.
While he expressed elation, Newman said he was hoping that people who will be lurking and looking for ways to cheat the system don’t get the opportunity to do so.
According to Newman, the sector will be on the lookout for these people.
“We are hoping that the persons who have other mindsets do not come in and rake the public transport sector of this offer and use it for their private business. I speak specifically right now about some car companies who will want to go in on these deals and sell them back for private use.
“We are going to be watching this very, very closely as a sector, but right now we are happy. What will happen is that once you get one of these vehicles, you have to keep it for a period of time before you can dispose of it,” said Newman.
“We need more information, yes, but we are happy for the announcement made by Government. It has been long in coming, but we are very, very happy that it has finally come. It has to be watched very carefully by not only by the Government but also by the National Transportation Steering Committee which comprises mostly of the presidents across the island,” added Newman.
In the meantime, Lorraine Finnikin, president and communications director of the One Voice Transportation Group, told the Sunday Observer that some 10-to-20-year-old vehicles in Japan operate as efficiently as many new vehicles.
“In other words, investors were looking at the fact that for them to buy a new flat screen Hiace bus locally for $8 million they could get a 15-year-old bus, relatively cheaper, and it would have been in excellent condition, almost like it’s new, and the same thing goes for the car,” said Finnikin.
He pointed out that it was on this basis that the recommendation was made by a transportation committee which he sits on.
Finnikin shared that the new system that will govern the importation of 10-year-old to 20-year-old vehicles will be designed to prevent outsiders from taking advantage of an opportunity that is exclusively offered to players in the industry.
“How this one is set up now is that the individual investor would get the permit directly from Government to bring in the car, but it is just that something is tied to it with the Trade Board and tax office, where that investor can’t sell it before three years. Also what is important to know is that it is not for persons who will be buying a vehicle for the first time to put in the sector. It is for persons who will be replenishing the fleet that they have.
“For instance, if I have a car which is now 15 years old or more and I want to upgrade it, that 15-year-old bus and 10-year-old car deal is for people like me who have already been in the system. When the recommendation was made, it was accepted not just by the Kingston Metropolitan Transport Region; it was discussed among investors, operators, and association presidents across the 14 parishes, and when the recommendation was submitted it was accepted by the Transport Authority and the Ministry of Transportation.
“It was seen as a win for us in the sector, because those investors, over the last five or so years that have been upgrading their vehicles, it has been costing them a whole lot. It is one of the best we have had in a long while,” declared Finnikin.
Vaz, in his announcement, said he has instructed the Transport Authority to allow for all registered members of taxi associations to be able to apply by showing their registration and other required documentation.
According to Vaz, a registered operator will have the option of applying for a licence in his name, which will enable him to go to an online auction and buy a vehicle directly from the source, shipping it to Jamaica and clearing it through a broker.
“So he is actually getting the car without any additional cost outside of the duty, the cost for the car and the shipping of the car. That did not happen first time. If they do not want to utilise that opportunity because they don’t have the money and they need to finance the car, the banks are not going to finance a car that is not here.
“It gives them the option to go with their own licence on a car lot and buying a car off the lot or out of the in-bond facilities that the dealers have in Jamaica. This is a fundamental difference, because it means that the people who you want to benefit are going to benefit directly.
“There will be no second or third person or company involved. They are in control of their own destiny and I am sure they will welcome it because they were very disheartened in relation to the first policy and the amount of taxi operators that were able to benefit at the lowest price,” said Vaz.
NEWMAN…we in the public transport sector are elated to know that the policy which was in place before has been reintroduced (Photo: Karl Mclarty)