In response to an increase in bus and taxi fares announced by the Government on Thursday (August 12), Opposition Spokesman on Transport Mikael Phillips is requesting that the order be withdrawn and instead twinned with the minimum wage increase, which has been pending since 2020. 

In a media release on Friday (August 13), Phillips argued that the Government’s announced 15 per cent increase does not appear to be cost-based or as a result of any any dialogue with players in the industry.

Owing to this, and a lack of commitment to improve service levels in return for the fare adjustments, operators have already begun rejecting the offer.

The Opposition Spokesman argued, therefore, that the number was plucked from thin air as a politically acceptable increase without reference to the soaring input costs over the period since the last adjustment in August 2013.

He furthered that, the suggested increase was not benchmarked against any affordability test, given that the minimum wages have not been increased since August 1, 2018, more than three years ago.

Given this, Phillips contended that the increase should be subjected to proper due diligence and further review of the effects on both the hard-pressed commuters and transport investors. 

He added, that it was unconscionable that the government is imposing the increase before implementing recommendations from the Minimum Wage Commission, which have been languishing on the Cabinet desk since January 2020.

“Affordability must be considered as it is not merely a 15 per cent increase, but 15 per cent per journey which could translate into an increase of over $500 a week for the average minimum wage earner”, proclaimed Phillips.

Fare increase unlikely to solve any problems

According to Phillips, the Government’s management of fare adjustments in the transport sector over the past five years has been disastrous in nature, with fuel prices alone increasing by 40 per cent this calendar year.

Referencing the fare increase, Phillips argued that the way the increase was introduced is not likely to solve any of the issues brought to public attention over the past year.

He said freezing Jamaica Urban Transit Company (JUTC) fares was the right thing to do, considering the deteriorating service levels to the point where the management has admitted it could not service peak demand during the curfew. But, he said, the differentiated fares will put rural commuters at a serious disadvantage as the Government will issue further subsidies to urban commuters.

Meanwhile, the opposition spokesman said the transport minister needed to clarify the fares charged by the over 400 JUTC sub-franchise holders who currently provide a more significant percentage of seats for commuters in the Kingston Metropolitan Transport Region.