Opposition suggests that government seriously examines subvention to JUTC due to multi-million dollar losses annually

by January 16th, 2019

Opposition Spokesman on Transport Mikael Phillips has suggested that government seriously examine its subvention to the Jamaica Urban Transit Company, due to multi million dollar losses annually.

The matter was raised in parliament yesterday, while members discussed the second supplementary estimates for 2018/2019.

Phillips noted that government has allocated 10 million dollars to the JUTC for this financial year, with 2 billion dollars in subvention, even as losses are estimated at 6 billion dollars.

Finance Minister Dr Nigel Clarke highlighted measures being taken by the JUTC to reduce its losses, including a pilot project, in which buses use another type of oil.

Mr Phillips however said despite these measures, the JUTC roll out is only 60 percent of its fleet and there is still an issue with fare box collection.

He asked why the government did not purchase new buses to replace the aging fleet.

Dr Clarke said his ministry is aware of the fiscal implications associated with the JUTC.

 

Phillips suggested that the funds be put in cap-ex instead.