APTO head wants level playing field for PSVs

Yet another entity is expressing support for the Government’s manifesto proposal to abolish road tax.

If that proposal is implemented, says Interim Chairman of the Association of Public Transport Operators (APTO), Morris Lee, it would immediately correct one of the unfair measures that has been imposed on the public service vehicle (PSV) sector over the years.

Speaking to The Barbados Advocate, Lee said that for some time there has not been a level playing field in the transport industry, especially as it relates to road tax, lamenting that there is currently a huge disparity between what Transport Board buses pay in road taxes and what the PSV pay. He explained that at present, the Transport Board minibus pays $800 per unit and for the same size vehicle, the PSV sector has to shell out a whopping $3 625.

“The industry has been unfaired by road tax rates for the last 30 years because essentially we compete alongside what you would refer to as a Transport Board minibus that pays $800 per annum in road tax, while we the PSV operators pay four-and-a-half times that amount for the same bus. How can we compete successfully with figures like that, coupled with the fact that they also get subsidised fuel?” Lee queried.

As such, he said while the abolition of road tax would be a start in cutting down on their operating costs, if the PSV sector is to become more sustainable and better contribute to the transport industry in general, then he said they too need to access fuel at better rates. He made the point while noting that the proposal to abolish the tax includes replacing it with a smaller tax on fuel.

“The Government by spreading its ability to collect this tax, should be in a position to collect more tax with less effort without it having a significant impact on road users. But we have to see how Dr. Mascoll and the other experts from the Ministry of Finance intend to set up this tax. But I want the Government to know upfront that if they are looking at the PSV to collect the tax
at the pump, first we are spending $300 a day in some cases in fuel, while we our competitors get the diesel fuel directly from the agent that is connected to BNOC at the wholesale price plus a few cents,” he said.

Given that, the APTO spokesperson is calling for the playing field to be truly levelled by allowing the PSV operators to access fuel at the rate at which the Transport Board does. He is adamant that if this is done, it would be of tremendous benefit to the 750-strong PSV sector, which he noted employs close to 7 000 persons, as it would definitely cut down on the sector’s operating costs.

Ready to offer proposals
Meanwhile, Lee, who said he is hoping to meet with the new Minister of Transport, Works and Maintenance, Dr. William Duguid soon, said if given the opportunity, he intends to present the minister with a set of proposals relative to the transport industry which can earn millions in income for Barbados. Though remaining mum on the details, explaining that he would want to present them to Minister Duguid first before making them public, he did reveal that one involved four pieces of real estate owned by the State, namely the River and Cheapside Bus Terminals, the old Fairchild Street Public Market and the Weymouth complex which is headquarters for the Transport Board.

Additionally, he said he also has a proposal that would help the PSV sector offset the revenue it loses out on as a result of bus fares remaining at $2. He noted that this is another disparity between the state owned buses and the privately owned PSV, in that the Transport Board essentially receives $9 per passenger, while the PSV only get $2.

The $7 difference, he explained, is provided by Government subsidy to the Transport Board.

“So there are some areas of green technology that I would like to discuss with Prime Minister and Minister of Finance, Mia Mottley, and the Minister of Transport as a matter of urgency.
There are several new income streams that the Government can get revenue from which can correct the imbalance between the Transport Board and the PSV relative to fares. There are some new creative ideas where the operators can get an increase in their fare without the commuter having to pay it or the government having to go into the public purse to pay it as well,” he said.

Lee is confident that what he wants to propose to the Government has the capacity and potential to increase Government’s revenue, where the spin-off would then help the PSV operators. ɥ