LIAT a financial burden

AN Opposition Member of Parliament is arguing that regional airline LIAT is sucking Barbados dry and is adamant that serious decisions need to be made in relation to its future.

 

Member of Parliament for St. Michael North, Ronald Toppin, a former Government minister who held responsibility for tourism and international transport, is suggesting that the airline is nothing more than a bottomless pit when it comes to the injection of money. His comments came as he made his contribution to the debate in the House of Assembly yesterday on the Supplementary Estimates No. 1 2016-2017 in the amount of $33 111 620, which is required to bring to book equity contributions made by the Government of Barbados to LIAT (1974) between 2012-2013 and 2015-2016.

 

“Today we have the Minister bringing a resolution without at the same time bringing any financials in relation to LIAT that we could have the benefit Sir of examining… LIAT has never been a viable entity. As far as I am aware, it has never made a profit in any year. It has never been able to stand on its two feet,” he noted.

 

He made the point as he maintained that in spite of the US$65 million loan that LIAT obtained to change its fleet and declining oil prices, which should have lowered the company’s operating costs, it remains unviable. With that in mind, he further argued that LIAT has “grossly underperformed” as a regional carrier, and lamented that the burden and inefficiencies of the airline have fallen disproportionately on the shoulders of a few governments, especially Barbados.

 

To that end, he said that the constant injection of money into the company, which has been subsidised for over 40 years, cannot continue. Instead, he said what is needed, is for the airline to truly become an efficient and low-cost carrier.

 

“It is really high time, Mr. Chairman, that serious decisions are taken in relation to LIAT. The time has come where we cannot any longer shelf the need to take some very serious decisions in relation to LIAT,” he said.

 

Toppin’s comments came as he argued that Barbados, the largest shareholder, was not getting the maximum financial returns on the money that successive governments across the political divide have provided to the airline. He is therefore adamant that this also needs  to be addressed. (JRT)