President meets with public transport associations
-Associations agree not to increase fares, public urged not to pay increases     

Georgetown, GINA, May 08, 2008

Following the arbitrary increase in mini-bus fares and the threats and strike actions by operators, President Bharrat Jagdeo met with representatives and Associations of public transportation today at the Office of the President to discuss the issue and to come to specific agreements.    
          The Associations represented a wide cross-section of the country and included the Road Users Association (RUA) in Berbice, the Skeldon Tapir Association (STA), the Timehri Mini Bus Association (TMBA), the Mahaica Mini-Bus Association (MMBA), the East Berbice/Corentyne Mini-Bus Association (EBCMA), the General Mini-Bus Association (GMBA) and the Guyana Public Transportation Association (GPTA).
            The mini-bus operators had complained that the continuous increase in fuel prices coupled with the price for spare parts for their vehicles and the high cost of living was having on impact on them and thus, it was no longer feasible for them to operate the various routes using the current fare structure.
            However, following meetings previously with Minister of Tourism, Industry and Commerce Manniram Prashad, it was agreed that bus fares would not increase unless the price for gasoline reached $1,000 per gallon or more. This decision did not hold up as some mini-bus operators staged strike action yesterday while some plying specific routes such as Linden increased fares.
            Following today’s meeting, Minister Prashad who was also present explained that after learning about the strike action, Government was assured that buses falling under the GPTA and the GMBA were not on strike and operating as usual.
            He reminded that during past meetings the agreement was that the fares would not be increased.
            “Ofcourse the mini-bus associations have got other concerns with some other things but that’s the agreement that we had and the Government made sure it intervened whenever the price of gas increased. For instance, last year January, the excise tax on gasoline was 50 percent and the excise tax on diesel was 25 percent. Now the tax on diesel is zero,” the Minister said, adding that the tax on gasoline had been significantly reduced as well. 
            He noted that operators plying the Linden route arbitrarily increased their fares and a few others were threatening to increase their fares and the option that the Government had was to resuscitate ‘big buses’ for public transportation.
            “After this meeting, the members of the mini-bus associations voiced their concerns that that would affect them significantly,” the Minister pointed out. 
            He explained that the President had decided that this decision would be put on hold until the Associations meet again with him in another few weeks when the issue of spare parts and their prices will be examined.  
            It was also decided that an analysis will be done on the cost of various spare parts for the vehicles through the Ministry of Tourism, Industry and Commerce.  
            “I wish to assure the public once more after this meeting that the mini-bus association and His Excellency, the President, they have assured the President that there will be no price increase and all these associations, they are not striking and the mini buses will operate as usual,” he posited. 
            He advised the public not to pay any increase in mini-bus fares and reiterated that the issue is currently engaging the attention of President Jagdeo.
            Meanwhile, Acting President of the GPTA Nicholas Nnamani expressed concerns that the prices of spare parts have been skyrocketing.
            “However we are having our dialogue and we are seeking a reasonable avenue to come to that point of understanding. It is not our wish to really channel towards an increase, but we are looking at it holistically. 
            “So far, we are advising those operators out there to hold with us for another two weeks because we are supposed to be meeting again with the President. Based on the outcome would depend whether or not we will increase, but at this point in time there is no increase. I want to emphasis that short drops remain at $60,” Nnamani said. 
            Hilbert Archer, Advisor to the President of the GMBA echoed Nnamani’s  concerns.
             “We are concerned about the high cost of the spare parts, especially the battery which was $13,000 a year ago is now $27,000. On the Government’s side, the President and the Minister have assured us that they will look into that seriously and see why it is that it has skyrocketed like that and look at probably reducing the present tax and the filter, the brakes pads, they’ll be looking at that to see if we can have them at a reduced price.” 
            He posited however that all parties have agreed not to increase prices and not to take strike action.
            “We have held our end of our bargain because our operators are still on the road,” Archer said. 
            Meanwhile, the Associations stated that they have also requested that the Government reduce the excise tax on gasoline by a further three percent.  
            Only yesterday, during a press briefing the Minister urged the public not to pay any increase in mini-bus fares.
He said the agreement was reached following a series of meetings last week which he had with the General Mini-Bus Association and the Guyana Public and Transportation Association to discuss the proposed price increase of 25 percent.
Minister Prashad said to cushion the impact of increasing fuel prices on mini-bus owners an intervention was also made at the Bureau of Standards regarding the proposed ban on used tyres. The Tourism Minister said it has been acknowledged that a large number of mini-bus owners cannot afford to buy new tyres because of the cost.

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