If you're contemplating parking your vehicle and catching a bus because it's cheaper, it might not be that way for much longer. That's because the Belize Bus Association is asking the government to increase fares. Well, that's one of three options they are requesting from GOB due to the increase in the cost of diesel. These independent bus owners say they're on the edge of no longer being able to operate and they believe they deserve the same perks that the National Bus Company receives.
The BBA held a press conference today to plead its case. Courtney Menzies was there and has this story.
With diesel at $14.55 per gallon, the Belize Bus Association is calling on the government to step in before they're forced to park their buses. They held a press conference today where the president explained that they've written to Minister Louis Zabaneh with three requests:
Phillip Jones, President, BBA
"We have written to the department of transport and the minister asking for three assistance. One being remove the GST from the fuel for all bus operators, remove the tax from parts or battery. The second request was we can reinstate the subsidy that was initiated in the time of COVID or three, adjustment and raise in the increase in fares. So we just wrote the minister yesterday so we'll give him time to answer us and from there I will meet with my executive members and then we'll plan our next course of action."
Froylan Gilharry, Advisor, BBA
"The crisis in fuel prices we understand but it has to be a responsibility that has to be solved, not with sugarcoating. Just like when COVID came in as an epidemic and the bus operators were allowed to have subsistence to be able to continue the operation, this is what is necessary now. And this is what is most important for all industries that are serving the general public especially the low income public, the low income citizen that takes a bus."
"At the present moment this fuel price is in reality a crisis for independent bus operators, school bus operators, individual bus operators that have independent operation. Not with the new one that is form, but this one. All we ask for a fair playing level field."
They're asking for the same perks that the National Bus Company will receive but also better structure in place to incentivize the independent owners.
Froylan Gilharry, Advisor, BBA
"For a structure to be in place, there has to be proper incentives and laws so that the bus companies can be productive. Proper incentives in loans, zero rated or very low rated or guarantees from our institutions, from our governments."
"How can you go to the bank and say I have a one year permit and I want half a million dollars or quarter million dollars to buy good equipment? they'll laugh at you because you don't even have the time frame to be able to pay for it."
"The structure has to do one with long term permits, it has to do with finance, development concessions given to the association whereby we can get better incentives in taxes and whereby the buses, we can bring them in new."
And if the government doesn't agree to the first two options but allows the independent to raise the fares, what will those new prices look like?
Phillip Jones, President, BBA
"We were with the government prior to this,, former minister, and prior to this we were looking $2 for long drop, $1 for short drop so in other words if short drops were $2 it would have been three now and if a long drop to Belmopan would have been $7 or $8 it would have been $9 or $10 now."
Reporter:
"That's a significant increase for the commuter."
Phillip Jones, President, BBA
"It is, hence the reason we need to meet with the Department of Transport and we go through everything and we come up with a standard figure so it will be premature to say that at this moment depending if the fuel is between $12 and $13."
Reporter:
"And there's indication that the fuel might go up."
Phillip Jones, President, BBA
"If the fuel goes up exceeding $14 or $15 then it will be double that amount."
But now the question remains, should the government lend a hand to their competitors?
Courtney Menzies:
"When you choose to be independent, you're kinda saying to the government, I will handle my own candle, so what obligation does the government have to help you out? They did help you out, they stepped in and said we will take this burden off your shoulder by creating the national bus company and you could invest how you want invest, if you want to give up your entire company or put in some of the shares, whatever, they stepped in and said this is what we're doing, so why should they be obligated to do even more to level a playing field when now they're in the running, the national bus company is their horse in the race?"
Froylan Gilharry, Advisor, BBA
"That question is pretty much disingenuous. Why it is disgenous is because the national bus company has government subsidy."
Courtney Menzies:
"Right, because it's a government company, you guys are independent."
Froylan Gilharry, Advisor, BBA
"No, they said they're making a PPP and being a PPP means you are accountable to your shareholders so it means you have to produce a profit so it is not true when they say they will be taking a burden from you. They're not. What they're trying to do is modernize the system which we agree with modernizing the system, so what we're requesting then is to make certain that the same benefits others have which is other owners who are PPP is also given to the individuals."
And the BBA believes the government will provide the assistance they're asking for.
Phillip Jones, President, BBA
"We are at the belief that the Minister of Transport in good judgement will want to meet one of those three requests that we have made for the simple fact that no operator or bus owner can remain in business with the high cost of fuel. At the moment we have been operating at bare minimum."
The BBA say they are giving the Minister the weekend to respond.
We did try to reach Transport Minister Louis Zabaneh for a comment but he has not responded. We'll see what the bus operators do next.
