Commuters fear not - today the Minister of Transport confirmed that bus fares will not be increased. That's after the Belize Bus Association wrote to the Ministry for assistance. In their letter, they gave three options to help them stay afloat amid the rising fuel prices - and raising the fares was the last one. The first was that GOB absorb the fuel tax, and the second that they provide a subsidy to the independent bus owners, similar to what they did during the COVID pandemic.
And today the Minister said that he has taken their letter to Cabinet, but they will need to discuss it further. However, should GOB even lend the helping hand to those bus owners who chose to remain independent and not going the National Bus Company?
Well, the BBA also claimed that it was only fair for GOB to give them the same benefits as the NBC. But here's what Minister Louis Zabaneh had to say:
Dr Louis Zabaneh, Minister of Transport
"I have a shared the content of the letter with cabinet. And so right after Easter, we will do some more, discussions on it, and I'll have a formal response to them."
Reporter:
"What's the process to get this thing reviewed and perhaps approved or denied? "
Dr Louis Zabaneh, Minister of Transport
"Well, you know, we certainly, already said that we're not contemplating the third suggestion that they have, which is to raise fares. We don't wish to do that. Simply because we know that commuters are already under stress. And soI think we have to eliminate that one. The other ones, we will need to have more discussion. They're asking for subsidies or exemptions and taxes on fuel. Both of those will be difficult. With respect to the National Bus Company, we are benefiting from economies of scale, which is what we shared with them, that when we have a larger operation, you can buy in bulk. We are getting, discounts for, for fuel, tires, etc.. So, that will allow the National Bus Company to continue to function even with these higher diesel prices."
Reporter:
"And did you guys see this coming? Because, you know, even before the NBC started, you had issues with the BBA. So is this something that you guys were prepared for to have this kind of tension with them?"
Dr Louis Zabaneh, Minister of Transport
"Well, I wouldn't characterize it as tension. I think it's, for them, they have made a decision to operate independently as sole operators, and that is quite fine. On many occasions we discussed the benefits of joining the National Bus Company. I think they are still struggling with the basic concept of economies of scale. I don't know if it's because the term is a big term, but it's very simple. Already in the bus industry, the larger bus companies were already benefiting from some level of economies of scale because the bigger companies like Westland and James could buy in bulk. And that's a principle that is very, very basic, right? So, if they decide that they wish to be independent, well, that comes with, certain responsibilities."
Reporter:
"And do you think that with that independence that the government is obligated to assist them? "
Dr Louis Zabaneh, Minister of Transport
"The National Bus Company is not asking for bus fare increases, is not asking for any kind of subsidies on fuel. So the government would not be doing anything that is unjustified. For example, doing something for a national bus company that it's not doing for them. So, that argument wouldn't hold any water at all."
And while the BBA waits for that response from GOB, they said that if they don't get any assistance, they may need to park their buses. But would they threaten to strike before that happens? And if they do, can the NBC fill the gap? We asked Zabaneh.
Dr Louis Zabaneh, Minister of Transport
"The decision for them to to take that, you know, I wouldn't know why they would do that because I think since we've been meeting early in the year, we've been communicating openly with them and we've explained that we want them to succeed. And they've said publicly they want the National Bus company to succeed. So I don't see what the strike would do other than to hurt the commuters and to hurt their own image. I know it's a difficult time for them, but, at this point, we haven't made a final decision."
