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Finance Minister Dr. Nigel Clarke and Opposition Spokesman on Finance Julian Robinson
By Nakinskie Robinson
In a major announcement in the House of Representatives on Tuesday afternoon, Finance Minister Dr. Nigel Clarke said JUTC fares are to be rolled back, come next January.
Effective New Year's Day, regular fares will cost $70, down from $100.
Children will pay $25, down from $30 and pensioners will pay $30, down from $40.
The Finance Minister says the temporary measure is aimed at keeping the rate of inflation down.
The move is also a response to public outcry surrounding the recent fare increase for bus and taxi operators.
Dr. Clarke says fares will be further reduced next April, adding that the measure will last for two years.
Effective April 1, the regular $70 fare will move to $50 while the fare for children will decline from $25 to $20 and the fare for pensioners from $40 to $30.
"We anticipate that these temporary measures will have a mitigating effect on the impact of the private bus and taxi fare increases on the commuting public," Dr. Clarke stated.
He said the planned reduction is projected to help inflation remain within the Bank of Jamaica's targeted range of 4 to 6 per cent.
The measure will cost $800 million for the 2024-2025 fiscal year.
But Opposition Spokesman on Finance Julian Robinson contended that while fiscal intervention is needed to deal with inflation, the JUTC fare reduction will not have the desired effect.
"I'm glad the government has heeded the call made by the opposition in this regard. I will say though, while we welcome this, practically, it will have little effect. The capacity of the JUTC right now is about 40 per cent of what it should be. The majority of the travelling public is forced to take the private passenger vehicles. Many wait two, three hours for a bus and because they have to get to work or school, they are forced to take a private passenger vehicle."
Mr. Robinson said the government's target of 300 JUTC buses over the next three years is "a bit late in the game".