The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Government yesterday said it was in discussions with jitney operators over a Memorandum of Understanding (MoU) to provide an “interim code of operation” for the industry, until the public bus system’s unification is complete.

Glenys Hanna Martin, minister of transport and aviation, said the MoU would seek to address “vexing issues” for both the Government and jitney operators, and “in the interim” provide better management of the industry.

Mrs Hana Martin added that a preliminary valuation of the jitney system had been completed, but operators wanted to provide further input.

“This has been an ongoing process between the Government and representatives of the public transport industry,” she said.

“We’ve been in extensive discussions to try and get to the final conceptual phase of a unified busing system, which involves a valuation. An accounting firm was engaged and provided a preliminary valuation report, which was being reviewed by both sides.

“The stakeholder representatives want to provide further input on that, however. We are seeking to get that input from them on  the valuation assessment.”

Mrs Hanna Martin added: “In the meantime, we are discussing a Memorandum of Understanding which would seek to address vexing issues that impact the industry as we speak. These are issues that they have concerns about, and issues that we have concerns about.

“That would be an interim code of operation until we get to the final phase of the unification. We also discussed that Memorandum, which is in its draft form. The intention is to continue towards unification and, in the interim, to seek an agreement on this Memorandum  which would cause for greater management of the industry during the interim period.”

    A  2005 unification plan called for the creation of a single bus company, in which franchise holders and owner/operators will be given shares.

The plan also spoke to raising equity to capitalise the unified company through an initial public offering (IPO) of shares, and also recommended that the Government be given a 20-30 per cent equity stake “at no cost” to it and the taxpayer. The 790 franchises issued in 2005 were then valued at a total $12.3 million.

  “We’re moving forward and I think we are going to have to accelerate  our efforts  and come to a conclusion,” said Mrs Hanna Martin.