Lower Berbice Bridge toll to feature in budget
When the APNU+AFC coalition government presents its first budget in September, one of the features will be a reduction in the Berbice Bridge toll.
Speaking at a post- Cabinet press briefing at the Ministry of the Presidency yesterday, Minister of Governance Raphael Trotman said the reduction may necessitate some level of government subsidy to the bridge company, but this will be justified as it will relieve the burden on Guyanese who cannot afford to pay the toll.
“I mean we have heard the complaints and cries of anguish from parents in particular who complain about how they pay exorbitant sums just to send their children to school back and forth… We’ve heard from farmers. We’ve heard from taxi drivers and others. Those matters not withstanding we believe the interest of the people right now is paramount to concerns about NIS and so forth,” Trotman said.
Stabroek News had asked how the government is justifying a reduction in tolls when the Berbice Bridge Company Inc ( BBCI) had written to the National Insurance Scheme (NIS), which holds of $950 million in its preferred shares and other stakeholding, saying that it was unable to pay dividends for 2014 as it did not make a profit.
Trotman continued, “The issues of the NIS’s indebtedness or risk exposure… by placing monies in the bridge and we know that there were other issues surrounding the financing of the bridge… those are matters that this new government will have to take care of and address. But in the meantime the people shouldn’t have to bear that burden.’
He said, “Whatever we do is not going to interfere with the management of the company and the right of the company to recoup and recover expenses and of course you are stressing how we will recover that which is owed to NIS. Those are matters which the Minister of Finance will continue to pursue. But we believe that we must keep our commitment to the people to relieve the burden.”
Asked by Demerara Waves how the government would facilitate such a subsidy considering the administration has been adamant that it would tighten its spending, Trotman revealed that on Tuesday he became privy to a finding by a government minister that cash to the tune of $120 million was recovered from a ministry. He did not divulge any additional information as to which ministry the money was recovered from and only said that there was money in the system that was being recovered that could be redirected.
“Government is not going to dictate, but government is going to negotiate with the company the idea of perhaps a subsidy that would ensure that the tolls are lowered. We have no intention of interfering with a company’s right to arrange a fair or … favourable rate of return on their investment, but we believe as a responsible government we do have a right to represent the people. And we’ve heard the cries of the people of regions 6 and 5 in particular… If the company is unable to do so government feels that it should step in to work with the company to see how we could literally relieve the burden of the cost, the heavy cost of travel across that bridge,” he said.
The minster revealed that after much discussion at the cabinet level it was decided that the Finance Minister would make an inclusion in his 2015 budget presentation reflecting the new tolls.
Trotman noted that the decision to reduce the Berbice Bridge toll was in keeping with one of the government’s first 100 days promises.
He said negotiations would be ongoing with the management and board of the BBCI and that the finance minister would be responsible for revealing the new rates.