President of the Upper Corentyne Chamber of Commerce and Industry (UCCCI) Abraham Subnauth is urging the government to explore other options for competition with the Berbice Bridge Company Inc. (BBCI), which he says will speed up an agreement on toll reductions.
Finance Minister Winston Jordan had announced plans to provide annual subventions to the BBCI in order to decrease the toll, beginning with a subsidy this year to cater for a reduction of the current $2,200 toll for cars and buses to $1,900, while all other vehicles would’ve seen tolls reduced by 10%.
However, Subnauth told Stabroek News on Tuesday that he did not agree with the government’s proposal to provide subventions to the company. “I wasn’t in favour of a subsidy and I think the government can look at other options for competition,” he said, while adding that even an extreme option, such as building another bridge, should be considered.
“I see nothing wrong with building a next bridge… it’ll definitely open up a lot of opportunities. It will open access roads, which will make way to access lands, which will bring in more investments and assist with making the economy of the region see a positive turnover,” he stated.
He added that it doesn’t matter if the project is done through another private investment or wholly by the government. However, he added that if it is done through a private investment, the Public Utilities Commission should be involved in oversight to ensure tolls would not be increased without proper justification.
While saying no agreement has been reached on the subsidy, the BBCI has proposed an extension in the concession period from 21 years to 50 years, or for the government to give consideration to an application for an increase in tolls which was made to the PPP/C government.
“You can’t just say you not making money and want to raise the toll. It makes no sense,” Subnauth, however, stated. He added that the Chamber has been requesting to see the contract that was signed between the company and the government for the past three years but its efforts were unsuccessful.
The company has warned that the current proposal from the government could send it into bankruptcy as it is currently deep in debt.
“They should reveal the contract to the public and show the proof of their claims of bankruptcy,” Subnauth exclaimed. “It’s all about transparency. You say you’re going bankrupt, then show us. They are in debt with their self,” he added, while pointing out that the money from the tolls mostly go towards paying the debt so he doesn’t understand the claims.
He said the company should restructure its credit facilities to ease the burden on the cash flow. “We, as businessmen, sometimes we get a bad period and you go into the bank and reconstruct your payment to cut the cost so you don’t feel the burden. When business booms again, you can pay double to make up back for the lost payments,” he added, while emphasising that the entire agreement between the company and the former government should be made public.
Subnauth voiced his scorn for the current tolls. “We, in the Upper Corentyne, are not too keen on the cost of the tolls,” he said, while pointing out that the main concerns are the cost of goods leaving and entering the region. “Everything we have costs more in Berbice and our goods leaving the region to other parts of the country find it difficult to compete,” he said, while noting that the current tolls have negatively affected the Berbice economy.
“It shouldn’t be nowhere close to what it currently is,” he said, before adding that the tolls should be 10% of what they currently are. “The bulk of the money that is made is actually from the commercial trucks and all the goods traffic, it’s not the private cars,” Subnauth pointed out, while stating that a loaded container crossing the bridge would have to pay near to US$400 to cross.
Impact of river taxis
Meanwhile, Subnauth lauded the new government for taking the initiative in exploring another way of crossing the river again.
In light of the failure to reach an agreement on the toll subsidy, Cabinet has given approval for a river taxi service as a means of bringing financial relief to students and the elderly.
“The water taxi initiative is very much welcomed and will have a positive impact on the people and businesses, especially in [the] New Amsterdam and Rosignol areas, and will lift the economy in both towns,” Subnauth said, while noting that people will have an alternate way of crossing the river that will not only be cheaper but will also save more time. “Time and money is always valuable, because the people have more money in their pockets at the end of every day, they will spend more, which just goes back into the economy,” he reasoned.
While the river taxi initiative has been welcomed by Subnauth, President of the Berbice Chamber of Commerce and Development Association Ramroop Rajnauth, Region Six Chairman David Armogan and Region Five Chairman Vickchand Ramphal say the government should steer away from the move, “as in this day and age we should not have to go back to using boats to cross rivers.”
Speaking to Stabroek News on Tuesday, Ramphal said the bridge has improved the livelihood of the people living across regions Five and Six. He said while the river taxi would be a good idea in light of the problems the company and the government are currently facing, there are negatives that must be highlighted. “With the river taxi we have to consider the negatives; it’s not a safe way of travelling and could have a psychological effect on school children, which would affect their performances,” he stated, while suggesting that instead of the river taxis, the government should consider using minibuses. He said that while the river taxis will affect the economy positively, it will also affect the people who directly depend on the bridge. “Consider the 66 Route buses that cross over the bridge daily. The bus drivers and conductors will be affected, along with a great amount of Region Five who depend on the bridge and the route,” he said, while urging that the government should look in the direction that would benefit all of the people.
