Minister of Public Works Juan Edghill yesterday said that the government will not be entertaining an increase in fares for transport – whether by river, sea or road – at this time.
His statement to Stabroek News came in the wake of arguments by speedboat operators on the Vreed-en-Hoop to Georgetown run that they should be allowed to up fares by $20 in consideration of fuel prices and the rise in cost of other inputs.
According to Edghill, the speedboat owners are beneficiaries of a number of government concessions. He said that the government has removed the excise tax from fuel which resulted in direct benefits to the boat owners. According to him, the owners are also benefiting from the reduced cost of electricity and water because the government was absorbing the increase which resulted when the price of fuel rises.
“We could have raised electricity and water, but we said ‘no’, we (government) would absorb the cost. There are many other household goods that are subsidized and they are benefitting from. I said to them that the request would be considered, but not at this time,” said Edghill.
The speedboat owners are lamenting the difficult time they are having trying to ‘keep their heads above water’, as they were ordered by MARAD not to increase the 13-year-old $100 fare to $120.
Secretary of the Demerara River Speedboat Association, Poshan Khemraj told Stabroek News yesterday that in light of the steep increase in the fuel price, boat owners made a proposal asking for a rise in the fare from $100 to $120. According to him, the small increase would cover their expenses and leave them with a small profit. However, he said, this request was denied by Edghill.
Khemraj further disclosed that about two months ago, representatives from the association, visited Edghill, under whose portfolio, the Transport & Harbours Department falls, seeking approval for the increase. However, he said, after the 15 minutes meeting, they were denied the $20 increase they sought. According to him, Edghill told the representatives that Cabinet had ordered a no-fare increase throughout the country.
The boats operating from the Vreed-en-Hoop stelling are all privately operated but according to Khemraj, for years the Maritime Administration Department (MARAD) had been setting the fares. He said that on Monday, some operators decided to ask commuters to pay $120. According to the man, who is also a boat owner, not one customer complained about the increase and some even agreed that it was long overdue. However, he said, MARAD later that day issued a warning to owners that if they charged more than the stipulated amount they would be suspended.
Several commuters yesterday told Stabroek News that they didn’t mind paying the $120, but they said they would pay the amount the government said to pay, until they hear differently.
Becoming unprofitable
A frustrated Khemraj noted that it was fast becoming unprofitable to operate the boats, in light of the increase in everything pertaining to their operations. He said gasoline and oil for one day costs almost $11,000 as compared to a year ago when it was $7,800. The increase in the prices of lifejackets from $1,800 to $3,000, and boat paste from $5,000 to $15,000, and the demand by workers for an increase in pay, are making it very difficult to continue operations.
The boat owners also have to pay MARAD a $1,440 fee per day and an extra $500 if they want to operate between the hours of 6:00 PM and 8:00 pm. They also pay $900 for overnight security, he said. Asked about the way forward, the boat owner said that they would continue to seek government’s help to get the increase and if they are unsuccessful, they would have to consider their options.
Boat owner Dhaniram, was also frustrated at not being able to secure what he described as a meagre increase. He said that they provide a service to thousands of commuters each day and it was depressing to take home $7000 after working all day.
“From that money, you have pay to maintain the boat and everything you need to keep your boat working raise,” he said. Dhaniram said that some frustrated boat owners are thinking that if things don’t change, strike action may be their next move.
“We are providing a service and we are not getting any help from anyone. If we strike we would shut down the whole Georgetown,” he declared.
However, Khemraj, when asked about strike option, said that a lack of cooperation among boat owners makes striking difficult. “It would make no sense, because some would strike and some would still work,” he said.
Dhaniram said that during the pandemic, boat owners suffered tremendous losses, since they did not increase the $100 fare. He opined that the increase in the price of gasoline was like another pandemic, where owners are once again struggling to make ends meet.
Another boat owner Tyron Kooblall opined that MARAD should not be determining the fares. According to him, boat owners are a part of the private sector, and the government body should only be responsible for ensuring that their boats and equipment comply with safety rules and that they operate in a safe manner. He also complained about the high cost of operating the Vreed-en-Hoop to Georgetown route and noted that the increase in the fare would ease some of the burdens currently faced by owners.
