Government appears to be moving forward with the divestment of the Transport Board and proposals for this include the severing of all the workers and the transferring of the electric bus fleet to former employees in the first instance, as well as the establishment of a Barbados Mass Transit Authority.
The details surrounding the proposed divestment was in circulation yesterday from what appeared to be correspondence sent from the Ministry of Transport and Works on November 7, to the general secretary of the Barbados Workers’ Union.
Sir Roy Trotman, former general secretary of the BWU, confirmed to Starcom Network that the correspondence was sent, while pointing out that the two entities would be meeting on November 25 to discuss the matter.
Correspondence
The correspondence indicated that Cabinet had agreed on the divestment. However, the Saturday Sun was unable to reach Minister of Transport and Works Santia Bradshaw yesterday.
The correspondence, which was headlined Divestment of the Transport Board, noted: “The Government of Barbados has been reviewing the operation of the public transportation sector with a view to making it more efficient and to further economically enfranchise persons within the country who wish to participate in this sphere of economic activity.
“It is also part of the process of restructuring the Barbados economy and, in this regard, there is no doubt that a modern and efficient public transport system will provide positive benefits that will redound to the enhancement of the economic landscape of the country.”
Regulatory entity
It added: “The reform of the public transportation sector is predicated on the basis of the divestment of the Transport Board and the proposed establishment of the Barbados Mass Transit Authority to be the regulatory entity for the sector.”
The correspondence noted that Cabinet had agreed that the Transport Board be divested on the basis of the following proposals:
• That all of the workers at the Transport Board be severed and that discussions be held with the unions on the subject of separation packages; opportunities be created for those workers who would wish to be economically enfranchised by becoming an owner/operator of the buses and/or providing cleaning, buswashing and security services;
• The transferring of the ownership of the one hundred and twentyone (121) BYD electric buses to former employees of the Barbados Transport Board and the Transport Authority who would be impacted by the establishment of the proposed Barbados Mass Transit authority; in this exercise, priority be given to the Barbados Transport Board drivers, other Transport Board staff and employees of the Transport Authority and thereafter the general public.
Enfranchisement
If the offer is not fully subscribed by the said former employees, discussions be held with the unions in relation to the enfranchisement of the workers at the Barbados Transport Board who provide cleaning, bus-washing and security services through the formation of two companies to provide these services or the incorporation of these workers in the staff complement of existing service providers on terms to be agreed;
• The Barbados Mass Transit Authority, as successor entity, will hold the Bill of Sale over the divested buses and should negotiate with entities in relation to matters including insurance and receiving loan repayments from the persons who accept the terms and conditions for the purchase of the BYD buses.
The value of the electric buses that were donated by the People’s Republic of China, for the purpose of this transaction, will be fifty per cent (50%) of the book value.
The Government of Barbados will meet the cost of fifty per cent (50%) of the electricity supplied to the buses from the charging stations that are on the property of the Barbados Mass Transit Authority.
In the interim, the Barbados Transport Board will increase the number of charging stations. The State will cover twenty-five per cent (25 per cent) of the replacement cost of the rechargeable batteries through a sinking fund. Bus owners will bear responsibility for seventy-five per cent (75 per cent) of the replacement cost of the batteries.
On Thursday night, the correspondence was discussed by the Democratic Labour Party on its DLPTV social media platform.
Opposition Leader Ralph Thorne warned that the new development could lead to increased bus fares, unprofitability and chaos.
He told the Saturday Sun: “While the Government has not verified the proposed divestment of the Transport Board, the rumour of the proposal is consistent with the Government’s abandonment of Barbados’ agenda of social democracy, in which the State ought to commit to investment in the delivery of services that the majority of the population could not otherwise afford in a market-driven, profitoriented commercial environment.”
He stated that over the years, all governments have come to accept that the success of the Transport Board is in the mass movement of people and not in financial profit.
“This proposal would mean that public transport now becomes the latest casualty of the Government’s rejection of a heavy political, social and moral responsibility,” he charged.
Dissecting the proposal, Thorne said bus fares would have to increase in order for profitability to be realised.
“The offer of the fleet to the former employees would be a flawed proposal, for the reason that the Government would be transferring a financially unprofitable social service to exemployees, in the hope that the same industry could become a viable profitoriented endeavour. This would mean that bus fares would have to increase.
Profits
“A large bus constitutes a different economy of scale from that of a minivan and profits would not be as great for a large bus. If the Transport Authority were to prescribe a tiered scale of bus fares as between vehicles, that system may become chaotic.”
He stressed that the proposal “would therefore not only be a rejection of a social democratic agenda, but would be also a betrayal of the lower income groups, whose daily mode of transport is in a state-subsidised omnibus system.”
The Opposition Leader called on Government to engage in wide consultation before it proceeds with the stated divestment plan.
Meanwhile, Sir Roy told Starcom Network that the divestment was in the works for three years and it was being undertaken by Ambassador Clyde Mascoll, economic advisor to the Minister of Finance.
He reported that the BWU would have internal discussions about the matter tomorrow and on November 23. (MB)
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