Submitted by Inkwell
Professor Avinash Persaud said on Brass Tacks Sunday, with more than a little pique in his voice that Government had to subsidize the Transport Board while privately owned “crappy little buses” were making a profit. Prof Persaud is misinformed, at least with regard to the extent of their profitability. Is the crazy way the majority of PSV operators behave on the roads of Barbados indicative of an industry that is making money? To the initiated or the discerning observer, if looks more like a struggle to survive. They:
- Overload their vehicles to maximize income
- Pick up and put down passengers any and everywhere.
- Break the speed limit
- Run red lights
- Go off route to avoid traffic buildups
- Play loud music to attract customers
- Do not complete their route if it is not to their financial advantage
- Disregard common driver courtesy on the road
- Drive in a way sometimes dangerous to other road users.
- They are not psychopaths, they are fighting for survival.
In the last three years to 2009, Government subsidized the Transport Board some $240million, or $80million per year. And that was before the introduction of free travel for school children. No figures have been released, but this accommodation would most surely have increased that subsidy substantially. An additional amount of $5m to $10m annually would be reasonable to assume.
Barbados is struggling with its fiscal deficit and transfers to statutory bodies like the Transport Board have been identified as a significant part of the mounting deficit. Calls are being made to increase the efficiency of the Board’s operations. Such an improvement must be a part of the solution, but everyone is pussyfooting around the subject and not saying the one thing that needs to be said. The Government MUST reduce or eliminate this and other subsidies in order to reduce the deficit. BUS FARES MUST BE INCREASED. If the government does not have the guts to do it, the IMF will. The very fact of the reduction or removal of the subsidy will be a catalyst for an improvement of efficiency.
Bus fares have been fixed at $1.50 since 1991 but the cost of buses, parts, maintenance, wages, NIS overheads and diesel has risen steadily over that nineteen year period. How can anyone in his right mind imagine that PSV’s are still making money. I challenge anyone to name one other service for which the charge has remained static for the last nineteen years. Any entity operating at fixed 1991 income levels while having to operate on 2010 expense levels must have a rich godfather somewhere. The Transport Board has the Government. The owners of those “crappy little buses” have no godfather. Most are on the brink of financial ruin and operate on a day to day basis, scrambling for every $1.50 they can get in order to survive. The units deserve the name “crappy little buses” because owners have not been able to earn enough to replace them with new units. Every one of those buses is in excess of fifteen years old, several twenty, but you can be sure that MTW and the Police hold them to high standards of road worthiness, at considerable cost. Why do we have fifteen and twenty year old “crappy little buses” on the road if they could have been replaced through accumulated profit, with the attendant saving on maintenance cost. Depreciation, which is designed to allow owners to accumulate a reserve from profits to allow for replacement of the vehicle, is virtually non-existent and is merely a book entry.
The Government is forcing owners of PSV’s to subsidize public transportation out of their own pockets and is using its power to discriminate against the sector with exorbitant taxes and unfair competition because it does not want to accept the reality of the situation and do the politically unpalatable but fiscally necessary thing… pass on some of the cost of providing public transport to those using the service. As far as the behavior of the operators goes, when they do not have to fight tooth and nail and compete amongst themselves and with the Transport Board under adverse conditions for each passenger just to survive, are not subjected to blatant official discrimination and can earn a decent wage while working reasonable hours, then we can expect them to feel more a part of society and conform to its rules, rather than as pariahs and behave as such.
The Government does not want to take the bull by the horns because of perceived political fallout, but circumstances seem to be on the verge of forcing it to do so. Continued escalation of the deficit, to which subsidies to parastatal organizations contribute substantially, carries the real risk of a second downgrading by the international rating agencies and this time it would be to junk status, making it more costly, or impossible, to borrow on the international market. Our next recourse would be to the IMF. All economic observers opine that the current level of deficit is unsustainable and Government must take action, even if unpalatable, to avoid further, more draconian measures in the future.
An increase in bus fares will go some way toward not only redressing the hardship long imposed on the private transport sector and provide an incentive for them to clean up their act, but toward improving Government’s fiscal position. It will also show the rating agencies that Government is in fact doing something about the accelerating debt train and may positively influence their next rating.
76 responses to “The PSV Sector, The Transport Board And The Fiscal Deficit”
So far, Driver has, IMHO, come closest to outlining what the REAL problem is (and this problem is endemic in government).
We have a set of 5-year politicians who, as characterized by Noel Lynch, see their term in Government as a mandate to become millionaires in five years.
With this hidden agenda, it is no wonder that practically all public sector agencies are inefficient/corrupt.
Now as the Bushman has always said, the first step in solving a problem is UNDERSTANDING the cause of the problem.
Auctions will only make matters worse!! Can you imaging how the bidding process will go?
If ministers charged hundreds for ZR permits, and wok for wok, how much you think they will bribe potential operators? How many contracts will go to friends and family instead of the best bids? …. and then you say government will be paying SUBSIDIES to these operators…..HA HA HA LOL
….Persaud think this is India? BTW, Bush Tea has seen the transport system in India…..
The solution is (as Inkwell suggested) to deal with the crooks. We all know that, and David Thompson promised to do so…… only to find that many of his followers disagree with any changes -at least for a few years…..
As the Bushman suggested, and David agreed, our next best option is to use these blogs to EXPOSE and shame the crooks.
All we need is for insiders to expose the rackets, expose the incompetent ‘managers’ who are put in place to facilitate the crooked minister’s hidden agendas etc
Now can someone start by telling the bushman who exactly is this woman running the Transport Board? what business did she run before to demonstrate competence to effectively manage such a large complex entity?
…or is this another “quid pro quo”…?
@ Lewis,
We do NOT need complex fancy sounding schemes like auctions (Barbados is too small for that) we need commonsense analysis (like that provided by ‘Driver’ and simple direct solutions like the one that David and Inkwell will apply just now…. that address the root causes.
@ David …. FYI
This approach is NOT going to work and Bushie already explained why – but for the record will do so again briefly…
Our (crooked) politicians are PRODUCTS of our society. They did not become crooks when they were elected. The only difference between us and them is that they have opportunities that the rest of you (oops I mean us) do not have.
I am sure that you know that many Bajans empathize with the behaviors and practices of our leaders. There is a common saying that any such person who do not steal must be a fool….
It is very hard to hold politicians to a high standard when we, within ourselves, know that we would do the same thing -given the chance. THEREFORE, even though many of us KNOW of the dishonest dealings going on, very few will be willing to spill the beans.
….see if you can work out why a society ALWAYS get EXACTLY what they deserve.
@Bushman
We had researched this matter before on another blog. Sandra Forde is a career banker who managed a branch for many years i.e.branch manager. She is a card carrying member of the DLP i.e. political hack. The same can be said about the Chairman Pedro Stanford who brings no known skills to the table as far as being able to managed the problem plagued transport board, anothe hack. So bushman as usual you are shotting, Another day in Barbados, no change, life goes on!
People like to argue that what we needs is some old fashioned honesty and decency and get rid of the crooks and we dont need to change anything else.
It sounds so right and at what level it is.
However, the problem is that people end up doing what they are incentivised to do and what they can get a way with. The structure of the system we have today is that when we change the current lot, the old lot will behave just the same irrespective of the colour of the party cards.
The purpose of the open and transparent tenders is that this behaviour is no longer incentivised and harder to get away. I once heard the President of Botswana explaining to a conference how he had cut corruption (Botswana is one of the mist successful economies in the world, growing more rapidly than China, though largely as a result of huge natural resources) and he did not mention honesty or crooks, he simply said that what he had to do and what he did was to turn corruption from a low risk, high return activity to a high risk, low return activity.
And the way you make all this nonsense a high risk low return activity is to have open and transparent tenders. BU would be able to go and see the terms a bidder won on, and those who lost, see that it was indeed a better bid, or based on a sense of ability to meet promises and check on how they are doing.
There are independent agencies that carry out auctions/tenders if we feel we are congenitally unable to do so ourselves and the results should all be on the web. Then a winning bid could hire your friends and family, but that would only screw yourself and not the tax payers if they are no good. You could cut corners on safety, but what you would be doing is risking a huge personal loss as the licence is confiscated, perhaps via an investigation launched by an annonymous tip off on BU.
Turfing out one lot for the new and raising fares does nothing but make the structural problems worse (the new lot will feel they only have five years to make their money, the higher fares will allow the inefficiencies and corrupt cost overruns to continue and it will make the cost of living even higher making it hard for people to make a decent living and so people invest less and we grow slower…..Radical change is required, not papering over the cracks.
I like the idea of using this blog to expose corrupt practices – we could have a Whistle Blowers section. We should encourage insiders to provide information but no more than what we have a right to as citizens. The techies like Halsall can advise the best way to post to the blog without risk of identification.
The introduction to the draft Freedom of Information bill (circulated for comment since 2008) states that the bill would:
“give effect to the broad provisions of section 20 of the Constitution which gives to every person the right and freedom to receive ideas and information without interference, including information held by public authorities, so as to enhance good governance through knowledge, transparency and accountability;”
So we have a right to know what our government departments and statutory boards are doing even if govt refuses to enact the legislation.
One way to apply pressure would be to publish the names and background of Board Members to help us identify the unqualified political appointees. Sometimes it is very difficult to even find out who the Board members are.
Then as noted let us know instances where ministers or boards intervene to override recommendations of staff.
Other corrupt practices? Expose them to the light!!
Bush Tea you have a fan club ………
I have introduced one of my Supervisors to the blogs (a very intelligent human being) He has fallen in love with your ideas and thinks that you should continue to keep it real.
David
Re Sandra Forde is a career banker who managed a branch for many years i.e.branch manager. She is a card carrying member of the DLP i.e. political hack.
Certainly being a branch manager of a bank does not make one an innovative leader (or a leader at all.). A conservative by the book bank manager only needs to follow the banks protocols to get to the top and stay there. Sandra must be commended for this, but my interactions with her revealed her to be a simpleton. (But them most of you say the same about me also LOL, murdah!)
kbk m
On the subject of Sandra Forde can the people get an explanation why she would have been appointed to 3 government statutory boards in less than 3 years? NHC, NIS and TB
@ JC
Have mercy JC, .. I always thought that these discussions were between us…..
Now what would a lowly bushman want with a fan club…? ….those sort of honours are reserved for big-ups like GP and Dr George Reid and those top boys so….
You trying to swell the bushman’s head or what?
@ David
….can the people get an explanation why she would have been appointed to 3 government statutory boards in less than 3 years? NHC, NIS and TB
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…..did GP not just answer that question David…?
Also, do you think that there may be situations where I would appoint your uncle to my board if you appoint my sister to yours….?
Well, if the benchmark is Jepter Ince, she may know three times as much as he about book keeping and trying to limit current expenditure (less interest and capital expenditure) to current revenues.
In fact, on that measure, she may well be the next Minister of State in the Ministry of Finance……what was that you said Georgie Porgie?
@ Driver
Isn’t one of the Board members a consultant to a Ministry and also a supplier of ‘goods’ to Government?
But isn’t it strange that over the years most of the General Managers of the Transport Board has always been Bankers, Insurance men,accountants and others in similar disciplines, but the only Genera Manager to ever realize a profit for that entity was basically a Soldier/Motor Mechanic.
@Bosun: “…the only Genera[l] Manager to ever realize a profit for that entity was basically a Soldier/Motor Mechanic.
This individual should be proud of what they accomplished.
Can you share what the individual’s name is?
Or is that going too far in public in Bim?
Chris . The General Manager with that distinction , is none other than Capt Hugh Colin Hill, during his first term in the 60’s /70″s. And if we remember right, many of the Officers from the Barbados Regiment held key positions in this island and done a very good job.Major Daniel was the head of the Civil Service, Maj/Colonel Leonard Banfield ran the Prisons at one time,and was also a board member of the initial Transport Board . Colonel Downing took over the management of Haggatts Factory after Dipper Barrow relented and government purchased “the bunch of old iron” . Lionel Moe managed NPC. Lt Col Springer, BET/C&W. These men brought to these entities something that is sadly lacking ,especially in the private sector today, DISCIPLINE.
Somebody in Government got it right in recent years purchasing buses that were known to give good service and last long,…….reliability and durability. But these buses were not for the Transport Board, but rather for the Prisons, Police and the Defence Force.These are the Bluebirds, not as sleek and pretty like the Mercedes and others, but nevertheless manufactured by a Mercedes subsidiary. Relatively simple, yet effective buses. There was a rumor knocking around a few years ago that Bluebird had offered the Transport Board 6 or 7 of these buses to test, with no strings attached,and to keep at the end of the test,even if the Board dis not indicate any willingness to purchase buses from Bluebird.
The truth ,who wants buses to last 20 or 25 years when a term in parliament is only 5 years, the same is that for any political motivated appointment to the Transport Board.
GP
Sandra must be commended for this, but my interactions with her revealed her to be a simpleton
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And I thought you liked Foundation girls…. LOL…. but perhaps that was in your salad days.
GP if your “interactions” was of a commercial nature i.e Banker/Client why worry about her intellectual capacity?
For the record I think Ms Forde’s elevation to GM is a prime example of the Peter Principle.
But she does have a nice smile
Inkwell // July 22, 2010 at 5:32 AM – I can name one now. TransTech, right there in Kendal Hill since the change in G’ovt they have now come on board. The starting motors that are causing the bus fires, are supplied BY THEM. Think carefully we had one or two instances before but the last couple of fires on occured after Jan 15, 2008. The owner of Transtech is a known big supporter of the DLP and said to be a friend of many of the big ups in the party including the PM. If the Quality Assurance Mgr had balls then they would not be supplying those starting motors and flimsy indicator switches all the electricians complain about them but they are still purchased why – maybe some one in purchasing is getting a draw back – can’t say for sure. Currently they have no tyres for the big buses going on 2 weeks now and the rain falling badly. Right now my bus needs tyres they asking me to hold on.
Bosun – Blue Bird buses worked well in Trinidad they have some on the road and are also used in their prison system. I understand from some of the high up that the TB owes Simpson Motors so much money. (that is why you will not see another brand on ours roads in the near future) Yes I did hear they were offered but cannot confirm for sure.
http://www.transportboard.com/management.php
There is a board member who I understand has put his brother into some money doing freighting, getting things cleared from port, and other stuff and charging more than the last guy but have to get his name correct, will check with a source and if she knows I will post it here but I know the last name is R, MILLER
Ms Sandra Forde seems OK to us she seems to mean well but not sure what she can really do to change how the politicians think and insert their will at the Transport Board, after all that is how she came. I think that an engineer or something like that should have been the GM though. We need that type of guidance that we cannot get from the Quality Assurance Dept. (the mechanics who check the buses and do minor repairs) THEY CAN BRING BACK MR. RICHARD DAWH he was good but did not know how to play politics and actually tried to do his job effectively when he was the Quality Assurance Manager, right now there is a mechanic as the QA mgr.
Driver.- “You are in safe hands with us”
Driver,
Thank you for the information provided.
David,
Driver’s input can be the basis for a major piece on Transport Board, Trans Tech and Government, especially its relationship with Kiffin Simpson, who is known to be a big contributor to BOTH political parties. That’s why we have to keep importing these buses, for which Simpson Motors is agent.
Why was the successful business, Acme Manufacturing, killed when if was manufacturing good quality, long lasting vehicles…all of the mini buses now on the road were manufactured by them, right here in Barbados using imported chassis, twenty, twenty five years ago? The TB even has some in its fleet.
Now we are beginning to understand the REAL problem facing this country. It is called LEADERSHIP and to be quite honest, since the prime days of the Dipper, we have not had anywhere near enough of it.
Our ‘Leaders’ are nothing but a set of parasites seeking to bleed the system for their own benefits. Most of the ‘Sirs’ that we honour ever year are the master parasites who bribe, control and manipulate their political surrogates that we call leaders.
The solution really lies in the society being awakened and becoming intolerant of the nonsense. Bush Tea was hoping that the new PM would have been the one with the balls to follow in EWB’s footsteps and defy the status quo in the interest of the people, but so far no such luck….
…that leaves the other David of BU who has so far impressed way beyond the imagination….
Practically every ‘Board’ is a collection of inexperienced, unproven, political hacks who are mostly there to benefit from the stipend and invitations to Illaro Court.
If wanna doubt the bushman, select any Statuary Corporation or even School Board and review the incumbents – the same was true under the previous bunch of crooks. The system is now designed to facilitate the politicians (and their puppet masters) to get their own way, hire their own hacks, give contracts to their incompetent friends etc.
In many cases, we do not even need to have DECENT CITIZENS like Driver expose these people, a careful analysis of the public records of many of these places also show the wasteful dishonesty going on.
Maybe the coming crisis will have a silver lining after all….
There is an ad in today’s Nation where the Transport Board is asking for tenders to supply tyres and batteries, from September this year for two years. We should keep track and see who wins these contracts.
@Driver – are the bus repairs still being done by a company owned by employees, and if so, how has this been working?
Sorry if I seem to differ.Driver is still an employee of the Transport Board, and should therefore demonstrate some measure of loyalty to his employer. Has he raised these concerns at Union / departmental meetings? How long has Driver worked at the Transport Board. Did these or similar problems occurred only in the last 2-1/2 years. And if not, has Driver ever attempted to highlight these concerns in public as he is doing now?
The bushman was wondering how long it would be before some Tucker (with the capital F) would come along with that pissy argument about Driver (and other whistle blowers) needing to go to their supervisors, HR officers, Union Reps and friendly priest rather than publicly expose the blatant corruption in many of our organizations on BU.
Wanna Tuckers know very well how to ‘deal’ with such ‘goodie-two-shoes’ ent it?
The whole culture of this place is built around the system where such complaints are carefully examined, analyzed and then decisive action is taken……
…to ensure that no one else is foolish enough to make such complaints against the system again.
Anyone willing to follow this Tucker’s advice actually deserves what they get. ….not when BU is willing and able to not only expose all these crooks and schemers, but also to give them an equal opportunity to give their own side of the story so that the third (and true) side can be arrived at.
….nice try Tucker (F)!!
Mr. Mohammed Nassar has a program on the radio during which he advertises the goods and services offered by his company Majidah Rentals. Also, during this program, he takes the opportunity to promote Trans Tech Inc. Mr. Nassar is the Deputy Chairman of the Transport Board.
One thing that I can say about Mr Nassar and The Transport Board, is that he has been around the Transport Board probably from the time it was formed. He was not employed however,by the Transport Board,but by a workshop nearby which did any special welding required on any bus.
Not only has ACME built buses to last, but back in the ’60’s ,one model of British buses had a flaw in their body platforms,and ACME was brought in to rectify the problem. The modification was by far, superior for our conditions, than what the manufacturer had originally provided.And that was before ACME started to build bus bodies..
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