The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A taxi union leader yesterday said that “some progress” was finally being made in a decades-old effort for the sector to take control of its own destiny and become self-regulating.

Richard Johnson, the Public Service Drivers Union’s (PSDU) president,said the Ministry of Finance  had now expressed willingness to consider formally allowing franchise holders to use these for collateral in seeking financing from lenders.

“We want to organise the ground transportation business to where it is more beneficial to the stakeholders,” he explained. 

“We are seeking to get the Government to give us an agreement to manage the taxi franchises inclusive of the tour cars, delivery cars, those franchises that cater to the tourist sector of the economy with a view to upgrading the service we give our visitors.”

Mr Johnson added: “For  more than 20 years we have been trying to get the Government to allow taxi drivers to control the business from the docks and the airports and the hotels.

“Our hope is that once we can get that done it will impact the economy of our country because we have been lobbying the Government to give us, one, the ownership of the franchises; to recognise that there should be a value put on the franchises; and allow us to manage these franchises from the docks and airports to the hotels.

“We have been told that the Government will consider monetising the franchises and allowing franchise holders to use the franchises and other rights tied to the franchise for collateral purposes.”

Mr Johnson said this was contained in a letter to him from the Ministry of Finance. The franchises currently belong to the Government, and because of that commercial banks have been reluctant to extend credit to drivers for vehicle purchases without the ability to obtain the necessary collateral.

“We are hoping to get the Clearing Banks Association to agree to a figure. We have looked at the value of a franchise in this country being no less than $75,000. That  is what we hope to bring to the table once the Government agrees on a public-private partnership arrangement, and that is where are right  now,” Mr Johnson told Tribune Business.

“We are definitely making some progress. We want to be treated as investors in light of the contributions we have made to the tourism industry.”