Senate Debates National Bus Company Concessions

The future of public transportation in Belize was at the centre of debate in the Senate today, as lawmakers examined Government’s proposed reform of the sector and the creation of the National Bus Company. The motion before the Senate would allow the NBC to operate under a limited concession on the Western Corridor and an exclusive concession on the Southern Corridor. Government says the National Bus Company, which will operate through a public-private partnership, is intended to modernize the bus system and improve service for commuters. With Opposition Senator Patrick Faber absent from today’s sitting, UDP Senator Sheena Pitts led the Opposition’s response. Pitts thanked officials from the Ministry of Transport for providing additional information requested by the Opposition and welcomed the early presentation of the regulations. However, she questioned the decision to approve concessions that could continue beyond the term of the current administration.

Sheena Pitts, UDP Senator: “The grant is said to last, in the instance of the limited concession, for seven years and for the exclusive concession, for fifteen years. Madam President we have had experience in our recent memory where, and I will not lay at the feet of any one government administration but for the purposes of this argument especially this PUP administration, where licenses and concession are given long beyond a parliamentary term. In cases where that practice must at some point come to an end and so to grant a concession especially an exclusive one, in circumstances where we are not certain and as I will show the regulations produced no conditions to make us certain that the design that is meant to be achieved has the kind of viability, checks and safeguards to ensure us that such a long lasting concession is justifiable. And so my initial observation is both for the limited and the exclusive, the terms are too long and in a company like this one considering the history of bus service in this country we should be slower to want to grant any concession for any extended period of time especially considering what we will debate on shortly that is coming in the transportation bill in terms of viability, numbers, how we are able to hold these people to account. And so the term should be shortened so that it attaches it self to the kind of check and balance for us to be sure that the companies are working, the buses are running they’re making their profits. There’s a lot of talk about economies of scale but there is nothing that correlates or corresponds to showing us that this economies of scale will be realizable.”

Attorney General Anthony Sylvester Junior, who sat in for Leader of Government Business Eamon Courtenay, said the motion creates a framework for operators who want to apply for concessions and make long-term investments in the sector. He said the aim is to provide more certainty for those investing in public transportation.

Anthony Syvlestre (SC), Attorney General: “There were, however, no express provisions as it relates to how someone could go about applying for a limited or an exclusive concession, nor were there any provisions relating to how applications would be treated, how they would be considered, how they would be determined. So that now has been cast in law so that everyone knows and is aware of that process.”

Sheena Pitts, UDP Senator: “It say a person is not eligible to apply for a limited concession unless that person controls 70% or more of the runs along the route in respect of which the concession is sought. And in the grand scheme of things you would say well this makes sense because this is going to apply to NBC but we are effectively already treating other operators as not even being able to come near the pie or the cherry to sniff it, taste it or cut it to say that an operator may be able to access a concession. And the example I would like to give in the north there are operators who since the change of the administration and because they were identified and aligned with the UDP those operators so identified an aligned their permits were stripped either completely or in part and in one case that I am aware of an operator whose license was not renewed that route remains unserviced. Most times when they take it away they give it to their own crony but this situation that I’m talking bout they took it away and left the route unserved. And so you have an entire are that has no bus running and so for areas like that are you telling me that non NBC operator is unable to access a concession is set so high at 70% ? We shouldn’t legislate in such a way that only NBC works because what they said in the policy paper is that we’re not pushing out small operators but when we look at the regulation and when we come to the bill you will see that it effectively pushes them out in a way where they are unable to access the very things that we’re here to legislate to provide for NBC only.” 

But Pitts argued that the proposed structure could limit access for operators outside of the National Bus Company. She also raised concerns about the qualifying requirements, the route fee structure, and the need for clearer timelines for fleet modernization and stronger penalties for operators who do not comply with the rules.

Sheena Pitts, UDP Senator: “How is it we are saying that they must take reasonable steps to transition on the one hand but on the other it is saying having regard to financial capacity ? As I understand it the bus industry is barely making any profitable margin so your finical capacity could be very limited to the point where you are unable to transition. So which one is it ? Are we going to impose an obligation to transition or are we going to say just transition when you can afford it because I don’t know how the two sit well that way. And at this juncture where we have had failed bus services in this country we need to be more stern in the conditions of road service by bus operators. And generally for enforcement and oversight we have not in the regulations or the bill established enforceable service standards, fair rules, passenger complaint mechanism, and remedies for failure. We need to ensure that we have baseline safety standards that apply to all operators. That list of circumstances under which concession can be suspended or revoked I am recommended that it be expanded where there are any unresolved passenger reports or complaints that should be a basis for suspension and or revocation. Where there is any road traffic accident that results in fatality or even any serious injury to life and limb for which there is a criminal adjudication or a civil adjudication that automatically has to amount to revocation.”

The Senate debate comes as Government moves forward with plans to restructure public transportation and introduce the National Bus Company as a new player in the sector.