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'We won't pay'
NTCS refuses to pay $73 million in franchise fees due today
Monday, March 17, 2008
President of the National Transport Co-operative Society (NTCS) Ezroy Millwood holds up a letter he said he received from chairman of the JUTC Douglas Chambers, requesting that the NTCS pays $73 million in annual franchise fees effective today. (Photo: Joseph Wellington)
EZROY Millwood, the National Transport Co-operative Society (NTCS) boss, is angry that his organisation is being asked to pay the state-owned Jamaica Urban Transit Company (JUTC) a $59-million increase in annual franchise fees as of today, and is refusing to pay.
The NTCS boss, who threatened to take the matter to court, said he received a letter only last Thursday from the JUTC advising him that the annual fees would be increased from $14 million to more than $73 million.
"We don't have any members of the NTCS dealing in drugs, and you are saying to these persons, on Thursday, to pay this $73 million by Monday morning?" said Millwood, who was addressing a large gathering of NTCS members at a meeting at the Hotel Four Season in Kingston yesterday.
"I am not going to commence any negotiations at $73 million because it is unreal and unjust," he said, adding that the NTCS would not even consider as "serious" last Thursday's letter from JUTC chairman Douglas Chambers. Millwood described the letter as "confrontational", but said the NTCS would "seek no confrontation" as it had appointed its legal team to deal with the matter.
Millwood added that he found it in poor taste that the NTCS would receive such a letter from the JUTC after Transport Minister Mike Henry had assured them at an official meeting on March 7 that there would be no increase of franchise fees at this time.
Chambers told the Observer yesterday that he would have a release sent out at a later date to address this latest development.
Millwood, meanwhile, complained that this increase would mean that the 165 members of the NTCS who would normally pay $95,000 a year would now be required to pay nearly $600,000 each.
Millwood said that what obtained before was that the franchise fees would be paid in two parts to the JUTC, through the Transport Authority each October, with the second part payable six months after. However, he has since been informed that all payments should be made directly to the JUTC.
Chambers confirmed that a letter was in fact written to the Transport Authority indicating that they should no longer collect any money on the JUTC's behalf.
Meanwhile, Kirk Finnikin, service planning manager at the JUTC, said what is being required of the NTCS is the same as for all other franchises.
"We had approached taxi associations, mini bus operators and we have just about completed negotiations with persons designated to represent the groups and they have all signed off on a plan with the JUTC in terms of the new fees, and consideration for a payment plan to make it easier for them to absorb the increase," he said.
"NTCS operators are no different," he added.
Finnikin told the Observer that they have written to the NTCS for the organisation to formally respond to any concerns so there can be a structured meeting. "But the reality of the situation is we need to ensure that in going forward there is some structure... no group likes change, but we are willing to sit down, discuss these matters and ensure that in going forward, we have some things ironed out in terms of process and fees."
As for payments being made to the Transport Authority, Finnikin said he saw no reason why this should be a problem as it would only mean a change in location.
NTCS refuses to pay $73 million in franchise fees due today
Monday, March 17, 2008
President of the National Transport Co-operative Society (NTCS) Ezroy Millwood holds up a letter he said he received from chairman of the JUTC Douglas Chambers, requesting that the NTCS pays $73 million in annual franchise fees effective today. (Photo: Joseph Wellington)EZROY Millwood, the National Transport Co-operative Society (NTCS) boss, is angry that his organisation is being asked to pay the state-owned Jamaica Urban Transit Company (JUTC) a $59-million increase in annual franchise fees as of today, and is refusing to pay.
The NTCS boss, who threatened to take the matter to court, said he received a letter only last Thursday from the JUTC advising him that the annual fees would be increased from $14 million to more than $73 million.
"We don't have any members of the NTCS dealing in drugs, and you are saying to these persons, on Thursday, to pay this $73 million by Monday morning?" said Millwood, who was addressing a large gathering of NTCS members at a meeting at the Hotel Four Season in Kingston yesterday.
"I am not going to commence any negotiations at $73 million because it is unreal and unjust," he said, adding that the NTCS would not even consider as "serious" last Thursday's letter from JUTC chairman Douglas Chambers. Millwood described the letter as "confrontational", but said the NTCS would "seek no confrontation" as it had appointed its legal team to deal with the matter.
Millwood added that he found it in poor taste that the NTCS would receive such a letter from the JUTC after Transport Minister Mike Henry had assured them at an official meeting on March 7 that there would be no increase of franchise fees at this time.
Chambers told the Observer yesterday that he would have a release sent out at a later date to address this latest development.
Millwood, meanwhile, complained that this increase would mean that the 165 members of the NTCS who would normally pay $95,000 a year would now be required to pay nearly $600,000 each.
Millwood said that what obtained before was that the franchise fees would be paid in two parts to the JUTC, through the Transport Authority each October, with the second part payable six months after. However, he has since been informed that all payments should be made directly to the JUTC.
Chambers confirmed that a letter was in fact written to the Transport Authority indicating that they should no longer collect any money on the JUTC's behalf.
Meanwhile, Kirk Finnikin, service planning manager at the JUTC, said what is being required of the NTCS is the same as for all other franchises.
"We had approached taxi associations, mini bus operators and we have just about completed negotiations with persons designated to represent the groups and they have all signed off on a plan with the JUTC in terms of the new fees, and consideration for a payment plan to make it easier for them to absorb the increase," he said.
"NTCS operators are no different," he added.
Finnikin told the Observer that they have written to the NTCS for the organisation to formally respond to any concerns so there can be a structured meeting. "But the reality of the situation is we need to ensure that in going forward there is some structure... no group likes change, but we are willing to sit down, discuss these matters and ensure that in going forward, we have some things ironed out in terms of process and fees."
As for payments being made to the Transport Authority, Finnikin said he saw no reason why this should be a problem as it would only mean a change in location.
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