Commentary

Bad timing for price hikes

By FRANCINE BLACK, Staff Reporter

AS A SUMMER filled with fun and frolic draws to an end and Jamaicans prepare for the new school year to begin, it is clear that the rest of year will be nothing short of trying.

With increases in bus fares, electricity, taxi fares and gasolene, is obvious that many of us will be working just to meet these obligations.

But while these costs of living increase, many Jamaicans' earnings will remain the same. This as the public sector workers are bound by the Memorandum of Understanding (MoU) and the poorer among us are collecting a measly sum called minimum wage.

Yesterday while I was travelling in a taxi to work, the passengers and driver were discussing how the impending increases would affect them and based on everyone's discussion it would certainly burn a hole in our pockets. One lady lamented that now her weekly travelling expenses will double with the increase in bus and taxi fares.

I have a problem, however, with the fact that Jamaicans were not given enough time to prepare for these increases.

It would have been nice, for example, if the Government had said the fare increases would take effect month end, when most working class Jamaicans would have been paid and would have been able to factor in the new expense into their budgets.

Aside from the increases in bus fares, I also have a problem with the basis for the Jamaica Public Service Company's (JPSCo) rate increase. According to a newspaper article, the increase is related to an $1.5 billion insurance claim JPSCo submitted to the Office of Utility Regulations for damage done to its power lines during Hurricane Ivan.

I do not see why Jamaicans should be asked to pay a rate increase for damage done to the company's power lines. When Mirant was going to buy JPSCo, I am sure it did its research and discovered that Jamaica was susceptible to hurricanes. Given the fact that most of its equipment were in the open, it was obvious that it could be affected by hurricanes. But the company did not insure the lines and now we must pay.

One cannot really blame JPSCo since this claim is a part of its licence agreement to operate here. So we can only take the hike in stride and hope that they will make smarter decisions about securing their equipment in the future.

Well they say trials come to make us stronger, so I suggest that in the face of these economic trials that we conserve where possible and budget our money wisely.