Opposition says finance minister must accept blame for JUTC fare reduction miscalculation

Opposition spokesman on finance, Julian Robinson, says Finance Minister Dr Nigel Clarke must take full responsibility for implementation of the "bad policy" which saw Jamaica Urban Transit Company (JUTC) fares being reduced to cushion inflation.

The Bank of Jamaica (BOJ) on Friday admitted it overestimated the impact the reductions in  JUTC fares would have on inflation, apologising for the error.

However, Robinson said the blame should be shouldered by the Andrew Holness-led administration.

"The implementation of policy is the prerogative of a Cabinet and the executive of the country. When you receive advice from different agencies, the Cabinet has to interrogate the advice and determine whether what is being recommended makes sense," Robinson said

"Ultimately the minister has to take responsibility for the implementation of the policy, which was a bad policy," he added.

The BOJ said the two-phase reduction is now estimated to have an offsetting impact of only 0.2 per cent on annual inflation, which is too little to offset a two per cent impact from an increase in public passenger fares, the effect of which it was meant to counter.

"Without even having all the data, it must have been apparent that JUTC, which only supplies a very small percentage of the travelling public, only in the Kingston Metropolitan Area, could not have such a significant impact on inflation," Robinson argued on Friday following the BOJ's admission.

Robinson is suggesting the Government look instead at a reduction in fuel taxes to try to temper inflation.

"The hedge tax is something that is available to the minister that he could look at, if he wants to cushion the crisis," Robinson said.

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