FINANCE Minister Audley Shaw on Tuesday neither confirmed nor denied reports that his ministry was c*u*hing for a 100 per cent increase to the Portmore toll operators to significantly reduce government subsidy.
Instead, he would only say that the matter was before Cabinet and that a decision would be made shortly. "I am not going to comment on rumours, all I will say is that the issue is now presently being addressed by Cabinet," Shaw told the Observer on Tuesday.
"It has been the subject of submission by myself and colleague minister of transport and works (Mike Henry) and the matter is now under careful consideration and a decision will be made shortly," he added.
A highly-placed source last week told the Observer that the Portmore toll charges are likely to double by month-end if transport minister Mike Henry caves in to pressure from finance ministry officials c*u*hing for a 100 per cent increase for the toll operators in an apparent bid to rid the state of the monthly $22-million subsidy it now absorbs.
On Tuesday, Shaw said there was no question that Government would have to continue offering a subsidy for some time, as the users would never be able to pay the true cost.
"If subsidies are not contemplated then it would go far out of the reach of the people's ability to pay and that is the seriousness of the situation," he explained.
The finance minister said an accumulated additional debt is building up at National Road Operation and Constructing Company (NROC) which the company now has the obligation to service.
"NROC, which is a part-owner on behalf of the government, is earning no income because all the income is being earned by the French operators. But we have a debt obligation because we had taken out an instrument of almost US$100 million as our contribution to the construction cost," Shaw said.
He added that the Government has to be re-servicing the debt without earning any income from all the money being paid on the toll.
In respect of the Portmore leg of Highway 2000, Shaw said that section was one of the most expensive to produce, as it was financed at an interest rate of close to 12 per cent.
"You have to bear in mind that this is information that is now coming to us after we have come into power, because the subsidy that was being paid was never told to us in Parliament, or by the previous finance minister or works minister," he said.
FINANCE Minister Audley Shaw on Tuesday neither confirmed nor denied reports that his ministry was c*u*hing for a 100 per cent increase to the Portmore toll operators to significantly reduce government subsidy.
Instead, he would only say that the matter was before Cabinet and that a decision would be made shortly.
"I am not going to comment on rumours, all I will say is that the issue is now presently being addressed by Cabinet," Shaw told the Observer on Tuesday.
"It has been the subject of submission by myself and colleague minister of transport and works (Mike Henry) and the matter is now under careful consideration and a decision will be made shortly," he added.
A highly-placed source last week told the Observer that the Portmore toll charges are likely to double by month-end if transport minister Mike Henry caves in to pressure from finance ministry officials c*u*hing for a 100 per cent increase for the toll operators in an apparent bid to rid the state of the monthly $22-million subsidy it now absorbs.
On Tuesday, Shaw said there was no question that Government would have to continue offering a subsidy for some time, as the users would never be able to pay the true cost.
"If subsidies are not contemplated then it would go far out of the reach of the people's ability to pay and that is the seriousness of the situation," he explained.
The finance minister said an accumulated additional debt is building up at National Road Operation and Constructing Company (NROC) which the company now has the obligation to service.
"NROC, which is a part-owner on behalf of the government, is earning no income because all the income is being earned by the French operators. But we have a debt obligation because we had taken out an instrument of almost US$100 million as our contribution to the construction cost," Shaw said.
He added that the Government has to be re-servicing the debt without earning any income from all the money being paid on the toll.
In respect of the Portmore leg of Highway 2000, Shaw said that section was one of the most expensive to produce, as it was financed at an interest rate of close to 12 per cent.
"You have to bear in mind that this is information that is now coming to us after we have come into power, because the subsidy that was being paid was never told to us in Parliament, or by the previous finance minister or works minister," he said.