Private Sector Commission cannot support the parking meter project

Nov 30, 2016 Letters

Dear Editor,
We have sent the following letter to the Mayor of Georgetown. Kindly publish. The letter follows:
The PSC has carefully observed and assessed the M&CC plans to implement parking meters as a revenue generation option for the city. Members of the business community are extremely concerned as to the impact this will have on businesses operated within the city, in particular on their employees and customers. The business community does not view the parking meters as a value added service to the members of the public. Parking meters are an indirect method of taxation without any value creation for the users.
The business model is deeply flawed on the side of the M&CC as only $20 from every $100 taken as an indirect tax from citizens will go to the benefit of the city and the remaining $80 will go towards administration and wealth creation of the investors. This is a highly inefficient way of tax collection and utilization. It would have been more acceptable had the City received $80 and the administrator of the parking metres get $20. Further, there are no guarantees that parking metres will increase security, public safety and the efficiency in doing business within the Capital City. Our concerns are further amplified when the following two scenarios are considered:
Scenario one: An employee driving to work on Monday to Friday will have to park for 8 hours on minimum for 5 days per week. At current cost of $200 per hour, this employee will have to pay at minimum $1,600 per day or $8,000 per week. This will be an additional monthly (4 weeks) cost of $32,000 resulting in severe hardships for the person and their family.
Scenario two: From public information, parking meters will be operational from 7am to 7PM (excluding Sundays) and 4,000 parking spaces will be made available. Assuming a worst case of 25% occupancy. This will generate for the company an annual revenue of $750M with the M&CC only receiving $150M. If 50% occupancy is achieved this will be an annual revenue of $1.5B with the city receiving only $300M.
The Private Sector Commission is suggesting that the Mayor and Councilors of Georgetown re-examine the feasibility and impact of implementing parking meters in a country with an economy as small as ours. It is our view, that other and more efficient methods of generating revenues can be considered for the improvement of the financial affairs of the city. We are willing to meet to discuss these options.
Edward Boyer
Chairman

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