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Cabinet Sub-Committee begins review of new parking meter agreement
The parking meter project has faced widespread criticisms
Modifications of the parking meter agreement between City Hall and overseas-based concessionaire, Smart City Solutions, (SCS) is yet to receive the blessing of the Government.
Following presentations made by the Georgetown Mayor and City Council, (M&CC), Cabinet has appointed a sub-committee which met for the first time on Thursday to commence their review of the new changes.
The sub-committee is chaired by the Ministry of Communities and includes the Ministry of Finance, Ministry of Public Infrastructure, Ministry of Business and the Ministry of Legal Affairs.
Minister of Communities, Ronald Bulkan said that the sub-committee will “take into account the concerns that have been expressed by the central government previously as well as those of citizens as well as make recommendations to the Cabinet’.
“I think once the rates are not onerous or excessive that the benefits will outlay the contributions that motorist will have to pay,” Bulkan explained.
The Minister had always supported the concept of paid parking in the city, pointing out that it will help to restore order to the chaotic conditions in city streets by helping to regulate and manage the flow of traffic.
The controversial contract has been subjected to public debate, litigation and intervention by the State. However, the changes were approved by majority decision by the full Council, paving the way for a new deal to be explored with the approval of Government.
Head of the Council’s renegotiating committee, Deputy Mayor Akeem Peters had outlined that the changes were agreed upon by members of the Council and representatives of SCS.
Peters explained that the renegotiating team successfully engaged the concessionaire on a number of issues outlined in the contract. Among the amendment was the expansion of the scope of vehicles exempt from paid parking, the issue of payment for city ranks, and a reduction of the parking meter fees.
However, one of the controversial elements was the profit split being overly favourable to the concessionaire.
Peters reported to the council that no adjustment was made to the profit sharing agreement with SCS. The company had agreed to hold 80 percent of the profits while the remainder would be remitted to the Council.
Peters explained that the team was advised that it would be more advantageous to keep the current profit deal rather than accept a 50-50 share of net earnings.
According to Peters, when the company takes out its operational expenses, it will actually be earning 30 percent of the revenue and City Hall 20 percent.
Some councillors have expressed the view that the entire contract be scrapped.
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