2009-05-05

Government Reviewing Motor Vehicle Policy

Minister of Industry, Investment, and Commerce, the Hon. Karl Samuda, has announced a review of the existing motor vehicle policy, which he says is currently underway.

Delivering his speech in the 2009/10 Budget Debate in Parliament on Wednesday, April 29, Mr. Samuda, informed that the review will include a re-examination of the tonnage and age of trucks being licensed, as well as exploring the implications of importing damaged vehicles, which will be repaired in free-zone facilities for re-export.

The latest review follows two similar undertakings, carried out during the 2008/09 fiscal year. In May 2008, Mr. Samuda announced a ban on the importation of damaged vehicles, with importers mandated to land all such units negotiated prior to that announcement, by July 31. This deadline was, however, extended by two months.

In addition, he announced a new licensing regime for trucks, tractors, and other vehicles weighing three tonnes and over (unladen weight), which was also implemented in September, following concerns raised by regulatory stakeholders, regarding the age and safety of these units.

Mr. Samuda advised that consultations would be facilitated on the matter, and urged members of the private sector to participate.             

On another matter, Mr. Samuda reported a 24 percent decline in motor vehicle imports during the 2008/09, as against 2007/08. He informed the House that the Trade Board Limited (TBL) received 17,424 applications to import motor vehicles during 2008/09, down from 22,283 the previous year.

 “This decrease is attributed to the economic downturn, coupled with the ban on imports of damaged vehicles. The economic downturn has not spared any sector, whether directly or indirectly. This includes new and used car dealers, who have reported declines in sales,” the Minister stated.

Meanwhile, the Trade Board facilitated product exports totalling US$245.7M during 208/09, a 19 percent increase over the previous year. According to Mr. Samuda, the main contributor was ethanol, which recorded a 137 percent increase in exports to the United States, earning some US$130.7M in the process.