Replacement of old taxis-Operators to benefit from forex facility |19 July 2005

Mr Ronald Cafrine, the director general of Policy and Strategy at Finance, said following negotiations made with the commercial banks, some R60,000 in foreign exchange (or US $12,000) will be made available to operators.

Once the new measures take effect (at a date to be announced soon), a maximum of four operators will receive assistance per month, compared to the present situation where, as a result of foreign exchange constraints, commercial banks are able to assist one taxi operator per month.

Explaining the rationale behind this new scheme, Mr Cafrine said it formed part of a series of incentives being introduced to boost all economic sectors in the country.

He said government had taken note of the fact that in certain instances, the measures are not yielding the intended result because of foreign exchange difficulties and for taxi operators, who are at the front of the tourism industry, this is reflected in the state of their vehicles.

He said at present 60% of the 380 taxis operating in the country are above the age limit of seven years, with a good number well above 15 years.

Mr Cafrine said that by providing the foreign exchange facility, the government was hoping to speed up the process of replacing the old vehicles and subsequently modernise the taxi fleet. It is expected that all cars above seven years will be replaced within the next few years.

Operators with accounts in other banks, other than NouvoBanq, will have their equivalent sum in Rupees transferred to the bank, where the US $12,000 will be disbursed. They will not need to open an account with NouvoBanq.

The sum will cater for the purchase of the cars only and other additional costs, such as CIF (Cost, Freight, Insurance) and tax will have to be entertained by the operator.

Since taxi operators are allowed to retain in their accounts a percentage of the foreign exchange they earn, they will be able to use that money too if required.

Mr Cafrine however noted that the sum being disbursed by commercial banks was sufficient for the purchase of a new car from suppliers overseas.

A Facilitation Unit is being set up at the Finance Department where operators' applications will be considered.
The unit will be working in close collaboration with the Land Transport Division (LTD) and the Seychelles Licensing Authority (SLA).

Explaining LTD's role, director general Alone Edmond said over the past few years, the Vehicle Testing Station has been flexible with taxis operating above the given age limit.

However, he said, now once they bring their vehicles for testing, LTD will notify the operators in writing for them to replace their car and they will be given a minimum of one year and a maximum of two to do so. The operators will have to bring the letter of recommendation to the Facilitation Unit where, after completing certain formalities, their cases will be transferred to NouvoBanq.

The chief executive officer of SLA, Ms Marja Karjalainin, said the authority would have the responsibility to ensure that the operators seeking to benefit from the facility have no outstanding arrears with regard to their licence and insurance.