By Robert Hart, Staff ReporterTHE GOVERNMENT will file papers in the Supreme Court within two weeks, contesting the recent $12 billion arbitration award to the National Transport Co-operative Society (NTCS).
Speaking at yesterday's post-Cabinet press briefing at Jamaica House, Information Minister, Burchell Whiteman, said Cabinet had accepted the recommendations of a sub-committee charged with the responsibility of examining the ruling.
"Among the grounds on which the application will be based is that a precondition of a fare increase was that there should be specific improvements in the quality of service provided. These improvements did not take place," Minister Whiteman said.
THE GOVERNMENT'S RIGHT
Yesterday in response to Cabinet's announced move, Patrick Bailey, one of the two lawyers representing Ezroy Millwodd and the NTCS, told The Gleaner that the Government has a right to seek "some sort of review."
However, he added: "We will respond to the arguments as soon as the grounds for appeal are served."
Asked whether he thought the Government had any chance of having the arbitrators' decision set aside, Mr. Bailey said: "That's a matter entirely for the courts."
The arbitration award, handed down on October 2 to the bus company, is in the amount of $4 billion, for the years 1995 to 2001, and interest calculated from the end of each accounting year at the Treasury Bill and commercial bank rates. The decision resulted from what has been described as Government's breach of the NTCS's transport contract.
In 2001, The Government took over the public transportation system in the Kingston Metropolitan Transport Region (KMTR), with nearly five years still left on a 10-year agreement it had entered into with three independent franchise holders.
However, the dispute between the NTCS and the Government began in 1996 when the NTCS applied for a fare increase. This was not granted up to 2000 and was blamed for the transport company's failure to arrive at projected profit targets.
During the briefing, Minister Whiteman added that there will also be an application for a stay of proceedings. Cabinet, he said, has authorised the Solicitor-General "to assemble and lead the best available legal team to act on the Government's behalf."
