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Parliament passes vehicle licence fees increase Bill; PM says additional oversight measures to be introduced

The government continued to defend its decision to increase vehicle licence fees during a heated parliamentary session where government members of parliament (MPs) approved the measure aimed at raising funds for road improvement across the twin-island state.

Prime Minister Gaston Browne, presenting the Vehicles and Road Traffic Amendment Bill 2025, explained that the increase would help service a $100 million bond aimed at accelerating road repairs throughout the country.

The amendment includes a $100 flat increase for motor cars, with higher fees for SUVs and heavy equipment.

“After 30 years, a realignment was necessary,” Browne told Parliament, noting that licence fees had not changed significantly since the 1990s.

“The fact that we have a problem with our roads and that our government is actually prioritizing the spending and ensuring that the proceeds of the bond are utilized exclusively to advance the repairs and construction of our roads, then you can see that this is for the benefit of all,” he said.

The Prime Minister stated that fixing all roads in Antigua and Barbuda would require billions of dollars, and the $100 million bond would help accelerate ongoing repair work.

He emphasized the government’s commitment to ensuring the funds would be used exclusively for their intended purpose.

“The banks will issue a bond or loan in the amount of $100 million and they will have an engineer that will work exclusively for the bank to make sure that every single dime that the government gets from this loan, that an equivalent amount of work would have been completed,” Browne explained.

He added that in addition to the committee established within the Ministry of Public Works, comprising of the Director of Public Works and the Financial Secretary among other individuals, there will be an additional administrative layer of oversight.

“These funds will not be available to be used to fund other aspects of government operations. They will be drawn exclusively to pay contractors who will be given contracts,” Prime Minister Browne emphasized, adding that the government would publish the names of contractors and amounts paid for each road project to ensure full transparency.

A certification process will also be implemented requiring confirmation that roads were built before payments are released.

The loan will be drawn systematically over approximately 10 months at about $10 million per month.

“The government as well will have its process in place, including public works and our quantity surveyors, that will value the amount of work to ensure that the government gets good value for money,” the Prime Minister stated.

According to the Prime Minister, the fee increase is part of the government’s efforts to address infrastructure challenges facing the nation. He committed to publishing the names of contractors and amounts paid for each road project to ensure full transparency in the use of funds raised through the increased license fees.

“Each of those roads that are built, we will publish the name of the contractor, and the amounts paid so that the public will be fully aware, full transparency,” he said.

The amendment to the Vehicles and Road Traffic Act will also change the authority of the Antigua and Barbuda Transport Board, allowing them to collect and retain motor vehicle licensing fees rather than collecting them on behalf of Inland Revenue.

Opposition members continued to raise concerns about the impact of the increase on citizens already dealing with rising costs of living and called for greater transparency in the operations of the Transport Board and in how previous road repair funds had been spent.

“I will not support any increase on the people of Antigua and Barbuda,” the Opposition Leader Jamale Pringle declared, warning that businesses would pass on the costs to consumers, further increasing prices of essential goods.

St Philip’s South MP, Sherfield Bowen argued that he could not support the Bill without proper financial accountability.

“If I cannot find the 20, 25 million, 30 million that has been paid every year … I’m not gonna support the Bill. I don’t know where the money is,” Bowen stated.

He questioned the fairness of asking citizens to pay more when existing road user fees had not been properly accounted for.

“How fair it is to call upon them to pay more, to fix the same roads? It cannot be fair,” Bowen said.

He also pointed out the lack of information regarding the loan terms, interest rates, and coordination between the proposed increase and the actual amount needed to service the loan.

Despite these concerns, government MPs approved the measure, with the administration maintaining that the $100 increase was reasonable and necessary for improving the country’s road infrastructure.

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