50-year Franchise for J.O.S.
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rtA 50-YEAR franchise -has been obtained from the Jamaican Government by Jamaican Omnibus Services, Ltd., a company formed by the British Electric Traction Co., Ltd.,Close Bros., Ltd., and the United Transport Co., Ltd. Mr. H. C.. Drayton, chairman of B.E.T., told the shareholders, last week, that the conditions of the franchise safeguarded the capital. It was not a large undertaking, but it was expected to be profitable.
As The Commersiol Motor reported last week, Mr. H. Weedy, general manager of Jamaican Omnibus Services, Ltd., has returned td England after making a preliminary survey of passenger transport in Kingston, Jamaica., Mr. Drayton said that the bulk of the capifal would be spent in buying British b uses and equipment. lAmerican White buses are at present used in Kingston, Jamaica.] Profits made in Jamaica would provide purchasing power for foodstuffs for Britain, thus resulting in an invisible export.
Having regard to the importance of invisible exports, said Mr. Drayton, one would naturally expect the Government to encourage such ventures, but any dividend paid in Jamaica and received by B.E.T. attracted profits tax.
"Naughty" Profits
"if we were so naughty as to pass the profit on to you in the form of a dividend, it would become liable to assessment to an additional distribution charge," the chairman continued. "If we had invested the money in this country in, say, an engine,eriag firm, any dividend we received would be free of profits tax.
"You might then reasonably ask why we have ventured into Jamaica, and I can only answer by saying that we are full of hope that one day the officials in Whitehall will start to think logically and alter taxation to a form' which is not harmful to the country and our export trade."
Referring to the Transport Act, 1953, Mr. Drayton said: "We still do not know where we are and, in particular, whether or not the Government intends to relinquish such control as it now holds in the omnibus industry."