The 15 Studio One Boulevard premises of Chin's Construction Company, which is owned by Rodney Chin. It is also the location of Universal Management and Development Company Ltd., one of two companies operated by Chin, which are linked to the controversial Jamaican/Cuban light bulb project, which is now the subject of a probe. - Norman Grindley/Deputy Chief photographer

The Kingston and St. Andrew Corporation (KSAC) will be establishing a subcommittee to examine why the council is having a revenue shortfall of $7.2 million this year when compared to last year.

The underperformance of the KSAC's revenue collection system was disclosed yesterday at the corporation's finance committee meeting at its Church Street office, downtown Kingston.

According to Councillor Vernon McLeod, chairman of the finance committee, the shortfall was noticeable in trade licence fees, car park fees, billboards and barbers and hairdressers' fees.

Lack of compliance

Councillor McLeod said the shortfall was due mostly to the lack of compliance on the part of some business operators. He said the shortfall was especially evident in trade licence fees, which experienced a shortfall of $500,000. This area had collected $3 million last year.

He said this area has the potential to earn $90 million per annum for the council.

"But compliance is the problem," he said. "The issue of compliance does not rest with the council, it rests with the Inland Revenue Department. So if their officers do not go out and insist on compliance, we fall behind and this is an area that we think we have the potential to earn substantial funds if we get the compliance in place."

He said last year the council collected $3.1 million for rental fees as opposed to $2.3 million this year.

And there was a shortfall of $1.6 million from the fees collected at car parks.