Regulator willing to discuss fuel costs with bus drivers

The Malta Transport Authority is willing to hold talks with the Public Transport Association about claims bus owners are making. However, the authority's chairman, Mark Portelli, has made it clear that subsidies for 2004 would only be based on cost of living and fuel increases.

"The problem with the bus service in Malta is that there are not enough passengers to sustain the existing 508 buses on the roads.

"The government subsidy, which started off at about Lm500,000, has spiralled to Lm1.5 million and is unsustainable. If we entertain all the claims they are making, the government subsidy would have to go up to Lm2.7 million," Mr Portelli said.

Mr Portelli was interviewed after PTA chairman Victor Spiteri on Tuesday warned that bus owners would strike unless they were given Lm15,141 for losses they had incurred. Mr Spiteri said that agreement had been reached with the previous minister and with the former authority chairman about the matter and the association was running out of patience and wanted to receive the money, rather than engage in more talks.

Mr Portelli said the bus owners had received all the money due to them until 2003 and there was agreement in principle on a package of Lm15,000. But the agreement also provided for the introduction of new routes and other issues. Once the bus owners did not implement anything of what had been discussed, the authority was not bound by the Lm15,000 per bus sum.

Mr Portelli explained that in 1999 the government had reached an agreement with bus owners guaranteeing an income of Lm11,858 per bus. This covered the driver's remuneration, fuel costs, maintenance and insurance. The difference between the actual annual income and the guaranteed amount would be paid by the government.

"The government subsidy then amounted to 1c7 per passenger. Between 2002 and 2003 patronage of buses decreased and the fares remained unchanged. Losses amounted to close to Lm1.4 million, meaning a subsidy of 5c per passenger by the government.

"The claims bus owners are making are unsustainable as the subsidy would have to go up to 9c per passenger as a result, equivalent to about Lm2.7 million. Anyone in one's right senses realises this cannot go on. We simply can't afford it," Mr Portelli said.

"Bus drivers want a review of the guaranteed minimum income. In reality, the agreed sum of Lm11,858 had already risen to Lm13,500 in an agreement reached in 2003. But bus drivers now want to adjust the part dealing with the driver's wage.

"The authority is willing to enter into discussions to put public transport on a firm footing. We want bus owners to join us to formulate a plan. There are 29 million commuters using public transport and that's a sound bases to build on. There needs to be new direct routes, particularly to the university. Enticing more students and tourists to use the buses can lead to more commuters. Passing on fuel increases to commuters via higher fares is also a fair proposal but everything has to be seen in the right perspective. The authority is there to ensure that fares are just and the service up to it," Mr Portelli stressed.

"With the way buses operate at the moment only half the 508 existing buses work on a daily basis and the number of buses that are required for the network to work in a satisfactory manner has to be revisited. We have to reach a stage where public transport is sustainable in a way that the government subsidy would really reflect the public obligation," Mr Portelli said.