It seems Roads Minister Jesmond Mugliett is in for a long, hot summer as another association within the transport sector threatens to take strike action.

The Co-op Services Ltd, which represents the red minibus sector, is threatening to strike unless a dispute over its insurance premiums is resolved.

Meanwhile, the public transport strike enters its third day today.

The red minibus row arose after 133 minibuses' licences expired on August 1 and their owners discovered that their insurance premium had increased by 30 per cent.

All the minibuses have to be insured by the Motor Omnibus Pool, which eliminates the option of shopping around for insurance deals and co-operative chairman Charles Mercieca insisted this was unacceptable.

Following talks between all the parties involved - the ministry, the Malta Transport Authority (ADT), the Malta Financial Services Authority and the insurance syndicate - the increase was revised to 15 per cent.

Despite this move, the co-operative is demanding a valid explanation for the increase and is insisting that the minibus owners will only pay the difference when a fair inquiry by the MFSA has been concluded.

"Why was our premium increased? Was it because of the public transport, coaches or motorcycles? If so, we are not willing to shoulder the burden," Mr Mercieca said.

At a meeting for the co-operative's 320 members yesterday, Mr Mercieca said that they first had to pay the premium plus the increase before the inquiry could start.

"On the other hand, we are saying that we pay the premium minus the increase, and wait for the inquiry's outcome. We want transparency and we are not willing to do things any other way," he insisted.

At the meeting the minibus owners unanimously passed a resolution saying that if they were not given a reply to their proposals in the coming days they would take action.

"However, action is a last resort. We want common sense to prevail," Mr Mercieca emphasised.

Meanwhile, when contacted, Mr Mugliett said that the government was taking the co-operative's grievances seriously and he did not feel that the Motor Omnibus Pool could further reduce its 15 per cent increase.

"When an increase of 30 per cent was proposed we felt this was not acceptable and we negotiated to cut it down by half - this will result in an annual increase of Lm25," he pointed out.

"There may have been a lack of communication in the past, but we are working on reaching an agreement," he added.