Deadlock in bus dispute

The public transport dispute reached a stalemate yesterday when it emerged that the government and the Public Transport Association disagree over the very conditions for a return to the discussion table.

On Monday, Roads Minister Jesmond Mugliett urged the PTA to suspend its industrial action and seek a meeting by Friday, failing which the government would enter talks with third parties in November on operating the bus service.

As a result of the action, the government is refusing to settle the matter of the public transport subsidy for 2005, insisting that this can only be discussed in the context of a long-term reform of the bus service "as laid down in the Halcrow report".

But the PTA yesterday insisted that the subsidies for the 2005 financial year have to be settled before any talks on the reform can start. Mr Mugliett yesterday appeared resolute to end the PTA's monopoly if bus owners do not suspend their industrial action.

"We're prepared to walk the extra mile to reach an agreement but we're not prepared to retain the status quo without reforming the system. Ultimately, there might be other operators who are interested in running the service," Mr Mugliett told reporters at the close of a press conference.

"The government has no choice but to be tough in such a situation," Mr Mugliett said when asked if the government was being too tough on bus owners.

In a statement, the government quoted clause 11 of an agreement signed by the PTA and the Malta Transport Authority (ADT) last October, in which bus owners had agreed to abide by the conclusions of a report on the reform of the system.

The report, submitted to the ADT on August 3, deals with new routes, changes in fares and subsidies of Maltese public transport, the removal of the day-in-day-out shift system, a downsizing of the bus fleet and changes in the way the whole system operates.

The government said the PTA had also agreed that discussion on bus route operations for the 2005-2009 period would start soon after the report is submitted. If an agreement were not reached within 90 days from the start of talks, the authority would have the right to start talks with other parties interested in providing the public transport service or any part of it.

The government invited the association to lift its directives immediately so that talks on the reform as indicated in the October 2004 contract may start.

But in a letter sent to Mr Mugliett earlier yesterday, PTA president Victor Spiteri warned that the association would not lift its measures unless the Roads Ministry and the ADT agree to discuss the 2005 subsidies issue.

Mr Spiteri had told this newspaper that because the proposed revamp was delayed by the ADT, the PTA had proposed that the subsidies for this year should be negotiated before talks on the reform start.

Attempts to negotiate a subsidy for 2005 were in fact made in July and August. However, the parties fell out as the government's Lm1.1 million offer was Lm600,000 short of the PTA's request.

The PTA is also insisting that before the 90-day countdown starts, the association should be given three months during which to evaluate the workings in the report.

"The ADT has in various ways already breached the October 2004 contract," Mr Spiteri said, questioning the validity of the contract.