Gatt rebuffs 'threats' from transport federation
Transport operators currently enjoying some sort of protection could not expect to have a veto on any initiatives taken in the interests of users of public transport, Infrastructure and Transport Minister Austin Gatt warned this afternoon.
He was reacting to a statement by the Federation of Transport Operators in Malta which claimed that Dr Gatt last week made a proposal to the Cabinet to liberalise the sectors of tourist coaches, hearses and taxis.
The federation said it had not been consulted and would hold an urgent meeting for its members, adding that the proposal should be withdrawn. It warned the Prime Minister that he should not tolerate this sort of arrogance from his ministers unless he wanted the country paralysed through a stoppage of public transport.
Dr Gatt in his reaction said the business of the Cabinet was confidential, but the federation’s claim about a proposal he had made regarding coaches and taxis was a total invention.
Furthermore, the Association of Hearses Owners had held a meeting with him and it was agreed that the minister would seek Cabinet direction on this sector.
Dr Gatt said the government did not condition its policies on the basis of threats such as those made by the so-called federation . He would move any proposal he thought fit in the Cabinet without fear or favour and without being in any way conditioned by such threats.
As had been publicly stated, monopolies and central economic control were, in principle, something which should be avoided except where it was evident that an open market was not in the interests of consumers. Furthermore, the government’s first duty was towards those who used, or could use public transport and not the operators.
Dr Gatt said the quality of service given by different sectors of public transport did not meet the people’s reasonable expectations and it was therefore clear that through reform was needed.
Once the government decided on a course of action, implementation would follow effective consultation.
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Josef Grech
Jul 2nd 2008, 09:22
By the way, I have to thank Mr. Anastasi for matching us with Minister Gatt. It is such an honour and surely raises our stature. ;-)
Unfortunately no positive results are deduced from such coments as this is not a boxing match, so next time, please do make a small effort as it may beto give a contribution!!
Josef Grech
Jul 2nd 2008, 09:11
Mr. Vella, over a period of how many years you belive apropriate to amoritze the cost of investing Euro 200,000 to buy a vehicle that is up to European standard? Unfortunately, with regard to Public Transport, the Government has misinformed both operators and the public in general as to what it costs running such a service in EU. One has to consider that for us there is no difference in running a commercial outlet and operating scheduled transport, as both operators do that to earn a decent living, and to get enough revenue in order to reinvest in their respective fields. Eu Legislation is something we have to be informed of as it dectates the way we operate and what kind of service the public gets. The easiest part of it is to say enough with Monopolies but as Mr Gatt said "Whilst stressing that the government would not be giving in to threats, Dr Gatt reiterated that monopolies had to be avoided and could only be accepted when a free market would not benefit the consumer".
So let's be cautious and work this out in a proper manner so as to do what is best for all of us!
Josef Grech
Jul 2nd 2008, 08:44
Whilst I understand that people wish certain changes to take place, I acknowledge the need for keeping ahead with times, I also have an insight of what it means supplying such a service on the Maltese Islands. Mr. Ellis please be assured that it's not viable for the Government to run the service. During the past years various government sections such as the lotto department were privatised. Surely this department never run at a loss!!
With reference to Mr. Vella question, the answer is No! There are some misconceptions about the way we operate and run our service. Far from being perfect, but we're doing the best we can with the tools we are given. When talking about subsidies, no user realises that the subsidies we get are those for the Karta Anzjan that enables senior citezens to travel at a reduced fare, and that for fuel which has been the same for the past years even though we saw such price increase.
It is an accepted fact across the EU that Public Transport is to be subsidies in order to make it viable, and the reason is to spread the cost.
Joe Vella
Jul 2nd 2008, 02:27
@ Josef Grech
Can you kindly tell me if you as an owner doesn't get to amortize over the years the cost of your bus and/or equipment.
Joe M. Anastasi
Jul 1st 2008, 23:28
Looks like CRUNCH time has finally arrived. These people have finally found their match in Austin Gatt.
I'm looking forward to following this one. Roll your sleeves up Austin, take your specs off, and go for it.
We're with you.
vincent pace
Jul 1st 2008, 21:55
Hallina Ministru Gatt, all you sell to us is perception of how strong you are. we have seen nothing, NO action. ADT gave away land for speculation in parties like st. julians car parking to you-know -who. You closed streets to accommodate ONE restaurant, and 4 months have already passed since the election. the buses do what they want. drivers are rude and aggressive, some dont give change and what have you done with your inspectors .UN BEL ZERO. All you did is order ADT to widen a road in Gozo, and sack a LITTLE guy because he set some admistration fees for the authority. dik gustizja.
ACTION and FAIR PLAY PLEASE AND THEN WE WILL BELIEVE IN YOU. tackle the bus drivers and white taxis and you have our support, otherwise its nothing but bull.
Joseph Caruana
Jul 1st 2008, 21:50
People use the rusty public transport system cause its the only thing --- no undergrounds...
Bring on other ways to get around the island Dr. Austin Gatt.. -- and their mouths will drop more lower then their service qualtiy. Come on we are living in an era of hardcore competition -- so why not competition among the types of public transport?? -- "imbaghad i_-____ kollu jitla!!"
Joseph Ellis
Jul 1st 2008, 21:48
However, if public transport provides a dilemma, this is not the case with taxis and motor-hearses. There is no justification for constraints to entry in these sectors and government should strive for their complete liberalization. I have just been in Rome where the number of taxis has gone up, after the liberalization carried out by the Prodi government, from 5,500 to 8,000. It is now much easier to get a taxi and it is a relatively cheap way to get around town. This should also be the case in Malta and this would help curtailing our CO2 emissions and bottle-necks on our roads.
While at it, government should also take a hard look at the intra-island transport sector. Gozo Channel does not cope with demand and it operates as a typical monopolist as it does not care if it does not manage to carry the people who want to cross over who have no choice but to take the successive ferry, 45 minutes later. This company has benefited from substantial state aid, some of it occult such as the new Gozo terminal, but it is failing to satisfy adequately consumer demand.
Joseph Ellis
Jul 1st 2008, 21:41
Dear Mr Grech,
The market for takeaway pizzas, pastizzi, minerals and icecreams is fully liberalized. Why should public transport, taxis, hearses and so forth be any different ? Why do not operators in this field - and pharmacists, port workers, hauliers and other privileged people- face the full rigours of a market economy. On top of it, bus-owners have benefited from hefty financing of their buses (which apparently some of the owners keep garaged) and have regularly received subsidies so as to keep the fares low. It is supremely ironic that the one sector which should have been nationalized (in most countries it is municipalized) has been left in private hands.
Now, government should decide whether to liberalize the sector in such a manner that essential services are assured or whether public transport is municipalized. It is not an easy decision to take: if the service is liberalized, there must be cast iron guarantees in place re essential services. Probably, at this stage, after so many millions have been spent by bus-owners in purchasing buses of doubtful adequacy, government has no other choice but to follow this path..
Josef Grech
Jul 1st 2008, 20:43
Poor you! Better the devil you know than the angel you don't!! Those of you who are not satisfied with the present public transport system, I wonder how often you make use of such service to backup your arguments. Please wake up, after all we as public transport providers are not against supplying a better service through better vehicles, maybe airconditioned. But, who is going to pay for the extra cost? Did anyone ever think about the fact that people travelling by bus usually consume more consumables such as takeaway pizzas, pastizzi, minerals and icecreams than the cost of travelling by bus from Valletta to any destination around Malta? Ok, welcome liberalisation!!!! Let's introduce driving hour's regulation and make public transoprt more efficient! What you think about this Minister Gatt?
B. Borg
Jul 1st 2008, 19:58
There are many rumours on how these transport licences change hands. Not long ago, a 50 year old hearse, full of rust and hard metal, was sold for some LM100000. Same applies for Buses, White Taxis, and Red Minibuses. Most cases huge sums are paid worth just the number plates and not the vehicle. Sure one would expect that then the operator would make good return in a protected environment.
Liberalising the market would be of great benefit to the commuters, who will pay less getting a better service in a competitive market.
I Abela
Jul 1st 2008, 18:11
If there is one thing I would agree with Dr. Gatt it should be this. Public transport should be liberalised asap. These people are enjoying too much protection under current law and that is the main reason our public transport is next to hopeless. Just remember that a couple of years ago a young lawyer found a loophole in the law and he managed to get a new permit for a hearse. Obviously the new owner of the permit sought a newer car and it was him who got the first mercedes hearse to Malta and naturally all the others changed their hearse too. If it wasn't for this man we would still be carrying our beloved ones in those 1950's ford station wagons. And guess what happened next ?? The loophole in the law was closed. So much for liberalisation and competition.
A Daley
Jul 1st 2008, 18:01
@joseph e briffa - Let them all go on strike and we will be rid of the junky buses and taxis.
Be reminded about the agreement between the bus owners and the Government to replace the old buses with new ones, many years back? What happened to that agreement? This issue used to come up just before an election and the Government used to promise plenty, but as is usual (paroli biss).
Looks like some people are suffering from acute amnesia.
Could be the state of the art environment + the air that we breath, thanks to the new Dellimara Power Station, which was suppose to be cleaner then the anything in Europe, or maybe the Garden of Eden in lieu of the Marsa Power Station, which was suppose to have been decommissioned in 1992.
To anyone suggesting using Gas instead of oil, you may be reminded that when Carmenu Mifsud Bonnici came up with this idea in 1987, it was laughed at by PN, and said that Malta could and would never afford it. This was the time when Gas was 1/20 of today's prices.
This would have reduced 69% of our CO2 footprint.
Min tnellah b'min?
Joseph E Briffa
Jul 1st 2008, 16:21
It's about time that bus owners, drivers, taxi drivers and karozzini owners be put in their place. We the public DO NOT tolerate their arrogance. We totally support Minister Gatt who has the guts to keep the arrogance of this lot in check They think they own the place and want to dictate matters to everybody. Malta is a very small place and if they all want to strike, we can manage without their 'service'. Let them all go on strike and we will be rid of the junky buses and taxis. The poor horses would have a long holiday from the maltreatment they receive from their owner who doesn't give a damn about their welfare.
Franco Farrugia
Jul 1st 2008, 15:34
Those working in the public transport have been blackmailing the country since time immemorial. When I was young, I remember one particularly long strike in which we used to walk, here, there and everywhere and the Army's soldiers and trucks used to take people to Valletta and back.
The Federation should realise that it simply cannot continue doing this any longer. We have a stupid, junky service and we cannot continue tolerating it anymore. The buses are filthy and are driven carelessly - there's a driver under investigation right now, for reputedly 'beating' up a young person. Taxi drivers drive their cars at breakneck speed - just watch them drive up Moro Road in Luqa. Thanks to them, the Arrivals Lounge at our Airport Terminal is dirty and in a shambles. Wherever they congregate, they dirty up the place - such as Valletta and Tigne, in Sliema.
And what about the karozzini? They fleece the tourists and they do not show enough respect to their horses. Some time ago, there was an accident and the horse lay down on the road, in Floriana and it had to be put down. The owner refused because he wanted the animal for meat!