Wednesday, 2nd July 2008
Transport operators threaten to paralyse country
Don't gamble with our livelihoods - federation.
Quality of service does not meet public expectations - ministry
Talk by Infrastructure Minister Austin Gatt about the need for radical reform in the regulation of coaches, taxis, hearses and other means of transport drew a strong reaction from the Transport Federation (ATP) which even threatened to paralyse these islands through a general public transport stoppage.
The federation also called on Dr Gatt to immediately withdraw his proposal to the Cabinet to "liberalise" the sectors.
But in a strongly-worded counter-statement, the Infrastructure Ministry denied that Dr Gatt had made such a proposal, adding that the type of language used by the ATP showed that operators had unjustifiable expectations.
The ministry said the ATP should understand that the government would not condition its policies according to threats it receives, such as the one made by the federation yesterday.
The ATP referred to "the proposal made by Minister Austin Gatt in Cabinet last week calling for the liberalisation of the market in connection with hearses, taxis, tourist coaches and other sectors of public transport, which he did not mention by name".
Insisting that the minister should withdraw the proposal, the ATP said no official meetings had been held with the associations concerned or with the federation, which represented them, and, therefore, the federation could not understand how the minister could pass judgment on the present situation in the transport sector.
"The federation warns the minister that it will not tolerate gambling with the livelihoods of operators in the sector and thousands of families involved in the public sector as he has done with other sectors of workers."
The federation said it wished the Prime Minister to know that if he wanted to avoid a total paralysis of public transport through a general stoppage, he should not permit such arrogance by some of his ministers.
The ATP will be holding an urgent meeting for members tomorrow to discuss the situation.
The Ministry said it is customary that whatever is proposed in the Cabinet remains confidential. However, it was a "total invention" that on the day indicated by the ATP or any other day, Dr Gatt had made a proposal to the Cabinet regarding coaches or taxis.
The ministry said that the Association of Hearse Owners had requested a meeting with Dr Gatt and, when the meeting was held, both sides agreed that the minister would seek direction from the Cabinet over the sector.
The ministry said the view expressed publicly by Dr Gatt over the transport sector is that a monopoly and central economic control should be avoided in principle and would only be acceptable when it is evident that an open market would not be in the interest of the consumer.
Moreover, the government's primary obligation was towards the users or potential users of public transport and not towards those who today operated the sector.
Thirdly, the ministry added, the quality of the service in different sectors of public transport did not meet the reasonable expectations of the public and, therefore, a radical reform was necessary.
There is no doubt that, when the government decided what direction it should take, its implementation would be carried out following effective consultation with all those interested. But no operator who today is protected by market restrictions had the right to expect a veto on initiatives taken in the interest of users or potential users of public transport, the ministry added.
Dr Gatt spoke in Parliament last week on the need for change in the Malta Transport Authority's (ADT) regulatory framework. Systems were not backed by anything in writing and led to suspicion and the market economy in such cases worked in reverse because many were selling their licences at exorbitant prices, the minister said.
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Comments
If I am not wrong, few weeks ago teachers at MCAST were ordered not to correct any assignments. Isn't that an industrial action taken to put pressure on the authorities?
Ok, ok, not that I agree with such industrial actions, as I don't see any benefit for either side, but I dare say Mr. Farrugia if you think we are second class citizens because we operate in such service, than you're wrong. I don't care what your credentials are but rest assured that I am fully confident about my achievements and totaly satisfied with the results obtained, therefore I don't feel inferior to any sector being it professional or not.
Furthuremore, I really wish to see certain changes take place because it is about time that our industry starts getting the consideration it merits, but I would rather be cautious about it, as I believe that finally the only people who whould have to carry the burden are the pople who make use of our services and all tax payers.
The whole population knows that people in the transport industry are mostly cowboys. Facts prove it.
Regarding the liberalisation of other sectors such as route buses and eliminating the ATP as the operator on our island, I can guarantee that no other operator from abroad will compete to cater all the bus network on the island because of the small population and the income revenue generated is not enough to attract operators from other countries. With regards to local operators; they would be able to compete but for a small part of the network, where mostly good revenue is generated from profitable routes. So what about the non profitable routes? Who is gong to cater them? ATP caters for the whole network; profitable and non profitable routes.
With regard to fares, I really can't understand the reasoning behind Mr. Sciberras contribution as this is a general misconception that bus operators get subsidies. So, Mr. Sciberras please note for your future contribution, that subsidies are to make up for the "Karta Anzjan" and childeren, where elderly citizens and young citizens get subsidies to travel by bus. Then we get a refund related to the fuel consumed.
Another mistake is to consider us as cowboys. As if only public transport operators threaten to strike! What about teachers and other workers who go on stirke? Are they considerd as such?
Austin rocks! These people should have their bluff called.
Taxis are giving us a really bad name abroad. Most guide books tell potential tourists to watch out and advise against catching a taxi in Malta. There should be many more taxis, perhaps not fully liberalised but certainly enough taxis to make the sector competitive and attractive enough for local custom rather than just tourists.
Hearses are another inheritance tax. They were liberalised for some time and new hearses were imported but then the old-hearse owners who started facing competition put enough pressure to stall the process. There are hearses in garages in Malta that cannot be operated because ADT won't licence them.
Tourist coaches are also limited. I believe they're not too bad, but competition works.
Go, Austin, go!
you just overturned the whole argument.
I thought they have been already paralysing the country with a transport system fit for a 4th world country.
Joseph Muscat, here's your first test. Are you going to back government on this or are you going to back the rebels?
Try to comprehend what the message really is, before turning every single comment you see as bi-partisan!!!!!
Pfffttt!
As far as all Maltese people know only the PN was and is in favour of liberisation.
Go Austin Gatt!
Go on. Strike away. We dare you. Perhaps this is the catalyst we need to make real progress in this sector.......
Go on! Cripple the country! We all know what service you are giving: you are a shambles, for all to see. Just look at yourselves in the mirror (metaphorically and literally) and see for yourselves what we, your clients, see in you.
Yes, indeed. We need a liberalisation of this whole setup!
Why should there industry be safeguarded with monopoly ? Monopoly is the thing of the past. Wake up sur gvern. I hope this does not turn out to be another weak with the strong and strong with the weak situation.
Liberalise this sector, they are welcome to paralyse the country...new operators are waiting to enter this sector like honey to bears...let them strike, we will service the industry while they loose money striking.