Update 2: Public transport strike, ministry calls off meeting

(Adds comments by the Transport Ministry)

The Federation of Public Transport Associations said today that public transport operators will go on strike on Monday unless the government withdraws new licences issued for the operation of hearses.

In a reaction the Transport Ministry said the decision on the introduction of new hearses is "final". It also announced it has called off a planned meeting with the federation and will not hold taks until the threat of industrial action is lifted.

The federation said the industrial actions will be taken by the Blue Grotto Boats, Gozo Bus Owners' Association, MiniBuses Co-Operative Motor Hearse Association - Malta and Gozo, Public Transport Association (route buses) and the White Taxis Amalgamated.

Victor Spiteri, speaking for the federation, told timesofmalta.com that all the associations will go out on indefinite strike from Monday.

"The action will continue for as long as the government does not withdraw the new licences," Mr Spiteri said.

"We are not against reform, but we against the hypocrisy of going to Cabinet and deciding, without consulting anyone, to issue new permits. This is a betrayal of an agreement reached two years ago between the then transport minister and the owners of hearses, who were made to invest heavily following agreement that no new licences would be issued. This was the same government, Mr Spiteri said.

Mr Spiteri also referred to recent comments by the Transport Ministry about the formation of a cartel and said that a cartel could still be formed by 30 operators.

"The worst thing the government has done is to give up control over the tariff. See what has happened in the school transport sector. Transport to government schools is regulated by a tender issued by the government, while parents of private school children pay far more for transport over the same distances," Mr Spiteri said.

He said the federation is not against reform and is calling for talks with Dr Gatt, but, he insisted the new licences must be withdrawn.

The Transport Ministry in its reaction said it has no intention of going for talks under the pressure of threats or while industrial action is in progress.

It added that it was unethical of the federation to have called industrial action after an appointment for a meeting was set. The meeting had been requested by the federation itself.

The ministry said the federation’s protest was nothing but an attempt to protect the monopolies which still exist in the transport sector, even though such monopolies are detrimental to consumers.

The ministry also insisted that the decision to allow new hearses is “final”.

"The truth is that these threats of industrial action show the indifference of the operators to their passengers. The government, on the other hand, feels it is its duty to first protect the interests of public transport users and potential users, the ministry said.

It reiterated that policies will not be conditioned by threats, and monopolies should be avoided except where they benefit consumers.

The ministry said a new appointment for talks with the federation will be set once the threat of industrial action is lifted. The talks will discuss further reforms in other transport sectors.

(See also Dr Gatt's comments on liberalisation and privatisation in '500 SMSs sent in Malta last year,' in the news section.)