Editorial
Monopolies should be dead and buried
How ironic that the government's determination to finally push ahead with the liberalisation of the public transport sector and bury once and for all monopolies should be challenged by the hearse owners. The people who make money from death want to keep an evidently inefficient system alive.
The Transport Ministry noted that monopolies decreased the incentive for investment; not to mention, of course, the fact that monopolies do not encourage real competition and, thus, a better service and lower prices to consumers/commuters.
The ministry had more to say: In 2006 the government had waived the registration tax on new hearses - a subsidy of €28,000 to each operator in order to replace older vehicles.
It recalled that taxpayers - the same people who, faced with an inefficient public transport service, have to shoulder hefty and unnecessary expenses to use private transport to move about - also paid out about €9 million so that bus owners could replace their buses.
Government after government, minister after minister have been trying to introduce some sense in public transport in this country but to no avail. And, in all honesty, the Malta Transport Authority (ADT) has been a miserable failure. Indeed, if, as has been publicly declared just a few days ago by the Transport Minister himself, its house is not in order how can anyone expect that it could organise public transport?
The Transport Ministry rightly says that the time has come for public transport to be reformed and monopolies removed - and the sooner this is done the better for all. Likewise, it is time for the ADT to be overhauled. The two exercises must run together. However, the government has a more urgent matter to deal with: the nation-wide strike that transport operators have threatened to hold as of this morning unless the permits issued to new hearses are withdrawn.
By the time of going to press last night the situation was unchanged with the government standing firm on its determination to liberalise and the transport operators threatening strike action. The leader of the Malta Labour Party, Joseph Muscat has called for talks. It would not be amiss for both parties involved in the dispute - the government and the Transport Federation - to do so. It is always advisable to sit around a table to find a solution but for that to happen common sense and an understanding of present-day needs must prevail.
To start with, this whole issue about new licences to hearse operators is rather a storm in a teacup. If the supply is already bigger than the demand then one should not be too worried that many new operators will show interest. No entrepreneur worth his/her salt is willing to invest in something that does not promise at least a decent return. If those that do join are willing to offer better prices than so be it. The customer deserves it. That philosophy is gaining ground in this country that for too long made the consumer suffer as a handful of businessmen saw their pockets becoming fatter and fatter.
The bottom line is that consumers want liberalisation as this can be greatly beneficial to them. Thus, in this issue with the transport operators, they know which side to take.
May common sense prevail.