Tuesday, 15th July 2008 - 16:16CET

ADT recommended increase in bus subsidy last week

Transport Minister Austin Gatt has written to Public Transport Association president Victor Spiteri to confirm in writing an agreement they reached verbally two months ago on how to move forward with regard to an EU directive on the bus service. He also revealed that just last week, the Transport Authority (ADT) recommended an increase of €81,550 per month in the subsidy to the bus service to cover the increase in fuel prices.

Those two developments, he said, led him to be surprised by the current bus strike.

Dr Gatt explained that the EU directive had allowed three options: a bus service run by the government, the issue of a tender for the operation of the bus service, or the award of a contract by direct order to a number of SMEs. An attempt had been made to award a direct order to SMEs formed by the association, but the EU viewed that as a way of going around the directive. The only option had therefore been the issue of a call for tender, and the government had committed itself that by the end of the summer the ADT would draw up its detailed requirements with regard to routes, and the type of buses required, since there was a need for the introduction of energy efficient buses. It was also agreed that these improvements would have a price which still had to be fixed.

Dr Gatt said that his letter was meant to confirm his commitment to what was agreed.

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Article © Allied Newspapers Ltd., printed on Wednesday, February 10, 2010. This article is for personal use only, and should not be distributed.

Comments

DenisCatania (on 16/7/08)

Stop the subsidy. If they can't run a profitably business then one must get out of business.Call for a tender.

rpacebonello (on 16/7/08)

another subsidy? For what? How many subsidies have been given to these thugs to improve the service? What has the taxpayer received for all these millions? These lawless operators, together with their irresponsible Association, have gotten away with murder and will continue to do so as long as they can get away with it. It is high time that a firm stand be taken once and for all, to safeguard the interests of the very same people who have been paying these subsidies.

I honestly believe that this time these thugs have meet their match.

Dr Gatt do not less us down.

Reuben Balzan (on 15/7/08)

I'm not sure i follow your logic I. Abela. If you don't believe that government is trying to liberalise the market, what do you conclude are the government's intentions?

I Abela (on 15/7/08)

Also a couple of days ago The Times revealed a photograph of a hearse operator with 4 unlicesened hearses in his garage. Now who would leave 500,000 EUR worth of cars waiting in a garage, probably forever, since according to current maltese laws no more hearse licenses can be issued? And yet the government decided to liberalise just the hearse market (ONLY) without any consultation. Doesn't this remind you of the MISTRA SCANDAL?

I Abela (on 15/7/08)

This government is a farce and anybody who is beleiving a word of what government is saying must be dreaming. First of all I must stress that I am totally against any kind of monopoly and any kind of violence. But let's be fair here and think with our own minds. The government is saying that it is liberalising the hearse market so that consumers would get a fairer price and better service. So I ask. If govt is really keen on providing me with a better price and service why not start from the buses first. The fact is that govt doesn't want that. It is clearly stated in this article by the fact that out of 3 options the govt went for the one which would essentially leave everything as it is and converting the Transport Federation to Transport Ltd (SME). No wonder the EU didn't accept the govt proposal. That should make you rethink the govt intentions.

Reuben Balzan (on 15/7/08)

"These operators are protesting because the government has liberalised one particluar sector without any debate whatsoever with the parties concerned. " M. Zammit.

Illegally blocking roads, smashing windscreens, intimidating and threatening people is NOT protesting. It's criminal activity. Period.

You doubt whether there was consultation. After witnessing the actions of these people I have no doubt whom to believe.

R Busuttil (on 15/7/08)

Any subsidies given to any state institution or otherwise from the government’s coffers belong to the Maltese people, most of all to the tax payers and not to the Hooligan bus drivers.
Austin Gatt, we ask you not to renew in any form the subsidy to the Public Transport Association. Let them understand that we call the shots here not them since it’s our money which they need!

Jean Paul Fiott (on 15/7/08)

So,
after all the violence these thugs have carried out, the minister is confirming an agreement to increase the subsidy by €81,550 / month.

Is this the way to reward these thugs for their actions ?

Why is the minister giving in to the protesters ?

The subsidy should be stopped and not increased

R Gatt (on 15/7/08)

@ M Zammit: I must correct you for your comment, you said "These operators are protesting " i think your mistaken, as these "operators" (quotes since after these last two days i don't they diserver a title like that) are not protesting but they went beyond the protesting part and are trying to bully the country. I agree with protesting but these acts are foolish. They should be heavily peanalized.

J.Gerada (on 15/7/08)

I feel that people who want to protect their business by going to such extremes are afraid that they are not competitive either due to their prices or due to the service provided. In such a case it means that the consumer should have a right to choose something better. If those who are already in the hearse business feel that they are providing a good service at a fair price they have nothing to be scared of! So why go to such extremes?Besides, it is the consumer who always gains from a free market situation.I totally support the government in this decision.

John Azzopardi (on 15/7/08)

No more deals with Public Transport Federation! The operators are not trustworthy. Enough throwing good money after bad! Just derigister the federation, scrap the buses and start from scratch. No one owes these people a living. They do not have a shred of sympathy from the public. A radical change is needed in this sector.

George Caruana (on 15/7/08)

More subsidy? To these people?? For that kind of service?? With a guaranteed income, why would they ever try to make it an efficient reliable service with quality?? I wouldn't.

Louis Grech (on 15/7/08)

I don't agree. Privitise this service. Bus owners shoudl compete as anyone else. Malta can't afford to subsidise a rouge service. Let alone subsidising THUGS. Send them home.

Bernard Mamo (on 15/7/08)

In places or at times with low usage of public transport, so as to save energy / be more efficient, couldn't there be a minibus instead of a full size bus?

M Zammit (on 15/7/08)

These operators are protesting because the government has liberalised one particluar sector without any debate whatsoever with the parties concerned. The Minister is twisting facts when saying that he did consult with the Hearse Association. The truth is only one meeting was held with the Hearse Association and this was sought after by the Hearse Association itself. The Minister proclaimed that he shall be forwarding his proposal to the cabinet to liberalise this sector. As a matter of fact this was done within a span of a week or so. Do you call this consultation? And what about the commitments made by Dr.Mugliett with these same people some two years ago?

m farrugia (on 15/7/08)

The acts of these last two days shos that these people are not definitely people who one can dialogue with. So all this talk of the govt not having consulted before taking decisions is nonsense. These are people whose only interest is to grab what they can from the country. So the govt should keep moving on. Most of us are fed up of paying taxes for a service we do not use and will surely support such moves by the government.

What citizens expect is that these people do not take control of the country. It is the duty of the authorities to stop uncivilised acts.

ADT recommended increase in bus subsidy last week

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