A four-day strike which brought public transport to a standstill ended this evening, with the Prime Minister declaring that the sector had accepted that liberalisation was the way of the future.
The end of the dispute was announced by Dr Gonzi at a press conference held minutes after Transport Federation President Victor Spiteri sent an e-mail message saying industrial action was being called off. The buses resume services tomorrow morning. Some taxis will be back in operation tonight.
Dr Gonzi said the two sides had agreed to hold talks and consultations on liberalisation, with the first meeting due tomorrow morning.
"We can now concentrate on a leap in quality in public transport," Dr Gonzi said. "Consumers rightly deserve to get value for money."
The end of the strike appeared inevitable after the Malta Hearses Association late yesterday pulled out of the federation and stopped its own industrial action after agreement with the government. It was the granting of new licences for hearses which had sparked off the dispute.
Transport Minister Austin Gatt said that following the agreement reached with the Malta Hearses Association, he had phoned Mr Spiteri to discuss the position. Mr Spiteri then submitted a number of proposals.
The two sides agreed that with regard to the bus service, EU rules had to be followed and that liberalisation had to follow discussion and consultation. Consultation will start with a meeting tomorrow at 9 a.m. The government committed itself to hold consultations throughout the summer and take a decision by the end of the summer.
With regard to the minibuses, the government assured the sector that the current stock of 404 minibuses having more than 14 seats would be increased only after consultation.
The two sides agreed to go to arbitration on the €60,000 deduction of the subsidy to the bus service which the government imposed for each day of the strike. The federation has argued that in terms of an existing agreement, the government cannot deduct so much.
It was also agreed that a fresh tender would be issued for transport services from the Park and Ride to Valletta.
Dr Gatt said the road to liberalisation in public transport would now proceed at a faster pace.
"We want a national system based on routes which are determined by the needs of the people; replacement of the buses with new energy efficient vehicles; professional administration and a public transport system which would not be based solely on the buses but the buses would form part of an integrated system including ferries, trams and electric taxis," Dr Gatt said.
Parliamentary Secretary Mario de Marco said the strike had been a blow for tourism and some operators had even been considering halting operations in Malta. There was also a drop in air bookings and some cruise liners had considered taking Malta off their itinerary. He thanked all those who helped out and said no tourist was left stranded. "Today is a new day and we have to start rebuilding what we have lost," Dr de Marco said.
Dr Gatt said the Malta Hearses Association would be given funding of €230,000 which was calculated on the basis of possible loss of earnings and marketing to keep their market position.
As the Prime Minister made the announcement, buses started to leave the Valletta terminus, where they had been held by the police.