ADT slammed over permit for three open-top buses

The Commission for Fair Trading (CFT) yesterday slammed the Malta Transport Authority (ADT) for delaying the permits for three open-top buses, saying the regulator was only lengthening the process to favour the operator's direct competitors.

In its ruling, the CFT said that, rather than act in the public interest, the ADT was not objective in its reasons for delaying the issue of the necessary permits to the Garden of Eden Garage. Instead of doing such things, the CFT added, the regulator should have ensured that the roads were kept in a good state so they are not dangerous for motorists.

The owners of the Garden of Eden Garage claimed that the authorities' delay in issuing a permit to operate the buses was abusive in terms of the Competition Act and caused the company financial losses.

The CFT heard that the three buses were imported in 1993 with no objection from the ADT. However, since then, the authorities never registered the buses and, consequently, never issued the number plates.

Garden of Eden said that, in 1997, the ADT had told the company it intended to issue licences for the operation of open-top buses, saying in a letter that "the board is favourably considering allowing you to operate open-top buses". But the situation remained stagnant.

The transport authorities claimed the open-top buses posed a safety risk despite being below the maximum height of four metres.

The CFT said the ADT was manipulating its position as the regulator and interpreting the law to its advantage. The ADT decided to act as "a player and a referee".

Lawyer Michael Tanti Dougal, who appeared for Garden of Eden Garage together with lawyer Aldo Vella, expressed satisfaction that the principles of fair competition had been upheld. He said certain authorities had to understand that competition is an intrinsic part of Malta's economic development, not only in the transport sector.