Chamber outraged by offer
'Compensation is far to high'
The Malta Chamber of Commerce and Enterprise has expressed its "utter disbelief" at the compensation package offered to bus owners, saying the government ought to use public funds in a more judicious manner. The Chamber has demanded that the government fulfil its responsibility towards the taxpayer.
Meanwhile, a meeting called by the Public Transport Association for bus owners and operators, which started at 10 last night, was still on at the time of going to press.
As the public transport system heads for a major reform, with a new operator to take over, the government is offering bus owners €98,000 in compensation for old buses and €118,000 to those who own low-floor buses. The sums include renouncing their licence.
The offer also includes a 10-year guaranteed job with the new service provider at a wage of at least €9,486 a year. At present 508 public transport buses are in operation, of which 131 are low-floor.
The government wants to sell the low-floor buses to the new operator and scrap the old ones, except for those classified as vintage which will be exhibited in a transport museum.
On Saturday, Transport Minister Austin Gatt gave bus owners until tomorrow to decide whether to accept the offer, a deadline linked to commitments made to prospective bidders.
"Taxpayers' money must be channelled into areas that are priorities for the country at this present moment in time," chamber president Helga Ellul said in the statement.
Such funds, she added, needed to be invested in those areas where the country and its people were most likely to benefit.
Ms Ellul yesterday tore apart the job guarantee aspect of the government's offer: "Job guarantees are unheard of in this day and age, let alone a 10-year guarantee, and they should certainly not be offered on top of pay-out compensation figures. This is not how the real world operates."
She said every day operators in the business community were continually looking for ways and means to maintain their competitiveness in the face of an increasingly difficult environment.
"The only guarantees we have for 2010 are high energy tariffs and a high cost of living adjustment. This is the Drydocks all over again," she added.
The government was spending €50 million to move out the current public transport operators but was only investing the €10 million to cushion the impact of the utility tariffs on residents and €2.5 million for businesses.
"In terms of its principles, in favour of safeguarding national competitiveness and environmental sustainability, the chamber certainly recognises the importance of the public transport reform, especially if this shall finally translate into an efficient service," Ms Ellul said.
"It is, however, inconceivable that the current transport operators who have enjoyed monopoly conditions for so long are now to be compensated at the expense of the taxpayer," she added.
She appealed to the government not to "afford ridiculous amounts of taxpayers' money to compensate a limited amount of people making unreasonable demands". Such levels of compensation cannot be justified in terms of national economic benefit, she said.
Reacting to Ms Ellul's comments, Public Transport Association president Victor Spiteri said the compensation was being given to make up for loss of business just six years after the government had lured self-employed owners into investing in new buses.
Moreover, the 10-year job guarantee was not something bus owners were after but a move that would benefit those who were employed as drivers.
With regard to the shipyards comparison, Mr Spiteri said the public transport reform and the situation at the Malta Drydocks were totally unconnected - while bus owners invested a lot of money in their business, shipyard workers had no investment in the company.
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R. Zammit
Jan 27th 2010, 12:08
Dear L. Vella. Allow me to enlighten you of your query.
The reason why you teachers are ignored while bus drivers aren’t is obvious! Malta still lives the erroneous mentality that being polite and educated is a form of weakness, vulnerability, and submissiveness, whilst being a discourteous bully, rude, unethical and threatening is a form of strength, authority and assertiveness.
Ironically, you teachers are the ones trying to do your utmost to educate our next generation to be a better society; and that is the thank you get in return!
Unfortunately that is the sad truth!!
L.Vella
Jan 27th 2010, 10:54
They got what they wanted because they threatened to strike. If teachers follow directives or strike nothing happens! we are ignored..well done!!!!!
R. Zammit
Jan 27th 2010, 10:09
Since when are employers giving their employees a 10 year guarantee in employment? And if so, what guarantee are these bus drivers giving to their employer and subsequently to the general commuting public?
Even a 10year guarantee to ‘live’ sounds ridiculous!!! Let alone…. Is this another Made in Malta ’Brand’ of doing things?
C Azzopardi
Jan 27th 2010, 10:01
I am utterly disappointed about the selfishness of certain people. "Compensation far too high"?!
Picture yourself as an owner of a small business which involves operating a successful small shop for the past 20, 30 or even 40 years. Suddenly, you're forced to give up your business, shop and operating licence ... and in compensation you're only being offered the "average government-calculated" market value of your "property's" worth. Is that a "Far too High Compensation" ?
What about the business' overall worth? What about "goodwill"?
Ohh ... nearly forgot that bus owners are now being offered a "minimum-wage-job-guarantee" for 10 years. That would be a nice consolation for any sole trader who gets stripped out of business, I guess!
Didn't it actually occur to Ms Ellul that an experienced bus driver working at a minimum wage is solely at the tender's best interest?
So before you suggest that the government does not "afford to pay ridiculous amounts of taxpayers' money", blame it on the government ...and not on "the limited amount of people making unreasonable demands".
J. Bugeja
Jan 27th 2010, 09:15
How about the Chamber referring the case to the Commission for investigating the Government grant to renounce to the monopoly whether it constitutes illegal state aid? Go on Chamber. Do it.
C. Farrugia
Jan 27th 2010, 07:48
A 10 year job guarantee?
Would this be irrespective of their behaviour towards people, and of the service itself?
John Agius
Jan 26th 2010, 20:01
I look forward to seeing the Prime Minister and his party answer for all this and so much more at the next general election. And to seeing the begging for votes before it.
Simon Swartz
Jan 26th 2010, 18:54
How long for the next General Election??
It will be a big slap for this unefficient government. We need money and not give it for charity!!
r pace bonello
Jan 26th 2010, 18:47
@Mr Buttigieg
I agree that its all about votes but cannot see any support from the consumers. It suspect a serious miscalculation on the governments' part.
Andrew Pisani
Jan 26th 2010, 18:04
This public transport reform is completely useless. Regardless of who wins the contract, we could never have efficient bus service without proper bus lanes, a proper shelter/garage at the termini, a proper ticketing system where the driver doesn't have to give out change while driving, and ADT which actually do their job. (ADT or ATM or MT or TM or whatever they decide to call themselves this week). The transport system should have been left how it is for now until the above mentioned were fixed. Then the new operator would have no excuses. It's funny how the Gov will subsidise the new operator for the next 3 years. That sounds like a familiar number. Oh yes!! it's the same ammount of time for the next election. So expect a very high increase in bus fares right after the election... Very crafty
martin saliba
Jan 26th 2010, 17:50
Viva l' Ewropa . When is the common man in the street going to benifit from joininh the EU ? The only people who are rakinging in thousands of Euros are those who work within the EU or thoe who have been offered early retirment schemes because Europe demands that their work place closes down. The only thing the the rest of us have been given are bills to pay for them.
Charles J. Buttigieg
Jan 26th 2010, 17:28
The answer to your two questions is no. The compensation offer is not about legal rights its about VOTES. The government is trying to please the consumers and the owners at the same time.No more no less.
r pace bonello
Jan 26th 2010, 17:25
@ Victor Caruana
Ms Ellul and the whole public are all disgusted at this unconsciousable reward to the very same people who have made their lives hell over the last decades. The poor commuter who has suffered long enough must now reward the perpetrators of all their suffering. To make matters worse the same bus owners are not going away but will be employed by the new operator. Maintaining discipline with these thugs is going to be quite a job -- a human resources nightmare!
I am not in the least sorry for the 'over 300 people who are being sort of garbaged out', they can only blame themselves. I am sorry for the people who have lost their employment through no fault of theirs and for the self employed whose businesses failed because of the economic situation. These millions in reward money could have been better employed to alleviate the hardships that these unemployed are going through. Social issues and lifestyles of these owners are irrelevant to the issue.
Sadly this is a done deal and the public's outrage will not change anything. Shame, shame and more shame on the government.
B. Zammit
Jan 26th 2010, 15:14
Is the government legally obliged to pay compensation to the bus owners?
Can the bus owners take the government to court if the government does not pay them?
fbonello
Jan 26th 2010, 14:26
Ahleb Tonio, lill poplu Malti halli jkollna xi nhallsu!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Nigel Lawrence
Jan 26th 2010, 14:14
Chamber outraged by offer----
ALL of us are outraged by this offer, but do the politicians listen? Yet again, of course not.
Mr B J Simmons
Jan 26th 2010, 13:55
Give them a minimum of 98,000 euros.
Give them a 10 year work guarantee.
Yes, that'll work. Same old surly take it or leave it service for ten more years.
What new provider would want that?
Nothing will change and any new contractor will give in before 10 years.
How is that the public and tourists know what is wrong, but the authorities 'don't'?
Nothing will change. Dirty buses, uncomfortable buses (King Longs) bad timekeeping, couldn't care less attitude, smoking drivers, telephoning drivers, loud music, not always careful driving, little customer care except from a few. That's just part of my list.
A new bus service that pays millions but remains the same.
ONLY IN MALTA
This paper will not print the question that I'd like to ask!
Colette Farrugia Bennett
Jan 26th 2010, 13:50
€53 million to terminate the current irregular and faulty system.
How about spending some more money in the Health services, or maybe Support Services, or even maybe our own children who living in out-of-home care.....
Why should pay anything to bus drivers for a service they are offering. Why shouldn't they train themsevles in better customer care and apply for a driving job with the new companies!!
Charles J. Buttigieg
Jan 26th 2010, 13:37
When Mintoff was being threatened by the bus owners and he hadn’t a leg to stand on he reminded the bus owners that their bus licence was only worth a sixpence. We now have a similar situation and Gonzi is offering the black market value of thousands of Euro for a worthless licence. This is the difference.
Romano Tebaldi
Jan 26th 2010, 12:45
It is the bus "drivers" that should compensate us for all the pollution created by their archaic buses! The bus terminus in Floriana looks like that of a Third World country!
John Schembri
Jan 26th 2010, 11:23
As to Ms. Helga Ellul's statement .
"The government was spending €50 million to move out the current public transport operators but was only investing the €10 million to cushion the impact of the utility tariffs on residents and €2.5 million for businesses"
That's an easy one. There's money to be made from this particular issue, it's a lucrative tender. In the case of Enemalta, rather than tackle inherent inefficiencies, raise rates and subsidize for as long as convenient, then remove the subsidies. Easy governance, pretend governance? Where's the duty to safeguard the taxpayer?
charles spiteri
Jan 26th 2010, 11:22
money no problem - as long as it comes out of our pockets. Shame shame shame
george tanti
Jan 26th 2010, 11:20
this is the ultimate scandal how to use public funds....
a low-floor bus , known also as King-long were purchased for not more than € 80000 about 8 yrs ago from China .... let alone the old buses !! TAL MISTHIJA !!
John Schembri
Jan 26th 2010, 11:15
Makes sense this. Use taxpayers money to clean up the mess with the drivers caused by government. It's so easy to promise money when the money is not yours. Then give those who tender the whole public transport operation on a silver plate, a monopoly with no foreseeable competition, where the transport rates can be increased at will. Whoever said follow the money was so right.
J Brincat
Jan 26th 2010, 10:58
Why should the transport minstry have to pay bus drivers off. They should get the correct worth of the bus and no more and should be trained up and be guaranteed employment with whoever takes over the service. This is a good deal for them as they will no longer need to maintain their buses and we can ensure that there is a standardisation and accountability in the bus sector. It should not really have taken so long to get this organise but i guess the ministry of transport is as useless as everyone thinks they are.
I believe that a lot of other problems stem from our lack of a suitable public transport. Sort out the buses and make them more efficient and this should be a step to taking bad drivers and drunk drivers off our roads.
There is rumour in the english press of Malta taking some of the bendy buses from London. Londoners are complaining about these buses being too big and dangerous for other drivers and pedestrians which is why the mayor is trying his best to remove them from London's streets. Imagine the disaster this would cause in Malta!!!
Andrew Pisani
Jan 26th 2010, 10:48
Once again, this is another effect of the famous pre electoral promises. Had PN been honest before the election and revealed it's plans, the people (incuding bus drivers) would have voted accordingly. But since the drivers were promised that their business would be safe, it's only fair that they are compensated now. Same should be said to all the rest of the public transport sectors. (and anyone else who has been promised something or another)
It is these pre electoral promises that are costing us tax payers a fortune.
D REILING
Jan 26th 2010, 10:47
Disgusting that these (not all though) so called drivers are to be compensated with almost 6 figure sums (lowest offer) for piles of scrap (noisy, smelly, decrepit, and highly inefficient buses)....further that they are to be guaranteed jobs for 10 years with no mandatory built in requirement for them to be re-trained in customer service and proper reecognised driving skills......DISGRACEFUL.......
C.ZARB
Jan 26th 2010, 10:46
Cassar says there are some €3 million allocated for new medicines, of which not all can go towards medicines demanded by the slick lobbying of the breast cancer lobby. Cassar said it’s a matter of priorities: not all medicines can come for free.
http://www.doi.gov.mt/EN/commentaries/2010/01/mat10.asp
Well done GonziPN and his christian values.
victor caruana
Jan 26th 2010, 10:37
Ms Ellul is very shortsighted on this issue. She is looking at the problem as an accounting issue, and even as such, she is wrong. We are talking of the nation's land transport system which is by no means trivial. After all the transport system is not being disbanded but replaced.
Moreover there are social issues such as the work of over 300 people who are being sort of garbaged out. These people do not live in the luxuries you are used to. You can go and see for yourself the environment they work in.
ASpiteri
Jan 26th 2010, 10:33
hallas gahan!
D. Scerri
Jan 26th 2010, 10:18
We're expected to fork out 52m Euro for these 'people'? In one lump sum payment to them? So here comes another tax to cover that bill. Hang on, if there were some drivers who did purchase new buses at the encouragement of government, then we can look at reasonable compensation based upon what was spent (receipts to be provided) against what has been earned (tax returns to be provided). As for those with older buses, tough. See if a museum will allow you to leave it with them.