Bus owners demand an additional €10 million
Bus owners yesterday turned down the government's compensation offer as part of the public transport reform and proposed a compromise said to be €10 million higher.
After Monday night's meeting for bus owners, the Public Transport Association yesterday presented the Transport Minister with alternative proposals, 24 hours before the government's deadline to accept its offer expires today.
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 and a 10-year guaranteed job at minimum wage with the new service provider. The whole compensation package will amount to €52.4 million.
However, bus owners contend the compensation is not enough to make up for the investment they put into their job.
Bus owners said their latest proposal was for compensation of €116,000 for old buses and €140,000 for the low-floor ones. These figures would mean a cost of €62 million to public coffers.
On Monday, the Malta Chamber of Commerce, Enterprise and Industry expressed its "utter disbelief" at the compensation package on offer and urged the government to use public funds in a more judicious manner.
Asked whether the sum would derail deficit projections for 2010, a spokesman for the Finance Ministry said the compensation would not be coming out of central government funds but would be paid from the transport authority's budget.
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 today to decide whether to accept the offer, a deadline linked to commitments made to prospective bidders.
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Daniel Russell
Jan 28th 2010, 10:13
Way to go AustIn! I wish i was a malta bus driver at the moment, what a redundancy package!!!! The local authority where i work has made people redundant and not been so generous with its compensation.
Chris Mercieca
Jan 28th 2010, 08:58
This is what this government is providing us with. A state of total inefficiency, never mind the promises made and the buzzwords mentioned, free market economy anyone?
Malta is doomed to keep facing the same challenges that have been known and mentioned for around two decades now! Unless there is a change in government and ideas that is...
Mark Shaw
Jan 28th 2010, 08:49
This could actually be good!...bus owners refuse to agree the package, gov'ment stands firm! ..deadline passes....they will be history and tax payer's money isn't spent on waste! cool :D now where did i put my rose coloured specs..ahh there they are..i was wearing them all along!
D. Xerri
Jan 28th 2010, 08:37
So as to what I know the Malta Buses have been run by same families - Grandfather-Father-Son for entire generations - a whole Monopoly and trouble for those who wanted a licence out of these families cause in fact the licenses gave no way for someone to be part of this system - Which was all the way wrong ! Then for entire generations as to what I see Malta buses pollute our air constantly - Pray God to help You if You come after a Malta Bus especially going uphill ! If Youre riding inside one You have a big chance of feeling like being in a rollercoaster for free bouncing and rolling from side to side ! Now Bus Owners demand 116,000 Euros for their old buses ? if Im not wrong these people had more than One Chance to Change their buses to more modern ones. So as a conclusion the Old Bus Owners would strike the best deal with the biggest compensation for the Bouncing and Rolling Service they gave us inside their buses and for the fumes we inhaled being stuck after them in traffic or going uphill.
Very Generous our Minister with some.
mbrincat
Jan 27th 2010, 23:24
Does the 125 euro paid to the ADT for the operating license from every person ( about 2000 persons) goes for this agreement?
jo cassar
Jan 27th 2010, 18:16
So this is the way wth this government who is supposed to hold european ways at heart the more inefficient you are the more money you get
R Dimech
Jan 27th 2010, 17:54
the compensation would not be coming out of central government funds but would be paid from the transport authority's budget.
Oh really?!? And I always thought the ADT was a government entity! Stipid me!! Does it mean that our driving and vehicle licenses and taxes are not paid to government after all?! Since the ADT apparently has such a generous 'budget', what has held it up from tarmacking all of Malta? Oh, go pull the other one......................
E. Azzopardi
Jan 27th 2010, 17:15
And the citizens DEMAND good service!! At least for the last year!!!!!
Jimmy Magro
Jan 27th 2010, 14:08
I believe I am missing something here.
The Government of Malta through taxpayers' mney is buying out the existing fleet since this is old and works on a monopoly arrangement.
The Government of Malta is giving the public transport franchise to a new monoply company.
So where is free competion?
What will Citizen "Austin Gatt" (I mean not to duplicate Citizen John Borg) benefit from all this?
Please do not give me the bogwash of bla bla bla...but will the new fares be less or more?
Anthony Borg
Jan 27th 2010, 14:08
Onorevoli Minister, you had a chance to make history as the one who finally disbanded the notorious Malta Bus Transport System. Instead, you will go down as the one who gave these louts a super- generous compensation, and 10-year employment guarantee! And the thousands of bus commuters-what will we get? Some of the Chinese-built low-floor, ultra tight seating buses, ALL of the former drivers (am I reading right?) and definitely higher fares!
Oh, yes, the minister will finally get rid of this sore in his "patata", but the commuter will face the same louts - at an extra costs! Can this administration come to its senses and do something right? But then again, there are approx. 350 bus owners/drivers + 350 spouses + some 600 odd offspring = 1300 of potential voters.
(Pssst! wasn't the last general elections won by this slim margin???? Only asking)
Galea. L
Jan 27th 2010, 12:21
Not to comment on the compensation or otherwise but,
"Asked whether the sum would derail deficit projections for 2010, a spokesman for the Finance Ministry said the compensation would not be coming out of central government funds but would be paid from the transport authority's budget."
And where does the transport authority budget come from? The taxpayers, bot as taxpayers and those who use the public transport through highly increased fares. Just wait and see.
Nigel Lawrence
Jan 27th 2010, 12:06
compensation would not be coming out of central government funds but would be paid from the transport authority's budget.---
And WHO, pray, finances the Transport Authority? Do These ministers think we are that stupid?
vincenzo galea
Jan 27th 2010, 12:05
Bus drivers are incredible. after what they put us through they expect this ridiculous preferential treatment.
and Mr Austin Gatt, don't mess with our money again, like you did with the dock facilities.
An mp is there to serve us, the public, not to squander our money. Hear what the chamber had to say. Ms Ellul hit the nail on the head.
Look at AirMalta 25 million in the red and Tonio Fenech says he has FULL confidence in the chairman. Rich.
g.c.Forte
Jan 27th 2010, 11:34
Will somebody clarify if an a agreement has been reached or not, because listening to NET T.V. news,was said that a total agreement has been reached. Why under this government everything is like the " Misterji tal Wardija ".............Always confrontations.
Charles Micallef
Jan 27th 2010, 11:34
Let us see who will capitulate first...the taxpayers ot the bus owners!