Rethink bus fares, says Busuttil
Nationalist MEP Simon Busuttil has called on the government to consider a rethink of the new structure of public transport fares, saying EU law did not appear to support differentiation between residents and tourists.
He said the European Court of Justice had already rejected similar arguments brought forward by other member states.
“The issue has already been clearly addressed by the ECJ on more than one occasion. I think it may be appropriate for the Maltese authorities to look into the matter again as different bus fares for tourists may well be illegal under EU law,” he said when contacted.
Dr Busuttil’s stand confirms comments from EU sources last week who said although prima facie the distinction being made by Maltese authorities was based on residence and not nationality – which is allowed under the EU treaties – in practice it would be very difficult for Malta to justify a different price structure for other EU citizens.
Under the public transport reform, which will be implemented next year, non-residents will pay more for the same ticket than residents who are in possession of a Maltese identity card.
The European Commission last week said it would be asking the Maltese authorities for more information about the new tariff structure. So far, it has not passed any judgment on it.
Dr Busuttil’s reasoning is based on a judgment handed down by the ECJ in January 2003, in a case instituted by the Commission against the Italian government in a situation very similar to Malta’s.
The case concerned preferential rates being offered to elderly Italian residents (not nationals) aged 60 to 65 years for admission into museums in Venice, Treviso and Padua. At the same time other EU citizens not resident in Italy were being charged extra.
The ECJ had ruled that discriminatory treatment over museum admission affecting foreign tourists who were EU citizens was prohibited because it breached the EU Treaty.
“Indirect discrimination based on residence which produced the same result as that imposed by nationality is also prohibited,” the court had held.
The Italian government had argued that since Italian residents paid taxes it was only fair they benefited from these subsidies, a similar argument being used now by the Maltese authorities to justify the differential price structure.
The ECJ had dismissed this argument saying there was no direct link between the taxes paid by residents and the preferential rates for museum admissions. This argument, it said, could apply if there was a link, for instance, between the taxation paid for pension or insurance schemes and the deductibility of the contributions.
Dr Busuttil said with this jurisprudence already in place it would be difficult for Malta to justify its position if eventually challenged.
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53 Comments
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m borg
Nov 16th 2010, 23:02
Put in a nutshell, Simon Busuttil is arguing that government should use our taxpayers money to subsidise tourist’s use of public transport. Either that or else he is trying to get government to reduce subsidy on public transport for everyone else. If fares for residents are made higher, less people will use public transport resulting in more traffic congestion, more use of carbon and more pollution.
m. grima
Nov 18th 2010, 10:02
good point. i think that the rates are fair. one has to look at it this way:
the fare for a week is the same for everyone,
but as a maltese resident, the government is giving you a discount voucher that you can use on public transport.
its simple as A B C
lawrence.micallef
Nov 16th 2010, 21:01
There is a very simple solution to all this. The bus company ought to create a block ticket of, say, 250 tickets. The price would be heavily discounted by, say 50% when compared to the cost of buying the same amount of tickets one by one. The quantity, hence the cost of the block ticket, would be tuned in such a way that it does not make any sense for a tourist to buy it. Actually, the block ticket will only make sense to the frequent traveler, who, by nature, is very likely to be a resident.
Having said all this, there will not be any discrimination, and a tourist who is willing to buy a block ticket of 250, would be welcome to do so, and at the same price as that paid by locals. It is however unlikely that a tourist will actually opt for such a big block ticket, and he will probably settle for a day ticket, which will be more expensive, irrespective as to who is buying it. This solution will address the government's objectives, and at the same time, steer clear from any discrimination.
S. Calleja
Nov 17th 2010, 15:05
It would be simpler to replace a "block ticket of 250" by a passenger subscription chipcard that has to be validated through a machine every time you get on the bus, and requires monthly or annual payments for unlimited rides. That's how it's done in Belgium. You pay a monthly fee (€45) for unlimited rides during that month, whether you use them or not. The alternative is buying tickets of 10 trips (€12.30), tickets for 1 trip (€1.50) or buy a ticket from the driver (€2.00). They do not discriminate however between residents and non-residents. The non-residents of course pay the higher price since they wouldn't do the monthly subscription.
Mary Fisher
Nov 16th 2010, 17:25
Is all this fuss about the discrimination of tourists regarding bus charges? This exercise has been going on for quite some time. I do not know whether it is still the practice that it is cheaper for a Maltese to travel on the Gozo Channel than it is for a foreigner. I remember the time when I used to buy tickets at Cirkewwa and say that there are 4 Maltese travelling in order to get a cheaper price. And what about the discrimination of Air Malta in the opposite direction? If you are travelling Malta- UK - Malta it is twice the price of the cost of travelling UK -Malta - UK. I know it should not be but there you go, Mitt bniedem, mitt fehma !!!!
R Saliba
Nov 16th 2010, 17:59
excellent post Mary
C Cassar
Nov 16th 2010, 19:29
When anyone leaves Malta on a particular flight, if booked at the same time will pay exactly the same amount of money, whether tourist or resident. Flying to Malta from that destination may cost a different price. That's the same all over Europe (and also worldwide), whether you fly from London to Frankfurt or Frankfurt to London. You will see this on ALL airlines worldwide if you are a frequent traveller like me. For example, it nearly always costs less to fly to the UK from Germany as opposed to Germany from the UK, using the same airline and the same dates/flights. Air Malta is no different in this respect to any other airline.. It's not even close to the same situation with regards to the new bus Tariffs, since these differentiate between people using the same service from the same place.
M. Calleja
Nov 16th 2010, 16:15
Funny to have a Nationalist MEP 'scold' the Nationalist government over a power-point proposal for a transport reform in Malta! Goes to show that there is lack of vision, direction and teamwork in what goes on on Cloud 9 in Malta.
A quick verification could have saved the government this embarassment. How come no-one had the bright idea of dialling Simon Busuttil, if not David Casa, for a quick resume of EU law and ECJ opinion. NOW we verify! If it is a verification at all, cos I get all the impression from this article that Simon Busuttil is offering the information independently.
It is obvious that the EU would reject such a discriminatory proposal.
I have personally been all over Europe: Brussels, Luxemburg, Stockholm, Helsinki, Berlin, Copenhagen, Rome, Barcelona ... never ever were I requested to show an ID Card or a passport to a ticket booth to get a discounted metro, train or bus ticket ... this is obscene. Not even in Cairo (Egypt) were there is functioning metro. I was never asked to present my ID Card.
I have no idea who came out with this 'brilliant plan'. An idea well-worth of a Pulitzer Prize, eh ???
R.Gauci
Nov 16th 2010, 17:44
Agree with you 100% ! I too had been in different countries around the EU and travelled and used different ways of transport and never was requested to pay a higher fare because I wasn't a resident in this country!! The only time I had to pay a higher ticket was in Russia to enter a Museum as it is a norm there that foreigners pay more then Russian people to enter tourists attractions! :) The problem in this issue is clear that is bad planning, first the Transport Minister announced this reform with a lot of publicity and promises that it would be a sterling reform and gave a huge amount in golden handshake to the bus owners(not to loose any votes), now he realised that to make the new service viable he need much more money! This proposal of charging tourist a higher fare is ridiculous and shall be considered as the joke of the year!! This is pure and simple discrimination!!
j xerri
Nov 16th 2010, 15:34
We are waiting for a statment from Austin's Gatt Ministry saying that "Busuttill irid nollijiet
ogħla għall-Maltin" to keep in line with previous statements issued when the Hoteliers and Joseph Muscat spoke about the matter.
Joseph Agius
Nov 16th 2010, 15:06
As always, Dr. Busutill expresses a professional and unbiased advice. Two tier structure will indeed be very difficult to be accepted legally unless ther is some value added with the Tourist ticket such as discounts to museums. This is why you find special 'packages' for visitors in cities like Paris etc. The normal rate, however, has still to be made available to whoever wants to purchase a 'normal' ticket.
RJ Micallef
Nov 16th 2010, 14:14
I live in the UK and I would be very upset if there had to be a different fare structure for residents and tourists. Indeed it would be unthinkable.
Discounts should be based on frequency of use (apart from students and pensioners).
You get a discount if you buy a weekly, monthly or quarterly ticket. Not whether you are a resident or not.
Neville Cassar
Nov 16th 2010, 13:38
Can anyone remind me why we are subsidising the new Arriva company yearly with millions.... increasing the tariffs.... charging for Park&Ride... and yet the system needs MORE money? Arent we just promoting inefficiency of the system? So if the company makes profit at the end of the year..... are they going to give back a portion of the subsidy to the goverment / taxpayer?
Why not release the market to all... and let the most competitive company running the operation win. Passengers will ride on the cheapest most efficient service.... and the more expencive company will perish.
LET THE MARKET DECIDE...... Stop this political meddling and goverment control !!
J Farrugia
Nov 16th 2010, 13:27
Excuse me Simon know all Busuttil but: are you acting in favour of Malta or AGAINST Malta and its citizens?
Tony Gatt
Nov 16th 2010, 15:58
Is it not in favour or Malta's citizens if we ensure we rectify the situation before the European Institutions make us do so? Is it not in Malta's favour if we ensure that tourists do not think of Malta as an unjust haven and therefore choose other equally popular destinations? Is it not in Malta's favour if we make sure we get this transport reform right once and for all and stop tooing and frooing and redesigning the system, wasting taxpayers money because we keep forgetting to think about the BIGGER PICTURE? I wonder, are YOU in favour of Malta or AGAINST???
Ron Cassar
Nov 16th 2010, 17:09
J Farrugia. You have no place asking that question since you're putting the party before the country. For you anyone who dares speak against the party is a "know it all" . You do not believe in the individual within a party, you only believe that everyone should toe the party line. I believe that makes you a hypocritical one at that!
malcolm mason
Nov 16th 2010, 13:04
in the uk pensioners get free travel but only those living in the uk . eu pensioners pay full fair .
surley this is the same thing and ive not heard of the eu interviening
R.Gauci
Nov 16th 2010, 18:22
Please don't mix up Grass with Gas! No one is saying that we should start to accept the Pensioners or Student Bus pass of other countries, although this happens abroad in countries such the UK and Ireland(where I used to work as a bus driver) and the holders sometimes get a discount on the fare as the residents do but this depends on the policy of the company operating the service! However nobody is asked to pay a higher fare cause he is not a resident of that country so that what's the issue about!!
Raymond Fava
Nov 16th 2010, 13:01
No body dares to say that these are the same people who got us to the EU and had been on this track for the last 20 YEARS. They still do NOT know what EU means. God help US ALL!!!!!!!!!!!!!!!!
Tony Morris
Nov 16th 2010, 12:56
Of course this proposal is all wrong but let's be honest the tourists have been overcharged for years and not only on the buses,this is just the Govenment making it legal!!
C Cassar
Nov 16th 2010, 13:04
Just like every other tourist area on any Mediterranean coast, jts look at the huge rip-offs in Greece.
Fred Beach
Nov 16th 2010, 12:54
Why don`t the Maltese authorities just stamp "sucker" on every tourists forehead, then charge `em double for everything?
C Cassar
Nov 16th 2010, 17:46
Looks like you'll fit the bill perfectly as the first one.
albert leone ganado
Nov 16th 2010, 12:54
Simon Busuttil has cogently quoted existing EU case law and judgements that make it unlikely that the distinction between visitors and residents will be allowed by the EU in our new bus fare structure. In a way this shows that our freedom of action in taking administrative decisions is heavily circumscribed by EU controls even in matters which may appear minor. In future our managers will have to refer to EU experts before taking decisions.
However this should not be a serious or difficult matter to rectify and it should not be difficult to find schemes which conform with EU policies of non-discrimination.
One scheme I would suggest is one similar to the UK Oyster card where by purchasing a card of say one year duration at say 5 euros you will be entitled to a cheaper fare. As most short term visitors will not bother to buy such a card the result will be almost the same. In a sense it will also give an advantage to regular users of the bus service over those even nationals who use the service occasionally and will also not bother to carry a pass.
James J. Patton
Nov 16th 2010, 12:10
This makes common sense and illustrates a broader view on a very sensitive issue, Minister Gatt has taken a stand after being narrow minded when it came to the pricing structure and does not appear to want to listen to the views of anyone, irrespective of who they are.
In his interview, Sunday Times 14th Nov. 2010 he said, I have no intention of revising the contested higher bus fares for tourists, but he may well have to eat his words after the European Commission do their research into EU law, and then have their say.
Sadly he may well be remembered for this Gaff, moreso, than for the sterling work he has done to ensure a much needed reform of the Public Transport System in Malta/Gozo.
Charles Micallef
Nov 16th 2010, 12:10
@Bertie O'Casey
Simon Busuttil is one of Malta's future Prime Minister's, dead cert!
gcForte
Nov 16th 2010, 11:40
Ikolli nghejd li - Ministru Gatt ghalek qeghed jghed li ser jieqaf mill politika. Meta tghajja tibda taffeg, u din tal " fare " differenti, wahda mill `gaffe ` li ghamel il ministru ricenti. Issa sur gvern erga ghamel ` U Turn ` ohra mal hafna li diga ghamilt, ghax bhal ma jghejd il Malti " il qattusa ghaggelijha frieh ghomja tghamel ".
sscerri
Nov 16th 2010, 12:09
quote from EMP S. Busuttil -"made by Maltese authorities was based on residence and not nationality – which is allowed under the EU treaties" - I see you are back but not changed much. As per your statement - "qattusa ghaggelijha frieh ghomja tghamel " you still have to learn to give time to time before predicting "U" turns by Govt. If a "U" turn it has to be let it be than. It is not so dramatic for one to admit a mistake and rectify. But this does not apply to you since you keep looking sily with your predictions and next day make another. If there would be a change in fare I will be waiting to hear your comments in this respect, if the fare goes up for Maletese residents or us tax payers have to pay for turists.
gcForte
Nov 16th 2010, 13:05
sscerri......Thank you for welcome me. You made me so proud of myself, because you confirmed that I did not changed and do `U Turns ` like this government. I do not see anything wrong by changing an idea for the better, what does bother me is that when the P.N. governments change their views and do `U Turns `it is O.K. for the P.N. apologists, even for a thousand times, but if it will be coming from the P.L. Ehhhhhhh NO it is not accepted.It is a mortal sin. Dr. Joseph Muscat has been criticized by the P.N. about `not agreeing of joining the E.U.at first, and the introduction of the Euro` since he took the leader ship of the party.If you saw the program Xarabank of forth night ago, you sure knows what I mean. About having an equal fare price,I will not let you wait to give you an answer. It is not us to decide, but the E.U. So,it makes no difference whether I shall be happy or not. We have to pay. Do not forget that the transport saga started a decade ago. Do you accept `U Turns `?
sscerri
Nov 16th 2010, 20:55
If I may.............. you shouldn't be so proud in that you didn't change. you need to change....... Please tell me. what has JM got to do with all this????? You didn't change at all. You always mingle politics in every issue we ( the blogers) try to stir. I know that it is hard for you ( if not impossible) to leave politics out of this or any other issue for that matter. I accept the fact that whoever (being GonziPN, JM or any Dick or Harry) does a "U" turn as long as it is in the right direction. To make you happy I will only mention when JM first said NO to Europeand Euro and than said YES. That made me happy. A good thing he turned 180 degrees...... Still you didn't answer my question. What will you say ? will you shut up and stay put or critise the Govt. which ever decision is taken?
Michael Ellul Vincenti
Nov 16th 2010, 11:29
This can easily be resolved by changing the name. If it is called a frequent user discount, it will have the same effect but would comply with EU regulations.
If a spade wont work, try a shovel!
Charles Micallef
Nov 16th 2010, 11:25
In Malta we want to be different Dr Busuttil, we like to create controversy and give outsiders the opportunity to criticise how these Islands are managed (tal-Mickey Mouse) hence get our name in the Press! how thoughtless and what a shame as it could have all been avoided !
Phil Humphries
Nov 16th 2010, 11:24
Like it or not, an EU Citizen is an EU Citizen wherever they lay their head. Furthermore, Gatt's half-baked proposal is morally indefencible.
Thankfully, Parliament will be spared this special brand of wisdom after the next election.
Bertie O'cassey
Nov 16th 2010, 11:14
Simon Busuttil for PM
Joe Fsadni
Nov 16th 2010, 12:11
Yes, I support Bertie and encourage Simon to become the new PN Leader.
monica muscat
Nov 16th 2010, 13:01
I too have great respect for Dr. Simon Busuttil, and certainly would favour him as prime minister - if and when - the occassion arises. But this will have to be when Dr. Lawrence Gonzi steps down, both as P.N. leader and as Prime Minister. So what do you envisage? Dr. Gonzi standing down because he looses next election - or because he wins it and will have fulfilled his duty towards Malta and the Maltese? - Only time will tell. Let us not put the cart before the horse. After all, serious politicians and leaders, always designate and prepare their successors, even if on the quiet.
Joe E Galea
Nov 16th 2010, 13:42
Another admission of GonziPN failure!! Now even the PN apologists want to get rid of Gonzi and his daily menu of blunders.
w. Cauchi
Nov 16th 2010, 14:15
yes you'r right i agree with both of you. Simon for PM...................but than wait a few years and power changes everybody...............even Lawrence was approaching sainthood before he became PM, and than.......................... As PM you are surrounded by many who want their share of the pie and you have to do the balancing act of keeping your nose in front and the party united, win the next elections, etc.etc. That post is not made for saints.
Joe Apap
Nov 16th 2010, 11:02
So can someone explain why a gozitan pays less than I do when using the gozo channel service?
Can someone explain why Gozitans get an extra 5000 euros when they are awarded a scholarship by the Education Department? A university will charge the same irrespective if the person is from Malta or Gozo.
pietru pawl tabone
Nov 16th 2010, 12:35
Dear Sir,
A gozitan who is a student or works in Malta will have to cross and pay for the ferry everyday unlike a Maltese person who comes to Gozo as a means of relaxing and certainly never croses in bad weather conditions. Huwa dritt li wiehed jahdem siehbi u ma jistax ikun li l Ghawdxin ihallsu it trips kuljum ghall dan id dritt li wara kollox qed jaghmlu hek biex jghixu huma u il familjari taghhom.
R Saliba
Nov 16th 2010, 17:22
pietru pawl tabone you are saying the same thing! Let me change some words from what you wrote.. A 'maltese resident' who is a student or works in Malta may have to 'use the bus' everyday unlike a 'tourist' who comes to 'Malta' as a means of relaxing and certainly never comes in bad weather conditions. Huwa dritt li wiehed jahdem siehbi u ma jistax ikun li l Maltin ihallsu it trips kuljum ghall dan id dritt li wara kollox qed jaghmlu hek biex jghixu huma u il familjari taghhom.
carmel callus
Nov 16th 2010, 10:57
What are the usual moaners proposing? That bus fares for locals be increased so not to discriminate against foreigners who do not reside in Malta? Or to charge such foreigners the same fares charged to Maltese commuters, with the result that Government would have to increase the annual subsidy which increases has to be met from our taxes?
C Cassar
Nov 16th 2010, 12:39
Simple, just pick a pricing tariff in the middle or actually it could be one price closer to that of the 'local one proposed since most revenues will come from these anyway.
C.Camilleri
Nov 16th 2010, 12:40
Are you saying that Dr.Busuttil is a moaner?
Mario Azzopardi
Nov 16th 2010, 10:54
Maybe Austin Gatt has fallen out with Simon as well. Is it possible that with all these EU experts nobody told them that is illegal.
We need a serious new government soon. Joseph Muscat is the answere. Is it my impression but it seems that lately GonziPn is making too many silly mistakes??
monica muscat
Nov 16th 2010, 12:50
How sure are you that Dr. Gatt has fallen off with the Hon. Prime Minister? The same goes for the supposition re Dr. Busuttil! With serious politicians, who have their roots soundly embeded in democracy and dialogue, you do not get leaders and high profile colleagues falling off so easily.
As for Dr. Joseph Muscat being the "future" of Malta. Bah! The proof of the pudding is in the eating! But, of course, if you choose a poisened pudding, you are sure to die. God forbid that the Maltese will make the same mistake and, like bees out for the pollen, will choose only that which might go well with them personally.
Nizar Hingari
Nov 17th 2010, 13:58
Are you a prophet, a fortune teller, or have a time machine visionting the Malta 3 years from now? One thing i know, maltese politics will always be the same = zewg timijiet tal football. min jiskurja liktar jirbah!
MSammut
Nov 16th 2010, 10:51
Very unusual.
Why didn't Dr Busuttil call Dr Gonzi to tell him these things privately? Why the need to go public?
This is not a coalition, but the same party.
Something is amiss.
Joe E Galea
Nov 16th 2010, 12:14
Are you ashamed that you support a party that is in shambles? Arent' you comfortable that someone criticises your untouchable GonziPN?
The Nationalist government has been blundering on a daily basis that even its own stalwarts are getting fed up as they are being embarassed by all this "qassati".
J Galea
Nov 16th 2010, 10:44
EU law is clear in that discriminination between EU citizens is not allowed except for the rarest of exceptions, which this case most certainly is not. However, this idea of differentiated pricing is flawed not just from a legal point of view but also from a common sense point of view. Can you imagine the pitfalls of our bus drivers having to verify the nationality of their customers?
C Cassar
Nov 16th 2010, 10:37
Now there's a surprise. Ifthere should be any distinction, it should be between whether the person using the service is and EU citizen or not but even that is unworkable and the percentage of non-EU citizens in Malta is tiny.
Pauline Peterson
Nov 16th 2010, 11:48
We, the Maltese who live abroad, still would like to know where all this mess leaves us. Which fare do we pay. We are not EU Citizens, nor are we Maltese residents. Will there be a third kind of fare for "others"? I am very much in favour of cheaper fares for pensioners and students as before. And that makes four kinds of fares. Pity the poor driver giving out the tickets.
C Sullivan
Nov 16th 2010, 10:33
Finally some sense!
Please choose the reason of your report below: