Just four months before the launch of the new public transport system, the new bus fares have not yet been given the go-ahead by the European Commission.

Under the new tariff structure, holders of Maltese ID cards will pay about 40 per cent less to use the buses than non-residents.

This has raised eyebrows in Brussels over “possible discrimination” between EU citizens, which would contravene Union rules. If this turns out to be the case, locals may end up having to pay higher bus fares than envisaged.

Replying to a question in the European Parliament, EU Transport Commissioner Siim Kallas said the Commission was looking closely into the issue but was not yet in a position to comment further. The question was tabled by British Labour MEP Linda McAvan, who questioned the compatibility of the tariff system with EU laws.

Mr Kallas said the Commission was looking into “whether all the elements of the price scheme are compliant with the principle of non discrimination (direct or indirect) on grounds of nationality”.

He said the Maltese authorities had in January been asked for clarification on issues such as the reasons for the difference between fares, what the distinction is based on and how the lower fares can be obtained.

A spokesman for the govern-ment said it had formally replied to the queries. Malta, he said, was inisting that the new tariff system is fully in line with the EU Treaty.

“The position of the government on the issue is that the new bus fare system is in line with European Union legislation and case-law. The whole purpose of the subsidised fares for Maltese residents is to persuade as many residents as possible that it is worth their while to switch from using their cars to using public transport,” the spokesman said.

Sources said, however, that although the government maintains the fare difference is based on residence and not nationality, something allowed by the EU, it might still be difficult for the Commission to accept that there is no form of “indirect” discrimination.

A judgment handed down by the European Court of Justice in January 2003, in a case instituted by the Commission against the Italian government, may come into play.

The case concerned preferential rates 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 with respect to admission to museums that affect foreign tourists who are EU citizens is prohibited because it breaches the EU Treaty.

“Indirect discrimination based on residence which produced the same result as that imposed by nationality is also prohibited,” the court had argued.