Bus service subsidy still lower than before - ministry

The Transport Ministry insisted this evening that the subsidy for the bus service is still lower than given for the old service.

It explained that the funding allocation featured in the Budget  covers both Malta and Gozo.

Calculated over a period of 10 years, the subsidy will work out at an annual   €4.57 million.

The last ATP subsidy was  €9.6 million per year and did not cover Gozo.

The contract payment terms specify that payment for compensation for the Malta operation is to be made as follows:

(i) €6.6 million from Year 1 to Year 3; and

(ii) €3.7 million from Year 4 to Year 10.

The amount included in the financial estimates for 2012 - €8.2m - does not take into account the additional compensation payable in respect of route changes as discussions in this regard were still ongoing between Transport Malta and Arriva.

The amount included in the estimates does, however, takes into account the new subsidy of €1.625 million per year for compensation for service in Gozo, the ministry said.