Updated with Joseph Muscat's reaction
The Transport Ministry this afternoon denied claims that the government had reached a secret deal with Arriva for higher subsidies on and beyond 2014.
Referring to the speech in Parliament yesterday by the Leader of the Opposition, the ministry said Dr Muscat's remarks were total invention. It said that Dr Muscat had, in writing, information on how much the company would be paid for the 10 years of the contract.
The subsidy being given to the company was well below what used to be given to the ATP - the former bus service operator.
In its last year, the ATP was paid €10 million while Arriva would be paid €6.4 million per year (the sum was €4.6m per year before the routes were changed).
Arriva was being paid less despite the fact that its buses covered many more kilometres than the buses in the old service, and despite the introduction of new buses, the ministry said.
The ministry said €1.6m per year were being paid for the operation of the bus service in Gozo, was before was practically inexistent.
Meanwhile, Arriva in a separate statement clarified points carried in a story in The Times today.
Fabien Courtellemont, Commercial Director, said that the agreement between Transport Malta and Arriva had not changed following the addendum signed in April 2012.
"As per the original contract, Arriva Malta will receive a total of €79 million spread in uneven or fluctuating amounts over a 10-year period. It may be the case that some years it may be higher than others, but the average annual amount is €7.9 million per year.
"These subsidies, as agreed and signed in April 2012, also take into consideration two statutory yearly changes to the network, which cater for winter and summer seasons, which have different seasonal commuter needs and demands, which means that last month’s changes will in no way affect the level of subsidy paid."
He said that the contract signed between Transport Malta and Arriva Malta also includes provisions to cover modifications to the network outside the two main yearly changes. When additional modifications are requested by TM, these modifications are costed as per a formula clearly specified in the original contract and the costing may be either positive or negative towards Arriva Malta. This formula has not been changed.
“We are more than ever committed to improve the efficiency of the network and to deliver the best added value for the Maltese Islands,” Mr Courtellemont said.
“Any bus network cannot be static, and must dynamically change to meet the demands of commuters and the country. We have since the start of operations responded to this and continue to do so, on an ongoing basis. These considerations are factored into the contract signed between Arriva and Transport Malta. Furthermore, the contract between Arriva Malta and TM including the addendum signed in April 2012, is in fact public and anyone can verify our statement.”
JOSEPH MUSCAT'S REACTION
In a reaction, Opposition leader Joseph Muscat said that Transport Minister Austin Gatt was being 'arrogant once more'.
Referring to the ministry's statement, Dr Muscat said Labour had not invented the figures. The figures were quoted by the Auditor-General in his report.