The Government has insisted it has no intention of increasing bus fares, despite accepting that the two-tier pricing structure will have to change.

“It is definitely not our intention to increase bus fares,” the Transport Ministry told The Times.

It confirmed the European Commission has instructed Malta to change its system of charging different bus fares to residents and non-residents to come in line with fundamental treaty principles and provisions.

This position is in line with the Government’s policy, the Transport Ministry said.

It is definitely not our intention to increase fares

Arriva began operating the public transport system in July 2011 with a controversial two-tier fare system devised by the previous government and stipulated in its contract.

Passengers with official proof of residency were entitled to cheaper fares than those without.

Seven-day tickets were priced €6.50 for residents and €12 for non-residents.

The previous government insisted this was permitted by EU legislation as the distinction was based on residency and not nationality.

But critics argued that it was discriminatory and that residents who did not appear to be Maltese were dispro-portionally targeted for ID checks by bus drivers.

The European Commission launched formal legal proceedings against Malta because of its bus fares in February.

It said the fares constituted “indirect discrimination based on nationality of EU citizens who have used their right to move and reside freely within the union, and where applicable, their right to receive services, right to free movement of persons and right to free movement of capital under the EU Treaty”.

The Nationalist government had argued that if the commission had its way, bus fares would have to rise for residents and non-residents.

According to the Transport Ministry, the final version of the reply to the European Commission was signed by the former foreign minister on March 5.

The commission said it received the reply on March 15.

“Any delays in the transmission of the reply could be the result of normal procedures when transmitting official correspondence, including on the part of the commission,” the Transport Ministry said.

The ministry added the new Government had not felt the need to provide the commission with any amendments to the previous administration’s reply.

The Times was not shown a copy of the reply since it “concerns an ongoing infringement investigation and therefore the document cannot be disclosed at this stage.”

Francis Zammit Dimech, who was foreign minister when the reply was sent, said he did not recall if his government indicated in the missive an acceptance that the fare structure would have to change. He added that he had no problem with the present Transport Ministry making the reply public.

Asked if its contract with Arriva meant the Government would face a penalty for changing the fare structure, the Transport Ministry said it was too early to speculate.

“As is standard with any commercial contract, the provisions can be amended. Due to the speculative nature of any possible changes, it would be inappropriate and commercially damaging to discuss specific provisions of the contract since the infringement discussions are ongoing.”

For its part, Arriva said it was the Government alone that discussed fares and public transport regulations with the European Commission.

“Arriva is obliged to follow the regulations of the country and the contract, which was tabled in Parliament.

“We have regular dialogue with Transport Malta, where we discuss all aspects of our operations in Malta.”

pcooke@timesofmalta.com

Additional reporting by Bertrand Borg