Transport company Arriva and the Government have to see whether their “relationship” can continue, according to Prime Minister Joseph Muscat.

He said Arriva had to make its decisions and the Government would make its own when asked whether the company would pull out.

The Government was not happy with Arriva’s service because commuters were not well served, he added.

We have to see... whether our relationship can continue

“We have to see what we can achieve, what they can achieve and whether our relationship can continue,” he told journalists after visiting a software company yesterday.

Dr Muscat said the Government saw no grounds for the return of bendy buses given that the traffic situation had improved without them. Bendy buses were pulled off the road after three caught fire in August and a temporary arrangement to replace them by coaches from the Unscheduled Bus Service is costing Arriva dearly.

Government studying Arriva proposal

Dissatisfaction with the bus service continued unabated since Arriva started operating two years ago. To address most of the complaints, the Government proposed extensive route changes that would come at an additional cost for taxpayers and the company. Arriva and Transport Malta, which is leading the talks, are still poles apart as to the cost of the proposed changes.

A subsidiary of German firm Deutsche Bahn, Arriva is under pressure from the mother company to cut losses on its Malta operation.

Dr Muscat said decisions would be taken in the coming weeks, adding that talks between the two sides were “frank and cordial”. The Government, he said, was saying which areas it was satisfied with and which it was not.

His comment came on the same day that Transport Minister Joe Mizzi did not rule out Arriva’s eventual departure. “Every possibility exists,” Mr Mizzi said when asked whether the bus company had a future in Malta.

Mr Mizzi said the company made “a proposal” that the Government was studying. He did not elaborate.

He reiterated that the Government had “plan B” if Arriva decided to pull out.

“Just like we found a stop-gap solution when bendy buses were pulled off the road and when schools re-opened, we will ensure the bus service will continue to run,” he insisted.

Arriva can pull out from its 10-year public transport contract if the Government gives its consent or if the company files for liquidation.

Legal experts quoted by Times of Malta yesterday said liquidation would be the messiest option because assets would be frozen, making a transition period to a new operator all the more difficult.

ksansone@timesofmalta.com

Additional reporting by Keith Micallef.