The €23 million public transport subsidy next year would increase considerably once the operator offered a fully-fledged service with more buses covering new routes, a court heard yesterday.
A Transport Malta lawyer, Louis de Gabriele, said the figure mentioned by Transport Minister Joe Mizzi during the Times Talk television programme earlier this month was a pro rata payment for the provision of the service as it stood today.
He said the subsidy demanded by the preferred bidder was “substantially higher” than €23 million.
Dr de Gabriele confirmed that the subsidy being offered to Spanish operator Autobuses de Leon, the preferred bidder with whom negotiations were still underway, covered the “transitional period”.
Had we known of these possibilities, we would have submitted a different bid
Although no figure was mentioned, because of business confidentiality, the court heard that Maltese company Island Buses Malta Limited had asked for a €40 million subsidy.
These details emerged during submissions on an application for an injunction filed by Island Buses Malta Limited against Transport Malta, the Transport Ministry, the government and Malta Public Transport Services.
Along with the Spanish group and Gozo First Travel, the Maltese consortium was one of the three bidders that responded to a call for an expression of interest which closed on April 7.
The consortium is attempting to stop the authorities from concluding any deal or signing an agreement on the provision of the new bus service.
Lawyer Nicholas Valenzia, appearing for Island Buses, argued that the entire process to choose the new operator was “null” and “vitiated” from the outset because the transport watchdog had shifted the goalposts and was now discussing aspects of the bid they had not been told could be negotiated.
“We are saying the process was null from the word go. Had we known of these possibilities, we would have submitted a different bid. The court ought not to turn down our request because it would be condoning something irregular,” he said.
Moreover, he added, Autobuses de Lyon were being given more than the three months stipulated in the call for expressions of interest to launch the new service.
He said the €23 million mentioned by Mr Mizzi featured in the Budget for 2015 and no more funds had been allocated. This meant that the Spanish company had an entire year to start providing the full service, as opposed to the three months his clients had been given.
Dr de Gabriele shot back, saying the Maltese company had not given one good reason at law to justify its request for an injunction. “All we heard here are hypotheses. We were not told what right they claim to have and what right they are trying to protect by obtaining the injunction,” he said. The company had the normal remedy to appeal an awarded contract by filing a case before the Administrative Review Tribunal, he noted.
He denied that negotiations on raising the €23 million subsidy for the transitional period would take place once Autobuses de Leon gauged how it was faring. On the contrary, talks were underway on the level of subsidy once the company introduced the new routes expected of it by Transport Malta.
Lawyer Paul Lia, appearing for the government, said Island Buses Malta Limited had an interest in delaying the signing of the new contract because it was receiving €30,000 a day for providing buses.
Dr Valenzia replied that the service was being provided by Unscheduled Bus Service, which was a different legal entity to Island Buses Malta Limited.
Madam Justice Jacqueline Padovani Grima is expected to decide on the application by December 17.
Dr Valenzia appeared for Island Buses Malta Limited, together with lawyer Stephen Muscat.
Dr Lia represented the government, together with lawyer Christian Falzon Scerri.
Lawyer Karl Briffa appeared for Malta Public Transport Services Limited.
Transport Malta was represented by chairman James Piscopo, who was the chairman of the adjudicating committee which chose Autobuses de Leon as the preferred bidder.