The government’s lack of planning over Sliema’s Bisazza Street may cost the country up to €100,000, according to Labour leader Joseph Muscat.

That’s the figure he calculated the government would have to pay transport operator Arriva for re-routing of buses around the once busy thoroughfare, after it was pedestrianised following major upgrading.

“Bisazza Street is a clear symbol of the government’s lack of planning,” Dr Muscat charged in an interview on the Labour Party’s station One Radio.

He pointed out that Transport Minister Austin Gatt had reached an agreement with Arriva for Bisazza Street to be included in its public transport route while Resources Minister George Pullicino decided that the road should be fully pedestrianised.

“Now it is being said that Arriva will be compensated and that this could reach €100,000.”

The two ministers, who met regularly at Cabinet, were not capable of solving a simple problem that should never have arisen in the first place, he said.

Speaking about the transport reform, due to come into effect on July 3, Dr Muscat hoped for “flexibility” if adjustments were needed for certain routes – especially those in the peripheries.

But along with the reform, commuters of the park-and-ride system were now going to be charged a fee and this could add up to an extra expense of €500 a year for people who used it regularly, he said.

Turning to Air Malta, Dr Muscat said consultants had been paid €2 million to draw up a restructuring plan, warning the government that this would fail if the government retained its policy on low-cost airlines.

“Low-cost airlines aren’t a problem for the Labour Party but we have a problem with the government’s policy,” he said.

Until six months ago, former Air Malta chairman Sonny Portelli had said that no employees would lose their job but only two weeks ago the new CEO Peter Davies confirmed jobs would be lost, he pointed out.

Similarly, Finance Minister Tonio Fenech had said months ago in Parliament that Selmun Palace workers would keep their job with the new owners. However, the government had fired them.

Speaking “cautiously” about Bank of Valletta’s failed property fund, Dr Muscat urged the bank to withdraw its offer to buy back shares at 75 cents each.

Instead, mediation proceedings should start between the bank and the investors of La Valette Funds Sicav to reach a compromise that would be in the best interest of both sides, he said.

Dr Muscat also spoke about divorce and pointed out that Prime Minister Lawrence Gonzi was different to other MPs because he was also head of government and, therefore, had no choice but to vote in favour of the divorce Bill in Parliament.

He said he also recently spoke with Labour MP Marie Louise Colerio-Preca, who had announ­ced she would not stand for the next general election.

“She is an integral and essential part of the Labour parliamentary group and I have faith that she will listen to the people and continue contributing to the Labour Party just like all the other Labour MPs,” Dr Muscat said.

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