Last month’s changes to the public transport routes will “in no way” affect the level of subsidy that Arriva receives from the Transport Ministry, Arriva said yesterday.
The route changes were already accounted for in its contract with the Government, the public transport operator said. It explained that the contract allowed for two yearly changes to the network to cater for the summer and winter season-al changes.
The statement was released in reaction to an article published in The Times yesterday quoting a National Audit Office report.
The NAO pointed out that the original contract signed between Transport Malta and Arriva was revised in April in an addendum. This increased the compensation owed by the Government from an average of €6.2 million per year in subsidies to €79.8 million over the 10-year period of the contract.
The increase, amounting to approximately 29 per cent above what was originally agreed upon, was a result of substantial route changes requested by Transport Malta following complaints about the service. The report in The Times said it was unclear whether the more recent route changes would mean further subsidies.
But Arriva said they would not affect the level of subsidy since they were one of the two seasonal changes covered in the contract.
The contract, it added, also included provisions for such instances when modifications to the network were required outside the two main annual ones. When modifications were requested by Transport Malta, they were costed according to a formula specified in the contract. This formula had not changed since the original contract.
In the statement, Arriva commercial director Fabien Courtellemont said the agreement between Transport Malta and Arriva “has not changed following the addendum signed in April 2012.”
“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 may be higher than others, but the average annual amount is €7.9 million a year,” Arriva said.
The Times had reported that Budget estimates showed Arriva would be paid a subsidy of €10.6 million next year when previous bus owners were paid €9 million in their last full year of operations in 2010. Mr Courtellemont said: “We are more than ever committed to improve the efficiency of the network and to deliver the best added value for the Maltese island.”
The Transport Ministry yesterday denied Labour leader Joseph Muscat’s claim that it had some form of secret agreement with Arriva to increase subsidies after 2014.
Dr Muscat made the allegation during his reply to the Budget on Wednesday.
Replying to the ministry’s statement, the Labour Party insisted that the public transport reform was one of the biggest “messes” of the 25 years of Nationalist government.