The country may end up paying some €100,000 to Arriva in order to shift bus routes away from Bisazza Street, Labour leader Joseph Muscat said today.

Speaking at a radio interview, he said that the way how the street was officially declared a pedestrian zone - when Arriva had already planned to run buses through it - showed the government's lack of planning. 

"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,” Dr Muscat said.

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

Dr Muscat said he hoped there would be flexibility in the new bus network due to be inaugurated on July 3. 

He also noted that as part of the reform, people would start paying to use park-and-ride facilities, with the costs rising to up to €500 per year for regular users.

On Air Malta, Dr Muscat observed that  up to six months ago, then Air Malta chairman Sonny Portelli had said that no employees would lose their jobs. But just two weeks ago the new CEO, Peter Davies, confirmed jobs would be lost,.

Finance Minister Tonio Fenech had said months ago in Parliament that Selmun Palace workers would keep their jobs with the new owners. However, they had since been fired.

Turning to the Bank of Valletta property fund issue, Dr Muscat urged the bank - which is partly owned by the government - to  withdraw its offer to buy back shares at 75 cents each.

Instead, mediation should start between the bank and the investors of La Valette Funds  to reach a compromise that would be in the best interest of both, 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 other choice but to vote in favour of the divorce bill in Parliament once the people had expressed themselves clearly in the referendum. 

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