Comments by a highly-regarded ship agent on the occasion of the first visit by a particular cruise liner has given rise to a discussion as to whether there exists a shortage of coaches in Malta and whether there is the need for the introduction of what have been referred to as state-of the-art coaches.

The debate seems to have been based to a large extent on wrong assumptions and misconceptions.

The fact is that, as a result of change in legislation in 1995, the 142 licensed coaches operate in competition and, consequently, coach owners tend to undercut each other when concluding long-term contracts with individual tour operators. This has resulted in a reduction in the price of the service over the years, notwithstanding the dramatic increase in costs particularly fossil fuel (145 per cent) and an increase in inflation of 35 per cent over a period of 13 years.

It has been stated that the number of coaches has not increased since 1995 but the fact of the matter is that in 1995 the number of coaches doubled in anticipation of the projected increase in the number of tourist arrivals that has only materialised in the last months. For the last 23 years, there has been, and there still is, over-supply and the relative financial brunt is borne by the owners of the coaches who had taken a huge business risk when doubling and modernising their fleet. The changed patterns in tourism should also be brought into the equation. In fact, the welcome increase in the cruise-liner business is effectively countered by the trend away from organised group-travel generally.

It may happen that, every so often, the demand for coaches exceeds the supply of coaches available to the individual coach contractor. This may be due to various factors, not least of all last-minute bookings by the tour operator. However, the problem normally arises when the coach contractor seeks to engage additional coaches from competing contractors at the same rates as that paid to him for his own service that would have been based on long-term contracted rates.

The implied assumption that the price agreed with contractors will guarantee supply under any circumstance is false. Equally false is the assumption that unavailability on a particular day is a result of lack of supply of coaches in Malta. There is absolutely no evidence that coaches are not available when the price negotiated is a fair one.

In this context, the Unscheduled Bus Service (UBS) wishes to invite any tour operator that encounters a problem of this nature to request the service through its offices (on telephone no. 21665085 or e-mail ubs@onvol.net) and the UBS undertakes that coaches will be made available at its published rates.

The desire to have "state-of-the-art coaches", whatever the term may imply, has also been expressed and is, I suppose, shared by all. We all wish to see state-of-the-art roads, hospitals and whatever else is paid for by somebody else. Coach owners do pride themselves on the standard of their coaches that compares favourably to the overall product in the tourism sector, particularly in relation to competing sectors in public transport.

This notwithstanding, as major stakeholders in the tourism sector, they appreciate the importance of higher standards and for this reason they have lobbied with the government for a number of years to review current policy that imposes a registration tax of 24 per cent on the purchase price of used vehicles based on the value arbitrarily estimated by the government.

This tax effectively militates against the renewal of the fleet of coaches operating in Malta.

The assumption that the imposition of such a tax will encourage the importation of new vehicles (that are exempt from such a tax) has proven to be also false. In this regard the government has been urged to revisit this policy and do away with a tax that has only served as a direct obstacle to those owners wishing to replace their coaches in the interest of all concerned, particularly the understandably demanding players in the tourism sector.

Dr Hyzler is chairman of the Unscheduled Bus Service.