Bus owners paid by bank loan

The bus owners' association had to take a bank loan to pay its employees after the government withheld €240,000 in subsides following last year's four-day strike.

The association's cash flow was made even tighter because the authorities still owe the association €1.5 million in subsidies for last year.

"We had to take out an overdraft simply to pay people," Public Transport Association president Victor Spiteri said.

However, the pending €1.5 million is expected to be paid in the coming days following an agreement reached between the association and the Malta Transport Authority on Monday, after which Mr Spiteri ruled out a strike. Last week, the Transport Ministry had said bus owners were threatening to strike over a dispute on subsidies.

The bus owners are still at loggerheads with the government over deducted subsidies and will this week decide whether to take the authorities to court or seek arbitration.

Mr Spiteri insisted it was unjust of the authorities to deduct €240,000 since the two parties had agreed to resolve pending differences through arbitration.

Asked why the association had not requested arbitration, Mr Spiteri said the money had been deducted by the government and it should have been the authorities who asked for arbitration before doing so.