Deal reached on larger subsidy, improvement in bus service

The government will this year pass on a subsidy of Lm2 million to the Public Transport Association, which in return will introduce measures to improve the quality of public transport, Jesmond Mugliett, Minister for Urban Development and Roads announced yesterday.

The subsidy is meant to bridge the gap between the costs incurred by the PTA and the revenue the transport service generates.

The minister explained that in 1998 the government had passed on a subsidy of Lm1 million to the association but since it was felt that drivers ought to be paid more than the minimum wage, the subsidy has gone up to Lm2 million to make good for the rise in wage levels.

The minister was fielding questions at a news conference announcing a partial agreement reached between the Malta Transport Authority and the PTA.

The partial agreement is meant to lead to "an immediate improvement in the scheduled bus service and will serve as the basis of a long-term agreement covering the years 2005 to 2009", expected to be concluded in the first quarter of next year.

The partial agreement binds the government to honour the payment of subsidy arrears while the association is bound to introduce measures so that public transport will "become efficient and of the highest quality".

Commuters will keep their fingers crossed that the association will honour its end of the bargain.

The subsidy will be paid in instalments, with each payment handed over only after specific conditions are implemented and their implementation approved by the authority. The measures include the introduction next Monday of direct services "at reasonable prices" to the university and Sliema from Siggiewi, Birzebbugia, Senglea, Mqabba, Dingli and the airport between 6 a.m. and 4 p.m. Another new route will be to Hal Far.

According to the agreement, owners who each received the subsidy of Lm32,000 to buy a new bus but were not using that bus regularly will be fined Lm35 a day, going up to Lm70 and higher. If the abuse persists, the owners could be asked to refund the full subsidy.

The PTA is bound also to introduce a code of conduct and discipline for its members. Furthermore, drivers must keep an operator's handbook recording details of the vehicle's maintenance, repair and inspections, including VRTs, as well as details of fuel consumption.

The PTA has to keep proper books of accounts and regularly submit audited accounts.

Mr Mugliett argued that it was unacceptable that 10 per cent of the new buses were not being used on the existing routes.

"No study has been carried out of all the routes. Experts will be appointed to study in-depth the current practices in public transport and come up with an updated route network," the minister said. For this study, the ministry has allotted about Lm26,000.

PTA president Victor Spiteri said that of the 85 routes operated by the association, only 35 made a profit. Moreover, the fare had not been raised for five years.

MTA president Mark Portelli pointed out that as things stood, public transport was unsustainable, adding that the onus of making it profitable lay on both the government and the operators.