EU funds that were meant to be used to electrify Malta’s public transport have been diverted to fund subsidies for electric private cars, Robert Abela said yesterday.

“The funds that were originally meant to go towards the electrification of the bus fleet were injected into the incentives we give to those who choose to purchase an electric vehicle,” he said.

“The funds that were going to be used for the project will go to the people through the electrification of vehicles,” the prime minister said.

During a press conference on Wednesday morning, the PN revealed that the government had secretly withdrawn plans to receive over €40 million in EU funding to spend on updating Malta’s bus fleet.

As a result, the private company that runs the public transport system said its plans to electrify Malta’s bus fleet “cannot go ahead” after the government withdrew the funding.

Abela was yesterday asked why the government chose to fund private vehicles instead of investing further in public transport.

He said that investing in electric private cars does not preclude investing in public transport.

“We give the best incentive possible to use public transport, we are the only country that provides free public transport to anyone who lives in Malta.”

This incentive was also extended to the ferry service from the Three Cities to Valletta and from Valletta to Sliema.

He said people who choose to use a private vehicle are being incentivised to use an electric car. Abela said that Malta has some of the best incentives to persuade people to buy electric cars.

“We are talking about €8,000, besides the scrappage scheme.”

Abela said that those who buy an electric vehicle are also tax-exempt for registration and road licence for a few years.

This year's budget saw the electric vehicles subsidy cut by more than a quarter- reduced to a maximum of  €8,000 per car from the current limit of €11,000,