The government is to give Gozitan bus owners compensation of €3.1 million in return for their licences.
The agreement was announced today by the Transport Ministry.
It said that following talks with the Gozo Bus Owners' Association, the bus owners would be given €40,000 each as compensation for giving up their licence. The payments would be made in three instalments.
The ministry said the government would not be buying the buses since in Gozo route buses were also used for unscheduled services.
It said that in terms of the public transport reform, Gozo bus services would be reformed and integrated with that of Malta. The ministry said the bus operation in Gozo had never been profitable and the service would henceforth be able to benefit from the profits made on certain routes in Malta. Under the new service, tickets bought in Malta could also be used in Gozo, and vice versa.
The government will be asking the new bus service operator to engage those Gozitan drivers who wished to work for it.