Foreign nationals will no longer pay higher bus fares from Monday, in a move that is expected to cost taxpayers some €3 million.
Transport Minister Joe Mizzi yesterday announced the removal of the two-tier pricing structure, which was introduced when Arriva took over the operation of public transport in 2011.
The decision will pre-empt any further action by the European Commission that had found higher fares for EU nationals to be discriminatory, he said.
“This is not simply a question of how much the government will have to fork out because Malta risked being fined if the Commission took the case all the way to the European Court,” Mr Mizzi insisted.
The decision was a first by the new government-run company, Malta Public Transport Services Ltd, which bought Arriva’s shares at the turn of the year.
Malta risked being fined if the Commission took the case all the way to the European Court
Addressing a press conference at the Valletta terminus where he met former Arriva employees who now form part of the State company, Mr Mizzi would not quantify the cost to taxpayers of the interim period until another private firm is found to run the service.
However, he admitted the annual subsidy would have to increase to cover the removal of price discrimination against foreigners as well as the introduction of new routes – which Transport Malta had forecast would cost €3 million.
Transport Malta executive chairman James Piscopo said the authority was waiting for Arriva’s audited accounts for 2013 to determine the additional cost of running the transport network.
“We have estimates but I do not want to speculate at this stage,” Mr Piscopo said, acknowledging that the State transport company would suffer a shortfall initially.
But it would also be seeking higher efficiency and try to cut down on unnecessary costs, he added.
In 2012 Arriva registered operational losses to the tune of €22 million and over its two-and-a-half-year lifetime in Malta was granted a total of €23 million in subsidies.
“We hope our wages improve because we are paid less than €6 an hour” – bus driver
The subsidy for this year, also known as a public service obligation used to finance unprofitable routes, is €8.5 million. Mr Mizzi said additional funds necessary to run the service will be made available but did not elaborate.
The government has no intention of keeping the bus service as a nationalised entity and is expected to release a call for expressions of interest next week.
Mr Mizzi said some Maltese and foreign companies had already shown an interest, adding he wanted the deadline to be no more than a month away.
Meanwhile, bus drivers who spoke to Times of Malta on condition of anonymity adopted a “wait and see” approach.
All ex-Arriva workers have been retained by the State company under their old conditions.
“We have to wait and see which company will take over the service eventually, but we hope our wages are improved because we are paid less than €6 an hour and some even receive €4.50 per hour,” one of the drivers said.
The Nationalist Party urged the government to live up to its pledge to offer a better public transport service and lead by example now that the buses were run by a State company.
Transport spokesman Toni Bezzina called on the government to publish the agreement with Arriva and ensure full transparency in the call for expression of interest.
“In its discussions with the new operator the government must insist on bus fares remaining as they are, as promised by the Labour Party, and ensure the jobs of all drivers are secured,” Mr Bezzina said.
The Gozo University Group called on the government to ensure the good transport service Arriva had in Gozo will continue in light of the changes.
“The same level of performance should be ensured by the new operator,” it said
But the student group insisted improvements were needed on the Ċirkewwa-Msida route.
ksansone@timesofmalta.com