Bus company denies allegations that subsidies scheme was changed

Arriva Malta has stated that its commercial agreement with Transport Malta has not been changed since an addendum signed in April 2012.

Replying to reports appearing in The Times, Arriva commercial director Fabien Courtellemont said that the busy company will receive €79 million over the next ten years, but it may be the case that in some years the subsidy paid may be higher than others.

"The average annual amount is €7.9 million per year. These subsidies, as agreed and signed in April 2012, also take into consideration two statutory yearly changes to the network, which cater for winter and summer seasons, which have different seasonal commuter needs and demands, which means that last month's changes will in no way affect the level of subsidy paid," Courtellemont said.

The contract signed between Transport Malta and Arriva Malta also includes provisions for such instances when modifications to the network are required outside the two main yearly changes. When additional modifications are requested by TM, these modifications are costed as per a formula clearly specified in the original contract and the costing may be either positive or negative towards ARRIVA Malta.

"This formula has not been changed. We are more than ever committed to improve the efficiency of the network and to deliver the best added value for the Maltese islands," Courtellemont added.

"Any bus network cannot be static, and must dynamically change to meet the demands of commuters and the country. We have since the start of operations responded to this and continue to do so, on an ongoing basis. These considerations are factored into the contract signed between Arriva and Transport Malta. Furthermore, the contract between ARRIVA Malta and TM including the addendum signed in April 2012, is in fact public and anyone can verify our statement."