Subsidies for new public transport operator not ruled out

Transport minister Joe Mizzi said the government had its back to the wall when it was left no choice but to take over the public transport operation, following negotiations with Arriva Malta.

The company, which has suffered over €36 million in losses since starting in 2010, will be leaving the island at the beginning of next year.

Speaking at the Mtarfa playingfields this morning, Mizzi said he had insisted that the company increases its complement of busses on the roads, but Arriva Malta allegedly insisted on increasing its coverage of the routes.

"Arriva did not have enough money to keep investing in the route. The routes we inherited were not effective. Our backs were to the wall: either the company gets liquidated and we end up with no public transport operator, or we buy the public transport system," Mizzi said.

The minister explained that it was evident by both the government as well as the previous administration that the bus routes were not effective.

"Upon consulting with stakeholders, the government proposed a new bus network route to satisfy the demand and increase efficiency. However, Arriva were not in a position to invest the money."

"The new operator will have to take on the bus network route as laid down by Transport Malta," Mizzi argued.

Mizzi said the added busses would cater for the demand for public transport.

While constantly bemoaning the situation Transport Malta inherited from the previous Nationalist government, Joe Mizzi insisted that Arriva's service and efficiency were a far promise from the expectations laid out by the company and the PN administration.

"Arriva's stay in Malta has been characterised by a series of mistakes, and reality is that the bus service has not met the people's expectations," the Minister argued.

Mizzi said Malta was promised a "state of the art service" but instead, the commuters ended up with confusion and an inefficient service.

He also said that the price structure for fares would no longer discriminate between non-residents and Maltese residents, a sore point from the very beginning of Arriva's operations.

"This government has no gimmicks, it is clear in its objectives and in its methods. Expats and Maltese commuters will be charged equally."

Meanwhile, he said that a new tender would be issued. "There is nobody in mind and no preference. We will issue a tender to the private sector."

Mizzi also revealed that a price increase had already been agreed upon in 2014 by the former Nationalist government.

The minister did not rule out any increases in subsidies to any future operator of the public transport network, as long as it could meet demand, but he said he would not commit to any figures.

Asked how much the project will cost, the minister did not put a price tag but explained that the government would reveal the cost after the agreement is signed with the new operator. 

Meanwhile, in line with the PL's electoral manifesto, the Transport and Infrastructure minister inaugurated the Mtarfa playingfields.

"While the PN had promised this project back in 2011, this government has completed the works just nine months into its legislature. The PN's promise never materialised but the government's work has already yielded results."

On his part, Mtarfa mayor Daniel Attard paid tribute to the government and its workers for their "consistent" work.