‘New bus service must retain Arriva positives’

Nationalist MP Tony Bezzina has taken exception at news of the revised bus routes, calling on transport minister Joe Mizzi to issue more information on the frequency of the new routes.

"The schedule does not include information on where the buses will be passed, but only says from where these leave and where their journey ends. The public is waiting for much more information, especially since Mizzi has talked of a consultation with local councils over a period of six months," Bezzina said.

The MP said Mizzi had to be clear with the taxpaying public and on the forthcoming losses that the bus service will be suffering, since it passed into public hands.

The public transport service was nationalised on 2 January 2014 after Arriva Malta, a subsidiary of the Deustche Bahn group, lost millions in euros since starting its operations in 2011. The company benefited from an annual €10 million subsidy from the government to keep up its public service obligation.

"Until last year, taxpayers were only paying a subsidy to the company operating the service," Bezzina said. "Now it is paying the full expense of the service."

Public transport is now being run by a government company that purchased Arriva's vehicles for a nominal €1 and absorbed €7.9 in debts, while the Unscheduled Bus Service is being paid to provide transport services after Arriva's bendy-buses were removed on order of the transport ministry.

Bezzina claimed that reports from commuters already indicated that the service was falling behind in quality, and that the public now expected "a guarantee of punctuality" once a new operator is chosen for the public transport service.

"Mizzi must give the public a guarantee that ticket prices do not increase, and neither does the flexibility with which to purchase them. One of the previous service's positives was the affordability and flexibility of tickets, which could be used over two-hour and three-month periods, with special discounts for students and the elderly. Mizzi must guarantee these positive aspects."

Bezzina also said the transition to the new operator must guarantee the employment of former Arriva Malta workers, "on whose livelihood depend over 1,100 families."

Arriva raked in €4 million in ticket sales in 2011, but its losses that year were €15.8 million. Sales increased to €21 million in 2012 with increased bus patronage, bringing revenue up to €31 million with the €10 million subsidy, but the company registered a €21.6 million loss. In 2013, patronage actually rose by 10% thanks to improvements in quality and performance, but when four bendy buses were damaged by fire in August 2013, Transport Malta ordered the withdrawal of Arriva's 75 bendy buses, resulting in higher costs to subcontract the Unscheduled Bus Service to provide third-party buses. The decision affected 25% of Arriva's fleet, leading to the sub-contraction of 64 coaches.

By the end of its operation, it had amassed some €116 million in total liabilities and debt.