Competition authority rules church schools’ transport prices not excessive

MCCAA rules that bus cooperative Coop Services hadn't abused its dominant position when it increased school transport fees 

The Malta Competition and Consumer Affairs Authority ruled that there is no sufficient grounds to state that Coop Services Limited had abused its dominant position
The Malta Competition and Consumer Affairs Authority ruled that there is no sufficient grounds to state that Coop Services Limited had abused its dominant position

The Malta Competition and Consumer Affairs Authority has ruled that Church school transport fees are not excessive.

Following an investigation, it ruled that there is no sufficient grounds to state that Coop Services Limited had abused its dominant position in breach of the Competition Act.

The investigation was launched last April, following a request by education minister Evarist Bartolo. Bartolo said that he had received complaints from parents whose children attend church schools about raised fees for school transport.

“This rise in fares will neutralise the tax reductions we have given parents to encourage them to use school transport instead of private transport,” Bartolo said.

One of the complainants, the minister said, had received an email from the bus cooperative Coop Services, informing them of a rise in fares for the third consecutive year by €70 per child.

The parent in question said her transport costs had increased from €550 in 2014 to €650 in 2016. “This increase neutralises the fiscal incentive government announced two years ago,” she said. “The price of diesel has gone down so this increase in price is unjustified.”

Adding insult to injury, the parent’s child was being collected as early as 6:30am – usually a pretext for the same bus driver to make extra runs – and then is dropped back home at 3:30pm, when school ends at 2:30pm

The parent said it was inexcusable for Coop Services to claim they were spending more in fuel due to increased traffic congestion or because of fleet investment.