The Infrastructure, Transport and Communications Ministry and the Public Transport Association (ATP) concluded the negotiations on the compensation for bus owners and drivers in view of the public transport reform, by settling the compensation quantum at e55 million.

This means that the government raised last Saturday’s offer by over e2 million from e52.4 million.

The ministry said that since the public transport reform was proposed it planned to respect legal and moral obligations to adequately compensate the bus owners and drivers, not out of generosity but by law, just like those whose property and business were expropriated are compensated.

The compensation is based on the real value of the buses and drivers’ earnings as stated by the Maltese constitution and established by Maltese and European case law.

The agreement was reached after a six-hour meeting with the ATP president, vice-president and treasurer held on Tuesday between both parties. ATP demanded compensation of e92.9 million before Tuesday’s meeting.

The three ATP officials agreed with the government’s compensation offer and are signing the contract themselves. They also agreed to meet with the ATP committee and members on accepting the government’s offer and conclude the negotiations. They also agreed not to make further claims on the subject.

The government is giving a compensation of e103,000 for the older buses and e123,000 for the low floor Euro III standard buses, which were bought relatively recently and which can be used until 2014. These figures also include vehicle transfer costs.

Previously the government offered bus drivers e98,000 for the older buses and e118,000 for the low-floor Euro III standard buses, while the ATP was asking e177,000 for the old buses and e200,000 for the recently bought buses.

The ATP informed the government that practically all the owners of low-floor buses are interested in selling their vehicle to the government while 204 of 340 owners are interested to work with the new operator.

It was also agreed that 10 per cent of the compensation will be paid by 1 April, 2010, another 20 per cent by 2 January, 2011 and the balance settled when the licences are withdrawn. If this happens after 1 March, 2011 then the government would pay interest rates on the balance due. According to a statement issued by the government, it is hoping that a reformed public transport system will be in place by the end of this year.

Although the government and ATP reached an agreement, the individual bus owners and drivers have to sign the compensation agreement personally at the former Sea Malta offices in Xatt l-Ghassara tal-Gheneb, Marsa.

Meanwhile, the ATP committee was expected to address its members yesterday evening, so the deadline for drivers to sign the final agreement was extended until today at 8pm.

Those who signed or are still signing the agreement are guaranteed a job with the new operator for 10 years and that the government buys off their vehicle upon the licence transfer.

Since ATP agreed with the government that there will be no further discussions about the issue, those who will not sign by the deadline will not be able to open the negotiations once again.

Transport Minister Austin Gatt said the government appreciates that the bus owners are selling their longstanding business and thanked ATP for reaching a just and proportionate agreement based on the buses’ market value. The agreement was vital for the public transport reform and so that the transition is smooth and convenient for the public. The agreement allows leeway for improvement in the environment, as the current transport system is the worst air polluter.

Gozitan bus owners and drivers

Regarding the Gozitan bus owners and drivers, the ministry said that a different agreement is being discussed with the Gozo Bus Owners Association represented by the GRTU, Chamber of Small and Medium Enterprises. The Gozitan bus drivers are licensed to operate both the scheduled and unscheduled bus system.

The ministry also stressed that the Gozitan owners and drivers are not restricted to operate in Gozo only. The government is willing to compensate for what it takes but not for what the bus drivers and owners like.

There is a choice for the transport system in Gozo not to be part of the tender and it is up to the government to decide but the Gozitan bus owners and drivers are not interested in continuing the service in Gozo.

A separate dialogue based on entirely different grounds from those with the ATP is ongoing, said the ministry.