Issue link: https://maltatoday.uberflip.com/i/1529157
15 maltatoday | SUNDAY • 10 NOVEMBER 2024 KURT SANSONE ksansone@mediatoday.com.mt ANALYSIS Transport subsidies to hit almost €160 million MALTA will be spending more than €158 mil- lion in transport-related subsidies next year, an increase of €4.2 million over 2024. The budget estimates show that government subsidises various public transport initiatives with the heftiest spend being on the bus net- work. In 2025, government will fork out €55 million in terms of the public service obligation for pub- lic transport, which ensures all bus routes are served irrespective of how economically feasible they are. Additionally, government will also fork out €27.4 million to ensure bus travel is free of charge for everyone. Collectively, the govern- ment will be forking out €8.4 million more next year to subsidise the bus network and patron- age. But the government will also fork out €50 mil- lion to sustain the free school transport system for state, church and private schools. The subsidy for the Gozo Channel is expected to stand at €14.7 million next year, no change from 2024. However, government will also pay €9.2 million in subsidies to cover the Mal- ta-Gozo fast ferry service between Valletta and Mgarr. But apart from subsidies, the government will also fork out a total of €10.6 million in grants to encourage cleaner transportation, the bulk of which (€8 million) will go to encourage the up- take of electric vehicles. The outlay on subsidies and grants is partially financed by the generous income government receives from the use of private cars, forecast to reach a total of €138.8 million next year. Income from driving licences is expected to increase by €700,000 to reach €2.8 million, while the motor vehicle registration tax will boost government revenue by €34 million (€6 million more). To top it up, the annual circulation licence fee that is paid annually upon car insurance renew- al, is expected to yield €100 million. This repre- sents €24 million more than licence fee income collected in 2024. The government will also bag €2 million from the sale of number plates. Transport revenue, subsidies and grants Transport income: €138.8 million Driving licences: €2.8 million (+€700,000) Motor vehicle registration tax: €34 million (+€6 million) Annual circulation licence fees: €100 million (+€24 million) Sale of number plates: €2 million (no change) Transport subsidies: €158.1 million Operation of the park and ride in Gozo: €500,000 (no change) Public service obligation maritime transportation: €400,000 (no change) Public service obligation public transport: €55 million (+€6 million) Public service obligation inter-island transportation: €14.7 million (no change) Tal-Linja Card: €27.4 million (+€2.4 million) Public service obligation fast ferry Malta- Gozo: €9.2 million (+€1.2 million) Barrakka lift contribution: €250,000 (no change) Free harbour ferry service: €600,000 (+€600,000) Extension school transport network: €50 million (-€5 million) Transport grants: €10.6 million Grant for wheelchair accessible vehicles: €150,000 (no change) Scrappage scheme to buy motorcycle: €2 million (no change) Autogas conversion scheme: €100,000 (+€40,000) Scrappage scheme: €300,000 (no change) Grant for electric vehicles: €8 million (+€5.4 million Parking: 'Parking in public spaces such as in school grounds.' This is already happening in Marsaskala and St Paul's Bay, where school underground parking facilities are also used by the com- munity outside school hours. This is possible because these are new schools and parking facilities were integrated in the plans when they were built. Similar parking facilities will be available in Msida, where another new school was built. Going digital: 'Exploring digital solutions as a means to improve parking.' Rudimentary technology to flag the number of vacant parking spaces available and where, had been introduced in Qormi and Valletta some years back by the respective local councils although these have proved unreliable. Government services: 'Government will lead by example whereby a number of public services will be provided off-peak. These may include: waste collection, road cleansing, road markings, driving licensing tests/lessons and landscaping, amongst others.' This is already happening in the waste collection sphere in at least three localities – Sliema, Dingli and Gharghur – where door-to- door waste collection is done in the evening. Improving public transport: 'New direct bus routes for industrial estates'; 'circular buses for large localities'; 'new direct buses from park and ride such as Ta' Qali to nodes including Mater Dei Hospital, University and ferry terminals'; 'national route revision'. The last mass revision of bus routes was carried out in 2015 when Spanish bus operator Autobuses de Leon was awarded the con- cession to operate a scheduled bus service in Malta and Gozo af- ter a competitive tender. Use car outside peak hours: 'Incentivising full-time employees to use their private vehicle during off peak hours.' Promote car-pooling: 'Revising the Employee Transportation Deduction Act to encourage business in promoting car-pooling by reducing by half (to 4 from 8) the threshold of persons required to benefit from this tax deduction instrument.' Ambassador: 'Appointment of an Ambassador for Sustainable Mobility to assist in the development of policy initiatives as well as the implementation of measures within the strategy who will be supported by an Advisory Committee for Sustainable Mobility'. Other ideas in the Bonett plan Some of these ideas are already being implemented, albeit sporadically or on a minor scale, while the whole package of changes to the bus routes is long overdue as the minister himself acknowledged.