Issue link: https://maltatoday.uberflip.com/i/266770
maltatoday, WEDNESDAY, 26 FEBRUARY 2014 News 2 'We're not going to be another Arriva', says Scottish CEO Scottish bus company McGill's withdrew from public transport bid citing lack of information on current state of transport company MATTHEW VELLA THE chief executive of Scottish bus firm McGill's vowed that his com- pany "was not going to be another Arriva" when the company was not being furnished with enough finan- cial information for it to make a seri- ous bid for Malta's public transport operation. Ralph Roberts told MaltaToday that McGill's Bus Service, of Green- ock, Scotland, demanded to know as much information as possible – namely the value of assets, liabilities, staff complement and their salaries, amongst other crucial information – before bidding on the expression of interest issued by Transport Malta. Roberts said that even on the basis of his guesswork, McGill's was look- ing at an operation costing some €35 million with the expectation of an equal amount in turnover. "At that kind of 1:1 gearing, you're looking at a very, very expensive business to run... you ask yourself why Transport Malta should have set such a high bar in the first place. On our part, everything has to be right before tying up so much of our own cash and assets for this busi- ness. We have a corporate social re- sponsibility not to do anything that might harm our operation in Scot- land," Roberts said. The chief executive said that TM had not been forthcoming enough on the information it needed to make a serious bid within the next six weeks. Roberts surmised, on details avail- able from the share transfer from Arriva Malta to Transport Malta and its new public transport com- pany, that an estimated €20 million asset base and another €5 million needed for start-up capital and cash flow. He also said that a €10 million guarantee was required in the form of a letter of comfort. "Seeing that we could expect €35 million in revenues over the years, we felt this was a very expensive business to run... I ask myself, why should I tie up €10 million of my as- sets? I would need at least €900,000 every year for the next decade or so to make good for that." Arriva Malta sold its entire opera- tion to Transport Malta at the start of 2014, leading to the creation of a nationalised public transport serv- ice. Roberts said that the current EOI asks bidders to indicate whether they want to purchase the entire com- pany and its asset base, or whether they are interested in acquiring an exclusive concession by forming a new company. "Taking over the company means you have to know the total value of the current assets and liabilities and employees' salary - the company has now been operational since January and the share transfer agreement from Arriva Malta only gives you the basis for guesswork," Roberts said. Malta Public Transport Services Ltd absorbed €7.9 million in to- tal debts when it took over Arriva Malta. The government's call for expres- sion of interests for the operation of the new bus service closes on 7 April. Earlier yesterday, the Sunday Her- ald of Scotland reported Roberts saying that his "gut feeling" was that excessive state interference would prevent the firm from running a profitable service. "Their first option was to have someone take over an effectively nationalised service and assume the assets and liabilities. "While they made that clear up front, they didn't say what this amounted to, so we had no idea what the liabilities were, what the assets were, what the revenue was, or the patronage numbers," Roberts told the Sunday Herald. Study forecasts Socialist victory in European parliamentary elections JAMES DEBONO THE centre-left Socialists & Demo- crats (S&D) are narrowly ahead of the centre-right European People's Party (EPP) in the race to become the largest group in next European Parliament, according to the first in a series of forecasts from PollWatch2014. The European Council is obliged to 'take into account' the results of the elections when nominating a Presi- dent. The poll predicts that in Malta the PL and PN will each elect 3 MEPs. But the survey cites an on-line poll conducted by Malta-Surveys in De- cember, which gave the PN a two- point lead over Labour. Basing itself on this poll, Pollwatch extrapolates a 51% victory for the PN over Labour's 44% and AD's 5%. No scientific polls have so far been published in Malta to assess the sup- port of parties for the forthcoming MEP elections. The PollWatch2014 model was developed by three leading political scientists, Kevin Cunningham, Si- mon Hix and Michael Marsh. The methodology is based on poll ratings but takes into account other factors like past results and the tendency of smaller parties performing better in these elections. In 2009, the final forecast correctly predicted 720 of the then 736 seats won by each political group (a 98% success rate), and 660 of the seats won by each national party (a 90% success rate). Socialist victory PollWatch2014 predicts that in the 2014 European Parliament elections the Socialists & Democrats will win 221 seats while the EPP will win 202. According to the forecast. the next Parliament will be more polarised than the current one, with fewer seats for the centrist groups and more seats for the radical left, the radical right, and euro sceptics. The combined seat share of the three centrist groups - EPP, S&D and the Alliance of Liberals and Demo- crats for Europe (ALDE) - is likely to be down to 65% (from 72% currently), while 29% of the seats are likely to be won by parties that are either critical of or opposed to the EU. The forecast predicts that the Lib- eral ALDE Group would drop to 70 seats, hit by losses in the UK and Germany (each down from 12 to four seats) while the Greens are set to drop to 44 seats. The European United Left / Nordic Green Left (GUE/NGL) Group is set to overcome the Greens to become fourth-biggest in the Parliament with 56 seats, bolstered by a growth in sup- port for parties in France, Germany, Greece and Spain. Big gains in France (eight members, up from five), Greece (9 members, up from three), Spain (six MEPs, up from one), as well as nine German MEPs. Non-affiliated MEPs will increase from 31 to 92 MEPs. These will include 22 members from France (National Front), 24 from Italy (mostly Five Star Movement), seven each from Germany (Alternative for Germany). A new far-right grouping, which may include the French National Front, Geert Wilders' Party for Freedom (Netherlands), the Freedom Party (Austria), Flemish Interest (Belgium), the Sweden Democrats and the North- ern League (Italy), is a possibility. These groups are slated to win 38 seats but would need to secure members from seven countries to be recognised as a separate group. The researchers warn that with 12 weeks to go until the election and a volatile political situation in several large EU member states, either group could still come out on top on 25 May. MAM downplays rift with nurses JAMES J. PISCOPO THE Medical Association of Malta (MAM) has said it did not intend to take over nursing management, as was being suggested by nurses' union MUMN, through the setting-up of a strategic business unit (SBU) for the running of Mater Dei Hospital. Reacting to MUMN's recent com- ments in the media, MAM secre- tary-general Martin Balzan said the MUMN's position was based on sev- eral misconceptions, but specified that relations between both unions remained good. The nurses objected to the setting up of the SBU but the MAM said it agrees with the principle, although an official position has yet to be taken, until more details are announced. "What's sure is that we don't want nursing management, but more co- operation is needed between health- care professionals. We are in favour of more coordination between differ- ent units in the health care system for a better result," Martin Balzan said. However they underlined that since doctors are the most knowledgeable in health services, they need to be consulted in the process of decision making. "Consultants take ultimate respon- sibility for patient care and conse- quently it is their role to give their clinical input on improvement in quality and future development or the health services." MAM's president Gordon Caruana Dingli remarked that the setting up of this unit was recommended by the Johns Hopkins report, and that the SBU should serve to promote team- work and co-operation amongst all groups of health care professionals at Mater Dei. He noted that the proposed SBU would increase efficiency in the sec- tor but this was not enough. "With certain reforms, an increase in efficiency is possible. But efficien- cy alone cannot cope with the large number of patients, which is more than what our current health system can afford," Caruana Dingli said. He added that a 5% annual increase in request for operations was regis- tered for the past six years, increasing the burden on the health care system that already has to deal with an aging population. Both Caruana Dingli and Martin Balzan refused to delve into whether a new hospital was the solution to this problem. The MUMN had issued directives for nurses working in Boffa Hospital in Floriana, after they claimed that the proposed Strategic Business Unit (SBU) is up and running without the union's agreement. jpiscopo@mediatoday.com.mt