Has anybody even bothered to notice that it’s the National Bank, Malta Airways & c & c all over again?
The Minister of Transport – boasting that the bus service has been nationalized and that the state has seized Arriva’s assets.
What was done to Arriva is classic Mintoffian totalitarian strategy/tactics: the company was damaged by the use of any means possible, covert and overt, and then smashed with the full might of government.
When it was on its knees, the government then moved in and ‘nationalized’ it, taking over its assets in a forced, rather than voluntary, take-over.
It is so effing disgusting, so dangerous a precedent, but as happened back in the Mintoffian 1970s, most people just don’t understand the implications or the chain reaction this will cause.
Back in the 1970s, people had some excuse for their ignorance. Education was weak, literacy was low, people didn’t buy newspapers because they couldn’t read them, radio and television were owned only by the state and pig-ignorance was widespread.
Now, it’s 2013 and we are the citizens of an EU member state. Literacy is much improved, everybody has gone to secondary school at least, access to the media and internet is unhindered, and there is no excuse.
Look at Labour’s first acts of government and consider them well: 1. a massive contract for a power station and gas supply that absolutely stinks of corruption and a deal struck well ahead of the general election, and 2. nationalising the bus service after bringing it to its knees in a deliberate and sustained campaign, and taking over its assets, 3. selling passports for hard cash only in total secrecy, with the power of the final veto/say-so vested in the hands of one man: the Home Affairs Minister.
Now Transport Minister Joe Mizzi is on Dissett boasting that the government has taken over Arriva’s assets in Malta. Unevolved Mintoffian and backwoods primitive that he is, he thinks this a good thing. Imagine what it sounds like to others from serious democracies who have made foreign direct investment in Malta or who are considering doing so.
I’m not talking about the Chinese with their investment in Enemalta or the people from Azerbaijan with their investment in the power station/gas supply. To them, these things and worse are entirely normal. Corruption and government abuse are the order of the day where they come from.
No wonder Helga Ellul – German by birth, developed and ran one of Malta’s largest factories – was so straightforward and unequivocal in saying why she is standing for election on the Nationalist Party ticket.
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The press were not invited to the transfer of shares. Why was the transfer behind closed doors? What is there to hide?
My mother opted for the bus yesterday morning, she was nearly left stranded in Valletta at 11.00am after the driver flatly refused to let her board the bus to Birkirkara.
Service was off 12.00 to 3.00 yesterday, majtezwel.
Zmien il-buzollotti spicca u se jibdew buzollotti akbar. Hallas, Gahan Malti!
Arriva should have liquidated the company and left public transport in disarray.
Now the public will foot the cost of the nationalisation, including those people who pay taxes and do not use public transport.
One additional point – in 1979 Mintoff threatened the then bus owners that he was going to take over all 508 buses and nationalize the bus service. For some reason, he did not – that reason was probably that he didn’t want to spend money running it.
I agree fully with you – what happened today is disgusting.
But situations like this had been predicted on this website well before the elections. I remember commenting here that as soon as Labour is in government, it will resort to the take over of private assets. Labour and business do not mix.
I was watching Dissett on TVM this evening. Reno Bugeja gave a good performance – I thought that maybe he should invite Minister Manwel Mallia and give him a similar grilling.
In my opinion, Mr. Bugeja was not believing a word that the Minister was saying.
Mr. Bugeja insisted with the Minister on the publication of the new bus routes. A fundamental point, in my view.
But the Minister said that the new bus routes will only be published with the Expression of Interest (EOI) which is due to be published next week. Now if the EOI is as secretive as that for land reclamation, then we might get to know about the new routes only if we pay Eur 5,000. But even if the EOI is issued for a couple of hundreds of Euro, who is going to buy the document and publish the details in the document?
The Minister said that the new routes were discussed and agreed with local councils and that the public’s views had been taken on board.
But why is the Minister insisting on keeping those routes secret? It is important for the public to know about the new routes, but they are equally very critical in determining the operating cost of the new service. Hiding those routes at this stage is not in the interest of transparency.
And then the Minister said that he will try to have the EOI close within a period of one month. How is it possible for a private operator to determine the costing of the new routes and make a submission within a month? – Even Labour took 5 years to have its roadmap “kostid.”
The Minister could not give a commitment that the employees and the existing tariffs will be protected in the EOI. But they will be “in his mind” during the discussions, he said.
We’ll wait and see how many foreign investors are coming to invest in Malta after they read what happenend to Arriva.
http://www.timesofmalta.com/articles/view/20140102/local/arriva-bows-out-with-share-transfer-agreement-behind-closed-doors.501146#.UsW9ubB3sdU
Can you imagine a foreign company now investing in anything in Malta that’s akin to the public transport system, after what the Labour Opposition/government did to Arriva?
Who in his senses would just do that?
Then when no one comes over, the government hands over the service to a Malta Taghna Lkoll company, friends of friends of the kind Alfred Sant used to tell us about. Labour dictatorship in its modern guise.
I am amazed that supposedly intelligent people cannot see anything strange about the bendy buses catching fire when:
1. the incidents all happened in a period of a few weeks with no episodes before or afterwards;
2. similar problems were never reported elsewhere;
3. the minister was immediately prepared to ban the buses and had a back-up plan in place.
It’s obvious that this was covert sabotage aimed at breaking the company’s back and forcing it to quit.
I just hope that the foreign directors of the company don’t remain silent, and the real truth emerges.
We did not need to bother at all neither to notice that these are “NEW STYLE POLITICS” based on expired Mintoffian policy nor that it was a subtle move toward nationalisation, which means money going out of public coffers into someone else`s pockets.
Losses to be borne by public coffers. Deja vu.
SHAME on the Partit tal-Landi who promised us new style politics and could not live up to their promise.
Well said. Now read the report in MT:
“Meanwhile, asked whether he had ever threatened Arriva to nationalise the company, the minister quashed the claims and insisted the government could not have afforded to nationalise the public transport system.
“Had the government nationalised the public transport, Arriva’s vehicles would have been tied up in the liquidation process while its drivers’ future would have ended up hanging in the balance.”
So a company and its operations being bought for a symbolic ONE EURO by the government is not nationalisation?
http://m.maltatoday.com.mt/newsdetails/news/national/Expression-of-interest-for-new-bus-operator-to-be-issued-next-week-20140102
If he said that they could not afford to nationalize (buy out) Arriva Malta, then their actions can be interpreted as seizing private assets (theft).
The sum of 1 EUR is to make it legal. But it’s the same as the government marching into your house, taking it over and giving you 1 EUR as recompense.
That one euro is needed to categorise the transfer as a sale (i.e. a transfer for consideration). I think you will find that the shares in National Bank were also transferred for an Lm1 or similar token price.
Excuse my ignorance but what will happen if the new operators don’t buy Arriva’s buses and assets from Transport Malta? Will the state be lumped with all those buses?
On a side note, what has happened to the bendy buses?
What has happened to the bendy buses? Around three of them caught fire, remember? We were told that an inquiry concluded that it was not arson, but I don’t think that the report itself was made public, was it?
[Daphne – All 68 of them are parked in the ditch.]
So they’ve been ditched.
All deja vu.
We are back to the nineteen seventies.
From now own any direct foreign investment in Malta is either coming from a certified money launderer or from a certified madman.
Never mind.
Nicola Abela Garrett will soon turn up to call Joe Mizzi a ‘fucking wanker’. She just has to fly to Malta first, from her €10,000 exile
My prediction for 2014 is that all complaints against the “new” bus service will now be coming from the Opposition’s supporters and the previous complainers will revert to supporting and defending it. It is a small island after all.
Happy new year to all.
No, what will happen is that the core Labour vote will find itself having to manage with a second rate transport management system. Make that lack of, we’ll go from a capillary network to the old star configuration, where every road leads to Valletta.
Labour will do everything to pander to their needs which are not viable, not when these refuse to plan their route, read a ruddy timetable or match their commute.
You and I get to pay for the social service. Anything else deemed redundant. The fact Mizzi cannot mention any routes indicates simply the obstacles being put across by the operator.
That means the Paceville night bus, Mater Dei/University as the secondary hub, Airport serving incoming visitors and finally, all belt routes, the X numbers, down main roads connecting north and south directly.
The first required night shifts, the second and third management and coordination, read staff, and the last result in need of the maligned bendy bus to match the hardware to system catchment.
I wouldn’t be at all surprised if the system were to be fragmented.
As long as Cetta gets to badmouth is-sinjura via l-Belt, it’s fine. Everything else to be taxed.
Arriva operates bus, coach, train, tram and waterbus services in 15 countries across Europe. As at October 2013 it employed 55,900 people and operated 1.5 billion passenger journeys annually.
With a Revenue of €3,757 million and an operating income of €425 million in 2012 it is all too evident that Arriva does not lack experience and what has taken place is a repeat of the run on the National Bank of Malta in December 1973.
http://user.orbit.net.mt/fournier/MNnational_bank_scandal.htm
The Labour public should not be lauding the governments nationalisation of the bus service, because this is Mintoff all over again, and it could very well happen to them – assuming that they have got something worth “taking”, of course.
Dear Bob-a Job. For all the statistics you provide above about Arriva I still maintain that large buses are totally unsuitable for Malta and they therefore erred in accepting the business with the buses imposed on them. The link below would be a good start for the Transport Minister and his department to consider. There is some significant analysis to suggest that big buses, let alone articulated ones, are totally unsuitable for Malta. I do not accept the argument that people will not pay more for a better improved service. Smaller buses will cost more – but would create more employment . http://publictransport.about.com/od/Transit_Vehicles/a/How-Do-Transit-Agencies-Decide-On-What-Buses-To-Purchase-Part-1-Bus-Size.htm
Aaaah. You have overlooked a few things. The unsuitable ‘big buses’ were part of a public transport disaster up to the end of 2013. But now, they are so essential that they will be needed by the next operator of public transport.
This reminds me of the scene from 1984 where Winston is listening to the party official denigrating the enemy at a rally. Suddenly, something is whispered in the ear of the official and he begins denigrating the allies of Oceania without breaking his speech or train of thought.
Everything Winston had been told was wrong. The allies of Oceania had always been the enemy whereas the enemy had always been our friend.
You should also read the two Halcrow reports which will give some insight as to the choice of buses.
‘ They (PL) have shown their true colours – i.e totally inexperienced, absolutely no clue, and decisions based on revenge and vindictive approaches to their opponents.’
Raphel Dingli – June 25, 2012
Your words not mine but I fully concur and that was my point.
Arriva was attacked by the PL (MLP) right from inception because it was planned that it would be the first victim to fall to a Labour Government.
Because of this Arriva was never allowed to integrate comfortably and was perceived to be arrogant, a concept being further compounded by various factors Manwel Delia being one of them and MLP’s antipathy for Austin Gatt being another. The bendy buses, although inept for some routes, were simply the catalyst.
Like the run on the National Bank of Malta in 1973, Labour kept Arriva on the ropes until it was finally defeated by a technical knockout.
Is it possible to adress the transport debate apolitically? Consider the issues without delving into politics? I dare say it again large buses are totally unsuitable for Malta.
The purpose of a commercial company is to generate a profit by providing a service people want to buy. Mopping up unemployment is incidental.
Raphael Dingli,
You state: “Smaller buses will cost more – but would create more employment .”
You may remember that Arriva service was introduced without an increase in bus fares. There were complaints about everything, except fares. The introduction of bendy buses was vital for this to happen because, if used efficiently, the service running cost per passenger trip of a bendy bus is much lower than that of smaller buses.
Government acted irresponsibly when he forced Arriva to stop using the bendy buses. With bendy buses, Sliema front routes, for example, could generate good profits, which would make up for losses on other routes. Now that the bendy buses are gone, those potential profits are gone.
There will be, therefore, intense pressure to increase government subsidy. The only alternative would be to increase fares.
The situation is made more difficult because government has committed itself to a have a single fare for both Malta residents and for non-residents.
Joe Mizzi is going to have a very difficult time with the Finance Minister.
Raphael Dingli lives in Australia. One wonders why he finds the bus service here so interesting.
I am amazed you are still trying to justify the bendy-bus concept.
It is just not sensible and based purely on economies of scale with scant regard for anything else .. Such as manouverability etc etc.
Don’t be ridiculous – as if a system can be cut and pasted.
Malta has three major problems when it comes to planning transportation.
1. The core centre happens to be surrounded by water to its north and a topography resulting in sinuous routes on the other side.
2. People will not walk the minimum industry standard of 250 metres to get to a bus-stop, expecting a bus-stop outside their door.
3. There is a density of traffic migrating from ribbon sprawl kilometres out to destination with the inner harbour area in the way.
Ever seen a tram or bendy bus in Milan, Stockholm or Amsterdam? Forget driving alongside or trying to nose ahead, you’ll have your car, bike or motorcycle crushed, no holds barred, and then you’ll be fined for obstructing flow.
Your buxie failed everywhere, unless these are restricted to urban centers served by a normal bus. The only thing these do is cause traffic chaos. Rome and Genoa, same geography, both about to declare their operators’ insolvency.
Rome was about clientelism; Genoa lost count of its routes.
You don’t attempt to squeeze a van down a narrow street; just convince people they can walk.
The problem with you people is you fancy an idea, grumble and expect to be taken seriously.
Give us your numbers to usage, route development and traffic flow to show these didn’t manage to remove hundreds of cars from their routes.
And don’t give me Mrabat – that was a blunder. And yes, I was involved in Milan’s traffic master plan.
If people do not want to walk the 250 mt to a bus stop then they do not deserve what is after all subsidised public transport. Let them pay for a taxi!
Jozef, if you were a woman I’d propose right now.
http://www.streetfilms.org/bus-rapid-transit-bogota/
Guess what Raphael, without the capacity of those buses and taking over the lanes, and a determined mayor, this wouldn’t have worked.
And now Labour want to go for the elevated routes. Fancy that, adding more tarmac to fill them with even more cars.
Why do you imply it has worked? It’s a total fail.
You’re an absolute fake and a liar.
July 2011 Arriva starts operating its ten-year concession
13th October 2011, MLP files motion of no-confidence against Austin Gatt.
4th November 2011, the opposition’s motion calling for Miinister Gatt’s resignation as according to the MLP ‘he has not delivered the public transport reform he had launched four months previously’ is defeated in parliament.
Using the same benchmark, Mizzi’s transport reform has to be successfully in place by end of March this year or he is expected to resign.
How have we come to this again? Can’t we ever learn?
Managed to keep myself from posting the 1 word that came to mind throughout the post.
Eventually you’ll see what I mean but until then…
Goodnight.
http://www.inewsmalta.com/dart/20130930-manuel-delia-jg-id-li-ma-jistax-jifforma-opinjoni-mi-imbabwe
What’s happening?
its the first thing that passed through my mind but it seems the hatred towards arriva is so engrained now that almost everyone is happy they have been rid of.
Of course it seems nobody has bothered to ask what next as in what alternative is being proposed. Personally i had very high hopes for a complete change in mentality, efficiency etc.
It seems that Arriva failed to bring about the paradigm shift needed. As a driver i felt that the barbarian drivers we had before were replaced by barbarians wearing a shirt and tie and that the mentality remained the same with busses stopping in the middle of the road, with minimal regard for other vehicles and with a King Long attitude that was not too far from their predecessors.
On the other hand i think that arriva seem to be leaving without a fight, this could be explained only by two scenarios a) they were offered a good deal by Mizzi which means that we the tax payers are going to have to foot the bill once again. b) they were not doing very well and were not reaching targets and decided to bail out early.
We can ask Times of Malta to explain which of the two, Claude.
Gozitans and students not happy with Mizzi’s silence.
“HIGH COMMISSIONER ‘SAD’ TO SEE ARRIVA GO
Meanwhile, British High Commissioner Rob Luke in a tweet this morning said he was sad to see Arriva go, but he praised the government and the company for the negotiated outcome and hoped for a smooth transition.”
Now just wait for blistering and scathing comments on timesofmalta.com. Is Foreign Interference act still on statute book ? (Tongue firmly in cheek !)
“The government is focussed and is working towards handing public transport back to the people, ensuring transport that serves people’s needs,” the PL said in a statement.
We have it straight and plain what the plan was and will be – no professional management just people’s management.
Those who claimed that one should look to the future, and not harp back to the days of Mintoff and KMB, should realise by now that we are going back to those days, and at a much faster rate than anyone had foreseen.
I read somewhere that there is one fare irrespective of distance travelled? Is this still the case. If so , this policy needs revisiting. I think most would agree that a trip from Valletta to Floriana should have a far cheaper price than one from Valletta to Mellieha . Please stick to issue and ignore the politics for once.
There is a different fee and always has been. The economic issue is that the government wants to keep fares generally low to encourage more use BUT such low fares are only feasible with higher demand (not there) or subsidy.
Sometimes I wish the island of Malta where I was born would just sink into the Mediterranean!
I’m sick of hearing about the corruption and intrigue that goes on there! Not to mention the dabacle of the National Bank of Malta seized shares from the shareholders by the then government. The world is watching you.