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Last chance to solve bus impasse
BUS COMPANIES have one week to iron out their differences or the new public transport system slated for July 5 will be postponed for at least three months, lawmakers warned yesterday.
A postponement could prove to be a new headache for the government, which has been trying for years to overhaul public transport.
The House Communications and Works Ministry heard yesterday that just 40 per cent of Nicosia’s and 55 per cent of Paphos’ bus companies and individual drivers had decided to join the new system, which will bring all buses under one umbrella company, OSEL.
There are serious disagreements between OSEL and Nicosia’s main urban bus company over contractual conditions, and the Committee yesterday gave them a week to iron out their differences.
Otherwise, MPs said they wouldn’t hesitate to pass a law to postpone the implementation date to September. However, this could lead to new problems, if the umbrella companies decide to sue the state for loss of profits.
DIKO deputy Antonis Antoniou blamed the Communications and Works Ministry over delays in announcing the formula by which compensation for the withdrawing bus drivers would be calculated.
“We said from the start that if the formula wasn’t calculated in time, there would be problems,” said Antoniou. “We have given them another week for consultations; if there are no results, we will not hesitate to postpone the date.”
Communications Minister Erato Kozakou Marcoullis informed deputies that the Ministry’s new formula for the compensation would be announced tomorrow.
She said the ministry had taken all views and positions into consideration, and revised the formula. The government, she added, is willing to offer €2 million in total for this year.
“We think the new formula takes into consideration the specifications that were made, and in our view this formula, which we will announce on Thursday, complies with the law,” said Marcoullis.
Earlier this month, the House heard that the professional drivers were total compensation of around €50 million. This was rejected by the state, which said public finances could not absorb this amount.
The drivers’ demands would mean that each retiring bus driver would receive €500,000.
The state presented a formula that would give the drivers or bus companies, depending on size and profits, giving a profitable company with say five buses, around €160,000.
Bus drivers say the law on calculating compensation had not been properly followed and have brushed aside concerns over the cost to the economy.
Marcoullis said yesterday a new formula had now been drawn up.
“From June 21, those interested can go to the Road Transport Department and once their compensation has been calculated, they can receive the money on the spot,” said Marcoullis. Beneficiaries will have to present the necessary certificates specifying their income, among others, as well as the value of their bus.
Departing bus owners have the option of keeping their buses and using them privately for excursions.
The new transport system is supposed to start on July 5, with 20 more regular routes, which will cover all rural areas. The fares have yet to be announced, but a ministry source yesterday said it would be in the range of €0.85. The current city fare is €1.20. There will also be nine night-time routes for youths, starting at 11pm until 5am.

