BUS COMPANIES SAY THEY COULD CLOSE OVER SUBSIDY ROW

Cyprus Mail - 21 November - article by Annette Chrysostomou

A move by the transport ministry to claim back money from bus companies may well lead to the closure of services, company representatives warned on Wednesday.

The transport ministry announced on Wednesday it will start to claim back money it overpaid in the past to all six public bus companies from next month, cutting the monthly subsidies which the companies in turn use to pay their employees.

The decision was made by a committee which was set up last year to resolve the ongoing dispute between the government and the companies.

The five transport companies which took part in the process have rejected the decision. The Paphos company removed itself from the process earlier on and is not bound by the decision.

Transport Minister Vassiliki Anastasiadou insisted the cuts will be made until all the money is recovered.

Announcing the move after Wednesday’s cabinet session, she said there was “no other way”.

“Such decisions are made with respect to the taxpayer’s money and in view of the need to provide a seamless public transport service by the state,” Anastasiadou said.

However, she added the government was open to discussions on how exactly the money should be returned.

“Of course, we are open and we urge and ask them [the companies] to come up with counter-proposals and alternatives, so if they do not want to be cut off by the amount we propose, there are other ways to pay off the due amount,” she said. “We don’t want to strangle the companies.”

Responding to a question, Anastasiadou said the existing contracts between the companies and the government will expire in July 2020. The money should be returned by the time the contracts end.

The minister said she hoped that “companies will behave in a consensual manner and come to discuss solutions because there are solutions”.

However, the bus companies have warned that cutting a substantial amount from the monthly payments could lead to closure.

Head of Limassol bus company, Emel, Giorgos Kyriakou told daily Phileleftheros “we cannot operate on the basis of the decision of the ministry, its calculations and its estimations. We also believe these calculations are wrong.”

Bus drivers in all regions have gone on strike in recent years over late payment of salaries, as a result of the financial disagreements between the management of the bus companies and the government.