24 - 30 May 2001

Social partners worried following technical meeting on transport chapter

by a staff reporter

A technical meeting on the acquis chapter on transport at Castille on Tuesday afternoon did not go down too well with some of the social partners, The Malta Business Weekly has learnt.
This was due to the implications of the joint position paper which was presented to government by the European Commission regarding the liberalisation of various sectors for foreign operators such as haulers, coach owners, car-hire as well as the loss of government monopolies, for example Gozo Channel.
Sources told The Malta Business Weekly that General Workers’ Union secretary general Tony Zarb and the Association of General Retailers and Traders director general Vince Farrugia were very disappointed because the sectors they represent will be negatively affected.
On Land Transport, the EU is seeking clarification on Malta’s plans regarding market openings upon accession in particular the abolishment of the current burdnara licences system for freight transport and its replacement by community licences and for adopting the administrative procedures for passenger transport. Rigarding fiscal harmonisation, the EU is asking for more detailed plans on how Maltese legislation will be brought in line with that of the EU.
Cargo haulers are believed to be very concerned. At present, Malta has a restricted number of companies that can operate as cargo-haulers but no restriction on the number of trucks which can be used. The bone of contention is that many cargo-haulers do not want to have a licence to be able to operate abroad but want to retain existing conditions.
Although around 13 freight operators want a community licence there are others who do not want fiscal harmonisation. However, in terms of the EU directives, the country cannot stop operators from working in Malta.
Cargo haulers could still be the agents for Customs since they have a special licence but even here they are under threat since in effect most of the goods handled will be inter-community trade and thus do not require customs.
Coach owners are also worried because through cabotage, individuals who may not have a licence to offer a service in Malta would be able to apply for a licence in another member state and use a coach for a period of three months in Malta. This period could also be extended but the operators are mainly concerned that they could lose most of the business during the peak season. Self-drive car operators will also face direct competition.
Maritime transport is also facing numerous challenges and the EU has emphasised that the Maltese fleet must achieve a safety record in line with the current EU average. Malta must also continue to perform port state control at a qualitative level similar to EU practice.
Furthermore, the EU states that a safe merchant fleet operating in compliance with international rules as set out in the acquis, results not only from the adoption of legislation but its effective implementation through the necessary administrative infrastructure.
With regards to the Sea Malta, the EU has asked for more details on the measures that have to be introduced to support the shipping sector and to confirm that these will be in line with EU state aid measures.
As for the carriage of passengers to the Island of Gozo, the EU is asking if Malta intends to comply upon accession with regulations concerning maritime cabotage and whether the subsidies given to Gozo Channel comply with maritime state aid guidelines.