Estonia, Financial Services, Legislation, Transport
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Saturday, 27.04.2024, 05:43
Estonian bus companies critical of government’s plan to subsidize intercity services
There are at present a couple of tens of subsidized bus routes between
different counties, rides on which will become free from July 1 next year in
accordance with the plan tabled by Minister of Economic Affairs and
Infrastructure Kadri Simson.
"We don't know yet what will happen. There was a meeting with the Road
Administration today as well. They do not know what will happen either. Nobody
can say," Go Bus board member Enn Randmaa told Postimees on
Wednesday.
Another member of the management board of Go Bus, Andrei Mandla, said that
at present the government subsidizes their Haapsalu-Tartu service. "That
bus is sold out on Fridays. What will happen when the whole thing is
free?" he asked.
Jan Landrat, route manager at Taisto Liinid,
pointed out potential distortions to be caused by free services on partial legs
of the free service which other operators have been serving on a commercial
basis, as well as the effect on the economic results of intercity bus lines
where a free bus and a fare charging bus operate closely together.
Also the question of whether a fee can be charged for booking a free ticket
via the online ticket selling system has yet to be solved, Landrat said.
The government has set aside money in next year's state budget to raise the
subsidy for bus services from 21.9 million euros to 34.8 million euros to make
rides on county bus routes free from next July 1.