Budget, Financial Services, Latvia, Legislation, Transport

The Environmental Protection and Regional Development Ministry believes that the differentiated public transport ticket prices have been approved by the Riga City Council in violation of the social equality principle. Also, the Riga City Council's regulations No. 71 and 93 are discriminatory against certain groups of residents, that is, the Riga City Council has approved an increase in public ticket prices, while at the same time the prices will be reduced for persons who are official residents of Riga. This, the ministry believes, is against the principle of proportionality.

The Riga City Council and Riga municipal public transport company Rigas satiksme's intention to increase public transport prices 60% is nearly unprecedented. Already now, the municipal subsidy for Rigas satiksme is equal to some of the largest local governments' annual budgets. For instance, Daugavpils budget this year is LVL 58 million, Liepaja budget is LVL 55 million, whereas the subsidy for Rigas satiksme is more than EUR 85 million (LVL 59 million) this year and as much in 2014, and it is taxpayers' money that the Riga City Council gives the company.

"Riga City Council must offer a clear explanation about its contradictory decisions, made during the past several months, regarding the public transport system in the city, and the operations of Rigas satiksme must be audited, which has been requested several times already," notes the ministry.

The Riga City Council's regulations are against several laws and articles of the Constitution, as well as international laws. The European Union's Court of Justice has ruled in a similar case that economic considerations alone cannot be the only reason for putting a certain social group in a more advantageous position at the expense of other social groups.

The Riga City Council has not performed a detailed financial analysis of the effect that the regulations will have on the Riga budget, which is important, taking into consideration that the Riga City Council provides social assistance to a large number of residents, explains the ministry.

Therefore, the Environmental Protection and Regional Development Ministry is asking the Riga City Council to revoke its regulations No. 71 and 93 that deal with lowering public transport fares for Riga residents.

The ministry adds that the Riga City Council's decision to introduce a transition period, during which public transport fare in Riga will be EUR 0.60 for all passengers, or 50% of the planned fare, has not been harmonized with the ministry.

The Environmental Protection and Regional Development Ministry urges the Riga City Council not to take more hasty decisions regarding the city's public transport system until a detailed analysis of the intended changes is carried out and Rigas satiksme's operations are audited.

"It is clear that the Riga City Council's destructive activities are not meant to solve problems in the city's public transport system, but to achieve that more residents declare Riga as their official place of residence. However, such goals should not be tackled by increasing public transport prices, which are discriminatory to other residents of Latvia as well as other local governments of Latvia," explains environmental protection and regional development minister's representative Inga Antane.

As reported, Riga City Council decided to increase public transport fare in Riga from LVL 0.50 to LVL 84 (EUR 1.2), whereas public transport fare for Riga residents will be 50% of the amount or EUR 0.60.

In order to apply for the discount, residents must obtain the so-called "Rigan ID Cards", which is why residents have to stand in long lines, sometimes up to several hours, so they could hand in their e-tickets and receive the new card.