The Government has given the green light to the reform of the Law of Terrestrial Transport (LOTT), changes including the introduction of an annual fee or ‘canon’ to be paid by bus companies operating regular lines. The objective of the reform is to improve the competitiveness and business efficiency in the sector and to optimise road passenger transport, according to the Government.
According to the Government, the new annual fee, a tax in all but name, will not impact on ticket prices because the State will set the maximum rates. The Government is also seeking to increase transparency for users of the passenger bus services managed through concessions so that they will always know the conditions and rates being applied.
The reform also seeks to reduce the length of concessions from the current 50 to 70 years, or in some cases 90 years, to a maximum 10 year period.