The Association of Latvian Passenger Carriers (LPPA) invites the government to allocate EUR 14 million towards the public transport service sector so that passenger carrying services are not shut down.
The president’s association Ivo Ošenieks reports that in October carriers that provide public transport services on regional routes did not receive advance payments from the client – state Road Transport Administration (ATD).
According to the contracts signed between carriers, as well as Cab. Min. regulations, state that advance payments are required to equal to 95% of carriers’ losses. However, for a long time ATD, according to Ošenieks, has been ignoring regulations and has been handing the Public Transport Council inadequate financing amounts for advance payments.
Thereby the association invites the government to allocate additional finances towards public bus services. The Ministry of Transport is asked to evaluate ability of the Road Transport Administration to manage the industry.
If carriers do not receive a payment for services provided last month, as well as an advance payment of 95% equal to the losses by 10 November, carriers will be forced to cease servicing regional route or continue performing them in accordance to available financing.
Insufficient funding forces passenger carriers in Latvia to shut down regional services
