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Home Europa Press

The Government of the Canary Islands proposes to increase the fuel subsidy

March 21, 2022
in Europa Press
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The Government of the Canary Islands proposes to increase the fuel subsidy
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SANTA CRUZ DE TENERIFE, March 21. (EUROPE PRESS) –

The Ministry of Public Works, Transport and Housing of the Government of the Canary Islands has proposed to the Federation of Transport Entrepreneurs (FET) to increase the subsidy for oil-derived fuel and regulate the exceptional price review in transport and construction contracts, to mitigate the impact that the sector is suffering in the Archipelago due to the increase in fuel prices.

The director responsible for the area, Sebastián Franquis, has met today with the main representatives of the FET to transfer the various proposals that are being coordinated from the regional government and that are articulated in several courses of action.

According to the minister, “we are working on two fundamental lines of action: one is focused on increasing the amount of the current subsidy on petroleum-derived fuel, which is carried out through a system of modules that considers the type of km traveled based on the vehicle or fuel used. This measure would affect all carriers (trucks, buses and taxis) and farmers registered in Form 435.”

“The other measure involves reviewing public transport contracts, so that these contracts, which currently cannot be modified, are reviewed and take into account the increases that are taking place in the sector and that mainly affect school transport,” Franquis assured. .

These two measures will be administered directly from the Canarian Executive, for which the counselor pointed out that “our objective is to be able to approve the increase in the transport subsidy in the next Governing Councils.”

Along with this package of measures that will be managed from the regional administration, the creation of an extraordinary fund destined exclusively for land transport has also been proposed to the Government of Spain, similar to the one approved to alleviate the effects of the health crisis due to covid-19. 19 and that was distributed among the different operators of the Islands.

MARITIME AND AIRPORT TRANSPORTATION

The counselor indicated that, in line with the Extraordinary Fund for transport that is to be negotiated with the State, they also intend to articulate actions to deal with the increase in the prices of maritime and airport transport tickets in the Islands. For this reason, and although the competences are not exclusive to the Autonomous Community, the reduction of service fees will be proposed to the State Government, which would allow mitigating the rise in ticket prices.

In addition, in order to maintain the Public Service Obligations (OSP) that currently operate in the Canary Islands, the Government of Spain has been asked to regulate, as has been done in construction contracts, the exceptional price review in contracts in Public Service Obligation Regime (OSP), of the current contracts -both of the lines within the Archipelago and those that connect with the Peninsula- so that the increase in fuel prices is reflected in the contracts.

The counselor announced that all these proposals have been transferred today to the Government of Spain, within the package of measures that contemplates the singularities of the Canary Islands and their affection, especially in the transport sector. “I am aware of the critical moment that the sector is going through,” said Sebastián Franquis, “that is why I have told you that from the Government of the Canary Islands we are not going to leave you alone.”

“The Government will take measures to help the sector and will be in permanent communication with it to keep it informed of the measures that we will approve in the coming days, as they are applied in the immediate future. I am also convinced that at the next European Summit that will be held on Thursday and Friday of this week and in the Council of Ministers on March 29, packages of very important measures for the sector will be approved,” he added.



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