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Home Europa Press

The Government pays 9.2 million to Fred. Olsen and Armas for the discount for residents of the first quarter

June 8, 2023
in Europa Press
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The Government pays 9.2 million to Fred. Olsen and Armas for the discount for residents of the first quarter
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SANTA CRUZ DE TENERIFE, June 8 (EUROPA PRESS) –

The Government Council of the Canary Islands, at the proposal of the Minister of Public Works, Transport and Housing, Sebastián Franquis, approved this Thursday the payment of 9,234,847 euros to the shipping companies Fred Olsen, SA, and Armas, SA, as re-entry of the 25% corresponding to the Administration of the Autonomous Community of the subsidy for Canarian residents for inter-island trips made during the first quarter of 2023.

This reimbursement to the shipping companies corresponds to the subsidy granted to 801,054 people residing in the Canary Islands who chose to make inter-island trips through these maritime companies for trips corresponding to the months of January, February and March of this year.

These figures, the Government points out in a note, ratify the consolidation of the recovery of inter-island maritime connectivity in the Canary Islands after the restrictions due to the covid-19 health crisis.

Fred Olsen transported 518,960 passengers entitled to a bonus in these months, for which he is entitled to 5,838,512 euros, while Armas moved 282,094 residents, corresponding to a bonus of 3,396,335 euros.

The budget item is mandatory for the authorization of the Governing Council of the Canary Islands, as it is an amount greater than two million euros.

Subscriptions are made on a quarterly basis to all the shipping companies that operate in the archipelago, by virtue of Decree 222/2000, of December 4, which establishes the regime of discounts for inter-island maritime transport of passengers residing in the Canary Islands, contributing the regional Executive with 25% of the total.

The remaining 50% of this discount, up to 75% of the value of the passenger ticket, must be paid to the Ministry of Transport, Mobility and the Urban Agenda.

Two weeks ago the Governing Council also authorized the payment by the General Directorate of Transport of the regional Executive of another 10.1 million to both shipping companies for the almost 900,000 passengers with the right to a resident discount transferred between the islands between the months from October to December 2022.

With the payment of these items to the maritime companies that operate on the islands, the objective of the Government of the Canary Islands is to minimize the effects of double insularity, offering an optimal service both in quality and frequency and betting on inter-island connectivity in the archipelago.



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