Non-profit-line islands are like a bomb waiting to go off
Non-profit-line islands are like a bomb waiting to go off
The issue of non-profit-line islands seems like a retardant bomb waiting to go off in the government’s hands. The poor economic situation of the state and the bleak prospects that are plunging the country into economic chaos, are threatening the means of transportation connecting the islands with mainland Greece.
UPD:
The issue of non-profit-line islands seems like a retardant bomb waiting
to go off in the government’s hands. The poor economic situation of the
state and the bleak prospects that are plunging the country into
economic chaos, are threatening the means of transportation connecting
the islands with mainland Greece.
The Ministry of Development is considering cuts in transportation to non-profit-line islands in order to adjust its budget to the current fiscal situation. As indicated by coastal shipping circles however, the risk of bankruptcy of the entire sector of passenger shipping is also imminent.
The field is recording losses that are increasing year by year (215mil euros for 2009, 345mil for 2010, and 2011 is not looking so good either). In this case, the state will be asked to subsidize passenger shipping with 1,2bil from what’s left of the memorandum and the budget of 2012.
The bomb is expected to go off in late October, and these days the issue is of great concern to both Michael Chrysochoidis and the ferry companies. The lines that will be cut are toward islands that can be served by larger ones, while connections with Piraeus will be decreased as well.
The public service contracts for 2010-2011 expire on October 31, while the bids for 2011-2012 have not been completed yet.
A total of 35 routes hang by a thread, 22 of which relate to the Department of Marine Transportation and the other 13 to the General Secretariat of Aegean and Island Policy. As this is a fund of only 14mil euros, there is a risk that some islands will be left without shipping routes during the winter.
The Ministry of Development is considering cuts in transportation to non-profit-line islands in order to adjust its budget to the current fiscal situation. As indicated by coastal shipping circles however, the risk of bankruptcy of the entire sector of passenger shipping is also imminent.
The field is recording losses that are increasing year by year (215mil euros for 2009, 345mil for 2010, and 2011 is not looking so good either). In this case, the state will be asked to subsidize passenger shipping with 1,2bil from what’s left of the memorandum and the budget of 2012.
The bomb is expected to go off in late October, and these days the issue is of great concern to both Michael Chrysochoidis and the ferry companies. The lines that will be cut are toward islands that can be served by larger ones, while connections with Piraeus will be decreased as well.
The public service contracts for 2010-2011 expire on October 31, while the bids for 2011-2012 have not been completed yet.
A total of 35 routes hang by a thread, 22 of which relate to the Department of Marine Transportation and the other 13 to the General Secretariat of Aegean and Island Policy. As this is a fund of only 14mil euros, there is a risk that some islands will be left without shipping routes during the winter.
The final decisions about the size of the cuts are expected in the following days in light of the 2012 budget drafting.
The problems faced by the companies are forcing them to show no interest in non-profit lines, since it is uncertain when exactly they will receive the money from the state. At the same time, they will have to pay for fuel, crews and all other expenses, taking money out of their coffers which are already bleeding out.
The problems faced by the companies are forcing them to show no interest in non-profit lines, since it is uncertain when exactly they will receive the money from the state. At the same time, they will have to pay for fuel, crews and all other expenses, taking money out of their coffers which are already bleeding out.
UPD:
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