WILL BE ABLE TO ACCESS TRANSPORT SUBSIDIES

The public company Guaguas de Arrecife has saved more than 500,000 euros since 2011

The reduction of the deficit allows the City Council to access Transport subsidies. The City Council highlights the updating of rates and the reduction in personnel expenses as keys to savings?

March 18 2015 (14:30 WET)
The public company Guaguas de Arrecife has saved more than 500,000 euros since 2011
The public company Guaguas de Arrecife has saved more than 500,000 euros since 2011

The bus company of the Arrecife City Council has reduced the management deficit of the public service by 32 percent since 2011, which represents a saving of more than 500,000 euros. According to the Consistory, this has been achieved with the revision of rates, the control of personnel expenses, changes in schedules and shifts, and investment in the technical maintenance of vehicles. 

In this way, the City Council states that "not only has the threat of outsourcing been removed, but the capital Consistory has once again opted for subsidies from the Transport program contract awarded by the Cabildo of Lanzarote."

The responsible councilor, Víctor Sanginés, has transferred the data certified by the Corporation's auditor, according to which the deficit corresponding to 2014 has stood at 653,573.59 euros, which represents an improvement of 12 percent compared to the previous year. 

"The improvement experienced this year by the operating accounts of municipal buses consolidates a trend that has remained constant throughout the legislature. The reduction of the deficit achieved over these four years has been 32.84 percent, which represents a saving of more than 500,000 euros," said Sanginés.

 

Update of rates and reduction of personnel expenses, keys


"The improvement is due to a combination of factors: income has increased by 103,000 euros, personnel expenses have been reduced in these four years by 150,000 euros and mechanical improvements and maintenance have made it possible for the service not to be interrupted in the 365 days of recent years," he points out.  

In addition, he assures that despite the amortization of places, since retirements and deaths have not been covered, the service has maintained quality standards, "thanks to the effort of the current staff, which has accepted changes in schedules and shifts, allowing us to optimize the human resources assigned to the transport service."

Regarding the improvement of income, Sanginés highlighted the updating of rates, a measure "that had not been taken in the last decade, despite the continuous increase in fuel prices."

The councilor stressed that the price increase has not affected people with socioeconomic problems, who continue to travel for free and that retirees, students and disabled people have discount vouchers.

On the other hand, the reduction of the deficit allows the Arrecife City Council to access subsidies from the transport program contract. For the 2015 financial year, items of 600,000 euros are planned for new vehicles, 45,000 euros for canopies and 90,000 euros for modern vending machines.

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