Conflict with buses: uncertainty among companies, while it is being decided what will happen with the ticket and subsidies

The conflict between the City Government and the Nation has increased in recent hours: the Executive of Javier Milei He maintains that this Sunday will suspend the subsidy to the buses and the most critical situation is in the City of Buenos Aires. Luciano Fusaro, vice president of the Association of Motor Transport Entrepreneurs (AAETA), said in statements to Radio 10 that “if a solution is not reached, companies will not have money to pay salaries.”

After the Government ratified that the benefit of the SUBE Network will continue to operate in the AMBA only for the 113 national jurisdiction groups and for trainsfrom the City of Buenos Aires, questioned the decision and stated: “If they remove the subsidy, they will have to make the decision to increase rates. It is unreasonable to require companies to continue providing the same quality of service at the current rate.not including the national subsidy.”

In this regard, the Buenos Aires administration emphasized that “The 31 bus lines that run through the territory of the City of Buenos Aires depend directly on the National Government.“. They also stressed that the one who determines “whether to maintain or remove the subsidies, increase their rates, change their routes or cancel the circulation permits” is the Nation, which is why they demand that the responsibility of facing the costs of the change in the benefit of the SUBE Network should not be borne by the City.

The discussion between the two administrations takes place in parallel with the conflict over revenue sharing: the GCBA denounces a lack of payments from the Executive Branch following the Supreme Court ruling.

Fusaro: “If the situation is not resolved, companies will not be able to pay salaries”

Speaking to Radio 10, Fusaro detailed the negative outlook for companies and delved into the uncertainty of the sector for next week: “The situation for us is the same, We still don’t know what will happen next week.The most critical situation is on the lines of the Autonomous City of Buenos Aires, the famous 31 lines that circulate through CABA because there the national government said that the head of government Jorge Macri must assume the subsidies and the City is saying that the total transfer of the jurisdiction of the 31 lines should be decided to take charge of that.”

Along those lines, Fusaro pointed out that “the scenario is that next week We don’t know who is going to pay all the subsidies for the lines to run. and, if that situation does not materialize, the companies They will not have money to pay salaries“.

“We couldn’t increase it even if we wanted to because Companies do not have that power. The National Transportation Secretariat is the only one that can affect the price of the fare. If we do not have the power and the subsidies do not come, the third option is that the companies will have to either reduce services or they will not be able to pay salaries, which would imply a union conflict and a paralysis of the system,” he added.

Luis Caputo responds to Jorge Macri on bus subsidies: “It is not a national issue”

The Minister of Economy, Luis Caputo, responded to Jorge Macri in the midst of the conflict between CABA and the Nation over subsidies to buses and the end of the SUBE network: “It is a city issue exclusively, as it is in all provinces.“, said the economist.

In this way, Caputo assured that the government’s decision “equals the situation that exists in all the other provinces of the country with the City and Province of Buenos Aires”. Regarding the subsidies that the city should incorporate – which according to Macri is 55% of the total – the minister was blunt: “It is money that both the Province and the City can absorb.“.