To experimentally detect pathogenic bacteria in a lake, it is not necessary to drain the entire body of water. Similarly, when analyzing a local, seemingly economic case, one can learn in detail – “how the democratic republic works”...
It Looked Good on Paper
The dispute between bus companies and the authorities of Latvia is something fantastic; in 2022, the case even reached the Court of the European Union, which unequivocally ruled that the state is obliged to pay carriers fair compensation.
In the autumn of last year, the Saeima unanimously adopted amendments to the Public Transport Services Law, providing for the possibility for enterprises in this sector to claim from the budget the expenses for transported passengers using fare discounts approved by the Cabinet of Ministers. However, the relevant Ministry of Transport, which oversees the Road Transport Administration (RTA), is effectively refusing to reimburse expenses to carriers.
In particular, as stated in a document submitted by a group of deputies to the Saeima's Commission on Requests, the subsidy for Lux Express Latvija, Liepaja and Daugavpils bus parks has been repeatedly denied. Only the first company indicated in correspondence the amount of losses incurred as a result – 900,000 euros, while the state has reserved only 850,000 euros for everything by 2026.
Aitis Shvinka Is Authorized to State
The Minister of Transport from the “Progressives” wrote in response to the parliamentarians that there have been “in-depth and legally complex discussions between the ministry and the business regarding the scope of the compensation mechanism and the conditions for its application.”
“Due to the aforementioned considerations and the additional coordination process, the timelines for developing and adopting the regulation have objectively extended, resulting in lost time for the full implementation of regulatory measures in practice.”
“Until now, the existing regulation provided for compensation only on subsidized routes, while commercial routes were not included in the compensation system. During the preparation of the regulation, a number of important issues were resolved, including the development of a compensation methodology, ensuring data reliability, integrating information systems, eliminating the risks of overcompensation, and creating transitional regulation.”
Bureaucratic Games
All this is, of course, great, but where is the money? Perhaps it is worth reminding Mr. Shvinka that the Cabinet of Ministers of Evika Silina fixed a Declaration during its formation, which includes point 35:
“Let’s reduce bureaucracy and make government management more flexible, trust more in the ability of entrepreneurs, residents, and municipalities to adhere to the principle of self-declaration, and allow for the formation of standardization in industries.”
In fact, the executive power represented by the Ministry of Transport does not trust carriers at all. In particular, it does not accept the accounting documents of Lux Express, which, by the way, fully comply with the standards of the State Revenue Service, if it accepts them as reporting. Meanwhile, Daugavpils autobusu parks LLC has dared to demand funds from the state for 2021, that is, during the COVID times!
The Road Transport Administration, the minister elegantly expresses, “has not made any decision to refuse compensation payments.” Yes, yes, but it has not actually issued – not a cent.
Categories of Passengers
A 100% discount – free travel on intercity buses – is used in Latvia by:
-
Preschool children (a document confirming age must be presented).
-
Orphans and children left without parental care (up to 24 years with the presentation of a certificate for social guarantees).
-
Politically repressed persons and participants in the national resistance movement.
-
Disabled persons of group I or II,
-
Persons under the age of 18 with disabilities
-
A person accompanying a disabled person of group I or a disabled person under 18 years.
On a national scale, these groups make hundreds of thousands of trips a year – but there is no money for them, because, as stated in 01-08/629 from the Ministry of Transport, it “has faced difficulties in obtaining reliable and verifiable data from carriers – both due to technical malfunctions of the accounting systems available to carriers and due to the refusal of some carriers…”
Deputy Edgars Tavars stated at the Commission on Requests meeting that “all this indicates a huge instability in public transport.”
– We are viewed as fraudsters. And this delays the entry of new players into the market.
Transport Managed by a Former School Director
The parliamentary secretary of the Ministry of Transport, Kristaps Zalajis, has made a remarkable career – he was the director of an elementary school in Sigulda, a candidate for the local council from the Union of Greens and Farmers. He started under #1, but received many negatives and was not elected. However, since the beginning of February – a high-ranking head of the “transport department”!
“Challenges… communication…” – sounds very modern from his lips. Carriers “are each in their own phase.”
– The amount of compensation is unknown; calculations are underway, – said Mr. Zalajis. – We see the process, yes. And we want to be faster; on our part, we are trying to ensure better cooperation and find solutions.”
Are New Protests Needed?
Let us remind you that in the autumn of 2025, bus routes were canceled or delayed throughout the republic. For example, transport from Daugavpils did not go to such settlements as Degtyarka, Shkeltova, Demene, Matulaniski, etc.
Currently, the Road Transport Administration assures that the provision of services to all passengers, including those entitled to discounts, is not threatened. However, at the meeting of the Saeima's Commission on Requests, Deputy E. Tavars reported that court bailiffs had arrived at the enterprises, sent by the RTA!
Overall, bus communication in the Republic of Latvia is clearly in turmoil – as evidenced, among other things, by regular, including serious traffic accidents involving passenger transport. The unhealthy atmosphere in the enterprises leads to stress for drivers, which is already dangerous for many people. And the authorities, as is usually the case with us, do not take responsibility for anything specific.
The state-owned LLC Road Transport Administration, in turn, constantly informs about changes in schedules or even the closure of routes. In particular, from March 6, two routes were immediately discontinued, along the route Salaspils – Daugava Museum – TEC-2 – Saulkalne. So if you find yourself on Dole Island, watch carefully, don’t spend the night there.
