Riga, March 24 (LETA) - The Latvian Association of Passenger Services Providers (LPPA) demands an increase of EUR 15 million in the subsidy to cover losses of public transport service providers, LPPA President Ivo Osenieks told LETA.

He pointed out that the LPPA understands the current situation regarding security as a priority in determining the direction of national development, but objects to the fact that mobility, accessible, regular regional passenger transport and financially stable passenger transport companies are not perceived as part of national security.

Osenieks stressed that passengers should expect in the near future a possibility of significant reductions in the route network or even the discontinuation of services on certain parts of the route network, as some passenger transport companies are being pushed towards possible insolvency proceedings as a result of the policies and actions of the Transport Ministry.

The LPPA has already appealed to the Transport Ministry, the Finance Ministry and the Road Transport Directorate (ATD) to urgently address the issue of reviewing the prices of long-term contracts on routes of the regional network beyond the term of the contracts, so that the continuity of the service is not jeopardized and public transport services by bus are made available to the population of Latvia, thus not worsening the internal security situation of the country due to external threats.

At the same time, in order to positively resolve the situation, the LPPA calls on the Transport Ministry and the Finance Ministry to urgently find financial means and already in the first half of the year increase the base budget funding for the provision of public transport services on the regional route network.

Given that the 2025 state budget base for the sub-program "Subsidy to cover losses of public transport service providers" does not correspond to the amount of contracts concluded and does not cover the price per kilometer already accepted by the state, it is necessary to increase the base budget by at least EUR 15 million without compromising the amount of ticket revenue, explained Osenieks.