Vélez-Málaga Council has issued an ultimatum to the Ministry of Public Works and Housing of the Junta de Andalucia relating to the tram service in the municipality. The Council wants a swift response, within four to six weeks, to their proposal for the regional authority to assume 50% of the deficit and running costs of the tram system, otherwise the trams will be rented out to the city of Sydney, Australia.
The tram service was suspended in June 2012 due to ever-declining passenger numbers and mounting municipal debts.
The mayor, Francisco Delgado, says the aim is to keep the tram service running but it cannot be done by the municipal authority alone. If the second phase of the tram system, completed years ago, were to be brought into operation and a third tram added, the technical rate (actual cost per passenger) would rise to €3.20. With a ticket price of €1.30, the Council would be subsidising the system to the tune of €1.90 per passenger.
The Council wants the regional government to provide a subsidy of €1.5 million per year.