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Transport minister details planned HUF 70 billion cut in support for public transportation

The government plans to save HUF 35 billion (€129.26 million) in 2010 budgetary support for state-owned railway company MÁV and bus company Volán through a reduction in services, HUF 25 billion through cuts in administrative and operation expenses and a further HUF 8 billion- HUF 9 billion through restructuring of preferential fare rates, Transport, Telecommunications and Energy Minister Péter Hónig said on a television program on Wednesday morning.

Government Spokesman Domokos Szollár announced on Friday that the government decided at a cabinet meeting on August 5 to cut central-budget support for state-owned MÁV and Volán by HUF 70 billion to about HUF 260 billion in 2010.

Hónig said that the government intends to achieve some of its planned 2010 reduction in budget support to MÁV and Volán through an elimination of parallel services between the two companies. The transport minister said that it is not yet possible to determine how many MÁV and Volán employees may have to be dismissed as a result of the cost-cutting measures. The government had previously planned to reduce budgetary support for public transportation by HUF 40 billion in 2010. (MTI-Econews)