Parts's Ferry Nationalization Plan in Troubled Waters

4/4/2014 2:15 PM
Category: Politics

Former Economy Minister Juhan Parts's plan to nationalize inter-island ferries could be scrapped by the new coalition.

Daily Postimees reported today that Parts had feuds with Port of Tallinn head Neinar Seli, who is a Reform Party member, and who told the daily that the financial saving in Parts's plans are far less than the IRL minister had published.

Another reason for pulling the plug is MP Kalle Laanet, formerly of the Center Party but a recent addition to the Reform Party, who has is an old friend of current inter-island ferry operator Vjatšeslav Leedo, who risks losing the most from Parts's plan, with the daily speculating that Laanet joined the party only to sink Parts.

Parts said in mid-January that bringing the routes under state control would save eight million euros each year. The state would buy the necessary ferries and rent them to private operators, creating more competition than the current system, where there is only one operator who has enjoyed a monopoly for the past 20 years.

The state currently pays the company, Väinamere Liinid, 15 million euros in subsidies every year, and has a contract until 2016.


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