Value for money analysis of the free travel scheme

Abstract

PURPOSE: This study examines how the Free Travel Scheme (FTS) operates, as well as the government’s objectives and university students’ perceptions of the scheme. The aim of this study is to determine the extent to which the FTS constitutes value for money for both government and taxpayers. DESIGN: A mixed method approach was adopted. Two semi-structured interviews were held with representatives from Transport Malta and Malta Public Transport. Questionnaires to university students were distributed to obtain perceptions from FTS’s beneficiaries. FINDINGS: Even though no feasibility study was conducted by the implementing entities, this study showed that the FTS was successful in its early stages. Findings were also made with regards to the three Es: Economy – Transport Malta was considered to operate the FTS in the most cost-effective use of public funds. Furthermore, even though both MPT and beneficiaries identified flaws in the service quality of public transportation in Malta, beneficiaries' quality of life was found to have improved. Efficiency – Despite the fact that the scheme’s eligibility and refund system processes seemed to be operating in a satisfactory manner, beneficiaries raised several concerns that may have limited the scheme from getting the most out of the resources invested. Effectiveness – Ambiguity in Transport Malta’s evaluation of effectiveness was found. Certain important factors were overlooked, with the emphasis being placed on annual increases in the scheme’s numbers, even though beneficiaries were also expanded. CONCLUSION: Transport Malta and Malta Public Transport have progressed in reducing the dependency on privately-owned vehicles, resulting in attributes that contribute towards value for money. However, the possibility of achieving higher value of money shall not be excluded. IMPLICATIONS/VALUE: It is hoped that all relevant stakeholders will critically review the study’s recommendations to ensure that the highest possible value for money is achieved, enabling the public to receive higher value from taxes paid.