Government prepares €25,000 licence surrender scheme

The Maltese government is preparing to roll out a new traffic-reduction initiative that will pay drivers up to €25,000 to surrender their driving licence for a period of five years. Transport Minister Chris Bonett has confirmed that the scheme is in its final stages and will be launched in “a matter of weeks.” While the programme was originally announced earlier this year, its implementation has faced delays as the authorities worked to finalize the legal and regulatory framework.

The initiative forms part of a broader government policy aimed at addressing traffic congestion, reducing private car dependency, and promoting alternative forms of transport. Bonett has underlined that the project will not serve as a general cash distribution scheme but will specifically target individuals who can contribute meaningfully to the reduction of vehicles on Maltese roads.

Details of the €25,000 licence surrender scheme

Structure of the payments

The scheme, first announced in March, offers drivers an annual payment of €5,000 for five consecutive years in return for surrendering their driving licence during that period. In total, this amounts to €25,000 per participant.

According to Bonett, the intention is to create a structured and conditional programme rather than a blanket subsidy. Participants will have to comply with specific eligibility requirements and terms to qualify for the incentive. These conditions, he explained, are being carefully drafted to ensure that the programme meets its objectives of reducing the number of private vehicles in circulation.

Targeting the younger generation

Bonett has indicated that the initial focus of the scheme will be on younger drivers. However, he has not specified which exact age groups will be targeted.

“We want to have terms and conditions that truly target individuals who will help us reduce cars on the road. It was never our intention to have a scheme that will just mean giving people government money,” he stated.

This emphasis on youth reflects a government strategy to encourage new transport habits early on, steering younger drivers towards alternatives such as motorcycles, bicycles, and public transport. The minister also noted that the scheme will be published alongside similar grant initiatives that encourage shifts from cars to motorcycles.

Broader traffic reduction strategy

Government priorities

The licence surrender programme is not a stand-alone initiative. It falls within a wider government strategy to combat Malta’s chronic traffic congestion. Bonett has previously acknowledged that Malta faces significant challenges arising from its high rate of car ownership, with more registered vehicles than licensed drivers on the islands.

The transport ministry has already introduced measures to incentivize alternative mobility options, such as electric scooters, motorbikes, and public transport. It has also encouraged shared mobility services and worked on infrastructure improvements, including bus lanes and upgraded ferry services.

Comparison to other European policies

Similar policies have been implemented in other European countries. For instance, some cities in Germany and the Netherlands have offered financial incentives for drivers to abandon private car use in favor of public transport subscriptions or cycling infrastructure. However, Malta’s scheme stands out for the relatively high value of the payment—€25,000 per participant—which could make it one of the most generous government-backed traffic reduction initiatives in Europe.

Critics have questioned whether such a high level of financial commitment is sustainable in the long term, particularly if uptake is significant. Supporters, however, argue that reducing traffic congestion and pollution could offset the cost by improving public health, economic productivity, and environmental sustainability.

Updates on Gozo ferry service plans

The tender process

In addition to discussing the licence surrender initiative, Bonett also provided updates on the government’s proposed new ferry connections between Malta and Gozo. The plan involves launching a year-round fast ferry service operating from Sliema and St Paul’s Bay to Gozo.

Initially, the government expected the service to begin between mid and late August. However, the launch has been delayed due to objections raised over the tender process. A ferry company has argued that certain deadlines and conditions set out in the tender may be in breach of European Union procurement regulations.

Legal challenges and governance

As a result of these objections, the Public Contracts Review Board is now reviewing the case. A hearing has been scheduled for October 9. Until a ruling is issued, the process has been suspended.

“I would love to tell you that the service will begin from tomorrow because we are ready to go. But now, we must allow justice and good governance to proceed,” Bonett said.

The minister stressed that while the government is eager to introduce the service, it must operate strictly within the framework of EU procurement law and good governance principles.

Public reaction and concerns

Support for the scheme

Public reaction to the licence surrender proposal has been mixed. Some young drivers and environmental advocates have expressed support, noting that the scheme may encourage people to adopt more sustainable modes of transport.

Environmental NGOs have also highlighted that traffic congestion is a major contributor to Malta’s air pollution, which remains above EU-recommended levels in several urban areas. From their perspective, any initiative that reduces reliance on private cars represents a step in the right direction.

Questions of feasibility

On the other hand, questions have been raised about the feasibility and fairness of the scheme. Critics point out that a focus on younger drivers may overlook other groups, such as middle-aged commuters, who contribute heavily to traffic congestion.

Others have raised concerns about potential misuse, suggesting that some individuals might surrender their licence simply to access the funds, without fully committing to alternative mobility solutions. The government has attempted to address these concerns by stressing that clear conditions and safeguards will be put in place.

Conclusion

The Maltese government’s €25,000 licence surrender scheme represents an ambitious attempt to reshape the country’s transport landscape. By focusing on younger drivers, the initiative aims to instill long-term behavioral changes that could reduce Malta’s dependency on private vehicles.

While the scheme’s generous financial terms may attract participants, its ultimate success will depend on how effectively it is implemented and monitored. At the same time, the government faces ongoing challenges in other areas of transport policy, including the stalled Gozo fast ferry service.

Whether the scheme becomes a landmark step toward sustainable mobility or faces the same hurdles as past initiatives remains to be seen. What is clear is that Malta is entering a critical phase in its efforts to balance mobility, environmental responsibility, and good governance.

FAQs

What is the licence surrender scheme?
It is a government programme that offers drivers €25,000 over five years if they give up their driving licence during that period.

Who is eligible for the scheme?
The programme will target younger drivers, though the exact age groups have not yet been defined.

How will payments be made?
Participants will receive €5,000 per year for five years, provided they comply with the scheme’s conditions.

When will the scheme start?
Transport Minister Chris Bonett has indicated that the programme will be launched within a few weeks.

Why is the scheme targeting younger drivers?
The government hopes to encourage younger drivers to adopt alternative transport habits early, reducing long-term reliance on cars.

What alternatives are encouraged?
Participants are expected to use options such as motorcycles, bicycles, and public transport.

Is this scheme unique to Malta?
Other European countries have similar incentives, but Malta’s is among the most financially generous.

What are the criticisms of the scheme?
Concerns include potential misuse, exclusion of other driver groups, and questions about long-term sustainability.

What is happening with the Gozo ferry plan?
The launch has been delayed due to legal objections over the tender process, with a hearing scheduled for October 9.

What is the government’s broader transport goal?
The aim is to reduce traffic congestion, cut pollution, and promote sustainable mobility across Malta.