What Is a Public Service Garage?

According to Maltese law, anyone operating a vehicle rental or leasing service must also maintain a PSG. In essence, to run a y-plate service, it is not enough to own the vehicles; operators must have a garage that meets stringent safety, insurance, and maintenance standards.

PSG licences are issued by Transport Malta but only after a permit has been issued by the Planning Authority. The reason is that while Transport Malta is the regulatory entity responsible for overseeing transport operators, it is the Planning Authority that decides how a given piece of land can and cannot be used.

Once the Planning Authority deems a site suitable, Transport Malta checks additional requirements like insurance and safety standards before issuing the final licence.

Regulatory Changes Open Floodgates

Recent years have seen a surge in the use of ride-hailing platforms. While cab usage had been steadily increasing, Bolt’s arrival in Malta in 2017 and the rise of the gig economy accelerated growth. The introduction of app-based, platform-driven work models allowed locals to earn extra income.

Data from planning permits and NSO statistics clearly illustrate this trend. Following Bolt’s introduction, there was a significant increase in y-plate vehicles on Malta’s roads, as well as a corresponding rise in applications for PSG permits. Many of these new permits involved converting private garages into PSGs.

The landscape changed dramatically in 2020 when then-Transport Minister Ian Borg scrapped the PSG requirement, replacing it with a simple operator’s licence. This deregulation led to a flood of new vehicles, and securing an operator’s licence became a rubber-stamp exercise. As a result, y-plate vehicles on Malta’s roads ballooned from 2,563 in early 2020 to 5,703 today.

This regulatory relaxation also allowed new fleet companies to enter and quickly dominate the market, shifting the dynamic from individual drivers to large-scale operators. Lovin Malta has reported extensively on this trend, revealing how cab fleet companies now own the majority of y-plate vehicles and how some companies are believed to underreport payments to drivers in order to make their business model viable.

Attempted Policy Reversals and Extensions

By 2022, public frustration over the so-called “y-plate jungle” had reached a boiling point. Then-Minister Aaron Farrugia attempted to restore order by reintroducing the PSG requirement, but operators were granted extensions due to bureaucratic delays. Current Minister Chris Bonett has since issued further extensions, even threatening license suspensions through automated letters—threats that critics say are meaningless given the bureaucratic hurdles involved.

Now, the re-regulated industry faces a logistical nightmare. WT Global is eager to secure PSG permits at the GM Complex to comply with new regulations. But the site’s location is problematic: it sits at the narrow end of Triq Ta’ l-Ibraġ, already a bottleneck, and feeds into the congested Tal-Balal Road, which serves as a main thoroughfare near heavily trafficked areas, including schools.

Transport Malta Seeks Clarification

Transport Malta has requested more information to assess the applications. “The following information is required to enable further assessment of the proposal: In view that an internal circulation space for the vehicles is not permitted, kindly clarify the operation of the proposed use with particular reference to timings of when the vehicles will be exiting and entering the premises. Also, clarify the amount of vehicles which are envisaged to exit and enter the premises at once or whether trips will be spread during the day,” the agency stated. Despite follow-up requests, no comprehensive response has been provided.

Meanwhile, Transport Malta has advised that Godwin Mifsud’s permit proposal should adhere to the Planning Authority’s DC2015 guidelines, which stipulate that developments must not negatively impact residential amenity through noise, air quality reduction, or traffic congestion. The road network must also be capable of safely accommodating the volume of vehicle movements generated.

The Planning Authority’s upcoming decision carries high stakes. Naxxar residents who have spoken with Lovin Malta expressed concern about the prospect of increased traffic through a main artery which is already prone to congestion. They fear that having the location serve as a base for thousands of y-plate vehicles would make it practically impossible for them to leave Naxxar at certain times of day.