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The Federal Justice of Chubut suspended the removal of subsidies

February 22, 2024 – 12:50

The Rawson Federal Court granted a self-satisfactory measure, ordering the National Executive Branch to refrain from dictating and/or executing any act that seeks the elimination and/or reduction of the Interior Compensation Fund, aimed at financing the interurban transportation system. The action had been initiated by Ignacio Torres, Governor of the Province of Chubut.

The Ministry of Transportation communicated the decision to reduce the subsidy to borrowing companies of National Jurisdiction “to concentrate help on the users who need it most directly.”

Given the impact of the measure, various actors initiated legal actions with the aim of rolling back or suspending the initiative. Along these lines, the Governor of Chubut filed a self-satisfying measure, aimed at ending the decision to unilaterally eliminate/reduce the Public Transportation Compensation Fund.

Judge Hugo Ricardo Sastre interpreted that there were not only federal regulations at stake, because in order to make the compensation fund effective, local law regulations would have been issued, which would even have needed to be ratified by provincial decree, therefore, it would enable its intervention. and not the original jurisdiction of the Court.

For the federal judge, without the assistance of the National State through the internal transportation compensation fund, the passenger transportation system is not sustainable, since its operation has been subject to the budget items sent by the National Government for years.

At the same time, he added that the elimination of the compensatory fund for urban and suburban passenger transportation lacks a parallel measure that cushions the negative effects it causes on the plaintiff’s economy.

In that order of ideas, Sastre concluded: “Being close to the end of the summer period and the beginning of the 2024 school year, a time of greatest demand for the use of public passenger transportation, with geography, distances and climatic conditions like that of the Province of Chubut, “I understand that the change in the subsidy policy for urban and suburban passenger transport established by the National State has become inappropriate, said action being reprehensible to the defendant and making it viable to dictate the required measure.”


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