Asked about France 2 on the rise in energy prices, the boss of bosses replied that he wanted to replace the mobility payment, paid by companies with at least 11 people, "by a petrol or vehicle allowance".

"That would be around 300 euros per employee per year," he said.

The reactions were not long in coming, the mobility payment normally financing 45% of public transport in France.

"Replacing public transport with a check to refuel is a proposal that would bring public transport to a standstill, lead to total congestion in our cities and totally contradict ecological objectives", protested France Urbaine, Intercommunalités de France and the Gart (the club of local authorities organizing public transport networks).

The Medef proposes to replace "the transport aid paid by companies to intermunicipalities" by "a petrol or vehicle allowance" of around "300 euros per employee and per year" Pascal POCHARD-CASABIANCA AFP / Archives

Bruno Bernard, President (EELV) of the Métropole de Lyon and of the Syndicat des transports du Rhône et de l'agglomeration lyonnaise (Sytral) -the second network in France after Ile-de-France-, and also first vice- President of Gart, was more direct.

“In the midst of a pollution peak, the Medef proposes to abolish the mobility payment which finances public transport with a petrol check. It is totally counterproductive: for (the) climate, for the drop in pollution, for power buying,” Mr. Bernard tweeted.

"On the contrary, we need to develop public transport, alternatives to thermal cars, to support households towards low-carbon alternatives. In short, to help support the ecological transition. No subsidizing fossil fuels", said he added.

Exemption for telework

Geoffroy Roux de Bézieux went further than the proposals of the Medef for the presidential election, published Monday: the employers' movement calls for a reduction in taxes, citing the name of this contribution paid to communities to finance public transport.

The Medef also wants "to condition the mobility payment on the existence of an effective transport service delivered and financed by the community, so that it does not become an adjustment variable for local budgets".

He is calling on his momentum for an exemption proportional to the share of teleworking employees who take less public transport.

Driven by a rising oil price, fuels have been flying from record to record since the start of the year, with diesel which exceeded 1.60 euros per liter for the first time DENIS CHARLET AFP / Archives

“Tools are already available to employers, and are subject to exemptions from taxes and contributions,” the Ministry of Transport told AFP.

"Employers can use the sustainable mobility package to support the use of carpooling or active modes such as cycling," said a spokesperson.

They may also cover all or part of the fuel costs and the costs for supplying electric, plug-in hybrid or hydrogen vehicles incurred by employees for travel between their usual residence and the place of work.

In addition, Prime Minister Jean Castex announced on Tuesday that the mileage allowance scale would be increased by 10%, in order to "better take into account the real increase in prices borne by these households".

Prime Minister Jean Castex on January 18, 2022 at the National Assembly Thomas COEX AFP / Archives

"The effect will be quick and direct, from the 2021 income tax declaration or last year's profit declaration", noted the spokesperson for the ministry, noting that this revaluation was also intended to serve as a reference and therefore have an impact on the mileage allowances -tax-free- directly paid by employers to their employees who use their personal vehicle.

In a context of crisis in the financing of public transport, the Union of public and rail transport (UTP), which brings together the operators, for its part reiterated its attachment to the mobility payment.

She judges it in particular "virtuous because it is directed towards alternative mobility to the individual vehicle".

© 2022 AFP