In a study presented by the chamber to government, it was clear that any increase in the tariffs would have a negative effect on the Gozitan economy. Increases of between nine per cent and 66 per cent cannot in any way be called “marginal increases”, the chamber said.

At present, said the chamber, the Gozitan economy cannot withstand such blows and it was a mistake to justify these increases by comparing them with similar measures taken in the past.

The Gozo Tourism Association also aired its disapproval at the increase in tariffs. In a statement, it listed a number of questions to express its disappointment that such decisions had been taken.

“Who was consulted from the Gozitan Tourism Industry before these increases were introduced?” the association asked. “Who is going to absorb these increases when Gozitan tourism operators have contracted and committed packages including transfers for summer 2004 up to March 2005?

“Does Minister Gatt know that these increases will continue to make Gozo less competitive with other Mediterranean destinations?” Dr Gatt said that no crew members at Gozo Channel will be dismissed. Is Minister Gatt not concerned about the job losses the tourism industry in Gozo will be shedding? Did the Cabinet take any consideration of the report by Deloitte and Touche commissioned by the Gozo Tourism Association and The Gozo Business Chamber on the potential impact of a ferry fare increase?

The association reminded the Cabinet that according to this report, the 14 per cent increase in fares for non-Gozitans will result in an estimated Lm264,000 increase in Gozo Channel revenue, and a decrease of Lm1.6million in the Gozitan economy. Furthermore a fall of six per cent in passenger numbers is estimated. Is this not of concern to the Cabinet?

The Gozo Tourism Association also reminded the Government of the social obligation the Gozo Channel Company has towards the Gozitans, when they have to cross over to Malta for work and other obligatory needs. Does the government understand that the Gozo Channel line is the highway for the Gozitans and that this 66 per cent increase in the Gozitan residents’ fare will also have a negative impact?