They are just a few kilometres apart. It’s just a 20-minute trip by ferry. Yet, the impact on the social economic reality is considerable.

Very often, it is difficult to explain to a non-Gozitan what the barrier of these few kilometres of sea mean to Gozo. For the thousands who visit the island for the weekend or for a short break, it is part of the experience. It is enjoyable and comfortable.

Yet, for the hundreds that have to travel to and from Malta on a daily basis and for the businessman who has to endure additional costs to his operations, it is viewed as a challenge at best.

In the past, I often referred to the Gozo Channel as being equivalent to a highway. It is what links Gozo to the world outside.

It is very rare to encounter discussions on the benefits of constructing a highway or a major road. It is assumed as a need to constantly invest in essential transport infrastructure, without which the benefitting area would suffer a constant decline, both in population and economic activity. Beyond our shores, remote locations, such as small villages, receive special treatment as there is broad agreement that their existence depends on that. This fact is widely recognized by international institutions, among them the European Commission and the European Investment Bank.

These two institutions not only permit special treatment but generally are actors in providing assistance. Their argument builds on the fact that if service provision and infrastructure in these regions were to be left entirely to market forces, the regions would suffer. They would suffer both from an economic perspective as well as from a social one. A relatively recent case was when the European Commission studied the case of two small regions in Sweden. After examining the facts, it concluded that the lack of acceptable connections between Vasternorrland County and Vasterbotten County with Stockholm and the rest of Europe would significantly harm the standard of living of inhabitants of these areas and would significantly reduce the regions' activities and business outlook. This would seriously hamper the social and economic development of these areas. The result was that the Commission approved that those local authorities who own the airports would grant the operators compensation to cover their annual losses. This compensation would cover costs that other airports normally have to bear on their own and therefore involves state aid within the meaning of the EU rules.

I am sure that there are numerous other examples which show the need for intervention by the authorities to ensure the provision of services to such regions.

To a certain extent, the service offered by the Gozo Channel is also covered by a similar arrangement. The company has a public service obligation which permits the authorities to cover part of the cost related to the provision of services that normally a profit-driven company would never provide. This agreement ensures for example, lower rates for Gozitan residences and services during unprofitable hours.

However, the present public service obligation is not flexible enough to permit the company to venture into a new market, such as a fast ferry service. It is with this in mind, that the Ministry, together with three other Ministries, is working hard to overcome this hurdle.

This is vital for Gozo. The sustained profitability of the company ensures that Gozo Channel remains a key player in our local economy. If the situation under the previous administration had been allowed to persist, the company would not have been able to offer the various incentives such as the free travel and reduced fare schemes which were offered over the last two years.

However, the outlook of this administration is not limited only to the operation of the Gozo Channel. As the Prime Minister stated recently, this administration is determined to explore all the options to provide a permanent fixed link between the islands. All indications at present point to a tunnel being the best alternative.

This solution would require significant funds, thus the importance of carrying out all the necessary studies and to explore the various possibilities to finance it. Discussions on a national level, such as the event held a few weeks ago in Gozo about the tunnel help maintain this important accessibility issue on the political agenda.

 

Dr Refalo is Minister for Gozo