The government, represented by the Competitiveness and Communications Ministry, has signed a Public Service Obligation (PSO) contract with Sea Malta which commits Sea Malta to operating the above-mentioned route.

The route is of extreme importance since it is the main vehicle for the importation of primary industrial materials for local industry. Although several shipping lines operate this route, the government felt there needed to be a definite arrangement to make sure the route is safeguarded.

If demand rises, the route will also be extended to the port of Salerno.

The Information Technology and Investments Ministry clarified that the money to be given to Sea Malta is not intended as a subsidy but as a legal tool, approved by EU regulations, to help Malta safeguard the services provided by the private sector.

This contract will help ensure Malta’s essential contact with Sicily and also with Europe. The government has guaranteed that this route, which is essential to Maltese industry, will continue to operate whether or not it is profitable.

In the light of this development, government has decided to hold discussions with shareholders on the privatisation of Sea Malta. Within the next few weeks the ministry will open discussions with shareholders and will keep the General Workers’ Union informed.

The ministry emphasised that the PSO contract will still be valid when and if the company becomes private.

To quash any controversy regarding whether or not Sea Malta management has been informed of the government’s plans, it was announced that over the past year, Minister Austin Gatt has met the Sea Malta chairman and government-appointed directors to discuss the variety of options Sea Malta had to consider.

Sea Malta was involved all throughout the technical and financial development of these options.