Speaking in Parliament, he said the government will sell its company shares as a going concern, which means that the government will not be involved in the company’s restructuring process. Government will merely trade the shares in its possession.

Restructuring is needed imminently considering the recent financial results obtained by the company.

The government had signed a Public Service Agreement for a yearly Lm150,000. The contract binds the company to provide the Malta-Reggio service for the next six years.

This type of agreement is in line with EU regulations, Dr Gatt said.

In his reply MLP deputy leader Charles Mangion criticised the government’s lack

of appreciation for the strategic role the

company played.

“The company was set up way back in the 1970s for this purpose,” Dr Mangion said. “Once the government loses control of the company who is to say that tariffs will not increase?”

In his intervention MLP spokesman John Attard Montalto MLP said that the sale of the Sea Malta shares should be seen in the context of the political debate between government and opposition on privatisation. It seems that there is a divergence in the way these are implemented.

When it comes to companies that are of strategic value for the country the opposition believes that government should hold enough shares to be able to control its operations.

Dr Attard Montalto recalled other privatisation processes that he claimed had not reaped the fruits anticipated.

Both MLP spokesmen demanded clarification about the plans government had vis-a-vis the company’s employees.

Minister Gatt replied that the government at this stage was merely putting the shares up for sale.

The actual process will have to be

discussed.

He added there was nothing to hold the

government from negotiating an arrangement with the new buyers with regards to the

company employees.

“This is an open bid,” Dr Gatt said. “Hopefully we will be able to strike a deal with a partner who is able to bring value added to the company, particularly in terms of adopting Malta as a Mediterranean shipping hub.