Dr Gatt was being interviewed on Radio 101 on Saturday morning.

So far, he said, we are coping: petrol and diesel prices have risen and Air Malta has twice applied a surcharge.

But there are still other areas where the oil price increase is not being carried. The oil price increase has a huge impact on Enemalta’s figures. So far, government policy has been that Enemalta absorbs all the price increases. There has been no increase in the price of electricity, nor in kerosene prices.

As a result, Enemalta will end this year with a Lm6 million loss. It was planned that the loss would be of Lm4 million. To that one must add a further Lm7 million loss from diesel.

“We cannot go on like this,” the minister said. A solution must be found. Government cannot find Lm7 million to fund Enemalta’s losses. This must be carried by the whole country and not by government alone.

Dr Gatt was justifiably proud of the Freeport privatisation.

As things stand, he said, the 1.3 million TEU’s that the Freeport will be handling this year represents the maximum it can cope with at its present size.

One must also consider that this year, for a variety of reasons, even though the Freeport was operating at full blast, the rise in oil prices, the weakness of the dollar and the intense competition have eaten into the freeport’s profitability.

The only way forward for the freeport is thus to grow bigger so that it handles more containers. In addition, it also needs a huge investment in machinery and equipment – an investment which government is in no position to make.

Fortunately, there is now an investor who can both make the investment and enlarge the Freeport to practically double its turnover.

Also, an enlarged Freeport will help Maltese exports as more ports around the Mediterranean will become linked to Malta and thus more openings for exports will be established.

Dr Gatt also spoke about other pending privatisations.

As regards the process to sell off the remaining Maltese government shares, this has now begun with the selection of consultants, and an international offer should be published in December or January.

As far as government’s share in Bank of Valletta is concerned, this will be put on sale around the end of the year or the beginning of the new one.

There are other possibilities for privatisation and more will be announced in the future.

Dr Gatt also spoke about the various restructurings that he has spearheaded, and for which he was praised by the majority of callers.

The restructuring that has been made was very difficult, he said, but everyone has pulled together, government and employees, so that one can now say that the worst part is over and one can already start seeing the fruit.

PBS was losing Lm2 million a year and was the most difficult restructuring. The first programme schedule has been published. Work practices are being changed, although not everyone understands why this is happening.

Not everything is in place yet, the minister admitted, and the new changes will have to be changed or tweaked again and again. The people and the company will be judged on results. The first schedule under the new system is now out and he thinks it is good, but he now expects this to be followed by a better financial performance.

As for the dockyard, he is satisfied with the progress that has been registered.

The government’s plan for MDD is that it becomes viable in five years’ time.

The financial results for the first eight months of the year show that the dockyard has lost Lm1 million less than it was planned to lose.

There is a more positive outlook among the management and the employees, but some of the latter have still not understood what has happened.

Government has warned that if the targets are not reached, it will use different, harsher methods.

Ship repair work is now looking up, with the contracts for the cruise liner, the big buoy for the Caspian Sea and negotiations regarding two Libyan ships and the work on the oil rig.

Dr Gatt reminded his listeners that according to the agreement reached with the employees, if the dockyard makes a profit, this is shared between government and the employees. So far this has not been the case, but each positive step hastens the time when it will happen.

As regards Air Malta, 99 per cent of what has been agreed is already in place. The company is saving on costs. One RY-70 plane has been sold and negotiations are continuing on the sale of a further two.

The profit made per seat is higher. More changes are on line. One must also remember that most of the changes will kick in later on as the agreement was signed only last May.

Managing change, the minister said, is not easy: it entails changing a whole mentality. The unions must be proactive and explain the issues to their members.

He finds that some workers at the dockyard are still anchored to outmoded frames of mind: when they used to be called soldiers of steel. Such attitudes must be removed.

Besides, the real issue at the dockyard regards delivery dates: the dockyard has lost out on contracts because it could not establish a quick delivery date. Had this been done, profitability would have been reached earlier.

Asked whether further early retirement schemes are coming, the minister said government cannot offer early retirement to everyone. He also hinted that some changes coming up will not include the early retirement safety net.

Malta has to change, Malta has to become competitive. The people of Malta must understand that we are engaged in a cut-throat competition worldwide and that we have all the credentials to succeed.

A caller referred the minister to a story carried on that day’s In-Nazzjon, which spoke of a GWU section secretary who threatened new and young workers at the Delimara power station.

The caller, who seemed to know the case, added a number of details about what happened, such as that the section secretary waved his finger under the noses of these people and they felt threatened.

Dr Gatt replied that if the young people concerned could substantiate their claim, he would take action.