The company’s unaudited accounts for the period October 2003 to September 2004 show the company increased its revenue by Lm300,000. More importantly, it kept its costs down to last year’s levels or even bettered them.

Thus, it increased its operating costs by only Lm20,000 despite the rise in fuel costs.

The only area where costs have risen substantially, Dr Gatt said, was in financial expenditure. He explained that as a result of the company’s cash-strapped situation before restructuring last year, it had to take out loans.

Now that the situation has been reversed, this item will be decreased substantially.

Despite the restructuring and the pressure to keep costs down and despite the increases in fares and the trimming of trips which were cut by 250 over a whole year, the number of passengers and cars both increased.

Passenger figures are up by 50,000 and car figures are up by 10,000.

The highest increase was from Gozo residents and for the first time more cars belonging to Gozo residents crossed over than cars from Malta. This, the minister said, pointed to a wide-spread abuse as a number of Maltese are having themselves registered as Gozo residents.

He explained there is nothing Gozo Channel can do about this as anyone can go up to the registration office and claim he is a Gozo resident, switch his ID Card to an address in Gozo and get cheap and subsidised rates on the Gozo Channel ships.

The three incentive schemes that have been launched are doing well, although they have not been for long in place.

The Gozo by Night scheme has seen 342 cars and a further 141 passengers attracted by the incentive.

The Frequent Traveller Scheme, which was launched in July, attracted 215 passengers, which is equivalent to 14,000 passenger fares or 4,400 cars.

The Night Fare, which was introduced for May and June, and is being resumed now for the Winter months, consists of two trips every night by special boats. Dr Gatt said the company will continue to do its best to keep this service on, thus providing a 24-hour communication between Malta and Gozo hoping the take up gets better. It was used by 304 persons over a two-month period.

Following the restructuring, Gozo Channel did no recruitment nor will it recruit except to replace those who cease working.

As from next week, it will be taking over the on-board catering. That should deliver some Lm150,000 a year.

As from next week too, the company will reduce its manning levels when there are few people on board. In agreement with MMA it will have a crew of 11 rather than 15 when there are less than 500 passengers on board. This will be another huge saving.

Considering the rise in fuel costs, with an average trip costing Lm55 in fuel costs alone, the company is experimenting with what is called a soft starter through which it hopes to save a further Lm150,000 a year. The first ship to get this system used is the Malita.

The company is keeping the lid down on discretionary expenses, such as directors’ fees, advertising and donations, although it still pays Lm10,000 a year towards a dialysis machine for the Gozo General Hospital.

At the beginning of yesterday’s press conference, Nicholas Baldacchino, on behalf of Bureau Veritas, presented the Gozo Channel chairman, Maurice Zarb Adami, with the International Safety Management Code certifying to the training in safety of the company and its three operational ships as well as the facilities at Haywharf and Mgarr.

Mr Zarb Adami said the company is very conscious of safety and takes training seriously. Ongoing monitoring checks ensure that the ships are kept in mechanical efficiency and that all employees are safety-conscious.

Dr Gatt said that the company has cut down on its former losses but more must be done. These figures have been attained through a government subsidy (government pays the company a subsidy for every Gozitan resident who uses the service) of Lm700,000 over the four months. This subsidy should impact even more on the company’s bottom line next year as it will be spread out over a whole year.

The company, the minister said, will continue to give good service. It is meeting the Gozo economic operators and has a number of ideas to propose to them but the operators must roll up their sleeves and do their part.

Everyone must do his or her part and go beyond sectoral or personal interests in the national interests, Dr Gatt said.

He also pointed out that apart from subsidising the reduced fares that Gozo residents pay, government pays more subsidies to the company. Every government employee and every student who travels to Malta gets refunded 100 per cent of the reduced fare, and all industry products, whether agricultural or manufacturing, gets refunded 100 per cent of the reduced fare they pay to get their goods over to Malta.