Contrary to what Mr J. Deguara tried to make us believe, he seems to be well familiar with the hedging game (TMIS, 20 November).

Still, his article confuses me.

He claims that hedging is a technique designed to reduce or eliminate financial risks and that it is a good strategy.

Later he changed his tune and said that hedging could prove risky, comparing it to a hammer that can build a house or kill someone.

But he seems to be all out in favour of gambling with the people’s money expecting to always win.

If hedging is always beneficial (which it is not) then the oil companies would all go bust. Hedging is like playing in a casino. You might win once or twice but you will always end being the loser.

He asserted that airlines routinely hedge and so are above the waves. He does not seem to be aware how many airlines have applied for bankruptcy because of the surge in fuel costs in spite of increases in airfares. It seems that these have gambled and lost.

Mr Deguara shows his true colours when he called the building of Mater Dei and buying Dar Malta in Brussels a gamble. I would rather call them an investment. As regards the port of Brindisi all I can do is remind him that it was a Labour minister who initially signed the Brindisi agreement in 1998.

Carmel Camilleri

PAOLA