Issue link: https://maltatoday.uberflip.com/i/1488839
9 EDITORIAL BusinessToday is published every Thursday. The newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN EDITOR: PAUL COCKS BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 G overnment's attempt to open up the fast ferry market between Malta and Gozo has failed miserably. e fault is not government's but the result of market forces that made the operations unsustainable. ere is simply not enough human traffic between the islands to make the operations of two competitors viable. In just over a year, Virtu Ferries and Gozo Fast Ferry ended up from breathing down each other's necks to creating a cartel, sharing schedules and tickets. ree months ago, both operators an- nounced a reduction in operations with schedules deemed unsuitable for Gozitan workers and students – the last ferry trip from Valletta left at 4:30pm on weekdays and the last trip from Mġarr departed at 5pm. e fast ferry service offered Gozitans a quick transit to Valletta from where they could easily reach most public service offices, the University of Malta and other commercial hubs. Evidently, operating two catamarans on a regular schedule all year round with a poor customer base and having to maintain low fares while contending with a competitor on the same route, was not financially feasible. Now, the government has decided to step in and offer state subsidies to the two companies in the form of a €12 million public service contract. e only way to keep the fast ferry service alive and kicking in such a way that makes sense for Gozitans and other commuters is to subsidise it. is is in addition to the other public service obligation for the Gozo Channel, which operates a passenger and car ferry service between Ċirkewwa and Mġarr. But before rushing in to pour €12 million into the fast ferry service, govern- ment should have evaluated all options carefully. Is the fast ferry service really needed? For Gozitans it possibly makes sense but the numbers have to be studied to deter- mine whether patronage was at its highest and if not, why. If Gozitans are not enticed into using the fast ferry service then it should be aban- doned altogether. Does the Valletta-Mġarr route need two operators? Probably not. Which begs the question as to why government has not issued a competitive call for just one op- erator and thus reducing the outlay rather than trying to keep both private compa- nies afloat. e fast ferry experience shows that any notion of public transport in Malta will require some form of state intervention if it is to be efficient and of service to the public. Some routes or services will simply not be financially feasible for any private operator unless government steps in to ensure social feasibility. ere may be economic, social and envi- ronmental gain for the country in having efficient land and sea public transport services connecting the various reaches of these islands even if it comes at a cost to public coffers. Reducing private car dependency will help reduce air pollution, minimise road congestion and stress, and enable smooth- er travel for those services and commuters that have to use their vehicles. Sea transport between the islands and between different areas of Malta may be part of the solution to ease traffic conges- tion. But in making the choice to subsidise different public transport modes, gov- ernment must also ensure that taxpayer money is spent wisely and transparently. e underlying principle must not be to keep private companies afloat but to ensure the public and country are better served. Adherence to public service obligation contract conditions must be monitored and fines issued to the private operators if these are breached. Additionally, if the service can be procured efficiently with less money being spent, so be it. Fast ferry, social feasibility and state subsidies 8.12.2022