EU - Question and Answer - June 23, 2002

Currently, Maltese residents pay a higher ferry rate than Gozitans. Will the EU allow this discriminatory practice to continue?

Currently the government subsidises ferry fares for Gozo residents. The EU allows this type of subsidies provided that they are given for social purposes and that they benefit consumers directly. Under EU law, it is also possible for the Government to impose an obligation on the ferry company to operate services at certain times of the day and at certain rates, in the interest of the public. This is known as a public service obligation.

It appears that cheaper fares for Gozitans fall squarely within this meaning and should therefore remain permissible. After all, it must be noted that Gozitans are at a significant disadvantage where transport and accessibility are concerned, since they live on a separate island and this brings with it problems of double insularity, that is, they suffer doubly from the disadvantages that we normally associate with islands.