Nicholas Gatt writes:
Isn't it against EU laws for price discrimination to be so widely used here?

For example, why, being a Maltese, I pay Lm26 and a tourist pays Lm50 for flying to Gozo by helicopter? Doesn't this clearly go against EU laws?

The same applies to the Gozo ferry. A Gozitan pays much less than a Maltese national. I pay Lm8.25 for myself and my car. A Gozitan pays half that fee. This sort of situation is widespread.

The EU has strict rules on this? Why aren't they observed?

Under EU law, discrimination is typically considered illegal if it is based on nationality. This means that one cannot charge one tariff to Maltese citizens and a higher tariff to other EU citizens simply because of their nationality. Unless this is justified.

It appears that, in the case of the Gozo ferry, the difference is made purely on the grounds of residence and not nationality. The intention behind the ferry tariffs appears to be to grant a preference to people on the basis of their residence, regardless of their nationality. The difference in treatment on the basis of residence is justifiable if it is intended to compensate passengers for the increased transport burden that comes with living in our sister island.

This explains why Gozitan residents pay a cheaper fare than Maltese residents. Yet, the reduced fare does not only apply to "Gozitans". It applies also to Maltese individuals who reside in Gozo.

My understanding is that this reduced ferry tariff is also available to non-Maltese EU citizens who reside in Gozo.

So in the case of the Gozo ferry, the difference appears to be based on residence and not nationality. As such, therefore, there is no breach of the principle of non-discrimination.

The situation with regard to the helicopter tariffs is not entirely the same.

There is a reduced fare of Lm26 which is available to all Maltese citizens, that is, not just to Gozo residents. Everyone else pays the normal fare of Lm50. VAT is paid depending on whether the flight is connecting to an international flight.

There appears to be no distinction between Maltese citizens residing in Malta and those residing in Gozo - they all pay the reduced fare provided they hold Maltese nationality. This means that the reduction is not given only to Gozo residents because of their residence. It is also given to all Maltese citizens on the basis of their nationality, rather than their residence.

As to other EU citizens, I am informed that EU citizens who reside in Gozo and hold a Maltese identity card denoting a Gozo residence also pay the reduced fare. If this is truly, the case, then, it is as it should be.

But it is not clear whether EU citizens (other than Maltese) who reside in Malta also benefit from the reduced fare in the same way as their Maltese neighbours next door. If they are to be treated in the same way as Maltese citizens, then they too should benefit from the reduced fare.

Moreover, tourists (as against residents) who are EU citizens pay the standard fare and not the reduced fare. As do tourists who are not EU citizens. They both pay almost double the tariff of a Maltese citizen. No distinction appears to be made between EU and non-EU foreigners - they both pay the normal fare. Yet, a distinction may, if necessary, be made.

So it is not entirely clear whether the differentiation is always being made on the basis of residence or on the basis of nationality.

Questions may be raised on why an EU citizen who resides in Malta does not appear to qualify for the reduced fare in the same way as a Maltese citizen. Equally, questions may also be raised as to why tourists who are EU citizens do not qualify for the same fare as Maltese citizens who reside in Malta (as against those who reside in Gozo).

It is one thing justifying a distinction on the basis of residence in Gozo but another thing justifying it on the basis of residence in Malta.

So to the extent that the helicopter tariffs treat Maltese citizens more favourably than other (non-Maltese) EU citizens, they may raise difficulties with the EU principle of non-discrimination.

A difference on the basis of residence is possible and does not infringe EU law, provided that this is justified. But discrimination on the basis of nationality is incompatible with EU law and needs to be removed.

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