The departure of giant shipping line Norasia proved the loss of Freeport's competitiveness because of the way it had been privatised, Labour deputy leader Charles Mangion said yesterday.

Dr Mangion, who is also his party's finance and economic affairs spokesman, said the decision by Norasia to stop calling at Malta Freeport followed that by China Shipping.

"The effect of Norasia's departure on the Maltese economy should be evaluated," Dr Mangion said. The way Freeport was privatised meant that big companies in the services sector were no longer opting to call at Malta, he added.

"There was general agreement that our country should do its utmost to boost the services sector, especially in the maritime industry, given that Malta has a strategic location and possesses the skills and legal structures conducive to the expansion of this sector, thus generating new jobs and better economic opportunities for the country," Dr Mangion said.

He said there was lack of serious economic planning resulting from the fact that decisions were not linked to a clear economic direction that indicated how the country should develop and meet the challenges it was facing.