Yacht marinas privatisation kicks off tomorrow

MSciberras

Jun 15th 2009, 18:06

@NGrima. Thank you for the intro to simple maths:) Your simple maths does not include the value added by the airport to the Maltese economy, and yet this is its most important objective, not its own operating profit. The airport of a small island economy reliant on tourism is its most important gateway and an engine of economic growth. It cant be run on a profit maximization model and in private hands that is the only model that applies. Why do you think Greek regional airports have slashed their rates? To make losses for the fun of it? Because their operators see beyond simple maths to the knock on effect an airport bringing planeloads of tourists has on the surrounding local economies - hotels, restaurants, the lot. What I would love to see is an analysis by economists of MIA's contribution, potential and actual, within the macroeconomic context of the economy. There are lot of factors or variables that would need to be taken into account, such as the assumption that a tiny island economy retain the services of a sustainable national airline. The results would be interesting.

Galea. L

Jun 15th 2009, 17:19

Michael Seychell The bulk of the profits go to the private sector while those Maltese who own a small boat will be paying much more to the private sector than they are doing now to the government. The tax paid by the private sector does not compensate for the loss of the government revenue and the higher fees paid by the local boat owners. J. Borg Agree with you.

jcmicallef

Jun 15th 2009, 17:12

Still...more family silver for sale. Quote: "He said the new operators would be required to upgrade the marina facilities within two years, by improving areas such as quays and pontoons, quayside facilities, access control and security and fight fighting equipment. They will be required to maintain the marinas to high international standards and develop them to ensure their long-term viability. " Cant' the Government do that instead (upgrade, etc)? What's wrong with the Gov being able to run something efficiently for once, or something that leaves some dosh in the coffers. I'm not against privatisation or condemning the Gov, but it's not that difficult to sell the good stuff (maltapost, marinas...), less easy to sell monsters (malta shipyards). What I am agianst is that the Gov tries to justify by saying that the privatisation will bring improvements. Can't the minster simply admit that his Gov is still no good at trying to make things work properly? The PN have done lots of great work, but recently they seem thay just want to wash their hands of all administrative duties.

Joe Morana

Jun 15th 2009, 17:00

It is not the government's role to own and run yacht marinas.

Michael Seychell

Jun 15th 2009, 15:44

Do we have to condemn every step taken by the Government.

We all know that in this day and age even Communist countries are privitising their companies. In Malta in 1996 Dr Sant privatised Telemalta - albeit the shares were bought by phantoms under the disguise of 'Bearer ' . Thanks God today even Bearer Accounts in Banks have been stopped.

Those who are against this move should keep in mind that all privitised companies are earning profits and hence paying Taxes to our country.

Michael Seychell
Tal-Pieta

N.Grima

Jun 15th 2009, 15:03

@ MSciberras -- allow me to introduce you to some very simple math using your very own comments. non-privatised airport: $10m revenues, $9m expenses; need to increase passenger flow, hence offer discount and turn to breakeven: $9m v $9m = $1 less government revenues. privatised airport: $10m revenues, $9m expenses; need to increase passenger flow, hence offer subsidy: airport unchanged, government spends $1m more. -$1 revenues = +$1 expenses. how exactly is government better positioned to help the country with a non-privatised airport again?

MSciberras

Jun 15th 2009, 14:01

If you have a berth in the gov owned marinas, your electricity consumption is not metered. Instead you pay a low flat fee with your annual berthing charges and can then live on your moored boat all summer, leaving your airconditioning running all day for example. Yet this this not an argument in favour of privatisation but an indictment of gov incompetence. I am not sure that these privatisations make sense especially when profits disappear overseas. I agree with the concept of privatisation but not when applied universally. At Malta International Airport for example, it appears Malta has partially lost the ability to lower airport charges to attract low cost airlines, when state owned regional airports at our competitors in Greece for ex have reduced these to zero to attract tourists. Gov would have to subsidise MIA if it wanted reduced charges on specific routes as it in fact already does. The MIA's main role is to add value to the rest of the country, not be some sort of glorified retail centre which happens to have aircraft landing in it. Perhaps The Times could analyse the effectiveness of these privatisations, especially including MIA, instead of just writing about them.

laurence schembri

Jun 15th 2009, 12:27

No Mr. Borg, I do think that the privatisation of the Yacht Marinas is a step in the right direction.
It will also be a step in the right direction if the Finance Ministry do not squander this money as if there`s no tomorrow. Got my drift?

J. Borg

Jun 15th 2009, 12:18

@ Spiteri

The issue is not who manages the current one, but the real reasons why government is proposing other marinas in bays like M'Scala and St. Paul's Bay amongst others.

Mark Spiteri

Jun 15th 2009, 12:02

J Borg
to be honest i think this is a very correct decision
government should not be there to operate a marina....the private sector can do a better job

J. Borg

Jun 15th 2009, 11:46

It appears that Tonio Fenech, is trying to patch up government's deficit, brought about by utter mismangement of public funds, by creating and selling yacht marinas

The tragedy of such short-sighted patching up, is that by this he is ruining the bays and quality of the sea water, on which Malta's tourism has survived to date.

Thus Minister Fenech and this PN government are cashing on a few funds now to shield their highly questionable competence at the expense of a much greater annuity of tourism income that that we'll have to forfeit.

I thus expect, the said Minister and the current cabinet to assume full personal liability for such abuse and short-sighted measures.