Prime Minister Lawrence Gonzi has ruled out compensating the family whose business was closed for 14 months due to the Cospicua Dock 1 project.

Anyone who feels their interests were harmed... may wish to resort to the means available to them at law

In an e-mail, Dr Gonzi said the government had always resisted such claims for compensation, adding it was a national project being carried out “for the common good”.

“This is not the first and neither will it be the last such project and the government never paid compensation – and resisted similar claims – because it is obvious that these projects... will afterwards be enjoyed by people and businesses in the area,” he told the family.

He was replying to a plea from Benny and Marisa Bondin who said they were are in dire straits after the Dock 1 project robbed them of their only income, the Regatta Bar and Restaurant.

They said they were compelled to close their doors in April last year and had been eating into their savings ever since.

The family-of-five said it had to cope with living on practically nothing, even having to sell their car and jewellery to make ends meet.

The €3.8 million project, which started in January 2011, should have been ready this month but is now expected to be completed in September 2013 after the Italian contractor, Marinelli Construzioni SpA, was fired and fresh tenders issued.

Asked for an explanation as to why compensation had been ruled out, a spokesman for the Office of the Prime Minister acknowledged the “pain”. However, he reiterated Dr Gonzi’s statement that such projects benefitted, among others, businesses that would be able to operate more successfully in a welcoming environment.

In this case, he said, the waterfront was undergoing a radical regeneration, creating new pedestrian access and “increasing manifold” the potential business of the area.

“The process of upgrading public infrastructure is undoubtedly painful. It is certainly recognised that this particular project took much longer than planned due to failures by the contractor.”

The spokesman added: “The government is taking legal action to protect its interests due to the contractor’s failures. Anyone who feels their interests were harmed for the same reasons, may wish to resort to the means available to them at law.”

The Bondins, both 46, have already initiated civil proceedings against Marinelli Construzioni SpA to try recouping some of the losses. Seven years ago, they made a €280,000 investment to turn a disused warehouse into a seaside dining place. They had to fork out another €75,000 in 2009 after a fire, caused by a short circuit, destroyed equipment in the restaurant.

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