During the second reading of the Malta Freeports (Amendment) Bill in Parliament on Tuesday, finance shadow minister Charles Mangion slammed the government for trying to bypass the method of transferring servitudes on public land which included a call for tender or a parliamentary resolution.

Dr Mangion argued that the Bill would grant Malta Freeport Authority the power to transfer public land for a gas bottling plant.

The transfer would make it possible for the gas bottling plant at Qajjenza to move to Bengħisa. The opposition would not approve of this.

The Bill was evidently intended to evade the transparency and accountability laid down in the principal law, he claimed.

Earlier, Nationalist MP Edwin Vassallo said the environmental aspect at Birżebbuġa would be greatly enhanced with the move of the gas bottling plant to a brand-new plant at Bengħisa. Also important was the fact that the expense for the move would be borne by Gasco, the consortium taking over the operation with an investment of over €18 million.

The project was bringing to Malta the Italian company Liquigas, which would have a 50 per cent shareholding with the rest being held by Malta's Multigas.

Malta was rising to the challenge of a global market, forgetting the idea that because of its small size it could do things its own way. Malta's finances could not forge ahead without a good measure of foreign investment.

The expected impact of this investment would join that of other extensive investments by foreign companies. This had not escaped the attention of foreign financial institutions, to the point that Malta today had 22 banks in operation. All this added value to product Malta.

Mr Vassallo said PN administrations had brought Malta not only political but also economic independence, leading to enhanced sustainability of the economy. The more disposable money the people had, the more micro-enterprises could flourish.

If the government was not careful, what was discussed at the EU Council of Ministers could very well end up as just rhetoric. All too often, bureaucracy was induced not only by the government but also by other quarters, such as banks that were asked for loans, adding to the enterprise's expenses. And banks were not the only culprits; others included Enemalta.

He proposed that the government examine how the EU could exempt micro-enterprises from the vast, costly regulations in the system. It should be spurred on to do this, in the process saving micro-enterprises much-needed funds for their progress.

Michael Frendo (PN) said that the Bill gave rise to various relevant observations. It increased the strength of the Freeport Authority, which had become a lot more important in today's world, and which had to work hand-in-hand with other authorities for economic development and to maintain competitiveness.

This Bill gave the authority the tools to make better use of the land available. The existing plant had encroached on the residents of the area; by time the buildings had moved closer to it, making the transfer inevitable.

The use of gas as a source of energy, for example for public transport, was something to be considered. It was also time to consider other uses.

As a densely populated country, Malta had many who suffered from respiratory problems, and this also indicated that it was time to look to alternative, cleaner sources of energy.

Concluding, Dr Frendo said he hoped that this initiative would give rise to better use of the land, cleaner energy and wider use of the product, even for domestic use.

Nationalist MP Frederick Azzopardi said the Freeport was part of the services industry, one of six spheres in which the government aimed to achieve excellence in the coming years.

The idea of the Freeport had started under the Nationalist government led by George Borg Olivier in the 1960s, a project which was then shelved by the Labour government that followed in 1971.

Once the Nationalist government returned to power in 1987, it immediately changed the concept of the Marsaxlokk port to a Freeport. As a result, container traffic grew and Terminal 2 had to be built.

The government's aim then had been to transform Malta into a maritime and financial centre. The Freeport led to one of these aims being reached. It was a success story which was now greatly contributing to the economy.

The Freeport, Mr Azzopardi said, was later expanded with oil storage facilities and the building of large warehouses for merchandise. All this had been possible because it was given direction and had professional management.

After the Freeport was privatised in 2004, the company which bought it had invested €48 million in equipment and it was continuing to invest in worker training.

Franco Debono (PN) said the plan to have a new gas bottling plant to replace the existing one in Birżebbuġa would, without doubt, have the residents heaving a sigh of relief, considering how the area had developed and how the plant had become intolerable.

He was certain that all work done on the area would be of high quality, and in line with the highest levels of security established by the EU.

Dr Debono noted that over the years the area had experienced heavy industrialisation, and it was therefore important to attempt to restore the environmental equilibrium. The building of a camping site was one alternative. The nearby picturesque area, known as Tal-Mara, was being considered. The elimination of heavy traffic from the heart of the area was also worth thinking about.

To fill the vacated space the building of a promenade was in the pipeline. Dr Debono also suggested that the zone be used as a residential area, or even a commercial one.

There was also the proposal of a marina in St George's Bay. It was important to try and give the residents what they wished for and to consider their recreational needs.

Nationalist MP Charlò Bonnici said that through the investment which would be taking place, which would see 20 kilometres of pipeline being laid so that LP gas could be transferred from ships, competition was being introduced in a sector which had been Enemalta's monopoly for many years.

Mr Bonnici said that LP was an environmentally-friendly gas and this was positive especially since the environmental conscience in the country was growing. LP reduced carbon dioxide.

The concession was being given to a consortium that was also taking over the gas depot at Il-Qajjenza, eventually to be transferred to Bengħisa, where it would also build a gas cylinder bottling plant to be trasnsferred to the government after 30 years.

Mr Bonnici said that, in spite of difficulties, privatisation had proved successful where it had taken place. The people had expressed their confidence in the companies privatised by investing in them. While the government was currently subsidising its companies by €23 million, in 2003 it had had to subsidise them by €41 million.

He stressed the importance of a regulator, saying that since companies were bought by global players it was important that the regulators would be stronger than these people.

The debate continues on Monday.