Infrastructure Minister Austin Gatt on Tuesday reassured the House that there was no problem whatsoever with the reputation of the Maltese maritime flag. This had been underscored by the International Maritime Organisation for the past seven years. The average age of ships flying the Maltese flag stood at 15 years, and only certain types of vessels were being accepted because quality came before quantity.
In a blow-by-blow answer to opposition comments during the debate on the estimates of the Malta Maritime Authority, Dr Gatt announced the government was to set up an authority integrating all transport means - air, land and sea. He said that in a country the size of Malta, there was no need for three authorities and the Freeport, also in view of all the reforms that were being envisaged in public transport operations where the ADT functions would diminish through privatisation. Plans were at an advanced stage, with legislation setting up the new authority to start operations in October.
Introducing the debate, Dr Gatt said Malta-registered ships had increased by 20 per cent to 5,019 carrying 33.4 million tonnes in gross weight. The Malta shipping register was the second largest in the EU and the seventh largest in the world. The authority's aim was to increase registration and put Malta in the fifth place. Malta had also gained prestigious international certification and was on the white registration list.
Super yachts registered with MMA last year had increased by 20 per cent to 160.
The Freeport had handled 2.3 million containers, an increase of 220 per cent. In 2008, 400 cruise liners had carried 556,000 passengers to Malta, an increase of 14 per cent.
Trailers using the Grand Harbour had increased by 36 per cent.
Minister Gatt attributed this success to the privatisation of services previously provided by the MMA.
The Freeport had registered €55 million in new investment by CMA, while another €130 million were to be invested in the next few years. Increased activity at the Freeport had resulted in 200 new jobs, and 300 other jobs would be created in the years to come.
The authority was investing millions of euros in port infrastructure, including €12 million on the breakwater at Marsaxlokk and €15 million to be spent on the Deep Water Quay. Another million euros would be spent on the Valletta breakwater.
Minister Gatt announced that by next July the first cruise liner would berth at Senglea, and that one large shed in Boiler Wharf was to be transformed into an Industrial Museum.
Work was underway at Lascaris Wharf while detailed plans for the Menqa at Marsa were being finalised. Work had also started on the Xlendi buoy. The Mġarr ferry terminal had been inaugurated last year.
The minister said it was the government's aim to privatise yacht marinas while permanent berths would increase by 1,000. Plans were underway on new permanent and temporary yacht marinas.
The MMA did not get any financial subvention and generated its own income. It had registered a profit last year, but expected to face financial challenges in the coming weeks.
Opposition spokesman Joe Mizzi said the authority's annual report was nothing but a repetition of promises repeated year on year, including plans to adhere to IMO conventions and EU directives. What was the result of the impact assessment of dumping at sea? What sort of rehabilitation was being considered to handle dredging waste, oil pollution and dangerous cargo?
No progress had been reported on the cleaning of ports, and there was total abandonment because of lack of maintenance. The Ports Department had shown more commitment before the setting up of the MMA.
Problems at the Valletta breakwater had not been solved. There was a lack of activity at the ports.
The government had made many promises before the elections but today, these had resulted in a list of fairy tales.
Mr Mizzi said the financial accounts presented by the MMA were not enough. What the opposition needed to make its evaluations were the management accounts and internal financial practices. Which were the phantom projects into which investment had been made? What sort of interest had been paid on projects which were not executed?
Malta's integrity in merchant shipping was at stake. Strategies were outdated, customer handling non-existent, and there were difficulties in the authority's relations with clients. If such cases had been followed up, nothing had been reported to the House.
The opposition was interested to know what sort of internal quality control the MMA exercised to reduce bureaucracy and for Malta to remain competitive.
Concluding, Mr Mizzi said that only a handful of employees were tarnishing the authority's image, which deserved better. For Malta to be a place of excellence, employees with clout must be given strategic positions within the authority. If the government continued to bully and use partisan politics on the place of work it would not only damage the MMA but the whole maritime sector. Labour MP Joe Debono Grech recalled that the Freeport had been established and increased its activity through Labour governments. The Grand Harbour terminal built by Viset had been paid for from taxpayers' money.
He reminded port workers that it was the GWU and Labour governments which had guaranteed their salaries and established the contingency fund, ensuring that workers still received their pay when work was scarce. Today no one knew what had happened to the contingency fund to which the workers had long contributed.
After 22 years in government, the Nationalist administration was now promising to upgrade the port infrastructure. Debts incurred by the Gozo Channel had been paid by the 1996-98 Labour government through serious management. The government was using the MMA as a screen for losses, but then took the credit when it made a profit.
Mr Debono Grech said that one had to be careful about certain ships registering under the Maltese flag. Was the Maltese flag to give place to the European flag? When was the Freeport to take over all mercantile operations?
There had been irregularities on yacht marinas, and Minister Gatt had taken action. He appealed to the minister to trust the workers.
Everyone knew how new workers were engaged at the Freeport. Those in authority had to show responsibility. Port and dockyard workers deserved praise for being at the forefront in achieving rights for all Maltese workers through the General Workers' Union. Justyne Caruana (PL) said the state of the Ċirkewwa terminal certainly did not give a good impression to anyone on their way to Gozo. The situation became worse on Monday mornings with the exodus of Gozitan students who crossed over early on their way to their studies, generally loaded down with books, clothes and other necessities for the week ahead. Even in the best of weather conditions there was a rather long walk from the boat to the public transport, let alone in inclement weather.
There were no facilities to speak of at Ċirkewwa, making the Malta Maritime Authority seem incompetent.
The inconsistencies in the government's various claims on the progress of the Ċirkewwa project could only come from an inconsistent government. Dr Caruana ran through the myriad claims and announcements of changing costs and completion dates for the project over the years.
Only a few weeks ago the government had announced that it had submitted new plans to Mepa for the approval of a less costly project. But in January 2008 the government had already said it had submitted plans to the EU Cohesion Fund.
On another occasion the Prime Minister had said work on the project would be restarted towards the end of 2009, subject to Mepa approval. Dr Caruana said the people rightfully expected a clear explanation of all these conflicting statements.
Concluding, she asked what had happened to the installation of the much-touted berthing buoy for cruise liners outside Xlendi, which should be in place by mid-2009.
Winding up the debate, Minister Gatt said the government did not work like the private sector. The delay in the placing of the berthing buoy was simply due to bureaucratic tender procedures.
The Ċirkewwa project had been changed after the last election. This was the third planned part of the whole project that also involved the Mġarr terminal and the extension of the Ċirkewwa pier, both of which had been completed.
Last year the government had decided there was an element of over-design of the Ċirkewwa project, which would probably never be fully used.
The government was all ready to reapply for EU Cohesion Funds, which were opened every year, but it could only do this once the Mepa approval was in hand. It was hoped that the tender would be issued by the end of 2009 so that work could get underway in the winter.
Reacting to other speeches, Dr Gatt said the MMA's only focus in the harbours was combating oil pollution. Other projects were up to the Grand Harbour Regeneration Project.
Nationalist governments were not the cause of the Grand Harbour having been emptied of warships. Maritime trade could no longer be considered as the only way for commerce in Grand Harbour.
Following the achievement of 500,000 tourist arrivals on cruise liners, the government was turning its focus on the wintering of super yachts which were calculated to leave some €500,000 per yacht. Besides the fact that there were still few such yachts, getting some 20 or 30 of them to winter in Malta would only happen if Malta had the right workforce.
Dr Gatt said he could not accept the statement that the government had brought no investment in Malta's harbours. Malta Freeport today employed 1,200, which would go up to 1,500 over the next few years. In the past few years the company had invested some €55 million, with more in the pipeline. This was investment that everyone could see.
Investment at the Menqa in Marsa would revive an area that had seen such heavy maritime trade in Malta's history. Dr Gatt said he had already explained the investment of some €35 million on breakwaters. It was simply not true that there had been no new employment in Malta's harbours; all told there was much more employment now than five years ago.
He refuted allegations that nothing had been being done about abandoned vessels in Grand Harbour. There had already been a first round of removing such vessels, and a second round would get underway soon for completion of the exercise.
There were a number of operators in the harbour who seemed to think the port was theirs and had been occupying buoys for several years on the strength of some cheap title. Dr Gatt gave a serious warning that the government would be going into this situation. This was a vicious circle that must be stopped, he said.
Audited accounts were not simply a snapshot of a company's finances, as Mr Mizzi had said, but a review of the management accounts as advocated by Mr Mizzi himself. Audited accounts were an external audit of a company's internal audit, and so were the true test because they reflected its true financial position. He pointed out that there were no complaints about the MMA's internal auditors.
Minister Gatt said that port workers had been destroyed by the General Workers' Union. In 2009, the workers had the right to decide their own future. He said that today port workers employed hundreds of others. The MMA was ready to meet with local councils on how to solve problems regarding slipways, which were not being maintained by the councils.
The MMA was undergoing a period of change. The 10-year-old legislation had to be reviewed. The government was also engaged in internal restructuring as port activity decreased, giving way to an increase in yachting activities. One had to plan the maritime policy of the country.
What was Malta's logistical role in shipping and merchandise? What impact were greater container ships to have on Malta? What effect were the new East and West Mediterranean routes to have on the islands? Malta's geopolitical role as a maritime nation still had to be explored. The MMA must have an internal policy unit and come up with long-term solutions.
Swimming zones were to increase to 26, with the swimming zone at the Blue Lagoon extended by nearly 50 per cent. Buoys in all ports had to be organised and destination ports for leisure boats were to be established. He said that water taxi services were to be set up, also adding that it was important to regularise ferry services at Marsamxett and the Grand Harbour. The super yachting business which was the result of the good reputation achieved by yacht workers at the Malta Shipyards was on the increase.
The main maritime centre for super yachts was to be at Chadwick House near Mifsud Verandahs and the Menqa in Marsa. Malta was making use of EU funds to increase maritime activity. Minister Gatt concluded that Malta's real challenge in the maritime sector was to plan ten years ahead, with increased development expected in the African continent.
The estimates were approved after a division, with the opposition voting against.