Gozo Channel has been instructed to sell the mv Calypso as it is costing the company about Lm80,000 a year in recurrent expenditure, Investments Minister Austin Gatt has told The Times.

The Calypso has been used as a spare vessel since the introduction of three new ferries. However, it spends most of its time moored at Sa Maison and is only used when one of the other ferries is unavailable.

Dr Gatt said: "The mv Calypso has been there for years and years. It is only used if one of the other ferries goes into drydock. By selling it, the company would save about Lm80,000 in recurrent expenses.

"You don't leave a ship over there and spend Lm80,000 on recurrent expenditure - insurance, watchmen etc - simply to use it eight times a year."

It is not yet clear when it will be put up for sale but the process is not expected to take long. "I have just given the management the go ahead to sell it," he said.

The Calypso was retained in 2002 after the company sold its other vessels because it was thought it was not possible to operate with just three vessels. However, faced with pressure to cut costs, the government now feels the time is ripe to sell it.