Those who are hoping the Magic Kiosk, in Sliema will shrink in size to better resemble the structure that existed before the 1980s could actually see their wish come true.

The company running the kiosk is shortly expected to present plans to Mepa to remove the existing structure and built a much smaller kiosk.

"It is easy to say that the kiosk is an eyesore. It was built 25 years ago to cater for the needs of the time. Times change and people's perceptions change. Aluminium was very much in at the time, now it's passé. We realise that too and hope to change it," Joe Pace, the owner of Brittania Catering Ltd, told The Times.

The Magic Kiosk was again in the news recently after notices appeared in the press announcing it will be sold by court auction. The sale was requested by Bank of Valletta saying it is owed money by the company running the kiosk. The sale is still earmarked for mid-June but talks are underway with the bank and the issue is likely to be settled, Mr Pace said.

There is a legal problem in that the land in question is actually government-owned and, hence, it cannot be sold. The land was leased to Brittania Catering Ltd in two separate deeds, one of which has expired. The other expires in 2008. It is highly unlikely that anyone would want to pay Lm250,000 to buy a three-year lease, even if one would have the right of first refusal after that.

Following the publication of the court notice that the kiosk is be sold by auction, a number of letters appeared in The Times saying St Anne Square should be "given back to the public".

Mr Pace said his company held the lease of two tracts of land where Magic Kiosk is situated. No offers were submitted the first time the kiosk was meant to be sold earlier this year and talks were going on with the bank about the matter.

Mr Pace said the Magic Kiosk belonged to Brittania Catering Company and was situated on two small parcels of land where Iro's Kiosk and Bonello's Kiosk used to stand.

"A lot has been said about how I was given the land but I had actually submitted an offer for Lm1,500 a year in the mid-1970s when offers for the land where the former Bonello's Kiosk was situated. The kiosk had been leased on encroachment basis for Lm30 a year and when a call for offers were made, I offered Lm1,500 a year.

When the agreement was signed, I had agreed that the rate would be increased by 10 per cent every five years and had to employ 22 people. That lease agreement was for 17 years and was renewed again for another 17 years. I had to spend Lm60,000 to embellish the place and had to employ 22 full-timers and four part-timers. The previous kiosk had only one full-timer who still works for me.

"When a call for Iro's Kiosk, situated on an adjacent parcel of land, was issued, Brittania Catering Company again tendered. The premium was Lm30,000 and the rent was similar to the previous contract increasing by 10 per cent every five years. I had to employ another 18 full-timers and four part-timers.

"When the first kiosk was ready, I was not allowed to open for business and I went to speak to the Prime Minister of the time and was given the green light.

"Contrary to the impression many want to convey, I was not given anything for free. On the contrary, I paid through the nose at a time when people did not eat out as often as they do these days," he said.

"I have also suffered as a result of a boycott, ordered in 1981 by the Nationalist Party. Although this was eventually lifted, we are still suffering the effects," Mr Pace said.