Efficient transport connections between Malta and Gozo are always about balancing the essential, the desirable and the affordable. The fast ferry services provided by two private companies seem to be failing to strike this balance. Travellers fear that the service may have to be abandoned if taxpayers are not again roped in to bail out the ferry operators.
The hubris of politicians was evident in June 2021 when two private ferry operators were granted a licence amid references to the unquantified advantages that could be achieved.
Promising a privately run, feasible fast ferry service was part of the backdrop to the then-approaching elections. The impression given by the government at the time was that there were no downside risks to taxpayers as public funds would not subsidise the new service.
Operators believed that the projected rise in mass tourism and pent-up demand for more efficient transport from Gozitan workers and students would justify the investment needed to make the service economically viable. But after 10 months of operations, they were seeing an average of 46 passengers per trip on a vessel with a seating capacity of about 300.
The operators have already brought in cost-cutting measures like reducing the number of trips and introducing a ticket-sharing protocol between the two companies. It is being suggested, though, that the fast ferry service will not survive for too much longer in its present form unless the government steps in with taxpayer-funded subsidies.
Many stakeholders do not want the service to meet the same fate experienced by previous fast ferry operators. Students and workers practically want a shuttle service to reduce the waiting time at the ferry terminals. The Gozo business community also wants more frequent services, with Gozo Tourism Association CEO Joe Muscat arguing that the service is exceptionally helpful for the Gozitan economy.
The operators believe they are focused on providing a premium service to the Gozo community. Gozo Fast Ferry director Mark Bianchi contends, “This service has been a game-changer. It changed many Gozitans’ lives for the better but we cannot operate a five-star service without five-star revenue.”
It is time for all stakeholders to rethink the Gozo fast ferry services. For too long have taxpayers’ interests been given less attention than they deserve.
Injecting subsidies into projects that are not commercially viable can only be justified if the socio-economic feasibility is proven beyond any doubt.
The massive subsidies poured into the bus service over the years (albeit without a sufficient audit trail) is a case in point. It is evident that, when the Gozo fast ferry service was launched last year, populist political commitments may have been given more importance than protecting taxpayers’ interests.
The country faces formidable socio-economic challenges in the coming years. This is no time for more political hubris. Policymakers must prioritise the public service projects that need to be financed with taxpayers’ money.
Taxpayers should not be asked to step into projects that are not critically essential, even if all attempts should be made to promote the use of the fast ferry service. Clearly, too many are reluctant to abandon the use of their vehicle when travelling between the two islands.
But politicians should stop giving the impression that money is not a problem and that they can use taxpayers’ cash to create a permanent feel-good factor among the electorate.
The current economic circumstance call for the rationalisation of financial commitments. The country is already burdened with far too many promises made in the last several months, promises that have to be financed by taxpayers.