Finance Minister ‘will give full account’ of how funds were spent on Air Malta once EU talks finish

Finance Minister Clyde Caruana said on Monday that he will give a full account of how funds were spent on Air Malta over the years once negotiations with the European Commission come to an end.

Caruana was asked numerous questions by the Opposition during parliamentary question time on the future of Air Malta, as well as what will happen to the workers, the impact on the country’s deficit, and what losses stakeholders could suffer should the national airline close down.

PN MP Ivan J Bartolo asked Caruana about the transfer of business, and about the process of transferring tickets from passengers who would have bought flight tickets with the existing airline, to the supposed new airline. Caruana was also asked about wet lease arrangements, the business model of the new airline, and what will happen to slots sold by former Finance Minister Konrad

Mizzi.

Caruana reiterated that he will reveal details about the discussions with the EU Commission once they end.

“Nothing is agreed until everything is agreed,” he said.

PN MP Mario de Marco further questioned Caruana, saying that despite the ongoing discussions, Air Malta chair David Curmi already stated that the EU Commission will not be accepting the country’s state aid proposal towards Air Malta, and that the current national airline will be replaced by a new one.

Demarco asked for Caruana’s reaction on Curmi’s statement, as well as a reaction on the news that current Air Malta workers would be made redundant once it has to inevitably close down, and will not be transferred automatically to the new company, but rather will have to apply to a new company, with new conditions.

He was asked to clarify whether the conditions of the current sectoral agreements in place would change as well, should workers be chosen. De Marco also asked what provisions government will make to absorb the impact the airline’s closure will have on the country’s debt. He continued to ask what will happen to orders made by former Minister Mizzi, who had approved a number of air buses for long distance travel.

In reply, Caruana said that government has taken the impact on the country’s deficit into consideration, saying that despite any interventions it might have to make, government is still aiming to reduce deficit to 5%.

On Mizzi’s approval for the Airbuses, Caruana said that the contracting authority for that order were with Malta Med Air, and its financing has nothing to do with Air Malta.

He continued that he will give a full account of what was spent over the years, making everything clear.

“I do not have anything to hide. I am the first person who wants these discussions to be finalized so I can explain the road forward. This saga has gone on long enough, something important for the country, as over the years it has cost it millions,” he said.

PN MP Ivan Castillo asked Caruana about the government’s contingency plan should the airline close, as well as schemes for workers who will be made redundant. Castillo also asked why Air Malta continued to employ people in light of the current situation.

“Irrespective of the direction the discussions go to, this country will still have a national airline, that is clear,” Caruana replied.

He said that when he first became the Minister responsible, the number of people employed in the company reached 1,000 persons. The number now, which is what is needed for the company to operate eight aircraft, is 375 people.

“Whilst the company is under my remit, its headcount will not increase,” Caruana said.

He said that the attitude of people working at Air Malta needs to change, otherwise nothing serious would happen. Caruana said he was asked if employees will continue to receive flight tickets for free, which angered him.

“If this is the attitude people have, it is better for them to leave,” he said, adding that the number of people who chose the government voluntary relocation schemes was substantial.

On a question about stakeholders of the company who depend on it, as well as risks posed to tourism and when the discussions are expected to finalise, Caruana said that the Commission has asked for more information on the matter.

Caruana hoped that nothing more is requested by the Commission, so that negotiations are finalised in the coming weeks, and he can update the public with the correct information.

“I would be irresponsible to give an answer now when I know things could change in the coming days. I want to be sure. The EU Commission showed toughness, but also understood the importance of the country continuing to have a national airline,” Caruana said.