ALGECIRAS FERRY SERVICE IS TO BE DISCONTIUED

The Government understands that the Company has outstanding debts of circa €240,000 owed to both Gibraltar and Spanish companies.

No Change in Government Policy over Algerciras Ferry Medexlines, the operator of the Gibraltar/Algeciras ferry, has issued a press statement giving notice that the service is to be discontinued. The Company states that the main investor behind the business has pulled out and there are no funds to continue the operation. It also states that political architecture under which the ferry link was established has changed and that this also is part of the reason why the operation is not sustainable.

Since the GSLP/Liberals formed Government on the 9th December 2011, there has been no change in policy in relation to the Gibraltar/Algeciras ferry. As far as the Government is aware, the vessel stopped operating the route on the 10th January 2012. There has been no contact with the Operator until this week or indeed discussions with the Spanish Authorities.

Jose Rodriguez representing Medexlines requested a meeting with Minister Costa to discuss the ferry operation. The meeting took place on Monday 23rd January 2012.

At the meeting, Rodriguez explained the serious difficulties the Company was facing due to a lack of investment. Minister Costa agreed to raise the matter for discussion at Cabinet next week.

The Government understands that the Company has outstanding debts of circa €240,000 owed to both Gibraltar and Spanish companies. Fees owed to the Government total £1,320. Over the past twelve months, the numbers of passengers aboard the

Gibraltar/Algeciras ferry were as follows:

Month Arrivals Departures

January 272 254

February 321 281

March 498 470

April 660 550

May 914 805

June 1460 1468

July 1444 1497

August 1948 1913

September 1424 1405

October 896 829

November 392 359

December 10 11