The vessel is berted at Sa Maison in Pieta` and has been out of service since July, 1997. It has been laid up as a cost-cutting measure because during the previous financial year the company had registered losses amounting to Lm337,000.

During the company's annual general meeting in 1997, it was announced that mv Xlendi was due for special surveys and repairs costing up to Lm200,000. The ship was put up for sale, but although a number of Greek Turkish farms had shown interest in it, none of the deals came through.

Sammy Rapa, chairman of the Gozo Tourism Association, said that about three months ago, the GTA applied to the Planning Authority for permission to sink the ship off Mgarr ix-Xini. Set up at the beginning of the year under the auspices of the Ministry for Gozo, the GTA is made up of providers of tourism services.

"Diving tourism, an ever-growing niche market, should be cultivated and sustained. It is a pity that the chance to scuttle mv Cittadella about three years ago was missed due to bureaucratic hiccups.. The Cittadella was bought and scuttled by a firm in Turkey. This time round we are making sure that this opportunity will not be lost", said Mr Rapa.

Built in 1955 and bought by Gozo Channel in February 1990 for Lm327,000, the Xlendi was meant to serve as a cargo carrier between Malta and Gozo, augmenting the service provided by mv Ghawdex. But the ship ended up ferrying passengers and cars. It could take up to 65 vehicles. Its shape, however, earned it the ignoble title of "the coffin".

The Xlendi has had its fair share of mishaps. A couple of weeks ago, a small fire broke on deck. It had sustained considerable damage in 1992 when it ran aground at Comino while crossing from Cirkewwa and Mgarr. None of the 80 passengers was injured and only one of 42 cars was slightly damaged. Three years later it hit the quay at Mgarr, sustaining minor damage. The 1,123 ton Xlendi, used by its former owners as to ferry a train, is 80 metres long.