Job opportunities in Gozo grew by 8.7 per cent in the past five years, with the services and construction sectors more than making up for losses in manufacturing industry, Gozo Minister Giovanna Debono told parliament yesterday.

Replying to opposition remarks during the budget debate, Mrs Debono said Gozo would next year receive Lm2.43 million in EU funds, and the vote for capital spending by the Ministry for Gozo would be three times as high as under the Labour government in 1997.

Gozo would also benefit from funds from the Italian financial protocol for road works and for the building of cold storage and grading facilities for agricultural produce.

Mrs Debono said early in her speech that manufacturing industry in Gozo had shed 449 jobs in five years and created 208 new ones. But 644 jobs were created in the services sector and there was also growth in the agricultural and construction sectors, among others.

During the same period, bank deposits in Gozo grew from Lm124 million to Lm188 million, while the number of commercial vehicles increased by 21 per cent.

The number of visitors to Gozo rose from 995,000 to 1.6 million and there was a 12 per cent increase in the number of bed nights spent in hotels. Two new hotels had opened in Gozo - a five star and a four star - and another upgraded from three to four stars. The number of tourist beds in registered farmhouses, villas and apartments increased by 233.

All this reflected confidence in the Gozitan economy. However, Gozo's GDP was still at 70 per cent of Malta's level and 52 per cent of the EU average.

Mrs Debono said Gozo would be receiving both pre-accession and structural funds from the EU. Funds from the former included €8.5 million for the sewage treatment plant currently being built at Ras Il-Hobz which would see the end of outflows off San Blas and Wied Mielah.

Gozo would also be benefiting from cohesion funds to be used for transport and the environment.

Reacting to opposition remarks, Mrs Debono said education remained a priority of her ministry. A record sum had been invested in improving the infrastructure of schools and a lot of initiatives were also taken from an academic point of view. They included the opening of a second MCAST centre and 12 courses were now being offered through five institutes. New courses were also introduced at the ITS in Gozo.

Mrs Debono also highlighted investment made in health care and hospital services, including facilities for the elderly at Dar Sant' Anna. Major refurbishment was now in hand for the male wards.

She said the government remained committed to closing the Qortin rubbish dump. A waste transfer station would be set up and the waste would be packed in containers and transferred to Malta in suitable vehicles.

Mrs Debono pointed out that the controversial ferry schedule had been revised and improved. Efforts were being made for the air link to be retained and raised to EU standards.

Earlier in the debate, Nationalist MP Frederick Azzopardi said that a Nationalist government had always been clear in its vision and kept its promises.

This was a realistic budget aimed at reducing the budget deficit so that Malta could then grow within the EU.

He said that progress in Gozo should not be considered on its own, although the island had its particular problems.

Over the past few years the island saw major infrastructural growth. It now had a modern general hospital, good roads, a branch of the university, new ferries, new quays and a ferry terminal under construction and a better organised agriculture and fisheries sector. More tourists were visiting the island and the number of Gozitan university graduands was rising.

Mr Azzopardi said the employment situation in Gozo was in a state of flux and a lot of job mobility was evident.