A business-like budget

Our new Prime Minister has presented his first business-like budget, clearly marking a forward path for Malta in the coming years.

He was heavily hampered in producing better results by the recent hike in oil prices, the government absorbing the whole impact of such prices in the latter part of 2004. Notwithstanding this, the ultimate deficit figure was kept in check. An outstanding job of control, all to his credit.

The government is again absorbing a huge financial burden in the coming year and passing on to the consumer only a surcharge that is evident for all to see and to monitor every six months. We all augur stability in certain regions which, in turn, will lower oil prices.

Hedging of oil prices in summer would have only certified more losses as, indeed, Malta had experienced under the Labour administration in the short 22 months' reign.

Sectors that are the motor of the Maltese economy have been cared for. A clear, positive sign was transmitted to the tourism industry where the five per cent vat hotel element has, again, been retained. Incentives and conference traffic, as well as the film industry have been pinpointed for further strengthening. Here a wave effect is expected and job creation targeted.

A better Malta Tourism Authority, restructured to be in line with today's changing tourism world, is most welcome. Already these past months, improvement is evident but this is a continuous, weekly task, eyeing competition very closely.

Industry has been given a boost and, without reducing wages or increasing costs, higher production is expected as a result of more working days over the next years. Production is the keyword to success in a competitive market in both industry and tourism.

The capping of electricity surcharges goes a long way in demonstrating the government's willingness to create the right atmosphere for investment.

A clear sign of reciprocity from these sectors, by way of investment, job creation and stimulation is what the players in these sectors should do next.

The government outlined a 50,000 yearly growth in tourist arrivals, against an incentive of an additional allocation of Lm500,000 to the MTA. Again another clear sign of new times in a new government attitude.

These goals can easily be absorbed given the available capacity on Air Malta's flights, estimated at nearly 100,000 in the case of inbound visitors. Working out a synergy between all entities is of utmost importance in order to obtain maximum results without the need of duplicating costs.

We have certainly lost ground on the good and friendly services that Malta was renowned for. The smile we had on our faces has mostly disappeared and that used to come for free.

There is no guarantee that tourists will come to Malta, year in year out. We must make it happen. Returning to our good ways will be a good step. This involves the cooperation of everybody, in all levels, as the tourist considers Malta and Gozo as one resort.

We have all been talking of the importance of the environment. Well, again, this government acted and is acting. There is, however a cost in order to make all our wishes come true. A cost we may begrudge at the moment but which we accept when we go abroad where we respect regulations better than we do at home.

Abuse has been targeted in the kerosene question, where we seem to import more kerosene in the summer months than in the cold winter months, where subsidies were dished out to lower income persons.

We retained the assistance to the some 11,000 households who will not be affected by the fuel surcharges. These pay about Lm7.50 a year, on average, in electricity bills. Again, the social side of the decision making government is evident.

This was a budget that will lead us up to the years where we will be linked to the new EU budget due in 2006, when Malta will participate for the first time.