Prime Minister Lawrence Gonzi yesterday underscored Government's commitment to use European Union funds to raise living standards.

Addressing a Nationalist Party activity in Victoria, Gozo, Dr Gonzi said ministers and technical experts had started meetings on the best allocation of the €805 million Malta would receive under the 2007-2013 EU Budget, but Government would also hear the people's views in a series of consultation meetings in Malta and Gozo.

It was important that Malta readied itself to start using the funds as soon as they became available, Dr Gonzi said. The first calls for tenders would be issued between June and September.

"We want to use these funds to ensure that the people's quality of life continues to improve," Dr Gonzi said.

He said the EU budget allocations to Malta continued to belie statements in the past by the MLP that Malta would only receive Lm1.5 million.

He also pointed out that various sectors were benefiting from EU funds under the current budget. The money was being used on workers' training, environment and infrastructural projects, assistance to farmers and fishermen, and road building.

Dr Gonzi hit out at Labour and the General Workers Union over Sea Malta's privatisation. He said Labour lacked ideas and was only bent on destructive criticism.

Dr Gonzi said the government also wanted to raise standards in Gozo and exploit its potential as a quality destination.