Government is allocating an "extra" Lm1 million to Gozo, Prime Minister Lawrence Gonzi said yesterday, attributing the additional funds to the fact that the economy was doing well and stressing that the move was in line with its commitment to maximise the island's major potential.
Dr Gonzi was speaking at the launch of Malta Enterprise incentives that have been reviewed and tweaked to suit Gozo's specific needs - schemes that would attract investment, generate employment, stimulate and accelerate its economic transformation and guarantee even more success.
Gozo remained at the centre of the government's attention, and it was putting its money where its mouth was, Dr Gonzi said, expressing his faith in it and appealing to investors to grasp the opportunities on offer for continued success.
The major stumbling block for investment in Gozo was not so much the issue of transport, but the added expenses to employ, Investment, Industry and IT Minister Austin Gatt said. The schemes were, therefore, targeting those who invest heavily in Gozo through financial incentives that were different from Malta.
These three incentives included an Investment Aid Grant Scheme to encourage job opportunities that were tied to investment to ensure the longevity of the jobs created.
Dr Gatt explained that a cash grant would be awarded, where tax credits were converted into a cash grant in proportion to the number of new jobs created and the related wage bills for the first two years up to a maximum of Lm2,500 per annum per full-time employee.
The Employment Aid Grant Scheme has been introduced to encourage job opportunities for the disadvantaged and disabled, whereby ME is to top up the Employment and Training Corporation scheme with a cash grant so that Gozo investors would receive the maximum ceilings allowed by the EU Employment Aid Block Exemption, Dr Gatt said.
Gozitan businesses would, therefore, be receiving more than their Maltese counterparts.
Cash grants would support 50 per cent of the wage costs of the first 12 months of employment for disadvantaged workers, who included, for example, mothers returning to work, single parents and those over 50.
The scheme was not only limited to activities qualifying under the BPA, but was open to any business activity in Gozo, Dr Gatt said.
The Tax-at-Source Clustering Scheme is an update of the Cottage Industry Rules for home-based micro activities, and the amendments include the increasing of the annual turnover threshold from Lm200 to Lm5,000, among others.
Dr Gatt said the scheme was ideal for micro operators that do not justify the burden of paperwork to comply with tax regulations.
He strongly denied Opposition Leader Alfred Sant's claims that Malta had no incentives for industry and that they had expired and were not renewed.
On the contrary, he reiterated that the new schemes were over and above those that already existed for Malta and Gozo, adding that two incentives, which expire in 2008, would be replaced by others by the end of the year.
Dr Gonzi, Dr Gatt and Gozo Minister Giovanna Debono also toured Pamargan Products Ltd at the Xewkija Industrial Estate, which is the process of expansion and migration to its new premises.
The company, which produces O rings, currently employs 140 workers, but is expected to engage another 100 within the next five years, with 12 already taken on board last year. Expansion works are in progress for its inauguration next month.
But it was not only Gozo's industry that was being targeted yesterday. The tourism sector was also being focused on, and the Parliamentary Secretary in the Finance Ministry, Tonio Fenech, yesterday announced the allocation of Lm40,000 from the Good Causes Fund for the organisation of cultural and entertainment events to attract internal tourists to the island, particularly in the shoulder periods.
A call for proposals is to be issued for eventual evaluation by a specific committee, Mr Fenech said, expressing the hope that a number of associations would take the initiative.
Last weekend, during Carnival, 20,000 more people than last year crossed the channel and back. Domestic tourism accounted for 50 per cent of arrivals in Gozo hotels, and cultural events definitely served to attract more Maltese to the island.
Expressing her belief in Gozo's year-round potential, Mrs Debono said other initiatives to promote Gozo among the Maltese included a monthly magazine, Let's Gozo, which is being distributed to 40,000 households.
Billboards promoting Gozo have also been put up in strategic locations in Malta.
The government was aware of the fact that Gozo was a different reality and offered different challenges from Malta, Mrs Debono said.