Weekly News highlights

University stipends will increase to Lm9 million from Lm8.2 million, Education Minister Louis Galea said last week during the annual meeting organised by the National Students' Council for youths in Naxxar, Tarxien, Mellieha, St Paul's Bay, St Venera and Nadur.

Over 14,500 students will benefit from the stipends in various institutions. Dr Galea said the millions of liri invested in education and training had led to a situation where 70 per cent of youths were pursuing post-secondary and vocational studies.

Maltese loaf costs 1c more

The price of the Maltese loaf has gone up by 1c to help meet bakers' demands after wheat prices rose sharply.

The government is also raising its subsidy on flour by 30 per cent from Lm680,000 to around Lm900,000 each year to cushion the impact on bakers after the price of a 50 kg sack of wheat rose by Lm1.60 a couple of weeks ago.

A large loaf will now cost 20c, with the smaller version selling for 13c. The Ministry of Competitiveness took this decision following talks with the Bakers' Co-operative. The price rise is in line with an increase in the cost of cereals on the international market.

New Apostolic Nuncio

Archbishop Tommaso Caputo, who was appointed Apostolic Nuncio last week, takes over from Mgr Felix del Blaco Pireto, who was recently appointed Papal Almoner.

Since 1993, Mgr Caputo has been head of Protocol at the Vatican's Secretariat of State.

Mayors boycott Grand Harbour plan

Three MLP mayors confirmed last week that they had boycotted yesterday week's launch of the government's regeneration plan for Grand Harbour, although the party's general secretary denied a claim that he had ordered seven of his councillors to stay away.

The Labour Party mayors of Xghajra, Kalkara, Vittoriosa, Senglea, Cospicua, Paola and Marsa were conspicuous by their absence during a ceremony at the Upper Barracca Gardens in Valletta, hosted by Prime Minister Lawrence Gonzi and Investments Minister Austin Gatt.

Twenty proposals were unveiled in a bid to revamp the area, including a new cruise liner terminal in Senglea, the conversion of Sir Paul Boffa Hospital into a hotel and the afforestation of Kalkara Valley.

The Cospicua, Vittoriosa and Marsa mayors said they were absent because they had not been consulted. The others said they could not make it.

Sale of Maltapost approved

On Monday Cabinet approved the transfer of 25 per cent of Government's shares in Maltapost to Lombard Bank for Lm1,217,585 (€2,836,210).

Lombard now becomes the company's majority shareholder with a 60 per cent shareholding.

The sale price represents one and a half times the net asset value of the shares according to the company's latest audited accounts, the Investments Ministry said.

The bank intends launching a number of banking services from the post offices spread across the islands.

The bank's CEO, Joe Said, said on Thursday there were plans to have post offices cash cheques as soon as possible but he would not give more details. "We intend having services similar to those offered to clients of other postal services abroad."

UHM reaches nursing aides deal

The General Workers' Union said on Monday it was suspending its talks with the Health Division over nursing aides, health assistants, care workers and assistant care workers, after the division concluded an agreement with the Union Haddiema Maghqudin over pending issues.

The GWU, which recently ordered the workers to take industrial action before calling it off to resume talks, claimed it had been kept in the dark about this agreement.

Louis Marsh, the GWU's section secretary, said on Monday that the union was not excluding resorting to other measures to make its stand.

Mr Marsh, however, would not be drawn on whether such measures would include further industrial action.

Low fare offers by Air Malta, Ryanair

On Tuesday Air Malta and Ryanair introduced exceptionally good offers and at the same time took the opportunity to criticise each other's marketing strategy in a war of words.

Ryanair, Europe's largest low-cost airline, announced it will be offering 25,000 seats for free on Maltese routes, excluding taxes and charges, for one week, booking closing tomorrow. One can choose to travel between October 1 and February 7, 2008. Flights to the UK and Ireland are not covered by this special offer between October 19 and November 4.

Air Malta, on the other hand, announced that its clients could travel to one of three destinations for only Lm3/€6.99 (excluding taxes and fuel surcharge) one way. Last week's destinations were London (Stansted), Vienna and Hamburg. The offer is valid for travel between November 7 and December 19.

Economy 'gaining traction' - IMF

Malta's economy seems to be "gaining traction" following a prolonged period of weak performance, the International Monetary Fund (IMF) said on Friday.

These findings, based on a visit by a team of experts last February, come as the National Statistics Office published figures for the second quarter of this year putting real economic growth at 3.7 per cent over the previous year.

The upward economic turn was ignited by a public investment boom in 2005, which, in turn, was largely financed by EU grants, the IMF report points out. However, the economy is now gaining ground, even though the high trade deficit is singled out as worrying, particularly when laid against the background of a weak position in competitiveness.

The report considers a downturn in the real estate market as a potential risk to keep in check, along with rising interest rates and oil prices.

Improving tourist mobility in Valletta

The Valletta local council recently submitted an application for EU funding for 'Re-Moving Valletta: sustainable Tourism Through Mobility', a project that aims to improve tourist mobility in the capital by upgrading six major streets and creating five internodal pedestrian city links from the Marsamxett area to the Grand Harbour area.

Funding for the €1,600,000 (Lm686,880) project is being sought within the framework of the European Regional Development Fund under the Cohesion Policy 2007-2013 Operational Programme I.

"The project links the core area of Valletta to the outer areas of the city that are equally important, making of Valletta a true walking experience, as it should be," Valletta mayor Paul Borg Olivier told The Times last week.