Prime Minister Lawrence Gonzi told a business breakfast today that the government wanted to see the financial services industry account for a quarter of GDP.

He told an audience composed mostly of financial practitioners that the target of achieving a budget surplus by 2010 would be one of the priorities of the new administration because that not only meant a stronger economy, but it also signalled reassurance to investors.

Dr Gonzi said the PN was going into this election with a track record of economic success, and it had the best plans to maintain economic growth even as uncertainties loomed in the global economy. It was with this in mind that the PN had proposed further cuts in income tax.

Dr Gonzi said Malta needed to make the best of its available human resources. The government had already introduced measures to encourage those aged over 61 to continue working, without losing their pension. It was also encouraging more young people to continue their studies beyond secondary school, so that investors could find the trained workforce they needed. At the same time, the PN had announced more measures for women to continue to work, including tax breaks.

Dr Gonzi referred to comments by Dr Sant which indicated that achieving a budget surplus would not be an MLP priority. Dr Gonzi said this would be disastrous to Malta’s image and harmful for investment and the economy.