A responsible budget

I must admit that I got slightly caught up in the gloomy forecasts for this year's budget over the past weeks. Somewhere between listening to fellow MEPs moaning about their woes back home while in Brussels and reading too many negative predictions on our rock, I found it hard to imagine the frightening prospect of being in our Finance Minister's shoes.

Yet, the budget that was presented last Monday provided a response to, rather than evading, the challenges that lie ahead of us. It has rightly been built on three central values, being those of responsibility, sustainability and solidarity.

It is responsible because it deals with our economy within the paradigms that have developed on the international economic front. It is pertinent to note the government's intention to prolong its quest for a balanced budget by a year in this sense. This decision provides ample proof of the Finance Minister's ability to listen attentively to the voice of the social partners.

The budget does not only seek to address the needs of the coming year, choosing rather to aim further at long-term sustainable development. Many of the measures taken attempt to reap results in the medium term, leading us up to the government's Vision 2015.

Thirdly, however, government solidarity shines through the myriad of opportunities that have been presented with a social conscience.

With the international financial picture being what it is, the government has attempted to use the budget to take prudent and pro-active steps towards maintaining the stability of our economy. Wrapping last Monday's offerings in medium-term investment programmes, the Finance Minister has responsibly attempted to direct ideas and funds at enhancing our most vulnerable sectoral pockets, such as small and medium enterprises and tourism.

In this respect, the measures directed at SMEs are particularly interesting. Starting from the embryonic phase, the government's decision to enhance the Corradino Business Incubation Centre is essential for the birth of new ideas and, thus, businesses (the incubation centre offers high-quality facilities to new enterprises). This investment dovetails with the Bio-Technology Park initiative, which aims to become a centre for research and innovation on our islands.

The €15 million afforded to the new Bio-Technology Park will be boosted even further with the R&D grant scheme of €3.5 million, which shall be offered by Malta Enterprise. All these measures will be supported by the government's plan to advance more money in helping local businesses to develop new markets abroad; investing in new markets will help to balance out the decline in international demand in present markets.

The government's direction towards SMEs is therefore indicative of the wider intention of the budget being that of responsibly targeting vital sectors in our economy and stimulating them to champion, rather than weather, the storms ahead.

As with the government's target to promote Maltese enterprises more heavily abroad, last Monday's budget allocates a larger portion of funding to the Malta Tourism Authority, raising the total figure by €3.5 million to €26 million in the coming year. Once again, the investment in the marketing of our islands is not a one-off sweetener to maintain incoming visitors. Rather, it must be viewed in light of the huge budget of €120 million that shall be afforded to the sector over the next four years in the form of capital projects, including the embellishment of St Paul's Bay, Qawra and Sliema. Furthermore, it serves to send a message that the government believes in the potential of the tourism sector and the employment and economic growth it generates.

This budget can therefore be known as a responsible budget, not only due to the measures already mentioned but also due to the importance this budget has given to the environment.

This was an electoral promise that is being tackled with consciousness and vigor. One can boldly state that there has never been a budget that gave so much importance to our environment. This budget epitomises the government's stance on our country's and, ultimately, our well being.

Suffice to say that a total of €30 million are allocated for alternative energy projects. Although we have already started utilising alternative energy methods, these investments will surely boost the sector to the unprecedented levels we vied for. One must also mention the €130 million investment to produce energy from wind off Is-Sikka l-Bajda.

Economic incentives for sustainable development have taken centre stage in this budget and, together with the other important measures that deal indirectly or, many a time, directly with the environment, this budget has placed the environment at the forefront of our concerns that need to be tackled. That is why this is a responsible budget, in the midst of the prevailing worldwide economic situation. Responsibility, for me you and the environment, is the way forward.

Mr Casa is a Nationalist member of the European Parliament.

david@davidcasa.eu, www.davidcasa.eu