Budget invests in technology research and innovation
The 2009 budget speech delivered on Monday by Finance Minister Tonio Fenech had the environment and our lifestyles as its top priority, and indeed very few words were spent regarding the information and communication technology sector. However Mr...
The 2009 budget speech delivered on Monday by Finance Minister Tonio Fenech had the environment and our lifestyles as its top priority, and indeed very few words were spent regarding the information and communication technology sector. However Mr Fenech mentioned some very important initiatives to boost the Maltese knowledge economy, especially research and development, in contrast to the scant reference in last year's budget speech.
Mr Fenech mentioned five schemes with an investment of €20 million to support enterprises. These include grants for research and development to the tune of €3.5 million, an "Innov Act" worth €9 million to support small and medium-sized companies to develop new processes, products and services, and an E-business Development Grant Scheme worth €2.5 million to support greater use of ICT in the operations of businesses.
Research and innovation, added Mr Fenech, will be further boosted with the investment of €15 million for the creation of a biotechnology park in the San Ġwann industrial estate. The government will also promote the repatriation of human capital with a scheme to bring back to Malta highly-skilled workers. IP (intellectual property) registration will also be used as a fiscal incentive.
However, the vote for the RTDI (Research Technological Development and Innovation) of the Malta Council for Science and Technology for 2009 is a mere €349,000 compared to €698,000 last year.
The budget speech makes just one very brief reference to SmartCity Malta, simply to note that after the official launch of the project in 2008, SmartCity Malta has already started negotiations with prospective clients and this "augurs very well for the first phase of the project".
In his speech Mr Fenech referred to the successful campaign to provide better internet access in the country and the purchase of computer hardware at lower costs. Thanks to investment in Malta's international submarine links next year SMEs will be in a better position to exploit this technology in their business, he added.
Mr Fenech also revealed that in 2009 government will announce plans for the provision of high-speed "fiber-to-the-home" internet access based on fiber-optic cables.
Following the launch of biometric passports this year, government intends to provide electronic passports as from next year, enabling citizens to "have access and control on data about them and who can use such data".
In terms of education and ICT, the budget for 2009 increases the vote to the University of Malta and allocates €1.5 million more for investment in research and the library. This will be added to the €50 million in grants obtained from the European Union which will be also used to build new science and technology labs.
Mcast will also benefit from added funding towards the building of a centre for multimedia learning, language labs and new computer systems.
The networking of state primary and secondary schools will continue with an investment of €16 million over the next few years. This will increase the average number of computers in every classroom from four to nine.
A reference to most of these initiatives was included in the pre-budget document issued earlier this year. For the first time this document had a full chapter dedicated to ICT and the so-called Smart Island strategy for ICT.
In its reporting on this document, i-Tech had mentioned how the budget speech could include "new e-laws, the next-generation fast internet access, new ICT training programmes, the completion of the e-health strategy, the launch of an e-mall, e-passports and smart ID cards for everyone, and online access to all government services by 2010."
Two initiatives that were mentioned in the pre-budget document but did not make it into the budget speech are the launch of so-called e-laws aimed at establishing a "world-class" legislative framework which enables the largest extent of secure application of ICTs in our society and economy, and the creation of a public-private partnership to deploy the "Malta e-Mall", a low-cost online mall aimed at enabling micro-businesses to participate in e-commerce activity and make use of common shared supply chain facilities.
The vote for the Ministry for Infrastructure, Transport and Communication caters for the ever-changing and developing ICT landscape in the country. The newly-formed Malta Information Technology Agency (Mita), which will absorb MITTS, has been allocated nearly €5.4 million. The leasing of personal computers in the public sector will cost €5.82 million next year. The National Identity Management System (NIDMS) will be allotted €6.6 million next year, up from €2.3 in 2008, to serve all public and private sector requirements for physical and virtual identity registration, authentication and verification. This is another initiative mentioned in the Smart Island ICT strategy for 2008-2010.
The revenues from activities related to technology and communications are set to increase next year.
The fees for rights of use related to licence in the communication industries are set to increase from €7.75 million to an estimated €9 million next year. On the other hand, the excise tax on mobile telephony services, introduced in the budget speech for 2005, is expected to bring into the coffers only €2.7 million, down from €3 million this year.
Once again internet served as an important means of communication for government. The website of the Ministry of Finance at www.mfin.gov.mt and the website wholly dedicated to the Budget 2009 at http://www.budget2009.com.mt carried all the relevant documents and the latter acted as a contact point between the ministry and the public.
Mr Fenech mentioned five schemes with an investment of €20 million to support enterprises. These include grants for research and development to the tune of €3.5 million, an "Innov Act" worth €9 million to support small and medium-sized companies to develop new processes, products and services, and an E-business Development Grant Scheme worth €2.5 million to support greater use of ICT in the operations of businesses.
Research and innovation, added Mr Fenech, will be further boosted with the investment of €15 million for the creation of a biotechnology park in the San Ġwann industrial estate. The government will also promote the repatriation of human capital with a scheme to bring back to Malta highly-skilled workers. IP (intellectual property) registration will also be used as a fiscal incentive.
However, the vote for the RTDI (Research Technological Development and Innovation) of the Malta Council for Science and Technology for 2009 is a mere €349,000 compared to €698,000 last year.
The budget speech makes just one very brief reference to SmartCity Malta, simply to note that after the official launch of the project in 2008, SmartCity Malta has already started negotiations with prospective clients and this "augurs very well for the first phase of the project".
In his speech Mr Fenech referred to the successful campaign to provide better internet access in the country and the purchase of computer hardware at lower costs. Thanks to investment in Malta's international submarine links next year SMEs will be in a better position to exploit this technology in their business, he added.
Mr Fenech also revealed that in 2009 government will announce plans for the provision of high-speed "fiber-to-the-home" internet access based on fiber-optic cables.
Following the launch of biometric passports this year, government intends to provide electronic passports as from next year, enabling citizens to "have access and control on data about them and who can use such data".
In terms of education and ICT, the budget for 2009 increases the vote to the University of Malta and allocates €1.5 million more for investment in research and the library. This will be added to the €50 million in grants obtained from the European Union which will be also used to build new science and technology labs.
Mcast will also benefit from added funding towards the building of a centre for multimedia learning, language labs and new computer systems.
The networking of state primary and secondary schools will continue with an investment of €16 million over the next few years. This will increase the average number of computers in every classroom from four to nine.
A reference to most of these initiatives was included in the pre-budget document issued earlier this year. For the first time this document had a full chapter dedicated to ICT and the so-called Smart Island strategy for ICT.
In its reporting on this document, i-Tech had mentioned how the budget speech could include "new e-laws, the next-generation fast internet access, new ICT training programmes, the completion of the e-health strategy, the launch of an e-mall, e-passports and smart ID cards for everyone, and online access to all government services by 2010."
Two initiatives that were mentioned in the pre-budget document but did not make it into the budget speech are the launch of so-called e-laws aimed at establishing a "world-class" legislative framework which enables the largest extent of secure application of ICTs in our society and economy, and the creation of a public-private partnership to deploy the "Malta e-Mall", a low-cost online mall aimed at enabling micro-businesses to participate in e-commerce activity and make use of common shared supply chain facilities.
The vote for the Ministry for Infrastructure, Transport and Communication caters for the ever-changing and developing ICT landscape in the country. The newly-formed Malta Information Technology Agency (Mita), which will absorb MITTS, has been allocated nearly €5.4 million. The leasing of personal computers in the public sector will cost €5.82 million next year. The National Identity Management System (NIDMS) will be allotted €6.6 million next year, up from €2.3 in 2008, to serve all public and private sector requirements for physical and virtual identity registration, authentication and verification. This is another initiative mentioned in the Smart Island ICT strategy for 2008-2010.
The revenues from activities related to technology and communications are set to increase next year.
The fees for rights of use related to licence in the communication industries are set to increase from €7.75 million to an estimated €9 million next year. On the other hand, the excise tax on mobile telephony services, introduced in the budget speech for 2005, is expected to bring into the coffers only €2.7 million, down from €3 million this year.
Once again internet served as an important means of communication for government. The website of the Ministry of Finance at www.mfin.gov.mt and the website wholly dedicated to the Budget 2009 at http://www.budget2009.com.mt carried all the relevant documents and the latter acted as a contact point between the ministry and the public.