Students' stipends would be retained, because every cent cent in this area was a cent well spent, Prime Minister Lawrence Gonzi said.

Speaking at a meeting for PN supporters, a year after the general election, Dr Gonzi said that Malta was continuing to hold its own despite the difficult international economic climate. However the government had to be careful in every decision it took, not only to ensure that Malta remained on the right course, but also so that Malta could be stronger when the current circumstances lifted.

Malta's membership of the EU had been a crucial factor for the Maltese economy, Dr Gonzi said, but PL leader Joseph Muscat had not yet admitted his mistake when he campaigned strongly against EU membership.

Dr Gonzi went over the various reforms launched over the past year. He said that many of the dockyard workers who took early retirement had now found employment.

Meetings related to reforms at MEPA and local councils had now been concluded and the reforms would be discussed at Cabinet level.

Dr Gonzi said the EU decision to exempt Malta from VAT on food and medicines was a major achievement which countries like Cyprus, despite their strong efforts, had not been able to achieve. This showed that despite being small, Malta had a strong voice in the EU institutions.

He also spoke on the various incentives introduced by the government this year, including an income tax cut for the third year in a row and the removal of the departure tax.

He also urged the Opposition not to make a political football of illegal immigration.