Budget measures depend on tourism performance - PM

The performance of the tourism industry this summer would be a determining factor on whether the budget for 2010 would introduce new burdens, Prime Minister Lawrence Gonzi said yesterday.

Interviewed on Radio 101, Dr Gonzi said if the tourism sector performed in the same way as in 2007, the government might be able to cut spending rather than impose new laws. "We need to come up with a formula that leaves our country competitive," he said.

Although he said that in the budget for next year the government would try not to introduce new burdens on families, Dr Gonzi said it was still too early to make any commitments and much depended on this summer's tourism levels.

In an interview recorded on Friday afternoon and aired yesterday, Dr Gonzi ruled out a Cabinet reshuffle for the time being, saying he wanted more time to see how things developed.

The Prime Minister said he wanted to give the new model of a smaller Cabinet, which he had promised before last year's general election, more time to work. Yet, he added, this legislature still had four years to go and so he reserved the right to make any changes.

"I remain committed from morning to evening to move the country forward," he said.

After last month's defeat in the MEP elections, Dr Gonzi was non-committal on the possibility of reshuffling his Cabinet, saying a reshuffle was one of the few privileges a Prime Minister had. That was his prerogative and he would only decide to make changes only if it was in the best interest of the country.

Dr Gonzi said yesterday he wanted to ensure that Malta was stronger and better by the end of the legislature despite international problems that were also impacting on Malta, including the spiralling oil and cereal prices, which dealt a blow to the island.

He admitted that the government could have explained better the new water and electricity rates, which were introduced amidst controversy last year. He said the country was affected by what was happening in the rest of the world, including the increase in oil prices.

Speaking about reforms, Dr Gonzi said this week the government was expected to unveil the details of the Malta Environment and Planning Authority reform following 14 months of consultation. It was unacceptable for some applicants to have to wait years before getting a reply, adding that Mepa's decisions needed to be accountable and consistent. He said policies that were wrong would need to be changed.

Talks about the public transport reform were still ongoing. While he understood the anger of bus owners, he was in duty-bound to listen to commuters who have been waiting for a better service for years, paying millions of euros in taxes to modernise the fleet.

Referring to SmartCity, Dr Gonzi denied that there were any changes or problems with the multi-million euro project. He said the final documents were being prepared for the various stages of the project.

Dr Gonzi said the secret behind the plans for Valletta, unveiled by world-renowned architect Renzo Piano last month, was that the Presidential Palace would be freed from Parliament and offices and could house specialised museums. While the government had a right to terminate the leases for shops in City Gate it would try to find alternative sites for them, Dr Gonzi said.