Budget will not be an easy one, but outlook is positive - Gonzi

Prime Minister Lawrence Gonzi said today that tomorrow's will not be an easy Budget.

"It will not be an easy Budget, the past two Budgets have been the most difficult since I became Prime Minister - this year will be harder than last year's. Last year we were able to reduce taxes and introduce new schemes. This year, however, the Budget will be presented after a year of financial and economic storms all over the world. We are doing our best to present the best response, and I am confident that through our decisions, our country will make progress," Dr Gonzi said in a Radio 101 interview.

The Budget , Dr Gonzi told interviewer Ruth Amaira would be a Budget that responded to current realities.

"Let us not present a picture which does not reflect realities - a Budget which is too rosy or too gloomy. We have passed through difficult times and we are still in rough waters, but thanks to the decisions we took, the blow we have suffered was not as hard as that suffered by other countries."

Dr Gonzi said there was no denying that some people had lost their jobs, their part-time work or overtime. The Budget , therefore, had to be an instrument which safeguarded jobs and competitiveness. It also had to ensure that every government cent was used on priority areas. Waste had to be eliminated while social welfare should be addressed to families in need.

"I want families to take courage. Let us not be disheartened. While there are still clouds on the horizon, the difficulties of others could be an opportunity for us. I am positive about next year and the EU itself has over the past days given a more positive assessment of the Maltese countries than other countries," Dr Gonzi said.

Dr Gonzi said the country had to provide the necessary assistance for industry and tourism to remain competitive.

POWER TARIFFS

Dr Gonzi said international oil prices had risen more than they were in October last year and it was inevitable that local tariffs had to be reviewed.

The people now knew, he said, that this government reduced the tariffs when oil prices went down, as it did in March last year.

The government was seeking to cushion the blow for the people and it would see how it could improve the energy benefit.

The real secret, however, was to make better use of electricity. To this end, the government had distributed energy saving bulbs for free and would see how such schemes could be extended.

He regretted that generous assistance give last year for the purchase of solar water heaters had only been taken up by some 2,500 households, when the target was of some 4,000.

He looked forward to the installation of the Smart meters and said that would stop the theft of electricity and end the issue of bills based on estimates. Furthermore, Enemalta would then be able to introduce tariffs based on demand, such as lower tariffs for night use.

He said the government was considering longer-period stability in local energy prices and was considering advice from experts. However, he warned, that this was risky in that once prices were fixed, they could now be revised downwards if oil prices dropped.

HEALTH SERVICES

Dr Gonzi said he had recently had meetings with Social Policy John Dalli and Parliamentary Secretary Joseph Cassar on health services reform, particularly aimed at easing pressure on hospital services and primary health care.

Dr Gonzi said waiting lists were being reduced, with substantial progress in areas such as orthopaedics. However problems remained in many areas, and there were also problems regarding waiting time at the Casualty Department.

The government was ready to hear the views of the doctors on health reform.

The government, he said, wanted to make the best use of technology to ease pressure, such as making hospital records available to GPs.

Talks were also being held for joint services with private hospitals.

On medicines, Dr Gonzi said the government could not afford to give for free all the new medicines that were issued, and one should therefore by careful on the choice of medicines.

In the health service, there could not be rich and poor, he said.