Looking ahead with optimism

When Finance Minister Tonio Fenech read out this year's Budget speech in Parliament last Monday, I knew there would be no surprises for any of our social partners. The government promised full consultation with all stakeholders and that's what we did. For weeks we listened to every concern, took note of every suggestion and discussed all proposals put forward.

The fact that all social partners felt they had been seriously consulted before this year's Budget is a source of great satisfaction and a strong basis to build on in the coming years.

The worst global crisis since the 1930s led to drastic increases in deficits and in unemployment rates all over the world. With 22 million unemployed European citizens, most EU countries have experienced negative economic growth and the European Commission predicts EU that this trend will continue well into next year.

Although Malta has not been hit by the collapse of financial markets, its economy still felt the implications of the international economic crisis. Thanks to timely decisions and quick intervention, the government managed to save as many jobs as it possibly could and helped soften the impact and keep unemployment at a lower rate than in most EU countries.

The state of our economy and the need to create more jobs are high on the government's agenda. With this year's Budget, the government is acting boldly - to help revive our economy, to jumpstart job creation and to invest in areas like creativity, education, healthcare, tourism and infrastructure.

With this year's Budget, the government is making a clear statement in favour of our local councils. Last year, the financial allocation increased from €24m to €28m. This year it's up to €31.5m, providing councils with the necessary tools to deliver the best possible service. We're also encouraging them, through a special fund, to start engaging in public-private partnerships so as to resurface more of our residential roads.

For next year we have renewed the co-financing fund for councils to help them attract more funds from the EU and keep making a success out of membership. MEUSAC will continue assisting councils applying for EU funds with knowledge and expertise free of charge. A further €2m is being allocated for projects and special initiatives in our localities, ranging from making playing fields safer to having holding popular activities every week in one of our towns or villages.

Getting our economy back on track and creating more jobs are the government's top concerns. We're increasing the Malta Enterprise budget vote to €5.6m and the incentives budget vote to €9m.

We're investing €16m to upgrade five of our industrial zones and creating a reserve fund of €2.5m as assistance to industry. In 2010 and 2011, small enterprises and self-employed that have up to 10 members of staff will be able to benefit from a 40 per cent tax credit if they improve their facility or premises, invest in new technology and machinery, improve their level of operation or create new jobs. This tax credit is increased to 60 per cent for those operating in Gozo.

For all those cynical about how serious the government is about turning Gozo into an eco-island, this Budget eliminates any doubt with the allocation of €25m and 80 measures to be implemented over three years. We will be working on physical infrastructure for the treatment of solid waste in Gozo, the continuation of the Cittadella Master Plan and the promenade along Mgarr Harbour. We're also investing in new facilities at the Gozo General Hospital.

Let's be frank. Few of us thought government could come up with another Budget that does not introduce one single tax. Instead, we're allocating a staggering €270m for education; €36m to the Malta Tourism Authority; €3.3m to the Employment and Training Corporation and €43.7m for roadworks.

The government announced over 150 measures aimed at injecting enthusiasm into all sectors of our economy. There are measures ranging from incentives to employers who offer their staff childcare facilities to fiscal benefits for Maltese writers and scholarships in art studies.

We look ahead with optimism and enthusiasm, ready to confront the challenges without fear and confident that our hard work will pay off with the creation of more jobs, a prosperous economy and a better standard of living for all. I invite you to visit budget2010.gov.mt or call infoline 188 to see how this year's Budget affects you and your family.

Dr Said is Parliamentary Secretary for Public Dialogue and Information.