Businesses in Gozo require a new lease of life to balance out the island ’s double insularity, so they want the government to discriminate positively in their regard.
Representatives of the Gozo Business Chamber and the Gozo Tourism Association explained the difficulties their sectors faced and asked for tailor-made measures for Gozitan enterprises, such as specific European funds and a more favourable licensing regime.
Addressing a business breakfast organised as part of the Budget 2012 consultation process, they mentioned a long wishlist to give Gozo business the much-needed boost.
But Finance Minister Tonio Fenech said many initiatives were undertaken in Gozo, with more than half the 80 Eco-Gozo proposals – together amounting to an investment of €25 million – either initiated or completed.
He said the country could not afford to lose sight of its primary objective, reducing the deficit further by one per cent, something which involved a saving of €60 million, while Air Malta would require between €30 million and €40 million in financing next year.
He did not explain the spending on Air Malta, which was lent €50 million earlier this year. Talks on the restructuring of the airline are currently under way with the European Commission.
Gozo Business Chamber president Joe Grech said the island’s double insularity, compounded by the lack of foreign investment, was “stifling” economic growth in Gozo .
He said the park for small businesses the government was planning to build was not big enough to accommodate the large number of small and medium-sized businesses in Gozo.
Malta Enterprise had been shown a site for an expansion, which could also include a parking area for trailers, but the idea had been shot down because of the capital expenditure involved, he said.
The chamber said it wanted funds to set up a workshop for Gozitan traditional crafts, a business incubator at the Gozo university centre and a study to identify other sites for new yacht marinas, berthing facilities for cruise liners and for a shiprepair facility.
Regarding the construction industry in Gozo and vacant properties, Mr Grech called for a one-time concession to waive duty on property purchases.
Joe Muscat from the Gozo Tourism Association called for specific measures to enhance tourism in Gozo, including an overhaul of the licensing regime to factor in the seasonality pro-blem and a special VAT rate for Gozo accommodation.
He called for Gozo Channel schemes and special offers to entice domestic tourism and the possibility of a check-in facility at the Mġarr terminal for whoever is going abroad.
Mr Muscat said that although there was a study currently under way on a tunnel to link the two islands, the airstrip idea should not be shelved.
In his presentation, Mr Fenech gave a detailed overview of the economy and results achieved so far. He said the government’s strategy to reduce the deficit was three-pronged: increasing economic activity, continued investment in education and fiscal prudence.