Budget Live: A plan to face the surrounding turbulence

Finance Minister Tonio Fenech is this evening presenting the Budget for 2012, an exercise which he has said, is focused on job creation and consolidating economic growth. The following is a live account of proceedings. Viewers can also view live video streaming of the speech at http://www.timesofmalta.com/livestream/index/560/340 in the Budget section:

9.01 p.m. - This is the plan we drew up to help us face the turbulence that surrounds us.
This Budget, which I have presented before the House in the name of the Government this evening, can be summarised in the following five main goals:
* We must ensure our country’s stability;
* we must safeguard and increase jobs for our workers;
* we want our children and our people to develop all their skills;
* we must embellish and protect our country’s environment;
* we must protect our families and vulnerable people.
In all this, we have chosen to be cautious, focussed, disciplined and responsible. We should not take apart what our people have built. We have chosen to do what is right and what our country needs.
Together with these values, we are guided by the strong trust which we have in our people and in our country.
Yes Mr Speaker, the Maltese are an able people, an industrious people and a diligent people. We believe in our people, and we believe in our country.

This budget provides the strong leadership which our country needs in order to face every challenge that we encounter. The Government is sure that with diligence and responsibility we will overcome the adversity which the world is facing.

9 p.m. - In this budget we will continue to invest in and further equip the Police Force. For us, the fight against crime and illegal activity remains a priority and, although we have seen better control of and stronger action against crime, the Police Force remains in continuous need of more instruments. Therefore, as has already been done in previous years, we will ensure that even this year the Force will continue being equipped with new and modern equipment, new vehicles and technologically advanced tools which help directly in the fight against crime.
The continuation of the building of the new Police Academy remains a priority. The training of the members and recruits being admitted every year remains of vital and determining importance. This will continue ensuring a greater success in an ever-changing world in which criminal organisations do not only operate in one country, but in a number of different
countries simultaneously. The capital vote for the construction of the Police Academy will increase by 600,000 euro.

8.59 p.m. - Dementia is a condition that is afflicting an increasing number of elderly people. That is why our country now has a national dementia strategy. This strategy gave rise to a number of important initiatives, among which:
• A new block at St Vincent de Paule with dementia friendly wards;
• Training for workers and carers working in areas related to dementia;
• Day Respite for patients in the community suffering from dementia;
• Services from the memory clinic at the Karen Grech Hospital for people suffering from dementia;
• A helpline for use by the public, with the collaboration of the Malta Dementia Society; and
• The publication of an educational children’s book about dementia affecting relatives.
Government is committed to keep providing care, and to help those suffering from this condition. We are allocating 200,000 euro in order that medicines for the treatment of dementia can be provided for free.

8.58 p.m. - The demand for more accommodation is continuously increasing in the area of the care of the elderly. As announced, Zammit Clapp Hospital will start to operate as a nursing home, and the necessary work is being carried out.
Following the investment made in John Paul II Block of the St Vincent de Paule Residence, which currently accommodates 144 residents, a works programme for the refurbishment of other wards will continue next year.
Government has also earmarked land in Birkirkara for the construction of a new residence for the elderly, based on the same lines as the residence for the elderly in Mellieħa. The required application process with MEPA will commence with immediate effect.
Additionally, we have continued purchasing a number of beds from the private sector so as to increase the number of places for elderly people who require this service.
After launching the Night Shelter pilot project in Żejtun, we also extended this service to Mellieħa, and discussions are currently being held with Church entities and Local Councils with the aim of opening other Night Shelters in other localities.
We will continue to invest in Day Care Centres for the elderly. This year we opened new centres in Mellieħa and Msida. So far, we have 18 centres around Malta, in which 1,500 elderly people participate on a regular basis. For next year, we are allocating118,000 euro to open two other centres.

8.54 p.m. - It was the elderly who built the quality of life which we enjoy today, and society has the duty to ensure, in every possible way, that the elderly remain at the core of Maltese society. The Government has adopted a policy to incentivise active participation in all sectors of society. Currently, thousands of elderly persons remain in employment without losing revenue from their pensions. Hundreds of elderly people contribute in no small measure to parishes, Local Councils, voluntary organisations and public boards. The subsidised public transport service, which is spread throughout Malta and Gozo, is allowing the elderly to gain access to all cities and villages. The elderly are, above all, a large resource. We should look at the ever-growing number of elderly persons not only as a challenge, but also as an opportunity.
Government policy in this sector translates into all measures which increase participation of the elderly in all sectors of Maltese society, and includes special initiatives for elderly persons requiring most support. This policy is set to continue being strengthened even through the following measures:
1. Once again this year, pensioners will be given the full cost of living increase.
2. Age presents elderly people who wish to keep living an independent life in their own homes with difficult challenges. In order to help elderly people live independent lives in their own homes, we are giving a new €300 a year grant to every elderly person over 80 living in their own home or with their family. This initiative will cost 3.5 million euro, and will benefit nearly 12,000 elderly persons. Therefore, through this
grant and the full cost of living increase, every elderly person over 80 will receive an increase of over €10 a week.
3. VAT on private nursing and home help offered by the private sector to the elderly in their private homes will be removed as from the 1st of January 2012.
4. A few years ago we introduced an income tax exemption for relatives of elderly people helping their parents live in private nursing homes. As from next year, this initiative will be increased by 500 euro to 2,500 euro.
5. We will build on what we did in previous years regarding service pensions, and we will extend this measure by a further €200. The total cost is of one million euro; and
6. The elderly and persons who are tax exempt and who pay 15 percent withholding tax will start receiving refunds of tax paid without completing a tax form.

8.51 p.m. - Malta has top quality primary care services thanks to the family doctor. This is a private service, through which Maltese families receive the service of a doctor in the comfort of their own homes. Little do we appreciate the value of this service. The Government is determined to strengthen the services given at Health Centres in a manner which complements the private service of the family doctor.
For this purpose, a number of Health Centres are being refurbished so that that the family doctor will be able to find in the Health Centres those services which can help him offer the best service to Maltese and Gozitan families.
In health promotion, besides a number of educational and informational campaigns addressing our need to take care of our health, a national sexual health policy was launched. Next year we will launch a strategy for obesity prevention for all ages.

The mental health sector will make huge progress as a result of the Mental Health Act, which passed the first reading stage in Parliament a few weeks ago. During the last three years, we have continued to extend mental health community care and today we have around 130 professionals working in the
community in this sector. We have extended the services to 40 localities and three new day centres have been inaugurated in Żejtun, Paola, and Floriana so that we now have five day centres for mental health care in Paola, Kirkop and Floriana.
These services, together with other services, are providing help so that fewer people need enter Mount Carmel Hospital, and when they do, the time for which they are kept in this hospital has been reduced considerably.
For the coming year, we are allocating 450,00 euro so that the service will continue to extend in the community, and so that we will be able to open another day centre and clinic in Gżira. We also intend to extend this service to Mosta, Rabat, and Birkirkara.
A number of flats are being allocated for the supportive housing scheme through the Housing Authority. Such flats may accommodate a number of patients who leave Mount Carmel Hospital.
Furthermore, after the establishment of the Crisis Intervention Team this year, a number of crisis interventions in cases related to mental health problems have taken place. In the coming year, we will continue to strengthen this service and we are thus allocating 100,000 euro.
We will also establish a new service aimed towards adolescents suffering from mental health problems so that they will also be given community care.

8.48 p.m. - A major goal in the health sector is the increase in operations, as well as a reduction in the waiting lists for operations. This is a major challenge. The results we are attaining are evidence that the Government and all the health care employees’ efforts are reaping the desired results.
32,764 operations were carried out in the last full year in which St. Luke’s hospital was operational. In 2010, 41,795 operations were carried out, which means an increase of 9,031 operations. The indications for this year show that this year will be even better.
Naturally, we will not stop here. We have reached an agreement with the private sector, particularly on PET scans, operations such as cataract operations and others, so as to continue decreasing the waiting time. In the coming year, we will also focus on hip replacement operations.
Today we are carrying out operations of the highest level at Mater Dei Hospital. We have professionals who are making Mater Dei Hospital a hospital of such high quality that it is able to compete with the best hospitals in Europe. We are entering into agreements with consultants who work in some of the best hospitals in Europe for them to offer their services in our hospital. This will enable us to extend the number of services that we offer in our hospitals. I must also mention the Foundation Programme through which Maltese doctors are opting to further their studies in Malta, while foreign doctors are coming to study in our country.

In the medicines sector, we are making a reform of the fifth and second schedules so that hundreds of persons who suffer from chronic conditions, and who so far have no assistance in buying their medicines, will now start benefiting from a number of free medicines.
We will continue to extend the Pharmacy of Your Choice scheme. A few days ago, we added 15 new pharmacies in the South of Malta to the scheme which are together providing
services to another 4,000 persons. This means that 60,000 persons will be served from 129 pharmacies of their choice.

8.45 p.m. - In Malta, the health sector is a source of support for Maltese families. Anyone who requires public health services is aware of what this entails. These services, together with those offered by the family doctor in our homes and by other private operators, are part of the foundations which protect our country’s social fabric.
Everybody is able to notice the investment made in the health sector. Every family is aware of someone who has benefited from this investment. We want the best health service for Maltese and Gozitan families.
Expenditure in this sector is on the increase. For the coming year, we are allocating 37.6 million euro more than this year’s allocation, for a total expenditure of 415.9 million euro.

We have established cancer treatment as being a primary priority. This is an illness which is affecting all our families and we need a national effort to combat it.
The National Cancer Plan strategy focuses on the patients’ needs as well as on their families’ needs. This Plan has the aim of reducing the incidence of cancer, and of ensuring a better quality of life for patients by offering services of a higher level.
The national Breast Screening program is now in its fourth year. This Program is leading to the early identification of breast cancer with positive results.
Next year, we will make another major step forward through a colorectal screening program. This new Program is meant to identify cancer in its earliest stage so as to avoid related deaths. The construction of an Oncology Centre at Mater Dei Hospital has commenced, which will cater for 74 patients as in-patients and 22 more patients in day care. This Centre should start receiving its first patients in mid-2013.
Until this new Centre is completed, we have continued to improve the services at Sir Paul Boffa Hospital. During this year, we have inaugurated a palliative care ward and we have extended palliative care services in the community. We have invested in the building of a new bunker and in a new linear accelerator. This equipment started being used in the past weeks with huge benefits for patients and employees alike.

8.41 p.m. - In the housing sector, Government policy promotes that everyone becomes a home-owner. Where this is impossible it helps vulnerable persons to have a decent residence. We believe that there is a wider role for the private sector in the provision of rented accommodation.
The Housing Authority offers various schemes that help families in need to improve the conditions of their residence. It offers other schemes which give a rental subsidy to whoever rents from the private sector, schemes for first-time buyers, or for those who need to rent an alternative place from Government. Since 2008 we have renovated more than 1,800 residences for an investment of four million euro through renovation schemes.
The Authority also gives subsidies on rentals from the private sector. From this scheme of around a million euro a year, about 1,200 families benefit every year. Now we are taking another step. The Housing Authority will permit home-owners to register with the Authority a property which they wish to rent, according to certain conditions laid down by the Authority itself, to the families which qualify for the rental subsidy. The rentals registered under this scheme will benefit from a preferential rate for final withholding tax on rental income of 10 per cent. Thus we will strengthen the scheme which the
Authority already implements while giving additional peace of mind to the owners as well as to the tenants.
We will keep working on initiatives which offer assistance to first-time buyers by, among others, easing the payment of loans for buying. Assistance is also being given for the building, renovation and continuation of the first residence. The latter is always popular, with an average of 350 applications a year, and an expenditure of 3.5 million euro these past 4 years.

The Government will continue to help families become home owners.
During this year, we have started a process to pay the original land owners whose lands had been expropriated in the seventies and eighties and which lands were used for the building of homes under the Home Ownership Schemes. By an investment of five million euro over the last two years, around 500 families became home owners after more than 30 years since the promise of sale had been entered into.
It is now time for a further step forward.
It is calculated that there are around 3,000 families who are not home owners since they live in accommodation built by the Government over land expropriated after the War under a title of possession and use.
The Government cares about these families, as it cares about the families of the heirs of the original owners of the buildings which had been demolished during the war.
For this reason, we are allocating 1.8 million so that the Lands Department capitalises on the acquisition rent which has been paid over the last decades. We have around 2,800 residences in Valletta and Cottonera, and we will give the possibility to the families living inside them to purchase the properties in which they reside.

8.40 p.m. - This is the European year dedicated to the voluntary sector. I am happy to say that in Malta we have an impressive number of voluntary organizations which are offering various services to our communities in the social, environmental, educational and sports sectors, among others. Certainly various voluntary organizations manage to help vulnerable persons and families when the State alone does not manage.
In 1994 Government had set up a Fund to continue supporting these organisations in their commendable work as part of the social inclusion strategy. Since their setting up, more than 26 million euro in financial assistance have been given to this important sector, which resulted in assistance to thousands of vulnerable families and persons.
We must continue strengthening this sector. Therefore, after we had allocated 2.4 million euro to this Fund this year, we are proposing an increase of half a million euro for next year.

8.37 p.m. - As we did in the previous budget, each benefit will increase by the COLA amount. Thus, 112,000 beneficiaries will benefit from a higher benefit rate. This also applies for the benefit means test and non-contributory benefits, among them supplementary assistance, the energy benefit, and the pink card.
We are doing this so that no benefits are lost, particularly for pensioners who, because of the pension increase, will lose the sickness benefit.
Meanwhile, we intensified our commitment to reduce the abuse of social benefits. Since we established the Benefit Fraud and Investigation Department, more than 4,340 cases of undue benefits were discovered. We estimate that through this commitment our country could invest 21.2 million euro in what is really needed by Maltese and Gozitan families.

Five years ago we decided that a widower or widow who remarries will remain entitled to a fixed rate of the widow’s or widower’s pension for the first five years after remarrying. We feel that the five-year limit should be increased by a year, each year, from now on. Thus, a widower or widow who remained entitled to a fixed rate of the widow’s or widower’s pension after remarrying will not lose this pension after having been remarried for more than five years.

We have made big advances in the disability sector. We also realise that equally big challenges are left, mostly in the sector of the training and employment of severely disabled persons as well as in a support service for those disabled persons who cannot live with their families any longer.
Besides the increase in assistance to various voluntary associations in this sector, our commitment towards this sector will continue with these measures:
1. As from next year, disabled persons who receive a severe disability pension will be able to work and earn up to the minimum wage without losing any of their pension. The severe disability pension must not serve as a disincentive to work but should cover a few of the expenses connected to the disability;
2. For the past five years, when a person who received a severe disability pension got married, he/she did not lose the pension because of his/her wife’s/husband’s income for the first five years of marriage. Now we will remove the limit so that a severely disabled person who gets married never loses his/her pension because of his/her wife’s/husband’s income;
3. We will also increase the allocation to the agency SAPPORT for it to open a new branch in Pembroke, where disabled persons will be given more training and work experiences. We will also remain committed to help in the running of residential homes, for example Dar Pirotta, and now also Dar il-Wens and Dar l-Arka; and
4. At present, the National Commission for Disabled Persons is finalising a report about the development which is needed in our country for severely disabled persons to have the required support not to become institutionalised. For this sector to carry out the necessary developments, the Government is allocating the sum of two million euro over a five-year period, with this year’s sum being 400,000 euro.

8.36 p.m. - The family is the core of our society. What the family gives cannot be given by anyone else. Our job is to sustain families in order for them to give their best to their children and to the
other family members. The responsibility, the professionalism, and the determination we have used allow us to carry on with our commitment to Maltese and Gozitan families.
In this budget, we are proposing to increase the direct aid granted to families with children as well as to the most vulnerable senior citizens who worked so hard to build our country. We are also proposing a number of social measures which will keep nurturing the web of solidarity which protects those Maltese and Gozitans who are most in need.
That is why the expenditure in the social sector out of National Funds this year went up to 989.2 million euro. Thus far in this Budget we are proposing to increase this expenditure by 37.9 million to 1.02 billon euro.

Government recognises the need to sustain our families, mostly in the strong contribution they give to society when raising children. Therefore we are increasing the Children’s Allowance minimum rate by €100 to €350 a year for each child. This represents an investment of 2.8 million euro.

As from next year we will remove television licences and thus we will implement an electoral promise. Justice requires that those with an outstanding unpaid licence be asked to regularise their position, and a scheme will be implemented for them to be able to do this and thus avoid paying additional fines. The removal of this licence will leave around four million euro in our families’ pockets.

8.29 p.m. - We set up the Youth Agency which is ensuring that young people’s perspectives are integrated into each aspect of the National Policy. This Agency also administers the National Empowerment Programme which gives youths the opportunity to develop their skills and talents through non-formal education. During next year we will continue to invest in the operation of this Agency.
Mr. Speaker
A good number of Maltese and Gozitan youths experience and learn music in our traditional bands. Because it recognised the important role these Societies play in the development of youths, in its Electoral Programme this Government promised to set up a scheme offering financial assistance to band clubs to help them in musical training and teaching of youths. This promise will be implemented next year, and we are allocating 100,000 euro for it.

During this year we gave 5.5 million euro in assistance to sports associations. We implemented a number of new schemes, we extended the 20/20 scheme to the private sector, and we also implemented a scheme to allow national and quality athletes to join the Armed Forces under an ad hoc programme which allows them to spend a number of hours from their working day training in their sporting discipline.
We also implemented a scheme of Allowances for the Purchase of Sports Equipment under which sports organisations were refunded 15.25 per cent of their expenditure on this equipment bought for use in the training of their athletes, and we again
issued the scheme for the donation of 15.25 per cent of the sale price of bicycles, with the latter benefiting around 900 persons.
We also carried on with the Sports Tourism scheme to incentivise the creation of a niche in this sector to attract tourists to our country. In this way sports contributes to the country’s economy, while helping sporting activity to become more sustainable. In 2010 this scheme attracted to our country tourists who used 41,000 bed nights, almost double what we had in 2009. We estimate that by the end of this year more than 70,000 bed nights will have been used by tourists under this scheme. For next year, we are allocating 350,000 euro to continue attracting more sports tourism.
We also strengthened the scheme for Sports Initiatives for Local Councils so as to increase the sports culture in communities. This year 29 Local Councils participated and they organised various sporting and physical education activities in their localities.

We have reached another quality leap so that sports will continue establishing itself in Maltese culture. As from the next academic year, we will establish a specialised secondary school for sport. This school will be attended by female and male athletes who, while being given academic training in all subjects, will also have enough time to train in their respective sporting discipline, even during school hours. Besides this, they will have the opportunity to learn academic subjects related to sport. Thus, we will be addressing a gap we have had up to now in the sports sector, where promising athletes lose their physical and sporting development because of a lack of time for
training during their secondary school years. For this project to begin as planned, we are allocating 100,000 euro.
We are also allocating 120,000 euro for scholarships in the sports sector so that those who show promise and who are up to it can continue investing in their sporting skills even abroad.
We are allocating 350,000 euro for the Maltese Council for Sports and Transport Malta so they can work with representatives of motorsport enthusiasts to help in the development of an adequate circuit for training and competitions connected to karting, mini motos, quad bikes, motards, scooters, as well as for the tuning of vehicles which participate in hill climbs.

Our children and young people are full of potential and we have the duty to invest in them so that they can develop. That is what we have done these past years in various fields: in education, in youth work, in the teaching of the arts, as well as in sports. The positive results which are being achieved fill us with the determination to carry on.

8.21 p.m. - I note with satisfaction the enormous developments made in the higher and tertiary education sector, and in particular the results from the investment in ITS, MCAST and University, an investment the likes of which we have never seen before. This success is not only apparent in the number and variety of
programmes which exist today, academic as well as vocational, but also in the substantial increase in the number of students who today benefit from continuous education. We note with satisfaction that the number of youths who are carrying on with their studies after compulsory education is continually on the increase.
We are determined that all Maltese and Gozitan young people advance through more programmes and educational and training opportunities following compulsory education.

Our country has a stipends programme to help students carry on their studies after secondary school. This year we have allocated 22.3 million euro for stipends, and this expenditure will continue increasing while the number of students is increasing. At present we have 18,000 students who receive a stipend at University, Junior College, MCAST, and ITS. Notwithstanding the criticism sometimes directed at stipends, young students and their families who benefit from stipends recognise the great help this programme gives them in their choice to carry on studying instead of finding a job.
We will keep investing in more scholarships in various sectors, with an allocation of 900,000 euro for more students to further their studies. These scholarships allow students to further their studies in recognised higher education institutions.

Today there are around 12,000 students at the University of Malta. This is a success story which no words can describe. The
enormous progress which has been made and which the University is undergoing cannot only be measured in numbers. It is enough to mention the range of courses it offers, the international reputation it enjoys with regard to learning and research, and the University’s contribution to creativity and innovation which are so important for the increase in numbers of jobs and in our country’s economic growth. For this development to continue with the same rhythm, the recurrent expenditure for University and Junior College for next year will increase to 58.2 million euro.
Extensive work is being carried out in the University infrastructure through the construction of the new ICT faculty, and the Health Biotechnology facilities with an investment of 7.2 million euro. We are also examining the University’s physical infrastructure to see how this can be improved for the benefit of our students.
The Old University in Valletta is being transformed into another University of Malta Campus, as an International School for Graduate Studies as well as a Centre for the study of performing arts.

MCAST and ITS resulted in a leap in quality in the sectors in which they operate as a result of the vocational or specialised training they offer. More youths are improving their skills in these institutions, while they prepare themselves better for the labour market.
We must sustain this positive development. We are increasing the allocation for MCAST to 15.4 million euro so that, among other things, it improves the quality of vocational training
through other courses. This is in addition to having started the construction of a new MCAST campus in Kordin which will cost 120 million, and which should better satisfy the needs of our youths.
This year we will also implement a programme which will increase the accessibility to lifelong learning courses and make them more flexible. This project should result in more people developing their basic skills and increasing knowledge in different sectors of life. This same project will integrate learning by means of communication, e-learning, with traditional lessons and practical sessions, a programme which is being implemented with an investment of 1.5 million euro.

The remarkable progress which occurred in the higher and tertiary education sector requires that we make strategic decisions to ensure that this sector remains competitive and that the quality of the education offered remains of a level which is recognised internationally.
It is time for a historic structural agreement to be reached with the University of Malta to safeguard its academic and administrative autonomy, so that its property is identified clearly and is safeguarded, and so that sustainable financial mechanisms are developed which will work for a long period. Thus, this established institution will be able to plan for the future, and commit its assets to improve learning, research and innovation, as well as improve its efforts to attract other students, and particularly its development on an international level.
As I have already explained, the investment in MCAST will also continue, since this institution has a distinct and crucial
role in the post-secondary education sector, which is constantly growing. It is increasingly important that the developments in MCAST take place within the general framework of tertiary education in Malta, so that it is ensured that students are given the best opportunities. Therefore, the Government is carrying out a series of consultative meetings with the parties concerned so that we will encourage strategic coordination between the University of Malta and MCAST for the good of the two institutions and their students. In this context, it is my pleasure to note that the collaboration between the University and the Institute for Tourism Studies is getting stronger and a good number of students who graduated from ITS are furthering their tourism studies at the University of Malta.
The Government has just presented the Framework for Quality Assurance in the post-secondary Education Sector so that a space is established for those who wish to take a more active role in post-secondary services in Malta. I reiterate our intention to see Malta continue making a name for itself as an international centre of quality in the sector, and that we continue creating the best environment to attract other international students and academics to our country.
To this end, Government will establish a forum for all operators who provide advanced education programmes, public as well as private ones. This development should lead to the growth of the private sector for quality in advanced education while eliminating abuses on the part of a number of operators who do not deserve to be called educational institutions.

8.13 p.m. - The Government’s policy in the education sector endeavours to ensure that each person in our country is given the opportunity to develop his/her full potential. This policy works so that our families have a choice in their children’s education, a choice which ensures that education reaches its aim in the development of the person and is not used as a tool by the State to impose its ideology. This policy recognises education and training as the best investment in our country’s economy and competitiveness.
We have done a lot in this sector over the years. But we realise that we can never say that we have done enough. We are determined to continue working and investing strongly in education.
Thus for 2012 the investment in the education sector will be of 359 million. In spite of efforts to reduce deficit, the investment in our younger generations’ education through National Funds will increase by 23 million euro.

Our commitment to continue improving the quality of our children’s education is key to our country’s success.
We sustained our commitment to build modern schools and facilities which complement the reforms we carried out in this sector. After building boys’ secondary schools in Ħal Kirkop, Ħandaq, Verdala and Victoria, and a primary school in Pembroke, we also completed the secondary school in Żokrija in Mosta. These schools also have sports facilities which are used by the schoolchildren and by sports associations in the community.
During this year, we started building the girls’ secondary school in Ħandaq and the plan is for the first students to use it in the next scholastic year. In 2012, we will start building a new girls’ secondary school in Ħal Kirkop, and indoor sports facilities next to the secondary school in Santa Venera. This will be carried out with another investment of 9 million euro.
At present, we are also carrying out embellishment and maintenance projects in other schools, in Wied il-Għajn, the girls’ secondary school in Mosta, and the boys’ in Naxxar. We want our children to have the best environment in their schools.
The Foundation for Tomorrow’s Schools, since it was set up, has invested a total of 90 million euro in the construction of new schools and in the maintenance of other existing ones. This is a substantial investment in the best interests of our children.
However, buildings alone are not enough.

We want an educational system which increasingly addresses students’ and society’s needs, one which creates the space and the methods for our students to gain confidence, realises their capabilities and works to develop them. Therefore we are carrying out the reform of colleges, in the transition from primary to secondary school, the review of MATSEC, the reform of special schools, and work on the new National Curriculum. This evolution is sustained by technological equipment which makes learning interesting, creative and interactive. Today in our schools we find interactive whiteboards and other specialised equipment which offers a new experience in learning and teaching. We are nearing teaching which is more focused on the person, which gives each pupil the opportunity to develop his or her ideas and opinions.
And we are not only doing this in State schools. This year we have also increased the financing of Church schools to continue implementing the reform in education. This means that Church schools are being given additional support and means to ensure education of the highest quality for their pupils and students. For next year we are allocating 45.2 million for these schools.

The Nationalist Government has always believed that Maltese families should be able to choose which schools to send their children to. We fought for this choice and we are determined that pluralism in obligatory education should be sustained through every possible means. We recognise that private schools are giving a strong and important contribution to the education sector. We will remain committed to continue helping these schools.
Therefore, in 2012 we will set up a one million euro Fund in order to strengthen the sustainability of private schools. This Fund, which will be used by schools according to their pupil population, will apply for:
* Services related to the individual needs of students;
* investment in software and IT licences;
* improvement in science facilities;
* improvement in sports facilities; and
* in the professional development of teachers in private schools.
This fund will be allocated to private schools according to the number or registered pupils in this way: €95 for every child in
kindergarten, €145 for every pupil in primary school and €170 for every pupil in secondary school. We are doing this to keep strengthening the private education sector in our country because, as we always believed, this sector should keep providing an adequate and quality choice to parents in their children’s education. This is the first step of a three-year programme intended to grow in total consultation with the representatives of the operators in this sector.
For 2012, we are also increasing the allocation for those students who need a learning support assistant in private schools to 400,000 euro.
We will also continue helping parents of children who attend these schools by increasing the maximum amount of tax reduction given to parents who pay school fees for their children. Thus these will increase:
* from €1,200 to €1,300 at the level of daycare, reception and kindergarten;
* from €1,200 to €1,600 at primary level; and
* from €1,600 to €2,300 at secondary level.
This initiative will cost 600,000 euro.

8.11 p.m. - More Gozitan students are furthering their studies at the University of Malta, MCAST or ITS. This will lead to additional expenses for the families of these students who must find accommodation in Malta together with any other expenses they might have. For this reason, we had revised the additional allowance which the Government grants to Gozitan students in Malta.
As of the coming year, we will increase this allowance again, and we will bring every Gozitan student studying in Malta to the same level, irrespective of whether the studies are being carried out at University, MCAST or ITS. The total allocation in order to aid these students for the coming year amounts to more than 700,000 euro.
Also during the coming year, we will carry on more structural work in the Ninu Cremona Complex, in order to finalise a language lab for the hosting of a number of examinations. We will also continue working to further improve the health services offered by the Gozo General Hospital.
We will continue with the maintenance programme in the roads in several areas, while starting the extensions in the roads leading to Ta’ Pinu and Xlendi, which add on to the works carried out so far. For this purpose, we are allocating 1.5 million euro.
We will also continue the cleaning of valleys and collecting rainwater, building of new reservoirs and the maintenance of old ones, building more rubble walls, and a number of other initiatives in the agricultural, cultural, economic and social area.

The greatest challenge for Gozo remains employment. Despite all efforts made in recent years, the progress in employment and jobs in Malta during the recent years is not proceeding at the same pace in Gozo. Some situations may be improved with coordinated effort, such as the requirement that MEPA and other authorities understand better the reality in Gozo. In order to coordinate a National effort for the economic and social development in Gozo, the Prime Minister entrusted the Secretariat for Strategic Policy within his Office to focus the efforts of all the public entities for the creation of more employment and better employment in Gozo. Undoubtedly the studies related to the possibility of a permanent link between Gozo and Malta must also reflect this reality.

8.08 p.m. - During this year, the Government initiated the first studies regarding the possibility of a tunnel between Gozo and Malta. These studies should lead us to have a clear idea of the options which may be considered in order for Gozo to have a permanent link with Malta. This is a long and delicate process which may have a huge impact in the economic and social development of Gozo, and therefore must be made in a way to allow that the strategic option made provides the best long term benefit for Gozo.

In this year’s budget, for the first time, we have allocated half a million euro for advertising the island of Gozo as a distinct tourist destination. The promotion of Gozo overseas was carried out along two main lines: one addressing the Maltese public and the other addressing specific markets, amongst which the markets for cruise liners and diving in countries such as France, Germany and the United Kingdom.
Since the tourist industry in Gozo depends on self-catering accommodation especially farmhouses, we deem that we must revise all the licensing systems of this industry in order to provide more incentives for quality and investment in this sector. For this purpose, the Government will launch a wide consultation with all the concerned operators in order to draw up a programme which will lead to substantial improvement in this sector.

We continued our work to implement a number of measures announced in the five-year plan for Eco-Gozo. More than half of these proposals were carried out or are in the process of being carried out. These include ecological reclamation, water and waste management, projects related to renewable energy, and other initiatives directed to the communities.

For the coming year, we are allocating four million euro in order to continue implementing these projects, and to keep carrying out the Eco-Gozo Vision. This includes starting a vast
programme of aid so that the economic operators in Gozo can invest in energy from alternative sources. This programme starts next year and terminates the following year and should increase the contribution of Gozo to obligations which our country has in the production of energy from clean sources while aiding the Gozitan industry in expenses relating to energy.
Here, I must add since it appears that by the end of 2012 the allocation of 25 million euro for eco-Gozo will not be totally absorbed. The Government commits itself to allocate the balance to 2013, as it also does with European Union Funds.

8.06 p.m. - Gozo still needs special consideration if we wish to ensure that the Gozitan families enjoy the full success of our country as well.
Employment in Gozo is also a main priority. This year, we launched a number of initiatives in favour of the Gozitan operators and families, including:
* 200 Gozitan enterprises which benefited from the Microinvest scheme;
* more than 150 enterprises which together employ more than 450 Gozitan workers, which benefited from the Employment Aid Programme;
* 411 Gozitan families which participated in the installation scheme of photovoltaic systems, and 209 families which benefited from the solar water heaters scheme; and

During 2011, we continued working on a number of projects, some of which were concluded, while others are nearly concluded. These include:
* the re-building of the roads of Ta’ Pinu and Xlendi, and works on the Dwejra road, with an investment of 1.1 million euro;
* work on the slaughterhouse;
* an investment of 1.5 million euro in new equipment in the Radiology Department at the General Hospital in Gozo, leading to more than 800 CT Scans. Gozitan women also took part in the Breast Screening Programme in Gozo;
* an investment of 1.5 million euros in the upgrading of the IT system at the General Hospital in Gozo, which enabled its connection to Mater Dei Hospital;
* embellishment works in Villa Rundle, which are nearly concluded;
* the conclusion in the Cittadella masterplan as a basis for a number of restoration and rehabilitation projects;
* the closure of the last drainage outflow in Wied il-Mielaħ;
* the reform in the Public Transport and the restructuring works in the terminus in Rabat; and
* the drawing up of a strategy catering for the development of the human resources skills and the manner by which the Gozitan economy can be further upgraded.

8.04 p.m. - In the Solid Waste Management Strategy it was stipulated that we need to encourage waste separation in order to turn this waste into a resource. We all need to do all that is necessary so that the resource that can be recovered from waste is used for the national benefit. In order to achieve this goal, the Government invested all that was necessary to inform the public and to develop the necessary facilities. More investment will be dedicated so that we also continue to increase our participation in this waste management industry.
During this year the collection of around 20,000 tonnes of recyclable separated waste is expected.
The products that result from this waste will be out for sale every month. The best offers are selected and the waste is sold to be exported for recycling. This can happen because the Government has worked in a responsible manner during these last years so that. The environmental complex in Sant’Antnin in Wied il-Għajn was inaugurated one year ago today. Today we have a plant of the highest standard that turns waste into a resource.
Now that the schemes for the collection of packaging are progressing, the need is being felt for improving the coordination between the regulatory authorities, the schemes and the business representatives that market this type of waste
on our market. For this purpose and, in order to continue strengthening the enforcement of the packaging regulations in our country, we will set up a Producer Responsibility Monitoring and Enforcement Committee with representatives from all interested parties in this field, including those of the authorised schemes, in order to continue strengthening that which we have achieved so far.

8.03 p.m. - This year we also continued to strengthen our maritime infrastructure. Intensive work has been carried out on Lascaris Wharf to enable its use by some of the largest cruise liners in the world. The repair work on the breakwater of Marsaxlokk is proceeding well, while preparatory work has started on the Deep Water Quay in Grand Harbour. This equates to a total investment of 27.3 million euro.
Intensive work is being carried out on the passenger terminal in Ċirkewwa, while the foundations for the internal roads around the terminal are being prepared, with a total investment of 12 million euro.
Moreover, the Government is keeping its promise to rebuild the lift from Lascaris Wharf to the Upper Barrakka to facilitate the
arrival to the City centre. This project, which will cost 2.5 million euro, will be provide convenient access to the thousands of cruise liner passangers who visit Valletta. This will also encourage the resumption of boat trips between Valletta and Cottonera, not only for tourists.

8 p.m. - Empty and derelict buildings in the town and city centres of Malta and Gozo are on the increase. The reasons include inheritance lawsuits, high restoration and conservation costs and restrictions on use.
The Government believes in the value of the investment in the urban environment. This investment creates a better environment and jobs in the localities, while it directs the energy of the construction sector towards urban zones that require regeneration.
Thus, we will introduce a number of incentives related to restoration and conservation works of scheduled buildings in grades 1 and 2, as well as properties in UCAs:
1. Exemption from Duty on Documents on transfership between heirs in order to facilitate the consolidation of the property ownership, with this concession closing on 31st December 2013;
2. A scheme for private individuals who wish to restore their property where a rebate of 20 per cent will be given on the costs of restoration up to a maximum of 5,000 euro;
3. For individuals or companies who invest in the restoration of these properties to sell or rent a concession will be given as follows:
* Final witholding tax of 10 per cent on income from rent for residential purposes, and 15 per cent on income from rent for commercial purposes; and
* Final witholding tax of 10 per cent in the case of a sale or the payment of 30 per cent tax instead of 35 per cent on the gain; and
4. A tax credit of 20 per cent on the expenditure that qualifies for restoration of property for the commercial purposes of the company and this will increase to 30 per cent in the case of grade 1 and 2 scheduled properties.
The MEPA will be widening the permitted use for these types of properties so that their use as guest houses, offices, and other commercial premises will be permitted, while remaining compatible and complementary to the residential zones.
One has to clarify that the benefit applies when the property is being restored and renovated, and not if the property is demolished to be rebuilt.

7.58 p.m. - The work on the City Gate project, the new Parliament, the Old Theatre site, and the new square near St Catherine’s Church, is proceeding well. This project also includes a large garden in the ditch below City Gate. The investment for these projects will amount to almost 80 million euro. Such projects create jobs, leaving Maltese workers with more expendable income and contribute towards the economy while making our country more modern and attractive to tourists.
We are keeping our promise of giving Valletta the dignity it deserves.
The project of paving the streets in the centre of Valletta continued with an investment of two million euro.
While we will continue with the project of restoration of the bastions, as I remarked earlier, we will also complete the work on Biagio Steps in Valletta which will serve as an interactive centre for the fortifications of Malta.
Moreover, we are budgeting 400,000 euro for an intensive restoration of the interior of the Grandmaster’s Palace.
In the budget for next year we are also allocating 250,000 euro to continue the work on the preparation for Malta’s hosting of the European Cultural Capital 2018.

7.54 p.m. - Local Councils are giving an important contribution towards the attainment of the Government’s policy for a better environment in our towns and cities. We believed in Local Councils from their inception. We want Local Councils to be in a position to give the best services to their residents by continuing to strengthen the identity of their localities, continuing to improve the infrastructure, restoring historical sites, ensuring clean localities, improving our tourist product, and taking care of public places.
In the last three and a half years, the Government transferred around 120 million euro to the Local Councils so that they can serve their functions, provide the best service to the residents, and implement a number of projects: installation of photovoltaic panels, upkeep of playing fields and public places, cultural activities, and the restoration of historical buildings and monuments.
We will continue to increase the financial and human resources so that the Local Councils can continue to improve the service that they are already giving to the residents in their localities. We will increase the allocation from 29 million to 32 million euro. We are also allocating 1million euro for special initiatives in the localities.
One has to applaud those Local Councils that are using the opportunity provided by European Union Funds in order to continue improving the quality of life of their residents.
During this year we continued to give back space to the public for the recreation of families. We opened a park in Xrobb l-Għaġin and completely transformed the promenade and square in Marsaxlokk. We inaugurated Bisazza Street in Tas-Sliema as a pedestrian zone.
Next year we will continue to invest to give more open spaces to the public by inaugurating a new garden in Baħar iċ-Ċagħaq, starting work on a new Civic Centre in Swieqi, continuing with the project of the Golden Mile in St Julians and carrying out several projects on historical centres, among others.
We are also investing in the south of Malta. We continued with the work on the project ‚Stronger Cottonera Communities‛ which incorporates the embellishment of Dock Number One in Bormla. This project will cost 9.6 million euro, and so far we have completed Ġnien ta’ San Gwann t’Għuxa, the restoration of the tal-Verdala and ta’ San Nikola buildings. We also introduced a new system of public transport that connects together the Three Cities, and its environs.
We submitted an application for European funds for the restoration and the use of Fort St Elmo, a project of 15 million euro. The development briefs of the projects in the historical buildings around Dock Number One, the Fisheries, and that which until today is known as Sir Paul Boffa Hospital are being prepared.
Work is ongoing in the temples of Ġgantija in Gozo, nature trails in the park of Ħaġar Qim and Imnajdra, restoration and rehabilitation of the Inquisitor’s Palace in Birgu and in the Domus Romana, works on Torri ta’ l-Arloġġ and in the Maritime Museum, and conservation work on Verdala Palace and San Anton Palace.
During the coming year, we will continue to work on a number of projects, including in Fort St Angelo, the Hypogeum in Ħal Saflieni, Ġgantija Temples, Ħal Tarxien Temples and the Catacombs of St Paul, the Roman Baths in Għajn Tuffieħa and the Ta’ Bistra Catacombs in Mosta, and in the Catacombs of St
Augustine in Rabat. Concurrently, work will continue on the restoration of the fortifications of Valletta, Mdina, Birgu and the Citadel in Gozo, with an investment of 36 million euro.

7.52 p.m. - These last few years we gave various incentives to families so that they may invest and meet challenges in the energy sector. This year we introduced another scheme to help families invest
in systems of photovoltaic panels. The interest shown was considerable and 3,559 applications were received. These are being processed and grant offer letters will be issued so that the applicants who meet the criteria may buy, install and pay for the system. Together with the families which applied for the scheme, we invested more than 30 million euro for this scheme.
Similarly, during this year, we launched an aid scheme for Maltese and Gozitan households who invest in solar water heaters. This scheme is being managed together with another scheme for the purchase of solar water heaters by families which meet a number of social criteria. Up to the end of October, 1,014 applications were processed for the grant of €400. This meant a total investment of 1.6 million euro. In the scheme for families with social criteria, 15 applications are being processed and this will lead to these families investing more than 8,000 euro.
Together with the schemes launched in 2009 and 2010, 1,771 families benefited from a grant to buy photovoltaic panels. This means an investment of 18 million euro. In another scheme, 3,466 families benefited from a grant to buy a solar water heater with a total investment of more than 6.5 million euro.
Next year, in addition to these schemes which are being extended, we will introduce another scheme for anyone who wishes to invest in the roof insulation and double glazing. We will be granting 15.25 per cent, up to a maximum of 1,000 euro, to whoever undertakes this investment. We are budgeting the sum of 400,000 euro for this purpose.

7.47 p.m. - The energy sector is at the heart of society, the environment and our economy.
We have heard comments against our investment in the electricity generation and distribution system. But one should remember that when the power station extension in Delimara starts functioning next year, everyone will start to enjoy its benefits. This is because besides the improvement in the air quality, the new project will mean a reduction of approximately 30 per cent of fuel consumption.
As shown in the Estimates of Enemalta Corporation, which will be presented to this House in the coming days, the Corporation is buying oil for 2012 at more than 99 dollars per barrel, when current tariffs are calculated using a price of 81 dollars per barrel. However, the Corporation does not need to ask for a revision of the tariffs because of the positive impact that the power station extension of Delimara will have on reduced fuel consumption to produce the same level of electricity.
Thus, in spite of the increase in the price of oil by about 30 per cent in the last two years, we will be able to keep the tariffs on the same level of today. This means that the amount of 20 million euro that we will save, will be all passed on to the consumer.

Recently the Opposition took a position where it stated that if it is elected to Government it will move from direct taxation systems to taxes on those sectors that pollute the environment. We are pleased that after a number of years the Opposition is in agreement with the Government. I would like to remind you that in the fiscal reform that we had published in the Pre Budget Document of 2007, we had said:
‚In the medium term, the Government believes that, the process of transferring the burden of taxation from income onto consumption and the environment, based on the polluter pays principle, should be the strategic centre of every future change<‛
In light of this fact, from the 2008 budget we consistently reduced the burden of taxation on income, while the electricity and water tariffs started to reflect the international price of oil, and the investment in the generation and distribution systems. Here I have to remind you that this means that every year the Government is collecting 152 million euro less every year, much more than that collected by Enemalta from the revised bills.
Besides the reduction in tax, the Government gave a number of incentives so that the families can invest in solar water heaters, photovoltaic panels, schemes that enable people to waste less energy, like the appliances scheme, the light bulbs, and others.
May I remind you that besides the investment of 183 million euro in the power station extension, we are also investing in an interconnector that will connect Malta to the European energy grid with an investment of 150 million euro. This is important for us to satisfy the ever increasing demand for energy, and will be an important step for us to meet our ambitious targets in the environmental sector, while reducing our dependence on the price of oil, which is very volatile.
Moreover, we are considering an investment plan for a pipeline infrastructure that brings to Malta natural gas from the European network. This infrastructure requires a substantial amount of financial resources. The Government already presented a case to the European Commission in order for Malta to be allocated funds and the Commission, in its proposal for the Financial Framework 2014-2020, is proposing that Malta receives funds to accomplish this project.
With the advantages of this project, the price of gas will also decrease for the Maltese consumer. One should mention that today the price of LPG gas, which is used in Malta, is 11c per kilowatt hour. In other countries of the European Union that have a distribution infrastructure of natural gas to households, the price paid for gas is much lower. In Italy, for example, the price is 7c per kilowatt hour, 36 per cent less than that paid by Maltese users, while in Ireland, the price is 5c per kilowatt hour, 55 per cent less.

7.45 p.m. - There are a number of persons who have pending licence fees or administrative fees related to cars. We will be introducing a scheme whereby persons who have vehicle licences or administrative payments in arrears, can regularise their position.
Those who disposed of their vehicle and did not inform Transport Malta will be able to regularise their position by paying a penalty of €125. One can decide to scrap the vehicle and pay the same penalty. Whoever garaged the vehicle and did not return the plates to the Transport Authority will be able
to regularise his position by paying a penalty of €125 and half the licence payments due. Whoever has a vehicle but has pending payments and wishes to continue using the vehicle on the road will be able to do so by regularising his position, paying the licences due and paying a penalty of €125.
The scheme will be open for one year as from January 1.

7.40 p.m. - Better roads increase the traffic efficiency and reduce congestion and air pollution. During this year, we boosted works on arterial residential roads. The major part of these works is expected to be ready during the coming year.
We will continue with works on 140 new residential roads and will invest more than 50 million euro on our arterial roads. These include Xatt l-Għassara tal-Għeneb in Marsa, Triq il-Kunsill tal-Ewropa and Triq Garibaldi in Ħal Luqa, Triq il-Marfa in Mellieħa, and the road which leads from Xewkija to Rabat in Gozo. We started work on the underpass of Triq Diċembru Tlettax and the Ta’ Pennellu Bypass in Mellieħa.
The Local Councils are also contributing towards improving roads in our country. We have drawn up a scheme of public private partnership for residential roads, and in the last two years, we invested more than 15 million euro for this purpose. The project is ambitious but the results are visible. We have completed more than 230 roads in Swieqi, Għargħur, Birkirkara, Nadur, St Paul’s Bay, Ħad Dingli, Xagħra, Mqabba, Kerċem, Ħal Lija, Għajnsielem, Gżira and Naxxar. In the coming months we will continue to build more of these roads, and thus we are increasing this budget to 1.4 million euro.

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