Budget approved

Prime Minister Lawrence Gonzi told Parliament that the government would be presenting proposals to the House so that Malta could reap more economic benefits from activities outside its territorial waters but within its maritime economic zone.

Winding up the budget debate, Dr Gonzi said that such gains would offset the risks which Malta faced because of these activities. Talks were under way with the Chamber of Commerce and with others on the bunkering tax which, he said, already existed but which was being increased to yield more revenue.

He said that the European Commission had commended Malta for being one of the few countries which had kept its deficit below three per cent of its GDP. The country was moving forward and economic results were showing. He praised the work by the EU directorate under his portfolio, which he said was instrumental for projects making use of €1billion in EU funds.

Dr Gonzi spoke of the priorities that the government would focus on in the coming year. These included stimulating the economy by restructuring Air Malta and supporting SMEs through new schemes. It would strive to reduce Malta’s vulnerability in the energy sector by connecting to the European electricity generation grid and the gas pipeline with the mainland. This would stabilise utility prices and eliminate the disadvantages of economies of scale.

He said the opposition was negative on the record in tourism, which had been established against the uncertainties in the first quarter when the government was gravely concerned that all would be lost because of the Libyan crisis. The government was in talks with the mobile telephony operators so that the calculation of this tax would be made on the duration of the calls. Dr Gonzi was optimistic that agreement could be reached, yielding the government €700,000 in revenue.

On the eco-contribution, he rebuked the Leader of the Opposition for confusing this line item under the tourism budget with another pertaining to the environment. He also slammed Dr Muscat over his fixation against the City Gate capital project. Malta Enterprise had vacated its offices in San Ġwann to make way for the Bio Park which would increase economic activity. The Prime Minister said it was shameful of the opposition to criticise the Armed Forces in a year where one had to acknowledge their contribution during the Libyan conflict and where some of its members had been involved in patrolling the seas off the Somali coast under EU aegis.

The votes of the Office of the Prime Minister were approved by 35 votes for and 34 against after a division. Similarly, the House approved the votes of the Ministry of Health, the Ministry of Finance and the Ministry of Education. It also approved the Appropriation Bill for 2012 and the Supplementary Estimates for 2011 through all stages.

The financial estimates of the Water Services Corporation, the Enemalta Corporation, the Malta Tourism Authority, Heritage Malta and the Superintendence of Cultural Heritage were also approved.

The House rose for the Christmas recess until next January 18.