Prime Minister Joseph Muscat yesterday announced that the Government would be making calls for expression of interest in several major projects aimed at kick-starting the economy.
We will not allow anyone to doubt Malta’s banks and no comparison with any other country can hold any water
The calls will be for the development of a cruise liner terminal and a yacht marina in Gozo, the creation of a maritime hub at the former shipbuilding site, ideas on land reclamation projects with a view to expanding the island’s footprint and two new casino licences.
One of the casino licences will be to replace that withdrawn for the Casinò di Venezia in Cospicua and another for a first casino in Gozo.
“We are not interested in property speculation. We want a maritime project because this site has massive potential for job creation,” he said referring to the use of the Malta Shipbuilding site.
He was speaking in Parliament after the presentation of Budget 2013 which, true to its word, was also given the seal of approval by the Opposition. It had prepared and presented a nearly identical budget last November which was voted down but which the new Labour Government in its electoral campaign had promised to retain.
The Government says it needs to spend €10 million more to implement the Budget after finding that some items were not accounted for. It aims to bring down last year’s deficit of 3.3 per cent of GDP to 2.7 per cent by the end of the year, one percentage point above that projected by the former Nationalist government for 2013.
Dr Muscat also announced the setting up of a new financial and economic affairs parliamentary committee, a bipartisan commission for the economy and an independent fiscal council focused on job growth.
“These are projects aimed at kick-starting the economy. There are more projects up our sleeve and this is just the beginning. We want to work with the private sector because we mean business,” Dr Muscat said.
“There are (financial) problems but they are not insurmountable. We have a plan on how to solve them. We have a commitment to address these issues without austerity measures. This Government and this country will be successful. There is no turning back,” he said in his first speech to the House as Prime Minister.
Dr Muscat also announced the immediate revision of planning authority development fees, making them “realistic and affordable”, and the beginning of a consultation process aimed at revising the permanent residency scheme which the previous government had “killed”.
The Prime Minister said the Government would create a structure where people could pool their ideas “without the need for any clocks”, clearly a jibe at former Finance Minister Tonio Fenech, whose Maltese clock received as a gift was the subject of controversy during the electoral campaign.
Referring to Labour’s planned energy project, Dr Muscat said this promised to be “a major success”, adding that the amount of interest expressed so far was “overwhelming”.
Replying to criticism that his Cabinet was too large, he said the Government was saving money from other places such as revising downwards the remuneration for board chairmen. At the planning authority, for example, the chairman’s remuneration was slashed to €17,000 from close to €100,000.
He said he was introducing a hands-on management system, saying the surprise visit by Home Affairs Minister Manuel Mallia to the prison, which exposed workers playing truant, should be the order of the day.
“We are committed to changing certain work practices which are stifling job creation and opportunities for women. There is a masculine attitude in government departments and we want to eradicate it. Women working in the public sector must be given opportunities to achieve work-life balance,” he said.
During his speech, Dr Muscat spoke of the strength of the financial services sector which was the fruit of consensus between the parties, adding there was no doubt that Parliament would be united in defending this “transparent and open” section.
“We will not allow anyone to doubt Malta’s banks and no comparison with any other country can hold any water,” he said.
He criticised Opposition Leader Lawrence Gonzi for his criticism of the Government, saying he had carried on with his “scaremongering tactics”.
“I was shocked to hear allegations that we played around with figures to paint a negative picture. All the Finance Minister did was ask for updated figures.
“The bad news is that the deficit for 2012 was higher than expected but this will be corrected this year following discussions with the European Commission. I am convinced that an agreement will be found and without increasing the already existing burdens on families and businesses. The good news is that whatever we promised, we will deliver,” he said.
Despite his criticism of Dr Gonzi, Dr Muscat thanked him – and the whole House applauded – for his work during his tenure as Prime Minister and for finding in him a “loyal” political adversary. He followed this with a joke that one of the first jobs his Government had created was a vacancy for Opposition Leader.