The government has set aside €20 million for the restructuring of Air Malta under a plan which is currently being considered by the European Commission.

The funds are over and above the €51 million loaned to the state flag carrier this year, and Finance Minister Tonio Fenech said in the Budget speech today that the amount will increase further in subsequent years.

Mr Fenech stressed that the restructuring plan could not be completed and presented without agreement among all the parties concerned, particularly on work practices. "Talks cannot continue for very long" the minister said. The government, he added, felt that the proposals made by the airline for early restructuring schemes and changes to work practices, were reasonable. Without change, he said, the restructuring would fail. Refusal, he warned, could lead to outsourcing of certain operations and dismissal of workers in terms of the law.

He also announced that the budget of the Malta Tourism Authority is to rise by €1 million to €36 million, with the accent being on promotion and investment in more air routes.

He said that works directly related to tourism next year will include a large aquarium in Qawra and gardens in Pembroke, costing €4.2 million.

A similar amount will be spent on archaeological sites.

€10 million will be allocated for aid to private operators for the improvement of tourist projects, marketing and competitiveness.