Delivering his winding-up speech on the Budget Measures Implementation Bill in a morning session, Finance Minister Tonio Fenech said the International Monetary Fund called Malta’s economic growth and financial sustainability effort “impressive”.
In its May 1 publication, the International Labour Organisation reported Malta was one of six countries among the world’s advanced economies that increased its employment rate.
Mr Fenech said this showed the government’s wisdom in implementing a budget that focused on growth and sustainability, incentives to industry and the tourism sector, together with schemes for tax reduction to working parents and those sending their children to private schools and nurseries.
At the same time, the government also increased benefits to the elderly, showing it was supporting the middle class.
The government also gave incentives for the creative and digital economies to grow. He announced the company TRC – which at present employed 50 people – was to increase another 100 jobs in developing digital games. Malta’s online gaming industry encompassed 250 companies that employed 6,000 people.
Mr Fenech reiterated the national debt stood at 72 per cent of the GDP, according to EU methodology, which did not include government guarantees for debts of independent entities on government books.
He argued that if the opposition was governing the country, it would introduce austerity measures on the pretext that these debts were not officially divulged.
He said that uncertainty for investors did not result from the way a parliamentary vote was to be taken but from a change in government. Investors knew the PN always supported businesses but were not so sure of the opposition. That was the reason behind the Leader of the Opposition’s campaign that “Labour was safe for business”.
Minister Fenech also replied to questions by Labour MEP Professor Edward Scicluna to EU Commissioner Ollie Rehn.
He tabled the Commission’s letter and said, contrary to Professor Scicluna’s interpretation, in its assessment published last January, the Commission said it considered Maltese authorities had taken “timely and sustainable action to correct the excessive deficit”. This showed the Commission did not impose anything on Malta.
The €40 million cuts from government expenditure did not affect benefits. Public expenditure remained higher than in 2011. Revenue for the government was to rise.
By voting against the budget measures, the opposition would go against the interests of families, industry, the elderly and the middle class, Mr Fenech concluded.