Prime Minister Lawrence Gonzi said this evening that despite being asked to make sacrifices, taxpayers had reason to be satisfied that their money was well spent over the past year despite challenging circumstances.

Speaking in Parliament during the Budget debate, Dr Gonzi said that while in other parliaments, governments had to announce deep cuts in essential services, Malta did not need to take such measures. The way Malta was managing to overcome the international financial challenges should make all Maltese proud.

It was true that water and electricity bills were high, but the fact that jobs had been saved showed that the sacrifices which had been made had not been in vain.

Indeed, Malta over the past year had managed to create jobs in new factories and enterprises.

In the first six months of this year, Malta’s economic growth, at four per cent, was among the highest in the EU. Malta also had the sharpest decline in unemployment in the EU and it was in the top four in the jobs situation. Only Malta and Germany in the past five years had seen economic growth, more and better jobs.

It was only those two countries which had managed to improve their competitiveness. Only Malta and Estonia managed to narrow their deficit in the past year.

Malta was also among a small group of countries which next year would see the deficit slip below three per cent, something which was important for Malta to attract investment. Exports this year were also up by a third.

Last year, Dr Gonzi recalled, he had announced the investment by SR Technics in the setting up of an aircraft maintenance base in Malta. One year on, he recently had the pleasure to formally inaugurate the Malta operation as the first EasyJet aircraft to be maintained in Malta was rolled out. It was appropriately called Pride of Malta.

Indeed, all the Maltese should be proud of their country, Dr Gonzi said.

Maltese taxpayers should also be satisfied to note that for the first time in generations, Malta had a dockyard which no longer came to the government requesting financial subsidies.

The SmartCity project was also gaining faster momentum than planned.

Malta, Dr Gonzi said, was also at the forefront in the EU in e-government benchmarking.

Malta would this year also enjoy a tourism record, with not only a 12 per cent growth in arrivals but also a 20 per cent increase in tourist spending. This was the result of wise spending of taxpayers’ money on new routes and better promotion, as well as direct assistance to the industry.

Malta this year had a record in the number of new University and Junior College students at 3,400 but the government would aim for even more. There was also another record intake at Mcast.

Next year, Malta would pay €23 million in stipends to 18,300 students, 10,000 more than in the year 2000. The University was bursting at the seams, and all this was taxpayers’ money well spent. While the UK was announcing new university tuition fees, Malta’s education was free, students were given a stipend, and the governemnt was awarding 450 scholarships for Maltese students to follow more courses abroad. Further down the education system, the government was managing to open at least one new school a year. How different this was to the repeater class!

Dr Gonzi said that despite the budget squeeze, the government was continuing to improve services for the elderly, including better services in Homes.

Mater Dei was continuing to improve, with 27,900 operations performed so far this year, up by 5,000 on the last full year at St Luke’s. Herceptin was being given to cancer patients and 15,000 women had taken breast screening tests which detected 42 cancers in an early stage. Works on a new oncology centre had also been launched.

Dr Gonzi also highlighted progress in waste management, the rehabilitation of Palace Square and the City Gate project which, he said, would give dignity to Valletta.

Malta, Dr Gonzi said, was ending the year with a deficit it had anticipated, without austerity measures.

BUDGET MEASURES

In his two-hour speech Dr Gonzi listed the Budget measures and defended the government's decision to raise VAT on tourist accommodation to 7%. He said that this tax was still among the lowest in Europe and furthermore, the government could not give out money unless it had some recovery. The operators were appreciating that the funds from this tax would be ploughed back into tourism particularly for Gozo and for promotion.

Dr Gonzi mentioned measures announced in the Budget to benefit part-time self employed women, the exemption from VAT registration for those with a turnover of under €7,000, the extension by one week of VAT payments to the VAT departments when such payments were made through e-mail, the assistance being given to minimum wage earners who followed training courses, the reduction in social security contributions by farmers and the fund created to buffer the increase in prices for animal feed.

People on social benefits also had the means test adjusted so that they would not lose eligibility once they received the cost of living assistance.

Some supplementary benefits had also been raised.

This, Dr Gonzi said, was a budget which put jobs at its heard and also continued to give value to the principle of solidarity.

See also:

Updated: Irresponsible to cut taxes now - PM

http://www.timesofmalta.com/articles/view/20101103/local/irresponsible-to-cut-taxes-now-pm