Prime Minister Lawrence Gonzi confirmed this morning that during his visit to New York and San Francisco earlier this week, he had discussed new investment in Malta, but he gave no further details, saying an announcement would be made in the coming weeks.

Dr Gonzi had also referred to the investment during the PN Independence mass meeting last week, saying it would employ hundreds of people if it came about.

Dr Gonzi made today's comments during a meeting with the UHM leadership.

The Prime Minister reiterated that the government's priority was to safeguard and create sustainable jobs, so that Malta could be in a strong position to make the best of the international economic recovery, when it came about.

He expressed regret that some people seemed to be under the impression that the international recession had not affected Malta.

What had taken place in Wall Street had affected Kirkop he said, in an indirect reference to ST Microelectronics, while decisions taken in Beijing affected industry in Malta.

Malta's small size, however, had enabled Malta to offer purpose-made assistance packages to companies which had problems, and 2,500 jobs had thus been saved.

It was true that the deficit had risen to 4%, Dr Gonzi said, but jobs were a priority and the deficit would be tacked as the economy strengthened.

In his address Dr Gonzi regretted that family-friendly measures introduced in the public sector had not spread to the private sector. More private sector employers needed to realise that such measures in the long run saved them money since they were able to retain trained staff, Dr Gonzi said.

He also reiterated that the government would retain students' stipends because more needed to be encouraged to follow post-secondary courses.

UHM General Secretary Gejtu Vella complained that while relatively minor issues were quickly resolved when the union negotiated with the private sector, everything took ages in the public sector.

"Why do I have to go to the Prime Minister for such matters to be decided when they can be resolved by others?" he said.

The public sector had directors and assistant directors who should shoulder their responsibilities or take decisions, he insisted.

"Decisions have to be taken at their proper level and those who cannot take them should be made to leave," he said.