The economy was doomed to fail unless the government invested in alternative energy, Prime Minister Lawrence Gonzi said yesterday.

He said the government did not believe in subsidies but, instead, funds should be directed towards alternative energy investment. Even small businesses should invest in alternative energy, he said.

Interviewed by the chief executive officer of the Malta Institute of Management, Andrew Agius Muscat during the institute's economic national forum, Dr Gonzi said being Prime Minister meant making difficult decisions. However, if a decision was right, it had to be taken, even if there was a price to pay. "In the end, if it's the right decision, it will be worth it," he said.

He said past decisions had led to current successes and the government would remain focused on the necessary reforms.

Referring to tomorrow's protest against the water and electricity tariffs, organised by the Għaqda Unions Maltin, Dr Gonzi appealed for political maturity to prevail over international challenges, particularly those related to oil prices.

The Prime Minister said the government had addressed the challenges of the shipyards, the planning authority, rent reform and public transport, among others, and managed to save millions of euros.

He said he would remain committed to attracting more investment from abroad.