The volcanic ash cloud that grounded airlines across Europe cost Malta €10 million and 90,000 bed nights, Parliamentary Secretary Mario de Marco said yesterday.

Iceland's volcano eruption forced the cancellation of 100,000 flights across Europe and this notwithstanding Malta still achieved good tourist arrivals in March.

Dr de Marco was giving an overview of his second year in office, together with fellow Parliamentary Secretary Chris Said and Prime Minister Lawrence Gonzi, since both secretariats fall under his wing.

Dr de Marco, who is now also responsible for culture and environment, said he had embarked on a study on the economies of culture in order to analyse the impact of culture on the Maltese economy.

Dr Said explained that the government was embarking on a consultation process to make changes to the Employment and Industrial Relations Act so as to change what was introduced eight years ago.

Dr Said, responsible for local councils, said that about 90 per cent of the measures in the councils' reform exercise had already been implemented and the rest were in the process of being enforced.

He said the Malta Council for Economic and Social Development had met 22 times in 2009, leading to effective social dialogue with social partners.

Dr Gonzi said Malta was one of two European countries that managed to cut the deficit in 2009, a challenging year for all.

While other countries had raised taxes and taken tough austerity measures, his government had placed jobs at the top of its priority list and had given assistance where needed most in order to safeguard jobs and attract new investment.

He listed reforms carried out or were under way, including rent reform, public transport, the Malta Environment and Planning Authority, the transition between primary and secondary schools, special schools, eco-Gozo, local law enforcement and primary healthcare.