Michael Falzon, one of the contenders for the Labour leadership, yesterday pledged he will fully back any efforts to safeguard industry amid fears that ST Microelectronics could close down its Malta plant.

"We need to do our utmost to defend the livelihood of workers and their families," he said during a visit to the open air market in Vittoriosa.

Dr Falzon said ST Microelectronics is very important for the local economy, especially since it represents a large percentage of the country's exports. The government needs to work hand-in-hand with employers rather than the two competing against each other.

ST Microelectronics - Malta's largest employer with more than 2,300 workers - has asked the government for financial support running into tens of millions of dollars.

Asked to comment about opposition leader Alfred Sant's speech in Parliament on Monday - in which Dr Sant referred to his party's pre-election proposals - Dr Falzon said the MLP had lost the election by only a small margin. Although the result was not the desired one, not everything was wrong.

Dr Falzon said a number of people who spoke to him yesterday voiced their concern about the rising cost of living and hawkers complained about lack of sales.

The Labour MP thanked the people of Cottonera for their faith in him and the MLP - he was elected from the second district (as well as from the 10th district) where the Labour Party elected four candidates. He said his party believed in the potential of the area and had prepared an extensive pre-election programme for the Grand Harbour area.