Ministry of Finance, the Economy and Investment

Budget Speech

2011

The Hon. Tonio Fenech

Minister of Finance, the Economy and Investment
Malta
25th October, 2010
Published by the
Ministry of Finance, the Economy and Investment
South Street,
Valletta

Tel.: (+356) 21 24 96 40
Website: http://www.mfin.gov.mt

Cataloguing-in-Publication Data

Malta. Ministry of Finance, the Economy and Investment

Budget Speech 2011 / Tonio Fenech. - Valletta : Ministry of Finance,
the Economy and Investment, 2010

15, 87p. ; 24cm.

ISBN: 978-99932-94-38-2
ISBN: 978-99932-94-39-9 Electronic Version

1. Budget – Malta
I. Title II. Fenech, Tonio

352.494585013

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ȱ

ȱ
 Contentsȱ
1. Introductionȱ ȱ ȱ ȱ ȱ ȱ ȱ 1ȱ

2. Theȱeconomyȱandȱfinancialȱsustainabilityȱ ȱ ȱ 6ȱ

2.1ȱ TheȱMalteseȱeconomyȱandȱtheȱ

internationalȱsituationȱ ȱ ȱ ȱ ȱ 6ȱ

2.2ȱ Economicȱandȱfinancialȱstrategyȱȱ ȱ ȱ 7ȱ

3. Creatingȱmoreȱjobsȱ ȱ ȱ ȱ ȱ ȱ 18ȱ

3.1ȱ Investingȱtoȱtheȱcreationȱofȱjobsȱ ȱ ȱ ȱ 19ȱ

3.2ȱ Industryȱandȱeconomicȱdevelopmentȱ ȱ ȱ 23ȱ

3.3ȱ Theȱtourismȱsectorȱ ȱ ȱ ȱ ȱ ȱ 32ȱ

4.ȱ Infrastructureȱ ȱ ȱ ȱ ȱ ȱ ȱ 37ȱ

4.1ȱ Newȱarterialȱandȱresidentialȱroadsȱ ȱ ȱ 37ȱ

4.2ȱ PublicȱTransportȱreformȱ ȱ ȱ ȱ ȱ 38ȱ

4.3ȱ Investingȱinȱtheȱsupplyȱofȱenergyȱ ȱ ȱ 41ȱ

4.4ȱ Maritimeȱinfrastructureȱ ȱ ȱ ȱ ȱ 43ȱ

5.ȱ Gozoȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ 44ȱ

6. Educationȱandȱtheȱcreativeȱeconomyȱ ȱ ȱ ȱ 47ȱ

6.1 Educationȱaȱpriorityȱforȱourȱchildren’sȱwelfareȱ 47ȱ

6.2 Sportȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ 53ȱ

6.3 Theȱcreativeȱeconomyȱ ȱ ȱ ȱ ȱ 54ȱ

 ȱ

7. Investȱfurtherȱinȱaȱhealthyȱsocietyȱ ȱ ȱ ȱ 58ȱ

7.1 Theȱsocialȱaspectȱ ȱ ȱ ȱ ȱ ȱ 58ȱ

7.2 TheȱHealthȱsectorȱ ȱ ȱ ȱ ȱ ȱ 61ȱ

7.3 Theȱelderlyȱ ȱ ȱ ȱ ȱ ȱ ȱ 66ȱ

8. Environmentȱ ȱ ȱ ȱ ȱ ȱ ȱ 68ȱ

8.1 Projectsȱ ȱ ȱ ȱ ȱ ȱ ȱ 68ȱ

8.2 LocalȱCouncilsȱ ȱ ȱ ȱ ȱ ȱ 69ȱ

8.3 MEPAȱreformȱ ȱ ȱ ȱ ȱ ȱ 71ȱ

8.4 Makingȱtheȱbestȱuseȱofȱpublicȱlandȱ ȱ ȱ 73ȱ

8.5 Wasterȱmanagementȱ ȱ ȱ ȱ ȱ 74ȱ

8.6 Agricultureȱ ȱ ȱ ȱ ȱ ȱ ȱ 75ȱ

8.7 Theȱprotectionȱofȱanimalsȱȱ ȱ ȱ ȱ 76ȱ

9. Conclusionȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ 77ȱ

AppendixȱAȱȱ ȱ ȱ ȱ ȱ ȱ ȱ 81ȱ

AppendixȱBȱȱ ȱ ȱ ȱ ȱ ȱ ȱ 88ȱ
1.ȱ Introductionȱ

Mr.ȱSpeaker,ȱ

Thisȱisȱaȱbudgetȱtoȱstrengthenȱourȱcountry.ȱȱ

Aȱbudgetȱwhichȱwillȱgiveȱpriorityȱtoȱwork.ȱ

Aȱbudgetȱdrawnȱupȱinȱdifficultȱcircumstancesȱwhichȱfoundȱusȱwellȱ
prepared.ȱ

Aȱbudgetȱwhichȱlooksȱahead,ȱprudentlyȱbutȱconfidently.ȱȱ

AȱbudgetȱwhichȱwillȱkeepȱusȱonȱtrackȱtowardsȱVisionȱ2015.ȱ

TodayȱIȱamȱpresentingȱtoȱthisȱChamberȱandȱtoȱtheȱMalteseȱpeopleȱaȱ
budgetȱwhichȱwillȱallowȱourȱcountryȱtoȱkeepȱgettingȱstrongerȱwithȱaȱ
competitiveȱ economy,ȱ withȱ aȱ strongȱ environmentȱ andȱ people,ȱ andȱ
withȱaȱhealthyȱcommunityȱwhereȱeverybodyȱcanȱprogress.ȱ

Twoȱ andȱ aȱ halfȱ yearsȱ ago,ȱ theȱ Malteseȱ peopleȱ choseȱ toȱ workȱ andȱ
striveȱ togetherȱ withȱ thisȱ Governmentȱ toȱ overcomeȱ theȱ stormyȱ
economicȱsituationȱwhichȱwasȱaboutȱtoȱoverwhelmȱtheȱworld.ȱ

Weȱ willȱ neverȱ stopȱ workingȱ untilȱ eachȱ Malteseȱ canȱ say:ȱ Iȱ amȱ
healthy,ȱIȱamȱeducated,ȱIȱhaveȱtheȱabilityȱtoȱworkȱasȱhardȱasȱIȱcanȱtoȱ
ensureȱtheȱbestȱfutureȱforȱmeȱandȱmyȱchildren.ȱ

Mr.ȱSpeaker,ȱ

Work.ȱNeverȱasȱmuchȱasȱtodayȱcanȱweȱappreciateȱtheȱchoiceȱofȱworkȱ
asȱthisȱGovernment’sȱabsoluteȱchoice;ȱ

Weȱ haveȱ done,ȱ andȱ willȱ continueȱ toȱ do,ȱ everythingȱ possibleȱ toȱ
safeguardȱwork,ȱattractȱmoreȱwork,ȱandȱcreateȱbetterȱwork.ȱ

1
Investmentȱinȱeducationȱandȱinȱhealthȱhasȱmadeȱusȱaȱpeopleȱreadyȱ
toȱfaceȱtheȱhugeȱchallengesȱourȱcountryȱhasȱfacedȱinȱtheseȱpastȱyears.ȱȱ

Itȱisȱonlyȱthroughȱthisȱchoiceȱthatȱourȱcountryȱcanȱcontinueȱtoȱcreateȱ
theȱprosperityȱweȱneedȱtoȱsustainȱallȱthatȱweȱhaveȱachievedȱtogetherȱ
withȱsoȱmuchȱsacrifice.ȱȱ

Aȱ countryȱ whichȱ continuesȱ toȱ investȱ allȱ itȱ canȱ inȱ theȱ itsȱ children’sȱ
andȱ youngȱ people’sȱ education:ȱ anȱ educatedȱ peopleȱ capableȱ ofȱ
makingȱnecessaryȱchoices.ȱȱ

Aȱ countryȱ whichȱ remainsȱ capableȱ ofȱ sustainingȱ theȱ bestȱ healthȱ

servicesȱforȱeveryone.ȱ

Aȱ countryȱ whichȱ providesȱ everyȱ opportunityȱ andȱ supportȱ toȱ theȱ

elderly,ȱtoȱpensioners,ȱtoȱthoseȱinȱsocietyȱwhoȱneedȱtoȱbeȱsupported;ȱ
peopleȱwhoȱcareȱaboutȱeachȱother.ȱ

Aȱ country,ȱ orȱ ratherȱ aȱ societyȱ whichȱ supportsȱ theȱ weak,ȱ becauseȱ itȱ
createsȱ prosperityȱ andȱ usesȱ thatȱ prosperityȱ prudentlyȱ andȱ inȱ
solidarity.ȱ

Mr.ȱSpeaker,ȱ

Weȱ constantlyȱ hearȱ ofȱ severalȱ countriesȱ aroundȱ us,ȱ someȱ

neighbouringȱones,ȱwhichȱareȱhavingȱtoȱmakeȱdifficultȱbutȱinevitableȱ
choices,ȱ austerityȱ measuresȱ theȱ likeȱ ofȱ whichȱ theȱ worldȱ hasȱ neverȱ
seen.ȱȱ

Frozenȱorȱdecreasedȱwages.ȱ

Pensionsȱandȱsocialȱbenefitsȱbeingȱcutȱorȱdecreased.ȱ

Hundredsȱ ofȱ thousandsȱ ofȱ publicȱ sectorȱ workersȱ areȱ losingȱ theirȱ
jobs.ȱ

Substantialȱincreasesȱinȱtaxes.ȱ

2
Increasesȱinȱuniversityȱfees.ȱȱ

Decreasesȱinȱhealthȱservices.ȱ

Theseȱ areȱ realitiesȱ ofȱ Governmentsȱ whichȱ mustȱ takeȱ drasticȱ

decisionsȱbecauseȱofȱtheȱsituationȱtheirȱcountriesȱareȱin.ȱ

Aȱ frighteningȱ lesson.ȱ Aȱ realisationȱ thatȱ noȱ Governmentȱ hasȱ

unlimitedȱfunds.ȱ

Whatȱweȱsow,ȱweȱreap.ȱ

Ifȱyearȱinȱyearȱoutȱweȱregisterȱaȱhighȱdeficit,ȱfinallyȱourȱcountryȱwillȱ
reapȱdebtȱwhichȱwillȱbringȱusȱtoȱourȱknees.ȱȱȱ

Mr.ȱSpeaker,ȱ

Thisȱisȱaȱbudgetȱwhichȱprovesȱthatȱtheȱsacrificesȱweȱhaveȱdoneȱhaveȱ
notȱbeenȱinȱvain.ȱItȱisȱaȱbudgetȱwhichȱconfirmsȱthatȱtheȱreformsȱweȱ
haveȱ carriedȱ outȱ haveȱ putȱ ourȱ countryȱ onȱ solidȱ foundations.ȱ Theȱ
stormsȱhaveȱhitȱusȱtoo.ȱHowever,ȱupȱtoȱnow,ȱthanksȱtoȱtheȱprudenceȱ
weȱ haveȱ allȱ exercised,ȱ ourȱ countryȱ hasȱ managedȱ toȱ rideȱ theȱ wavesȱ
andȱisȱstillȱmovingȱinȱtheȱdirectionȱweȱwouldȱlikeȱitȱtoȱ–ȱoneȱwhichȱ
generatesȱwork.ȱ

Thisȱ isȱ aȱ budgetȱ whichȱ statesȱ clearlyȱ thatȱ ourȱ choiceȱ asȱ aȱ
Governmentȱ isȱ toȱ keepȱ ensuringȱ thatȱ ourȱ countryȱ willȱ neverȱ beȱ
forcedȱtoȱgiveȱinȱtoȱtheȱstormsȱwhichȱwillȱoverwhelmȱus,ȱnotȱtodayȱ
andȱnotȱinȱtheȱfuture.ȱ

Throughȱsolidȱfinances.ȱ

Throughȱ expenditureȱ thatȱ isȱ constantlyȱ moreȱ focusedȱ onȱ thatȱ whatȱ
strenghtensȱourȱsociety.ȱ

Throughȱtoȱdifficultȱchoicesȱmadeȱtogetherȱandȱnotȱvainȱpromises.ȱ

3
Thisȱisȱaȱbudgetȱwhichȱprovesȱthatȱweȱcanȱtreadȱdifferentȱpaths,ȱasȱ
weȱhaveȱdoneȱinȱtheȱpastȱtwoȱyears.ȱ

Weȱchoseȱtheȱroadȱofȱincreasedȱinvestment,ȱgivingȱhelpȱwhereȱitȱwasȱ
reallyȱneededȱtoȱprotectȱjobs,ȱsupportingȱthoseȱwhoȱreallyȱneedȱourȱ
help.ȱ

Weȱ willȱ notȱ chooseȱ theȱ roadȱ whichȱ avoidsȱ challenges,ȱ weȱ willȱ notȱ
deceiveȱ theȱ Malteseȱ peopleȱ andȱ sayȱ thatȱ nothingȱ isȱ happeningȱ
aroundȱus.ȱȱ

Mr.ȱSpeaker,ȱ

Theȱ choicesȱ weȱ madeȱ inȱ theȱ pastȱ twoȱ andȱ aȱ halfȱ years,ȱ andȱ theȱ
choicesȱ weȱ areȱ offeringȱ inȱ thisȱ budgetȱ haveȱ beenȱ madeȱ afterȱ
continuousȱ dialogueȱ withȱ allȱ thoseȱ whoȱ wantedȱ toȱ takeȱ onȱ theseȱ
responsibilitiesȱwithȱus.ȱ

Weȱ discussedȱ theseȱ choicesȱ withȱ theȱ unionsȱ andȱ withȱ employers,ȱ
withȱ variousȱ associationsȱ andȱ withȱ manyȱ individualsȱ whoȱ
participatedȱ inȱ drawingȱ upȱ thisȱ budget.ȱ Whatȱ Iȱ amȱ presentingȱ
tonightȱ isȱ theȱ fruitȱ ofȱ yourȱ contributions,ȱ yourȱ thoughts,ȱ andȱ yourȱ
ideas;ȱforȱthisȱIȱwouldȱlikeȱtoȱthankȱyouȱall.ȱ

Toȱdialogueȱandȱconsultȱdoesȱnotȱmeanȱyouȱwillȱalwaysȱagree.ȱȱ

Governmentȱ isȱ thereȱ toȱ finallyȱ takeȱ responsibilityȱ forȱ managing,ȱ

evenȱforȱmakingȱdifficultȱchoices.ȱ

Thereforeȱ tonight,ȱ Mr.ȱ Speaker,ȱ inȱ theȱ nameȱ ofȱ theȱ Malteseȱ
Governmentȱ Iȱ amȱ presentingȱ aȱ budgetȱ whichȱ proposesȱ anȱ
expenditureȱofȱ2.9ȱbillionȱeuro,ȱthroughȱwhichȱweȱshallȱinvest:ȱ

€340ȱ millionȱ inȱ theȱ educationȱ andȱ trainingȱ ofȱ ourȱ childrenȱ andȱ
youngȱworkers,ȱ

€378ȱmillionȱinȱourȱpeople’sȱhealth,ȱ
4
€858ȱmillionȱinȱourȱcountry’sȱpensionsȱandȱsocialȱframework,ȱ

€440ȱmillionȱinȱprojectsȱandȱcapitalȱinvestment.ȱ

5
2.ȱȱ Theȱeconomyȱandȱfinancialȱsustainabilityȱȱ
2.1ȱ TheȱMalteseȱeconomyȱandȱtheȱinternationalȱsituationȱ

Mr.ȱSpeaker,ȱ

Despiteȱ positiveȱ signs,ȱ difficultiesȱ andȱ uncertaintiesȱ areȱ stillȱ

predominantȱinȱtheȱinternationalȱeconomy.ȱȱ

Inȱ theȱ Europeanȱ Commission’sȱ mostȱ recentȱ economicȱ projectionsȱ itȱ

isȱ estimatedȱ thatȱ theȱ Eurozoneȱ economicȱ growthȱ rateȱ willȱ beȱ aboutȱ
1.7ȱpercentȱduringȱtheȱsecondȱhalfȱofȱtheȱcurrentȱyear,ȱi.e.ȱlessȱthanȱ
inȱtheȱfirstȱsemester.ȱ

TheȱMalteseȱEconomyȱ

Thisȱ timeȱ lastȱ yearȱ weȱ presentedȱ aȱ budgetȱ inȱ whichȱ weȱ optedȱ toȱ
postponeȱ theȱ targetȱ ofȱ decreasingȱ ourȱ deficitȱ toȱ 3ȱ percentȱ givenȱ
internationalȱtroublesȱandȱtheirȱimpactȱonȱtheȱMalteseȱeconomy.ȱSo,ȱ
weȱcouldȱtakeȱaȱnumberȱofȱinitiativesȱleadingȱtoȱourȱquickȱreactionȱ
againstȱtheȱrecessionȱweȱfoundȱourselvesȱin.ȱȱȱ

Inȱfact,ȱduringȱtheȱfirstȱhalfȱofȱtheȱcurrentȱyearȱtheȱMalteseȱeconomyȱ
experiencedȱ aȱ ratherȱ fastȱ growthȱ rateȱ andȱ theȱ Grossȱ Domesticȱ
Productȱ increasedȱ atȱ anȱ averageȱ rateȱ ofȱ 4ȱ percent.ȱ Thisȱ cameȱ asȱ aȱ
resultȱ ofȱ theȱ sharpȱ increasesȱ inȱ exports,ȱ andȱ higherȱ privateȱ andȱ
publicȱ consumptionȱ andȱ investments.ȱ ȱ Itȱ isȱ expectedȱ thatȱ suchȱ
growthȱshallȱcontinueȱduringȱtheȱsecondȱhalfȱofȱthisȱyear.ȱ

Weȱ haveȱ beenȱ receivingȱ encouragingȱ signalsȱ inȱ theȱ employmentȱ

sector.ȱ Figuresȱ publishedȱ byȱ theȱ Employmentȱ andȱ Trainingȱ
Corporationȱshowȱthatȱinȱtheȱ12ȱmonthsȱleadingȱtoȱJuneȱofȱthisȱyear,ȱ
theȱ numberȱ ofȱ gainfullyȱ occupiedȱ personsȱ increasedȱ andȱ reachedȱ
145,690.ȱ Thisȱ increaseȱ wasȱ mostlyȱ seenȱ inȱ theȱ privateȱ sector.ȱ Inȱ theȱ
sameȱ period,ȱ theȱ numberȱ ofȱ personsȱ engagedȱ inȱ partȬtimeȱ workȱ

6
increasedȱbyȱ1,683,ȱandȱwentȱupȱtoȱ29,251.ȱLastȱmonthȱtheȱnumberȱofȱ
registeredȱ unemployedȱ personsȱ decreasedȱ byȱ 866,ȱ comparedȱ withȱ
Septemberȱlastȱyear.ȱȱ

Mr.ȱ Speaker,ȱ suchȱ encouragingȱ resultsȱ reflectȱ theȱ wiseȱ choicesȱ

Governmentȱmadeȱtoȱsupportȱemployment.ȱ

Theȱinflationȱrateȱduringȱtheȱ12ȱmonthsȱtillȱlastȱSeptemberȱshowedȱaȱ
downwardȱtrendȱtoȱhitȱ0.8ȱpercent,ȱaȱreductionȱofȱ2.7ȱpercent.ȱ

Theȱ costȱ ofȱ livingȱ increase,ȱ calculatedȱ inȱ accordanceȱ withȱ theȱ
mechanismȱagreedȱwithȱtheȱsocialȱpartners,ȱwillȱbeȱ€1.16ȱperȱweek.ȱ

TheȱGrossȱDomesticȱProductȱisȱexpectedȱtoȱincreaseȱatȱtheȱrateȱofȱ3.4ȱ
percent,ȱ whilstȱ inflationȱ rateȱ isȱ expectedȱ toȱ reachȱ 1.4ȱ percent.ȱ Itȱ isȱ
alsoȱ envisagedȱ thatȱ theȱ economiesȱ ofȱ ourȱ country’sȱ majorȱ tradingȱ
partnersȱ willȱ growȱ atȱ aȱ moreȱ moderateȱ rate.ȱ Therefore,ȱ inȱ 2011,ȱ
Malta’sȱeconomicȱgrowthȱwillȱbeȱexpectedȱtoȱmaintainȱsuchȱpace,ȱatȱ
approximatelyȱ 3ȱ percent.ȱ Inflationȱ isȱ expectedȱ toȱ goȱ upȱ toȱ 1.8ȱ
percent.ȱ

Iȱ amȱ tablingȱ inȱ theȱ Houseȱ aȱ copyȱ ofȱ theȱ Economicȱ Survey,ȱ whichȱ
givesȱaȱdetailedȱoverviewȱofȱourȱcountry’sȱeconomicȱsituation.ȱ

2.2ȱ Economicȱandȱfinancialȱstrategyȱȱȱ

MacroȬeconomicȱstabilityȱȱ

Mr.ȱSpeaker,ȱ

Despiteȱ theȱ economicȱ progressȱ thatȱ weȱ areȱ experiencingȱ inȱ ourȱ
country,ȱweȱcannotȱignoreȱwhatȱisȱtakingȱplaceȱaroundȱus.ȱWeȱhaveȱ
toȱbeȱprudentȱandȱresponsibleȱinȱourȱdecisionsȱsoȱthatȱweȱgiveȱdueȱ
importanceȱtoȱdeficitȱreduction.ȱOnlyȱinȱthisȱmannerȱcanȱweȱensureȱ
thatȱourȱcountry’sȱeconomicȱsituationȱremainsȱstableȱandȱcredible,ȱsoȱ
asȱtoȱmaintainȱinvestment,ȱtheȱcreationȱofȱwealthȱandȱemployment.ȱȱ
7
Weȱmustȱallȱcontribute,ȱinȱaȱprudentȱmanner,ȱtowardsȱanȱeconomyȱ
whichȱisȱcapableȱofȱmaintainingȱsustainableȱgrowthȱinȱourȱcountry,ȱ
creatingȱemployment,ȱbalancingȱtheȱsecurityȱofȱjobsȱandȱwages,ȱandȱ
protectingȱ theȱ socialȱ securityȱ systemȱ soȱ asȱ toȱ protectȱ andȱ supportȱ
thoseȱinȱneed.ȱȱȱ

Weȱ mustȱ continueȱ toȱ implementȱ theȱ structuralȱ reformsȱ needed,ȱ

whilstȱ addressingȱ ourȱ macroȬeconomicȱ deficits.ȱ Itȱ isȱ importantȱ toȱ
keepȱ onȱ restrainingȱ theȱ structuralȱ deficitȱinȱ publicȱ financesȱ andȱ theȱ
increasingȱ nationalȱ debt.ȱ Nowȱ thatȱ theȱ economyȱ hasȱ startedȱ
recovering,ȱ itȱ isȱ prudentȱ toȱ keepȱ onȱ supportingȱ itȱ withȱ moreȱ
investmentȱandȱmoreȱexportationȱofȱproductsȱandȱservices,ȱandȱnotȱ
withȱ moreȱ Governmentȱ expenditureȱ orȱ unnecessaryȱ consumption.ȱȱ
Prudenceȱ requiresȱ controlȱ overȱ consumptionȱ andȱ anȱ improvementȱ
inȱ theȱ rateȱ ofȱ savingsȱ ofȱ ourȱ people.ȱ Itȱ isȱ alsoȱ prudent,ȱ whereȱ
possible,ȱtoȱcontrolȱpriceȱincreasesȱsoȱasȱtoȱretainȱmonetaryȱstrengthȱ
andȱprotectȱourȱcountry’sȱcompetitiveness.ȱȱ

Mr.ȱSpeaker,ȱȱ

Theȱseriousnessȱandȱprudenceȱofȱourȱbankingȱsystemȱwereȱcrucialȱinȱ
avoidingȱ theȱ worstȱ ofȱ theȱ financialȱ crisis.ȱ Weȱ mustȱ continueȱ toȱ
protectȱ thisȱ advantageousȱ situationȱ byȱ eliminatingȱ allȱ threatsȱ toȱ itsȱ
stability.ȱ Iȱ urgeȱ youȱ notȱ toȱ takeȱ unnecessaryȱ risks,ȱ andȱ notȱ toȱ
concentrateȱyourȱinvestmentsȱinȱsectorsȱthatȱareȱexposedȱtoȱrisks.ȱIfȱ
weȱ continueȱ toȱ showȱ seriousnessȱ andȱ responsibility,ȱ ourȱ financialȱ
sectorȱ shouldȱ remainȱ aȱ majorȱ drivingȱ forceȱ inȱ theȱ creationȱ ofȱ
nationalȱwealth.ȱȱȱȱ

Throughȱ aȱ consultationȱ withȱ allȱ stakeholders,ȱ weȱ mustȱ developȱ aȱ

mechanismȱ whichȱ monitorsȱ theȱ financialȱ sectorȱ inȱ aȱ widerȱ context,ȱ
andȱ whichȱ complementsȱ theȱ rigorousȱ monitoringȱ whichȱ alreadyȱ
exists.ȱSimilarȱmechanismsȱareȱbeingȱdevelopedȱonȱanȱinternationalȱ
levelȱandȱinȱtheȱEuropeanȱUnion.ȱTheseȱshouldȱincreaseȱconfidenceȱ
inȱtheȱMalteseȱmarketsȱandȱreduceȱcrisisȱrisks.ȱȱ
8
Thereȱ isȱ alsoȱ theȱ needȱ toȱ strengthenȱ theȱ savingȱ mentalityȱ amongstȱ
ourȱ people.ȱ Theȱ Governmentȱ willȱ developȱ aȱ nationalȱ policyȱ andȱ aȱ
planȱ ofȱ actionȱ inȱ favourȱ ofȱ thisȱ savingȱ mentality,ȱ particularlyȱ
amongstȱ childrenȱ andȱ youth.ȱ Weȱ shallȱ enhanceȱ financialȱ educationȱ
inȱtheȱNationalȱMinimumȱCurriculum.ȱȱȱ

Protectingȱcompetitivenessȱandȱcompetitionȱinȱtheȱlocalȱmarketȱȱȱ

Mr.ȱSpeaker,ȱȱ

Ourȱ peopleȱ mustȱ liveȱ withȱ allȱ thatȱ theyȱ produceȱ andȱ sellȱ toȱ otherȱ
countries.ȱ Withȱ extremelyȱ competitiveȱ andȱ wideȬopenȱ globalȱ
markets,ȱ weȱ canȱ neverȱ stopȱ developingȱ ourȱ economyȱ andȱ
diversifyingȱourȱproductiveȱsectorsȱwithȱprudentȱ choices.ȱWeȱmustȱ
eradicateȱ allȱ thoseȱ elementsȱ whichȱ hinderȱ ourȱ competitivenessȱ andȱ
dissuadeȱ investment.ȱ Weȱ mustȱ keepȱ onȱ reformingȱ toȱ ensureȱ
flexibilityȱ inȱ ourȱ marketsȱ andȱ ourȱ relevanceȱ inȱ theȱ internationalȱ
markets.ȱ Inefficiency,ȱ unnecessaryȱ bureaucracy,ȱ andȱ corruptionȱ areȱ
ourȱ foes!ȱ Weȱ unequivocallyȱ declareȱ thatȱ weȱ shallȱ continueȱ ourȱ
struggleȱtoȱovercomeȱthem.ȱAboveȱall,ȱweȱmustȱensureȱaȱfairȱincomeȱ
toȱ ourȱ workersȱ andȱ entrepreneurs,ȱ supportedȱ byȱ ourȱ country’sȱ
productivity.ȱȱȱȱȱȱ

Weȱ shallȱ keepȱ onȱ strengtheningȱ fairȱ competitionȱ inȱ theȱ internalȱ
market.ȱAllȱthatȱhindersȱfairȱcompetitionȱisȱdetrimentalȱtoȱeconomicȱ
operatorsȱ inȱ ourȱ countryȱ andȱ placesȱ unnecessaryȱ burdensȱ onȱ ourȱ
families.ȱWeȱhaveȱalreadyȱmadeȱaȱlotȱaȱprogress.ȱWeȱhaveȱliberalisedȱ
mostȱ ofȱ ourȱ markets.ȱ Competitionȱ hasȱ increased,ȱ workȱ hasȱ
increased,ȱqualityȱhasȱimproved,ȱandȱtheȱendȱresultȱhasȱbeenȱbetterȱ
pricesȱforȱconsumers.ȱWeȱshallȱcontinueȱtoȱendeavourȱtoȱremoveȱallȱ
obstaclesȱtoȱfairȱcompetition.ȱ Everyoneȱwillȱultimatelyȱbenefitȱfromȱ
this.ȱȱ

9
Mr.ȱSpeaker,ȱȱ

Despiteȱallȱthatȱisȱhappeningȱaroundȱus,ȱweȱshallȱcontinueȱtoȱmakeȱ
prudentȱchoicesȱinȱourȱdriveȱtowardsȱVisionȱ2015.ȱȱȱȱ

Weȱ areȱ optingȱ toȱ investȱ inȱ healthcare,ȱ education,ȱ creativity,ȱ andȱ
culturalȱawarenessȱofȱourȱpeople.ȱȱȱȱȱȱ

Weȱ areȱ optingȱ toȱ investȱ moreȱ inȱ infrastructure,ȱ research,ȱ

developmentȱandȱinnovation.ȱȱȱȱ

Weȱ areȱ optingȱ toȱ continueȱ improvingȱ ourȱ country’sȱ commercialȱ

environment.ȱȱ

Weȱ areȱ optingȱ toȱ keepȱ onȱ venturingȱ inȱ newȱ sectorsȱ ofȱ economicȱ
growthȱ andȱ directingȱ ourȱ productiveȱ sectorsȱ towardsȱ highȱ valueȱ
addedȱandȱqualityȱsectors.ȱȱȱȱ

Inȱ thisȱ manner,ȱ Mr.ȱ Speaker,ȱ weȱ shallȱ continueȱ toȱ strengthenȱ thoseȱ
competitiveȱaspectsȱwhichȱareȱnotȱpriceȬbased.ȱȱȱ

Weȱareȱoptingȱtoȱencourageȱmoreȱpeopleȱtoȱkeepȱonȱworking,ȱorȱtoȱ
startȱworking.ȱȱȱȱȱȱ

Weȱ areȱ optingȱ toȱ makeȱ ourȱ economyȱ moreȱ efficientȱ inȱ theȱ useȱ ofȱ
resourcesȱ soȱ asȱ toȱ increaseȱ ourȱ economicȱ andȱ environmentalȱ
sustainability.ȱȱ

Weȱareȱoptingȱtoȱstrengthenȱourȱ country’sȱproductiveȱbasis,ȱandȱtoȱ
keepȱonȱcreatingȱgoodȱemploymentȱopportunitiesȱforȱeveryone.ȱȱȱ

10
Governmentȱ hasȱ alreadyȱ introducedȱ theȱ practiceȱ ofȱ rigorouslyȱ
evaluatingȱ theȱ country’sȱ competitivenessȱ inȱ theȱ preȬbudgetȱ
document.ȱ Asȱ ofȱ nextȱ year,ȱ Governmentȱ willȱ askȱ theȱ competentȱ
Authoritiesȱ toȱ prepareȱ anȱ analyticalȱ reportȱ onȱ nationalȱ
competitivenessȱ onȱ aȱ regularȱ basisȱ whichȱ shallȱ thenȱ beȱ sentȱ toȱ
MCESDȱforȱdiscussionȱamongstȱtheȱsocialȱpartners.ȱȱȱ

Financialȱstrategyȱȱ

Mr.ȱSpeaker,ȱ

Thisȱyear,ȱtheȱdeficitȱinȱpublicȱfinancesȱisȱexpectedȱtoȱbeȱ3.9ȱpercentȱ
ofȱ theȱ country’sȱ produce.ȱ Responsibilityȱ andȱ prudenceȱ requireȱ thatȱ
duringȱtheȱyear,ȱthisȱisȱdecreasedȱtoȱ3ȱpercent,ȱandȱthatȱwithȱallȱdueȱ
prudence,ȱweȱkeepȱnearingȱfiscalȱbalance.ȱ

Weȱ mustȱ letȱ prudence,ȱ moderation,ȱ andȱ seriousnessȱ guideȱ us.ȱ Thisȱ
willȱavoidȱtheȱneedȱforȱfurtherȱtaxesȱandȱtheȱunnecessaryȱincreaseȱofȱ
nationalȱdebt.ȱWeȱareȱdoingȱthisȱtoȱincreaseȱtheȱstability,ȱcredibility,ȱ
andȱtheȱinvestors’ȱfinancialȱconfidenceȱinȱourȱcountry.ȱȱȱ

Mr.ȱSpeaker,ȱourȱstrategyȱinȱtheȱmanagementȱofȱourȱpublicȱfinancesȱ
isȱ clear;ȱ weȱ areȱ optingȱ toȱ strengthenȱ theȱ nationalȱ financialȱ andȱ
budgetaryȱ framework.ȱ Weȱ areȱ controlling,ȱ andȱ whereȱ possible,ȱ
decreasingȱ publicȱ expenditureȱ inȱ aȱ plannedȱ andȱ strategicȱ manner.ȱ
Whilstȱcontinuingȱtoȱmaintainȱtheȱrequiredȱservicesȱandȱinvestment,ȱ
weȱ areȱ ensuringȱ thatȱ weȱ doȱ notȱ endangerȱ ourȱ country’sȱ economicȱ
sustainability.ȱ Weȱ mustȱ deriveȱ theȱ optimumȱ valueȱ andȱ theȱ bestȱ
resultsȱ forȱ theȱ moneyȱ spentȱ byȱ theȱ publicȱ sectorȱ inȱ theȱ
implementationȱ ofȱ Governmentȱ program.ȱ Weȱ stressȱ onȱ theȱ
importanceȱ ofȱ protectingȱ andȱ enforcingȱ fiscalȱ legislation,ȱ andȱ weȱ
reinforceȱourȱbattleȱagainstȱtaxȱevasion.ȱȱ

11
Forȱ thisȱ reason,ȱ weȱ areȱ insistingȱ thatȱ duringȱ theȱ comingȱ year,ȱ
Governmentȱdepartmentsȱandȱentities:ȱȱȱ

x improveȱ theirȱ efficiencyȱ byȱ atȱ leastȱ 2ȱ percent.ȱ Everyȱ

departmentȱ andȱ publicȱ entityȱ mustȱ submit,ȱ byȱ notȱ laterȱ thanȱ
theȱ 15thȱ December,ȱ aȱ planȱ ofȱ actionȱ onȱ howȱ toȱ improveȱ theirȱ
efficiency;ȱȱȱ

x improveȱ lawȱ enforcementȱ andȱ toughenȱ upȱ theȱ battleȱ againstȱ

fraudȱ andȱ taxȱ evasionȱ withȱ theȱ underlyingȱ aimȱ beingȱ that,ȱ
amongstȱotherȱthings,ȱofȱreducingȱtheȱabuseȱperpetratedȱbyȱaȱ
numberȱ ofȱ companiesȱ whichȱ accumulateȱ lossesȱ inȱ inactiveȱ
companies,ȱ settingȱ themȱ offȱ againstȱ profitsȱ ofȱ otherȱ
companiesȱinȱtheȱsameȱgroup;ȱȱȱ

x workȱ towardsȱ theȱ reductionȱ ofȱ 10ȱ percentȱ inȱ Governmentȱ

arrears.ȱ Everyȱ departmentȱ andȱ entityȱ willȱ beȱ requestedȱ toȱ
prepareȱaȱstrategyȱforȱthisȱpurposeȱbyȱtheȱendȱofȱNovember;ȱȱȱ

x whereȱpracticable,ȱemployȱoneȱpersonȱforȱeveryȱtwoȱpersonsȱ
whoseȱemploymentȱterminates.ȱTheȱdepartmentsȱandȱentitiesȱ
areȱexpectedȱtoȱuseȱtheirȱhumanȱresourcesȱinȱtheȱbestȱpossibleȱ
manner;ȱ

x establishȱ aȱ workingȱ groupȱ toȱ rigorouslyȱ scrutiniseȱ theȱ

procurementȱmethodsȱandȱprocessesȱinȱtheȱpublicȱsector,ȱandȱ
toȱ proposeȱ strategiesȱ andȱ measuresȱ leadingȱ toȱ improvedȱ
efficiencyȱ andȱ valueȱ forȱ money.ȱ Thisȱ groupȱ willȱ beȱ askedȱ toȱ
prepareȱitsȱreportȱbyȱtheȱendȱofȱAugustȱofȱtheȱcomingȱyear;ȱȱ

x governmentȱ transportȱ mustȱ beȱ managedȱ inȱ aȱ moreȱ efficientȱ

manner.ȱ Therefore,ȱ forȱ aȱ twoȬyearȱ period,ȱ Governmentȱ
transportȱ willȱ beȱ analysed,ȱ andȱ recommendationsȱ willȱ beȱ
madeȱ onȱ theȱ use,ȱ planning,ȱ fuel,ȱ maintenanceȱ andȱ repairȱ ofȱ

12
 usedȱ vehicles.ȱ Itȱ isȱ expectedȱ thatȱ thisȱ reformȱ willȱ beȱ
completedȱuntilȱ2013;ȱandȱȱȱ

x aȱsystemȱofȱindependentȱauditingȱshallȱbeȱintroduced,ȱwhichȱ
systemȱ willȱ regularlyȱ andȱ randomly,ȱ scrutinizeȱ andȱ evaluateȱ
samplesȱ ofȱ personsȱ whoȱ areȱ receivingȱ freeȱ medicines.ȱ Theȱ
underlyingȱaimȱisȱtoȱcombatȱabuse,ȱwhilstȱensuringȱmoreȱfreeȱ
medicineȱtoȱthoseȱgenuinelyȱinȱneed.ȱ

Mr.ȱ Speaker,ȱ weȱ shallȱ alsoȱ adoptȱ aȱ Codeȱ ofȱ Workȱ andȱ Ethics,ȱ
togetherȱ withȱ aȱ trainingȱ program,ȱ forȱ allȱ thoseȱ inȱ theȱ publicȱ sectorȱ
whoȱareȱinvolvedȱinȱpublicȱprocurement.ȱThisȱwillȱcomplementȱtheȱ
professionalȱ trainingȱ whichȱ hasȱ alreadyȱ beenȱ launchedȱ inȱ theȱ
managementȱofȱpublicȱfinances.ȱȱȱ

Financialȱsituationȱ

Governmentȱ deficitȱ forȱ theȱ yearȱ 2010ȱ isȱ expectedȱ toȱ reachȱ 237.7ȱ
millionȱeuro,ȱorȱ3.9%ȱofȱtheȱgrossȱdomesticȱproduct.ȱ

Althoughȱ Governmentȱ revenueȱ isȱ expectedȱ toȱ beȱ lessȱ thanȱ

estimated,ȱrevenueȱfromȱindirectȱandȱindirectȱtaxationȱisȱexpectedȱtoȱ
increaseȱ byȱ 133.7ȱ millionȱ euro,ȱ whileȱ otherȱ revenueȱ isȱ expectedȱ toȱ
increaseȱbyȱ105.9ȱmillionȱeuroȱwhenȱcomparedȱtoȱ2009.ȱ

Recurrentȱ expenditureȱ isȱ expectedȱ toȱ increaseȱ byȱ 40.3ȱ millionȱ euro,ȱ
onȱestimatesȱforȱ2010.ȱȱThisȱincludesȱwageȱincreases,ȱparticularlyȱinȱ
educationȱ andȱ health,ȱ programmesȱ andȱ incentives,ȱ particularlyȱ inȱ
tourism,ȱeducationȱandȱsocialȱbenefits.ȱ

Capitalȱexpenditureȱisȱexpectedȱtoȱbeȱatȱ382.9ȱmillionȱeuro.ȱ

13
Governmentȱ debtȱ isȱ expectedȱ toȱ reachȱ 69.1%ȱ ofȱ theȱ grossȱ domesticȱ
product.ȱ ȱ Governmentȱ deficitȱ forȱ 2011ȱ isȱ expectedȱ toȱ goȱ downȱ toȱ
2.8%ȱ ofȱ theȱ grossȱ domesticȱ product.ȱ ȱ Iȱ amȱ attachingȱ tablesȱ 2.1,ȱ 2.2ȱ
andȱ2.3,ȱwhichȱIȱaskȱtheȱHouseȱtoȱconsiderȱasȱread.ȱȱFurtherȱdetailsȱ
areȱavailableȱinȱAppendixȱB,ȱattachedȱtoȱthisȱspeech.

14
 TableȱNo2.1

FINANCIALȱPOSITIONȱ2009ȱȬȱ2010

2009 2010 2010

Actualȱ Approved Revised
€ȱȇ000 €ȱȇ000 €ȱȇ000

ConsolidatedȱFundȱ

TotalȱRevenue 2,370,770 2,674,937 2,610,365

TaxȱRevenue 2,130,120 2,331,254 2,263,863
NonȬTaxȱRevenue 240,650 343,683 346,502
TotalȱRecurrentȱExpenditure 2,396,445 2,484,142 2,524,455
RecurrentȱExpenditure 2,204,421 2,288,521 2,326,334
InterestȱPayments 192,024 195,621 198,121
RecurrentȱSurplusȱ(Deficit) (25,675) 190,795 85,910

CapitalȱExpenditure 271,346 429,595 382,910

TotalȱExpenditure 2,667,791 2,913,737 2,907,365

ConsolidatedȱFundȱ(Deficit) (297,021) (238,800) (297,000)

Financing
DirectȱLoanȱRepayments (252,464) (191,242) (191,242)
ContributionsȱtoȱSinkingȱFundsȱȬȱLocal (7,023) (7,023) (7,023)
ContributionsȱtoȱSinkingȱFundsȱȬȱForeign (9,945) (9,177) (9,177)
EquityȱAcquisition (541) (100) (100)
LoanȱFacilityȱwithȱtheȱHellenicȱRepublic Ȭ Ȭ (30,000)
ConvertedȱLoansȇȱSinkingȱFundsȱ 0 0 0
SaleȱofȱAssets 2,795 0 0
(267,178) (207,542) (237,542)

PublicȱSectorȱBorrowingȱRequirement (564,199) (446,342) (534,542)

ForeignȱLoans 0 0 0
Openingȱbalanceȱasȱonȱ1ȱJanuary (87,891) (114,776) (196,297)
LocalȱLoans 455,793 367,902 550,000 435,224 550,000 353,703

Closingȱbalanceȱ31ȱDecemberȱ (196,297) (11,118) (180,839)

ȱȱȱGeneralȱGovernmentȱAdjustmentsȱ 80,082 5,000 59,282

ȱȱȱGeneralȱGovernmentȱ(Deficit) (216,939) (233,800) (237,718)

ȱȱȱGrossȱDomesticȱProduct 5,749,657 6,134,884

GeneralȱGovernmentȱ(Deficit)
asȱaȱ%ȱofȱGrossȱDomesticȱProduct Ȭ3.77% Ȭ3.87%

15
 Table No.2.2

FINANCIAL POSITION 2009 - 2013

2009 2010 2011 2012 2013

Actual Revised Projections Projections Projections
€ '000 € '000 € '000 € '000 € '000

Consolidated Fund

Total Revenue 2,370,770 2,610,365 2,791,700 2,845,092 2,938,184

Tax Revenue 2,130,120 2,263,863 2,393,370 2,502,060 2,588,060
Non-Tax Revenue 240,650 346,502 398,330 343,032 350,124
Total Recurrent Expenditure 2,396,445 2,524,455 2,547,222 2,620,565 2,677,280
Recurrent Expenditure 2,204,421 2,326,334 2,338,726 2,405,071 2,461,994
Interest Payments 192,024 198,121 208,496 215,494 215,286
Recurrent Surplus / (Deficit) (25,675) 85,910 244,478 224,527 260,904

Capital Expenditure 271,346 382,910 440,024 378,987 369,945

Total Expenditure 2,667,791 2,907,365 2,987,246 2,999,552 3,047,225
Consolidated Fund (Deficit) (297,021) (297,000) (195,546) (154,460) (109,041)

Financing
Direct Loan Repayments (252,464) (191,242) (182,014) (509,702) (464,783)
Contributions to Sinking Funds - Local (7,023) (7,023) (6,744) (4,857) (4,059)
Contributions to Sinking Funds - Foreign (9,945) (9,177) (6,758) (6,758) (6,758)
Equity Acquisition (541) (100) (6,100) (100) (100)
Loan Facility with the Hellenic Republic 0 (30,000) (24,000) (16,000) (5,000)
Converted Loans' Sinking Funds 0 0 9,560 27,986 28,184
Sale of Assets 2,795 0 0 0 0
(267,178) (237,542) (216,056) (509,431) (452,516)

Public Sector Borrowing Requirement (564,199) (534,542) (411,602) (663,891) (561,557)

Foreign Loans 0 0 0 0 0
Opening balance as on 1 January (87,891) (196,297) (180,839) (22,441) 13,668
Local Loans 455,793 367,902 550,000 353,703 570,000 389,161 700,000 677,559 550,000 563,668

Closing balance 31 December (196,297) (180,839) (22,441) 13,668 2,111

General Government Adjustments 80,082 59,282 13,913 8,513 7,013

General Government (Deficit) (216,939) (237,718) (181,633) (145,947) (102,028)

Gross Domestic Product 5,749,657 6,134,884 6,478,437 6,802,359 7,142,477

General Government (Deficit)

as a % of Gross Domestic Product -3.77% -3.87% -2.80% -2.15% -1.43%

16
 Table No.2.3

STATEMENTȱOFȱPUBLICȱDEBT

€ȱȇ000

2009 2010 2011 2012 2013

MaltaȱGovernmentȱStocks 3,224,184 3,612,942 4,054,504 4,244,802 4,330,019

TreasuryȱBills 474,137 378,679 220,735 194,166 227,682

ExȬMDDȱLoans 56,391 55,689 2,113 2,113 2,113

ForeignȱLoans 101,038 87,744 74,609 62,082 62,082

EBUȇsȱ/ȱLocalȱCouncils 63,643 65,291 65,291 65,291 65,291

Currency 37,154 40,000 40,000 40,000 40,000

GeneralȱGovernmentȱPublicȱDebtȱ 3,956,547 4,240,345 4,457,252 4,608,454 4,727,187

GrossȱDomesticȱProduct 5,749,657 6,134,884 6,478,437 6,802,359 7,142,477

Debtȱasȱaȱ%ȱofȱGDP 68.81% 69.12% 68.80% 67.75% 66.18%

17
3.ȱ Creatingȱmoreȱjobsȱȱ

Workȱisȱanȱactivityȱwhichȱbringsȱdignityȱtoȱman.ȱȱȱ

Throughȱwork,ȱmanȱcanȱbetterȱhisȱownȱsituation,ȱasȱwellȱasȱthatȱofȱ
hisȱ familyȱ andȱ ofȱ hisȱ country.ȱ Workȱ andȱ enterpriseȱ areȱ theȱ drivingȱ
forcesȱofȱtheȱeconomyȱandȱofȱourȱcountry’sȱdevelopment.ȱ

Mr.ȱSpeaker,ȱ

Weȱchoseȱworkȱasȱaȱpriorityȱandȱweȱshallȱcontinueȱinvestingȱinȱthisȱ
choice.ȱȱȱ

Weȱ wantȱ work,ȱ andȱ fairȱ remunerationȱ forȱ it,ȱ toȱ beȱ everybodyȇsȱ
naturalȱ andȱ proudȱ choice.ȱ Thusȱ weȱ willȱ minimiseȱ theȱ cultureȱ ofȱ
dependenceȱandȱtheȱriskȱofȱaȱlowȱstandardȱofȱliving,ȱandȱstrengthenȱ
socialȱ inclusion.ȱ Inȱ theseȱ timesȱ whenȱ theȱ worldȱ isȱ facingȱ anȱ
economicȱ crisis,ȱ Governmentȱ hasȱ chosenȱ toȱ keepȱ investingȱ inȱ allȱ
Malteseȱinȱorderȱforȱthemȱtoȱhaveȱtheȱopportunityȱtoȱmoveȱforward.ȱȱ

Theȱ mostȱ recentȱ Eurostatȱ statisticsȱ confirmȱ thatȱ inȱ theȱ pastȱ year,ȱ ofȱ
allȱ theȱ Europeanȱ Unionȱ countries,ȱ oursȱ wasȱ theȱ oneȱ thatȱ mostȱ
successfullyȱ reducedȱ unemployment.ȱ Weȱ reducedȱ theȱ rateȱ ofȱ 7.2ȱ
percentȱ toȱ 6.2ȱ percent.ȱ Weȱ achievedȱ thisȱ successȱ whenȱ allȱ theȱotherȱ
countriesȱ areȱ facingȱ uncertainties,ȱ andȱ manyȱ areȱ implementingȱ
austerityȱ measures.ȱ Weȱ haveȱ drawnȱ upȱ severalȱ prudentȱ measures,ȱ
throughȱ whichȱ weȱ haveȱ beenȱ ableȱ toȱ guardȱ ourselvesȱ againstȱ thisȱ
crisisȱwithȱtheȱleastȱpossibleȱimpactȱonȱourȱfamilies.ȱIȱwouldȱlikeȱtoȱ
thankȱallȱthoseȱwhoȱworkedȱwithȱtheȱGovernmentȱinȱthisȱregard.ȱ

Despiteȱ thisȱ success,ȱ Governmentȱ believesȱ thatȱ everyoneȱ seekingȱ

employmentȱ isȱ aȱ challenge.ȱ Weȱ willȱ notȱ stopȱ beforeȱ theseȱ canȱ findȱ
suitableȱemployment.ȱ

18
3.1ȱ Investingȱinȱtheȱcreationȱofȱjobsȱ

Mr.ȱSpeaker,ȱ

Thereȱ areȱ certainȱ trendsȱ inȱ theȱ labourȱ marketȱ toȱ whichȱ weȱ needȱ toȱ
payȱattention:ȱ

x theȱ continuousȱ changeȱ inȱ theȱ natureȱ ofȱ workȱ canȱ leadȱ toȱ
discrepanciesȱbetweenȱtheȱskillsȱofȱourȱworkersȱandȱthoseȱ
requiredȱbyȱindustries;ȱ

x owingȱ toȱ thisȱ discrepancy,ȱ ourȱ industriesȱ willȱ faceȱ anȱ

everȬgrowingȱ challengeȱ inȱ findingȱ andȱ keepingȱ theȱ
requiredȱtalent;ȱȱȱ

x ourȱ marketsȱ andȱ clientsȱ areȱ becomingȱ increasinglyȱ

sophisticatedȱ andȱ competitive.ȱ Ourȱ enterprisesȱ thereforeȱ
needȱ toȱ continuouslyȱ thinkȱ aboutȱ betterȱ andȱ moreȱ
innovativeȱ waysȱ ofȱ working,ȱ soȱ asȱ toȱ beȱ ableȱ toȱ giveȱ
greaterȱvalueȱtoȱtheȱproductsȱandȱservicesȱtheyȱoffer;ȱ

x developmentsȱ inȱ theȱ fieldȱ ofȱ technologyȱ areȱ constantlyȱ

changingȱtheȱwayȱweȱwork.ȱȱȱ

Responsibilityȱ callsȱ forȱ usȱ toȱ addressȱ theseȱ trendsȱ inȱ theȱ
developmentȱ ofȱ ourȱ policiesȱ andȱ ofȱ ourȱ choices.ȱ Ourȱ enterprisesȱ
requireȱ hardȬworkingȱ andȱ flexibleȱ workersȱ whoȱ areȱ ableȱ toȱ
constantlyȱ adaptȱ themselves.ȱ Thisȱ includesȱ constantȱ trainingȱ forȱ
themȱtoȱimproveȱtheirȱskills.ȱTherefore,ȱconstantȱinvestmentȱinȱskillsȱ
andȱinȱeducationȱisȱanȱessentialȱchoiceȱforȱourȱworkersȱtoȱkeepȱtheirȱ
placesȱinȱtheȱlabourȱmarketȱandȱtoȱimproveȱtheirȱsituation.ȱȱ

19
Mr.ȱSpeaker,ȱȱ

MoreȱpeopleȱneedȱtoȱenterȱtheȱlabourȱmarketȱifȱtheȱMalteseȱeconomyȱ
isȱ toȱ continueȱ itsȱ development.ȱ Itȱ isȱ forȱ thisȱ reasonȱ thatȱ theȱ
Employmentȱ andȱ Trainingȱ Corporation,ȱ throughȱ itsȱ severalȱ
schemes,ȱisȱtrainingȱpeopleȱwhoȱareȱencounteringȱdifficultiesȱinȱtheȱ
employmentȱsector.ȱȱ

Weȱ haveȱ graduallyȱ introducedȱ aȱ schemeȱ throughȱ whichȱ thoseȱ whoȱ

haveȱ beenȱ unemployedȱ forȱ manyȱ yearsȱ areȱ nowȱ carryingȱ outȱ workȱ
inȱ theȱ community.ȱ Thisȱ schemeȱ isȱ providingȱ 160ȱ peopleȱ withȱ theȱ
opportunityȱ toȱ beȱ activeȱ inȱ society,ȱ whileȱ offeringȱ financialȱ
incentivesȱandȱexperienceȱinȱtheȱemploymentȱsector.ȱȱȱ

Weȱ willȱ continueȱ toȱ supportȱ trainingȱ schemesȱ forȱ workers.ȱ Theȱ
Trainingȱ Aidȱ Frameworkȱ whichȱ toȱ dateȱ hasȱ alreadyȱ offeredȱ
incentivesȱ toȱ 1,140ȱ enterprisesȱ inȱ orderȱ toȱ provideȱ trainingȱ
opportunitiesȱ toȱ nearlyȱ 10,000ȱ employees.ȱ Theȱ Employmentȱ Aidȱ
Programmeȱ aimsȱ atȱ theȱ integrationȱ ofȱ personsȱ withȱ disabilitiesȱ orȱ
personsȱ fromȱ disadvantagedȱ backgrounds,ȱ forȱ themȱ toȱ enterȱ theȱ
labourȱ market.ȱ 900ȱ peopleȱ benefitedȱ fromȱ thisȱ schemeȱ upȱ toȱ midȬ
September.ȱ Inȱ thisȱ year’sȱ Budgetȱ weȱ areȱ allocatingȱ theȱ amountȱ ofȱ
threeȱmillionȱeuro.ȱ

Weȱ willȱ keepȱ supportingȱ theȱ initiativesȱ weȱ haveȱ launchedȱ soȱ thatȱ
yourȱ workersȱ willȱ continueȱ toȱ receiveȱ training.ȱ Amongȱ these,ȱ theȱ
ApprenticeshipȱSchemeȱhelpedȱ741ȱstudents,ȱtheȱWorkȱTrialȱSchemeȱ
288ȱ persons,ȱ andȱ theȱ programmeȱ forȱ employersȱ ofȱ personsȱ withȱ
disabilitiesȱbenefitedȱ43ȱpeople.ȱ62ȱpeopleȱtookȱpartȱinȱtheȱschemeȱtoȱ
assistȱpersonsȱbetweenȱ16ȱandȱ20ȱyearsȱofȱage,ȱwhoȱareȱunemployedȱ
orȱnotȱreceivingȱanyȱtraining.ȱ

Thisȱ isȱ notȱ enough.ȱ Weȱ believeȱ inȱ workȱ ofȱ aȱ betterȱ qualityȱ andȱ weȱ
intendȱ toȱ investȱ inȱ aȱ trainingȱ programmeȱ forȱ allȱ thoseȱ whoȱ areȱ
workingȱonȱtheȱminimumȱwage.ȱThoseȱparticipatingȱinȱthisȱtrainingȱ
20
programmeȱwillȱbeȱgivenȱaȱweeklyȱallowanceȱofȱ25ȱeuro.ȱWeȱwishȱtoȱ
giveȱ thoseȱ earningȱ theȱ minimumȱ wageȱ theȱ toolsȱ inȱ orderȱ toȱ betterȱ
theirȱsituationȱandȱtheirȱprospectsȱforȱearningȱaȱbetterȱwage.ȱȱ

Theȱ relevantȱ Authoritiesȱ willȱ beȱ expectedȱ toȱ drawȱ upȱ reportsȱ
regardingȱ theȱ labourȱ marketȱ andȱ theȱ necessaryȱ skillsȱ onȱ aȱ regularȱ
basis.ȱ Thisȱ reportȱ willȱ alsoȱ beȱ presentedȱ toȱ theȱ Maltaȱ Councilȱ forȱ
EconomicȱandȱSocialȱDevelopmentȱforȱdiscussion.ȱ

WeȱintendȱtoȱestablishȱaȱNationalȱCouncilȱforȱSkills,ȱwhichȱwillȱserveȱ
toȱ bringȱ togetherȱ theȱ authoritiesȱ andȱ allȱ theȱ educationalȱ operatorsȱ
andȱ socialȱ partnersȱ forȱ regularȱ andȱ strategicȱ discussionsȱ regardingȱ
theȱ developmentȱ ofȱ skillsȱ inȱ theȱ contextȱ ofȱ theȱ dynamicsȱ ofȱ theȱ
labourȱmarket.ȱ

Womenȱinȱtheȱlabourȱmarketȱ

Moreȱneedsȱtoȱbeȱdoneȱinȱorderȱtoȱattractȱmoreȱwomenȱtoȱtheȱlabourȱ
market.ȱȱ

Upȱtoȱnow,ȱ6,566ȱwomenȱhaveȱbenefitedȱfromȱtheȱoneȱyearȱtaxȱcreditȱ
schemeȱforȱeachȱoneȱofȱtheirȱchildren,ȱamountingȱtoȱ5.8ȱmillionȱeuro.ȱ
Thisȱschemeȱwillȱbeȱeffectiveȱagainȱduringȱtheȱcomingȱyear.ȱȱȱ

Weȱ haveȱ heardȱ ofȱ womenȱ whoȱ areȱ discouragedȱ fromȱ workingȱ toȱ
improveȱ theirȱ familiesȇȱ financialȱ means,ȱ evenȱ onȱ aȱ partȬtimeȱ basis,ȱ
sinceȱtheirȱhusbandsȱreceiveȱsocialȱassistance.ȱThisȱisȱdueȱtoȱtheȱfactȱ
thatȱtheirȱincomeȱfromȱsuchȱaȱpartȬtimeȱjobȱwouldȱbeȱconsideredȱinȱ
theirȱ meansȱ testȱ forȱ socialȱ assistance,ȱ andȱ soȱ theȱ socialȱ assistanceȱ
theyȱ receiveȱ wouldȱ beȱ reducedȱ orȱ evenȱ discontinuedȱ shouldȱ theyȱ
decideȱtoȱseekȱemployment.ȱȱ

Therefore,ȱ asȱ fromȱ nextȱ January,ȱ partȱ ofȱ theȱ incomeȱ fromȱ workȱ forȱ
peopleȱwhoȱareȱreceivingȱsocialȱassistanceȱwillȱnotȱbeȱconsideredȱinȱ
theȱfinancialȱmeansȱtestȱforȱtheȱfamilyȱtoȱqualifyȱforȱsocialȱassistance.ȱ
Theȱamountȱofȱwagesȱwhichȱwillȱbeȱexemptȱfromȱtheȱmeansȱtestȱwillȱ
21
beȱequalȱtoȱtheȱdifferenceȱbetweenȱtheȱnationalȱminimumȱwageȱandȱ
theȱfullȱsocialȱassistanceȱrateȱapplicableȱforȱtwoȱpeople.ȱȱ

Theȱweeklyȱ€26.37ȱobligatoryȱcontributionȱforȱselfȬemployedȱpeopleȱ
isȱresultingȱinȱaȱnumberȱofȱwomenȱeitherȱchoosingȱnotȱtoȱenterȱtheȱ
labourȱ marketȱ orȱ toȱ workȱ inȱ theȱ informalȱ marketȱ toȱ theirȱ ownȱ
detrimentȱinȱtheȱeventȱofȱsicknessȱorȱinjuryȱatȱtheȱworkplace.ȱȱ

Governmentȱ isȱ ofȱ theȱ opinionȱ thatȱ thisȱ situationȱ shouldȱ changeȱ soȱ
thatȱ theseȱ womenȱ canȱ beȱ encouragedȱ toȱ enterȱ theȱ labourȱ marketȱ
workforceȱ andȱ declareȱ thatȱ theyȱ areȱ employed.ȱ Therefore,ȱ selfȬ
employedȱ womenȱ workingȱ onȱ aȱ partȬtimeȱ basis,ȱ asȱ inȱ theȱ caseȱ ofȱ
employedȱpersons,ȱwillȱbeȱgivenȱtheȱopportunityȱtoȱchooseȱtoȱpayȱaȱ
15ȱ percentȱ proȬrataȱ contributionȱ onȱ theirȱ incomeȱ insteadȱ ofȱ theȱ
minimumȱ currentlyȱ stipulatedȱ byȱ law.ȱ Thisȱ proȬrataȱ contributionȱ
alsoȱgrantsȱproȬrataȱrightsȱforȱsomeȱsocialȱbenefits.ȱ

Mr.ȱSpeaker,ȱ

Asȱ promisedȱ inȱ ourȱ Electoralȱ Programme,ȱ weȱ intendȱ toȱ addressȱ
abusesȱofȱworkers.ȱGovernmentȱwillȱestablishȱaȱUnitȱtoȱcheckȱthatȱallȱ
workersȱ employedȱ byȱ contractorsȱ providingȱ servicesȱ toȱ
Government,ȱ likeȱ cleaners,ȱ carersȱ andȱ securityȱ personnel,ȱ areȱ
receivingȱallȱtheȱwagesȱandȱbenefitsȱowedȱtoȱthem.ȱContractorsȱwhoȱ
areȱcaughtȱemployingȱworkersȱillegally,ȱorȱunderȱconditionsȱinferiorȱ
toȱthoseȱstipulatedȱbyȱlaw,ȱorȱconditionsȱwhichȱareȱnotȱinȱaccordanceȱ
withȱtheȱtender,ȱwillȱhaveȱtheirȱcontractȱterminated.ȱȱ

Governmentȱ willȱ notȱ tolerateȱ discriminationȱ againstȱ foreignȱ

workers,ȱorȱthatȱtheseȱbeȱexploitedȱbyȱbeingȱgivenȱlowȱwages.ȱThisȱ
exploitationȱalsoȱgoesȱagainstȱtheȱinterestsȱofȱMalteseȱworkersȱsinceȱ
itȱcreatesȱ unfairȱcompetition.ȱGovernmentȱwillȱestablishȱaȱ structureȱ
forȱtheseȱpeopleȱtoȱbeȱregisteredȱandȱengagedȱduringȱtheȱtimeȱtheyȱ
areȱworkingȱinȱourȱcountry,ȱsoȱasȱtoȱensureȱthatȱtheyȱareȱbeingȱgivenȱ

22
allȱ theyȱ areȱ dueȱ whileȱ theyȱ areȱ payingȱ theȱ contributionsȱ theyȱ areȱ
boundȱtoȱpay.ȱȱ

3.2ȱ Industryȱandȱeconomicȱdevelopmentȱ

Directȱinvestmentȱinȱlocalȱenterpriseȱ

Mr.ȱSpeaker,ȱ

Theȱcontributionȱofȱtheȱservicesȱsectorȱtoȱourȱeconomyȱcontinuesȱtoȱ
grow.ȱThisȱappliesȱtoȱfinancialȱandȱintermediaryȱservices,ȱasȱwellȱasȱ
toȱ theȱ largerȱ ICTȱ sector,ȱ consultancy,ȱ backȱ officeȱ andȱ others.ȱ Theȱ
manufacturingȱ sectorȱ isȱ goingȱ throughȱ continuousȱ restructuring,ȱ
whichȱisȱrequiredȱforȱitȱtoȱremainȱcompetitiveȱandȱincreaseȱitsȱaddedȱ
value.ȱ Atȱ theȱ sameȱ time,ȱ weȱ areȱ witnessingȱ theȱ developmentȱ ofȱ aȱ
sectorȱwhichȱlinksȱthisȱfieldȱtoȱtheȱservicesȱsector,ȱamongȱwhichȱoneȱ
findsȱtheȱaeroplaneȱmaintenanceȱsector.ȱȱ

Theȱ Europeanȱ Investmentȱ Fundȱ MicroCreditȱ schemeȱ hasȱ nowȱ

reachedȱ theȱ finalȱ phaseȱ ofȱ itsȱ implementation,ȱ withȱ theȱ callȱ forȱ
financialȱ institutionsȱ setȱ toȱ closeȱ inȱ midȬNovember.ȱ Theȱ fiscalȱ
benefitsȱbroughtȱaboutȱbyȱtheȱMicroInvestȱandȱCreateȱschemesȱalsoȱ
applyȱ duringȱ theȱ currentȱ year.ȱ Thisȱ meansȱ thatȱ companiesȱ
employingȱ upȱ toȱ 10ȱ peopleȱ willȱ stillȱ haveȱ accessȱ toȱ 40ȱ percentȱ taxȱ
creditȱ onȱ costsȱ incurred,ȱ upȱ toȱ aȱ maximumȱ ofȱ 25,000ȱ euroȱ ofȱ taxȱ
credit,ȱonȱtheȱinvestmentȱandȱtheȱnewȱjobsȱtheyȱcreate.ȱȱ

Mr.ȱSpeaker,ȱȱ

Thisȱ Governmentȱ believesȱ thatȱ theȱ keyȱ toȱ theȱ developmentȱ ofȱ localȱ
enterpriseȱ liesȱ inȱ internationalisation.ȱ Theȱ Singleȱ Market,ȱ withȱ 500ȱ
millionȱ consumers,ȱ providesȱ usȱ withȱ greatȱ opportunities.ȱ Ourȱ
country’sȱ competitivenessȱ isȱ crucialȱ toȱ successȱ inȱ thisȱ market.ȱ
Togetherȱ withȱ theȱ Chamberȱ ofȱ Commerce,ȱ Maltaȱ Enterpriseȱ hasȱ

23
launchedȱ aȱ trainingȱ andȱconsultancyȱprogrammeȱ inȱ theȱ franchisingȱ
field,ȱwithȱtheȱaimȱofȱexportingȱMalteseȱfirmsȱtoȱforeignȱmarkets.ȱWeȱ
willȱallocateȱoneȱmillionȱeuroȱtoȱtheȱimplementationȱofȱtheȱ‘Gatewayȱ
toȱExport’ȱprogram,ȱwhichȱ willȱhelpȱandȱtrainȱcompaniesȱtoȱexportȱ
toȱforeignȱmarkets.ȱȱȱ

Inȱ orderȱ forȱ usȱ toȱ beȱ successfulȱ inȱ thisȱ fieldȱ andȱ fulfilȱ Visionȱ 2015,ȱ
builtȱ onȱ excellence,ȱ ourȱ countryȱ mustȱ continueȱ investingȱ inȱ anȱ
economyȱ builtȱ onȱ quality.ȱ Onlyȱ thusȱ canȱ weȱ excelȱ inȱ whatȱ weȱ do,ȱ
strengthenȱ ourȱ efficiency,ȱ andȱ improveȱ internationalȱ
competitiveness.ȱIfȱweȱcannotȱensureȱqualityȱinȱallȱweȱdoȱandȱoffer,ȱ
weȱwillȱlagȱbehind.ȱȱ

Forȱ thisȱ reason,ȱ weȱ willȱ beȱ launchingȱ aȱ Qualityȱ Improvementȱ

Programmeȱ toȱ increaseȱ awarenessȱ aboutȱ theȱ differentȱ aspectsȱ ofȱ
qualityȱ andȱ offerȱ helpȱ toȱ ourȱ enterprisesȱ toȱ striveȱ forȱ it.ȱ Thisȱ
programmeȱ shouldȱ alsoȱ facilitateȱ theȱ franchisingȱ ofȱ Malteseȱ
productsȱandȱservicesȱabroad.ȱGovernmentȱisȱassigningȱ250,000ȱeuroȱ
forȱthisȱprogramme.ȱ

Weȱareȱalsoȱgrantingȱaȱreductionȱofȱ150ȱpercent,ȱforȱaȱmaximumȱofȱ
10,000ȱ euro,ȱ toȱ thoseȱ whoȱ investȱ toȱ improveȱ theȱ qualityȱ ofȱ theȱ
productȱ orȱ ofȱ theȱ serviceȱ theyȱ provide,ȱ thusȱ improvingȱ theirȱ
competitiveness.ȱ

Forȱ theȱ firstȱ timeȱ ever,ȱ weȱ willȱ beȱ participatingȱ inȱ Eurostarts,ȱ aȱ
fundingȱ programmeȱ forȱ researchȱ andȱ developmentȱ aimedȱ atȱ theȱ
smallȱandȱmediumȬsizedȱsector.ȱEurostartsȱisȱaȱFundȱofȱaroundȱoneȱ
hundredȱmillionȱeuroȱperȱannum,ȱandȱGovernmentȱwillȱallocateȱhalfȱ
aȱmillionȱeuroȱforȱit.ȱMalteseȱcompaniesȱwillȱthusȱbeȱableȱtoȱteamȱupȱ
withȱforeignȱcompaniesȱforȱresearchȱandȱdevelopmentȱprogrammes.ȱ

Weȱ areȱ doingȱ allȱ thisȱ inȱ orderȱ toȱ keepȱ supportingȱ theȱ microȱ sectorȱ
andȱ SMEs.ȱ Weȱ believeȱ thatȱ thisȱ sectorȱ shouldȱ continueȱ toȱ developȱ

24
andȱ grow,ȱ evenȱ throughȱ diversification,ȱ restructuringȱ andȱ newȱ
markets.ȱȱ

Mr.ȱSpeaker,ȱȱ

Expansionȱ ofȱ theȱ businessȱ sectorȱ bringsȱ aboutȱ logisticalȱ challengesȱ

thatȱcanȱstuntȱtheȱpossibilityȱofȱdevelopment.ȱOftenȱsmallȱcompaniesȱ
wishingȱtoȱexpandȱencounterȱproblemsȱrelatedȱtoȱspace,ȱespeciallyȱifȱ
theyȱoperateȱinȱresidentialȱareas.ȱȱ

Forȱthisȱreason,ȱGovernmentȱhadȱteamedȱupȱwithȱtheȱprivateȱsectorȱ
toȱ createȱ industrialȱ areasȱ forȱ smallȱ andȱ mediumȬsizedȱ businesses,ȱ
andȱ preparationsȱ haveȱ startedȱ toȱ buildȱ aȱ Microȱ Businessȱ Parkȱ inȱ
Gozo.ȱ Plansȱ inȱ accordanceȱ withȱ theȱ EcoȬGozoȱ conceptȱ haveȱ beenȱ
completed.ȱThisȱeightȱmillionȱeuroȱprojectȱwillȱbeginȱnextȱyear,ȱandȱ
willȱaccommodateȱ39ȱbusinessesȱinȱanȱareaȱmeasuringȱ7,800ȱsquareȱ
metres.ȱ

WeȱwillȱredevelopȱtheȱHutmentȱareaȱinȱKordin.ȱWeȱwillȱalsoȱinvestȱ
10ȱmillionȱeuroȱinȱcreatingȱanȱareaȱmeasuringȱ18,000ȱsquareȱmetresȱ
toȱaccommodateȱ66ȱSMEs.ȱ

AfterȱtheȱissuingȱofȱallȱtheȱcallsȱforȱtenderȱforȱworksȱatȱtheȱKordin,ȱ
@alȬFar,ȱ Xewkijaȱ andȱ Bulebelȱ industrialȱ estates,ȱ anȱ improvementȱ
programmeȱcostingȱ16ȱmillionȱeuroȱwillȱbeȱsoonȱbeȱunderway.ȱThisȱ
includesȱtheȱrebuildingȱofȱthreeȱChildcareCentresȱinȱMosta,ȱXewkijaȱ
andȱ Kordin.ȱ Weȱ haveȱ alsoȱ investedȱ sevenȱ millionȱ euroȱ inȱ theȱ Safiȱ
AviationȱPark,ȱwhichȱisȱsetȱtoȱbeȱcompletedȱbyȱnextȱMarchȱandȱwillȱ
giveȱaȱnewȱboostȱtoȱourȱcountry’sȱaviationȱsector.ȱ

Asȱ fromȱ nextȱ year,ȱ Maltaȱ Industrialȱ Parksȱ willȱ workȱ togetherȱ withȱ
theȱ privateȱ sectorȱ toȱ manageȱ andȱ maintainȱ industrialȱ estates.ȱ Theȱ
processȱforȱtheȱgrantingȱofȱaȱlicenceȱforȱfacilitiesȱmanagementȱatȱtheȱ
@alȬSafiȱAviationȱParkȱandȱatȱtheȱBulebelȱindustrialȱestateȱwillȱsoonȱ
beȱ underway.ȱ Weȱ willȱ beȱ presentingȱ legislativeȱ amendmentsȱ inȱ
orderȱ toȱ introduceȱ aȱ justȱ andȱ fairȱ serviceȱ chargeȱ systemȱ forȱ theȱ
25
tenantsȱofȱtheseȱindustrialȱareas,ȱwhichȱwillȱgoȱtowardsȱtheȱneedsȱofȱ
theȱcommonȱareasȱofȱtheȱindustrialȱestates.ȱ

26
Mr.ȱSpeaker,ȱ

Ourȱ countryȇsȱ economicȱ developmentȱ isȱ tiedȱ toȱ foreignȱ investmentȱ

andȱ exportation.ȱ Althoughȱ theȱ internationalȱ situationȱ didȱ notȱ giveȱ
worldȱ businessȱ muchȱ spaceȱ forȱ expansion,ȱ theȱ firstȱ nineȱ monthsȱ ofȱ
thisȱ yearȱ sawȱ aȱ 33ȱ percentȱ increaseȱ inȱ exportation.ȱ Variousȱ foreignȱ
investorsȱhaveȱannouncedȱthatȱtheyȱareȱexpandingȱtheirȱoperationsȱ
inȱMalta,ȱthusȱinvestingȱoverȱ30ȱmillionȱeuroȱandȱcreatingȱoverȱ300ȱ
jobs.ȱDuringȱtheȱcomingȱyear,ȱMaltaȱEnterpriseȱwillȱbeȱincreasingȱitsȱ
activityȱ inȱ theȱ internationalȱ marketsȱ throughȱ aȱ programmeȱ ofȱ
activitiesȱ andȱ throughȱ theȱ presenceȱ ofȱ Commercialȱ Consulsȱ inȱ
marketsȱsuchȱasȱChina,ȱSouthȱAfrica,ȱIndiaȱandȱAustralia.ȱ

Weȱ areȱ allocatingȱ nineȱ millionȱ euroȱ forȱ Maltaȱ Enterpriseȱ toȱ keepȱ
implementingȱ variousȱ schemesȱ offeringȱ incentivesȱ toȱ industry.ȱ Weȱ
areȱhelpingȱtheȱmanufacturingȱindustryȱandȱrelatedȱservices,ȱandȱweȱ
areȱincentivisingȱtheȱcommercialȱsectorȱtoȱinvestȱmoreȱinȱrenewableȱ
energy,ȱamongȱotherȱthings.ȱ

Mr.ȱSpeaker,ȱȱ

Lastȱweekȱweȱlaunchedȱaȱpublicȱconsultationȱprocessȱregardingȱtheȱ
Smallȱ Businessesȱ Act.ȱ Weȱ wantȱ thisȱ Actȱ toȱ continueȱ creatingȱ aȱ
climateȱwhichȱfacilitatesȱtheȱlivesȱofȱourȱentrepreneurs,ȱthrough:ȱ

x theȱintroductionȱofȱtheȱSMEȱtest,ȱwhichȱeveryȱlawȱhavingȱanȱ
impactȱonȱSMEsȱmustȱpass;ȱ

x theȱestablishmentȱofȱaȱCollegeȱofȱRegulatorsȱwhichȱcanȱadviseȱ
Governmentȱregardingȱtheȱregulatoryȱpoliciesȱforȱthisȱsector;ȱȱ

x theȱ establishmentȱ ofȱ anȱ Advisoryȱ Bodyȱ whichȱ willȱ assistȱ

governmentȱinȱtheȱformulationȱandȱtheȱimplementationȱofȱtheȱ
policiesȱregardingȱenterprises;ȱandȱȱ

27
 x theȱ encouragementȱ ofȱ organisationsȱ representingȱ SMEsȱ toȱ
adoptȱaȱcodeȱofȱethics,ȱamongȱotherȱthings.ȱ

Theȱpublicȱsectorȱasȱsupportȱforȱtheȱbusinessȱsectorȱ

Mr.ȱSpeaker,ȱȱ

Theȱpublicȱsector,ȱtogetherȱwithȱitsȱdepartmentsȱandȱauthorities,ȱhasȱ
aȱ majorȱ roleȱ inȱ theȱ creationȱ ofȱ anȱ adequateȱ environment,ȱ inȱ whichȱ
individuals,ȱ enterpriseȱ andȱ theȱ businessȱ sectorsȱ willȱ beȱ ableȱ toȱ
develop,ȱ workȱ andȱ growȱ inȱ aȱ climateȱ ofȱ certainty,ȱ andȱ withoutȱ
constraints.ȱTheȱpublicȱsectorȱhasȱtheȱdutyȱtoȱhelpȱtheseȱreachȱtheirȱ
aims,ȱwhileȱensuringȱtheȱprotectionȱofȱtheȱcommonȱgood.ȱȱ

Additionalȱburdensȱareȱhindrancesȱtoȱoneȱandȱall,ȱbutȱespeciallyȱtoȱ
smallȱ businesses.ȱ Therefore,ȱ Governmentȱ insistsȱ onȱ aȱ smallerȱ andȱ
moreȱ efficientȱ publicȱ serviceȱ whichȱ isȱ ableȱ toȱ respondȱ quicklyȱ toȱ
businessȱneeds,ȱandȱwhichȱcanȱmakeȱitȱeasierȱforȱourȱenterprisesȱtoȱ
growȱ inȱ size,ȱ inȱ theirȱ skillsȱ andȱ capabilitiesȱ withȱ regardȱ toȱ
innovation.ȱȱ

Mr.ȱSpeaker,ȱȱ

Weȱhaveȱimplementedȱseveralȱmeasuresȱinȱfavourȱofȱenterpriseȱandȱ
theȱ businessȱ sectorsȱ inȱ ourȱ country.ȱ Thisȱ isȱ notȱ enough,ȱ andȱ
therefore:ȱ

x Withȱ theȱ aimȱ ofȱ continuingȱ toȱ encourageȱ moreȱ businessesȱ toȱ
useȱ theȱ Government’sȱ onlineȱ services,ȱ weȱ haveȱ decidedȱ toȱ
supportȱ thoseȱ whoȱ makeȱ useȱ ofȱ theȱ electronicȱ servicesȱ byȱ
amendingȱtheȱVATȱlegislationȱsoȱthatȱthoseȱbusinessesȱwhichȱ
sendȱ inȱ theirȱ VATȱ returnȱ togetherȱ withȱ onlineȱ paymentȱ areȱ
givenȱ anȱ extensionȱ ofȱ aȱ maximumȱ ofȱ sevenȱ daysȱ afterȱ theȱ
closingȱdateȱstipulatedȱbyȱtheȱdeclaration.ȱThus,ȱbusinessȱcashȱ
flowȱ isȱ grantedȱ anȱ addedȱ advantage,ȱ andȱ localȱ businessȱ isȱ
helped;ȱ
28
 x Asȱ fromȱ 1ȱ Januaryȱ nextȱ year,ȱ weȱ willȱ removeȱ registrationȱ
obligationsȱ forȱ categoriesȱ ofȱ peopleȱ withȱ anȱ annualȱ turnoverȱ
notȱexceedingȱsevenȱthousandȱeuro;ȱȱȱ

x Weȱ willȱ establishȱ aȱ fundȱ forȱ Trainingȱ inȱ Entrepreneurship,ȱ

throughȱwhichȱourȱcollegesȱwillȱbeȱableȱtoȱfinanceȱeducationalȱ
projects;ȱ

x Weȱwillȱcreateȱaȱclearingȱhouseȱforȱallȱsurveysȱcarriedȱoutȱbyȱ
theȱ publicȱ sectorȱ inȱ orderȱ toȱ avoidȱ requestsȱ forȱ theȱ sameȱ
informationȱfromȱourȱbusinesses;ȱ

x Regulationȱ shouldȱ onlyȱ comeȱ intoȱ forceȱ whereȱ itȱ isȱ essential,ȱ
whileȱ itȱ shouldȱ beȱ removedȱ whereȱ itȱ isȱ notȱ needed.ȱ Whereȱ
possible,ȱ weȱ requestȱ thatȱ aȱ sunsetȱ clauseȱ beȱ insertedȱ intoȱ
everyȱnewȱregulation;ȱandȱ

x WeȱwillȱintroduceȱaȱsetȱofȱGuidelinesȱregardingȱConsultationȱ
inȱ orderȱ forȱ consultationȱ toȱ beȱ carriedȱ outȱ inȱ anȱ effectiveȱ
manner.ȱ

Governmentȱ believesȱ thatȱ theȱ cooperativeȱ modelȱ inȱ theȱ businessȱ

sectorȱcanȱofferȱmanyȱpeopleȱtheȱopportunityȱtoȱtakeȱcontrolȱofȱtheirȱ
ownȱ futureȱ byȱ joiningȱ forcesȱ withȱ othersȱ soȱ thatȱ togetherȱ theyȱ canȱ
createȱ workȱ forȱ themselvesȱ andȱ forȱ others.ȱ Theyȱ canȱ doȱ thisȱ byȱ
establishingȱ aȱ businessȱ offeringȱ aȱ democraticȱ management,ȱ withȱ
autonomy,ȱ withȱ commitmentȱ toȱ educationȱ andȱ trainingȱ withinȱ aȱ
viableȱbusinessȱframeworkȱwhichȱisȱmoreȱethicalȱandȱsociallyȱjust.ȱ

Governmentȱ remainsȱ committedȱ toȱ ensureȱ thatȱ theȱ countryȱ hasȱ aȱ

social,ȱ economicȱ andȱ legislativeȱ environmentȱ whichȱ favoursȱ theȱ
creationȱ ofȱ newȱ cooperatives,ȱ andȱ strengthensȱ theȱ unityȱ ofȱ thoseȱ
alreadyȱ established.ȱ Thisȱ canȱ beȱ doneȱ throughȱ theȱ revisionȱ ofȱ
existingȱlegislationȱandȱincentivesȱinȱorderȱtoȱensureȱaȱlevelȱplayingȱ
fieldȱ inȱ theȱ sectorsȱ withinȱ whichȱ theseȱ operate.ȱ Forȱ Governmentȱ toȱ
betterȱ helpȱ Cooperatives,ȱ theȱ Impactȱ Assessmentȱ forȱ allȱ legislationȱ
29
willȱ beȱ extendedȱ toȱ coverȱ evenȱ theȱ cooperativesȱ sector,ȱ apartȱ fromȱ
SMEs.ȱ

Theȱ Development,ȱ Researchȱ andȱ Trainingȱ Centreȱ withinȱ theȱ Civilȱ

Serviceȱ willȱ trainȱ itsȱ employeesȱ toȱ betterȱ understandȱ theȱ particularȱ
needsȱofȱbusinessesȱandȱtoȱnurtureȱaȱcultureȱofȱsupportȱforȱbusinessȱ
amongȱallȱemployeesȱofȱtheȱpublicȱsector.ȱThisȱwillȱhappenȱthroughȱ
anȱinvestmentȱofȱ800,000ȱeuro.ȱ

Protectionȱofȱtheȱconsumer’sȱbestȱinterestsȱ

Theȱ establishmentȱ ofȱ theȱ Maltaȱ Authorityȱ forȱ Competitionȱandȱ Consumerȱ

Affairsȱ

Mr.ȱSpeaker,ȱ

Thisȱ Governmentȱ hasȱ alwaysȱ givenȱ priorityȱ toȱ theȱ consumer.ȱ Theȱ
newȱ lawȱ weȱ haveȱ drawnȱ upȱ willȱ establishȱ theȱ Maltaȱ Authorityȱ forȱ
Competitionȱ andȱ Consumerȱ Affairs.ȱ Thisȱ lawȱ willȱ beȱ publishedȱ inȱ
theȱnearȱfuture.ȱ

WeȱwantȱthisȱAuthorityȱto:ȱ

x strengthenȱcompetitionȱpolicy,ȱasȱwellȱasȱconsumerȱpolicy;ȱȱ

x adoptȱtheȱroleȱofȱnationalȱstandardsȱbody;ȱȱ

x ensureȱ thatȱ theȱ adoptionȱ ofȱ technicalȱ regulationsȱ isȱ notȱ

obstructed;ȱandȱ

x protectȱ publicȱ healthȱ throughȱ theȱ regulationȱ ofȱ medicinalȱ

productsȱandȱpharmaceuticalȱactivities.ȱ

ThanksȱtoȱthisȱexerciseȱandȱtoȱamendmentsȱinȱtheȱCompetitionȱLaw,ȱ
weȱwantȱtoȱhaveȱmarketsȱwhichȱfunctionȱbetterȱforȱtheȱbenefitȱofȱtheȱ
consumerȱandȱforȱthatȱofȱbusinessȱowners.ȱ

30
Ourȱcitizensȱdeserveȱtheȱbestȱservices.ȱLegalȱmetrology,ȱbyȱwhichȱallȱ
equipmentȱ throughȱ whichȱ billsȱ areȱ issuedȱ toȱ consumersȱ willȱ beȱ
verifiedȱ onȱ aȱ regularȱ basis,ȱ willȱ beȱ introducedȱ asȱ fromȱ nextȱ year.ȱ
Thisȱ includesȱ petrolȱ pumps,ȱ taxiȱ meters,ȱ speedȱ cameras,ȱ CVAȱ
cameras,ȱ gasȱ cylinderȱ bottlingȱ machinesȱ andȱ scalesȱ usedȱ inȱ
commercialȱoutlets.ȱNobodyȱmustȱpayȱmoreȱthanȱheȱorȱsheȱshould.ȱȱ

Weȱ willȱ alsoȱ implementȱ newȱ tailorȬmadeȱ regulationsȱ regardingȱ

credit,ȱinȱorderȱtoȱprotectȱtheȱconsumer’sȱinterests.ȱȱȱ

Mr.ȱSpeaker,ȱȱ

Informationȱ isȱ theȱ consumer’sȱ bestȱ weapon.ȱ Weȱ areȱ thereforeȱ

startingȱ anȱ empowermentȱ campaignȱ forȱ theȱ consumerȱ andȱ weȱ willȱ
beȱ launchingȱ aȱ specialisedȱ publicationȱ containingȱ informationȱ forȱ
MalteseȱandȱGozitanȱconsumersȱregardingȱtheirȱmarketȱrights.ȱ

Reductionȱinȱmedicineȱpricesȱ

Asȱweȱpromisedȱinȱlastȱyear’sȱBudget,ȱweȱareȱworkingȱtoȱguaranteeȱ
aȱ reductionȱ inȱ medicineȱ prices.ȱ Weȱ haveȱ reachedȱ agreementȱ
regardingȱ aȱ numberȱ ofȱ medicines.ȱ Upȱ toȱ now,ȱ weȱ haveȱ announcedȱ
reductionsȱinȱmoreȱthanȱ90ȱmedicinesȱusedȱforȱvariousȱillnessesȱandȱ
conditions.ȱ

Weȱwillȱnotȱstopȱhere.ȱWeȱareȱstillȱholdingȱtalksȱwithȱimportersȱandȱ
withȱ pharmaceuticalȱ companiesȱ whichȱ provideȱ theȱ localȱ marketȱ
withȱvariousȱmedicines.ȱȱ
Weȱwillȱcontinueȱworkingȱinȱorderȱtoȱensureȱmoreȱreductionsȱinȱaȱ
widerȱrangeȱofȱmedicinesȱasȱweȱwantȱtoȱguaranteeȱthatȱmedicineȱ
pricesȱinȱourȱcountryȱareȱonȱEuropeanȱlevels.ȱȱ

31
3.3ȱ Theȱtourismȱsectorȱ

Mr.ȱSpeaker,ȱȱ

Afterȱ theȱ turmoilȱ inȱ theȱ internationalȱ tourismȱ sectorȱ inȱ theȱ secondȱ
halfȱ ofȱ 2008ȱ andȱ 2009,ȱ thisȱ yearȱ weȱ haveȱ startedȱ toȱ recoverȱ andȱ weȱ
areȱ gettingȱ closerȱ toȱ theȱ bestȱ resultsȱ whichȱ ourȱ countryȱ hasȱ everȱ
achievedȱinȱthisȱsector.ȱ

TheȱmovementȱofȱpassengersȱinȱtheȱMalteseȱinternationalȱairportȱinȱ
Septemberȱ hasȱ increasedȱ byȱ 15.4ȱ perȱ cent,ȱ inȱ comparisonȱ withȱ theȱ
sameȱ monthȱ ofȱ theȱ previousȱ year.ȱ Therefore,ȱ forȱ theȱ thirdȱ
consecutiveȱmonth,ȱweȱhadȱonceȱmoreȱaȱrecordȱnumberȱofȱtourists.ȱ

Weȱareȱachievingȱtheȱbestȱresultsȱamongstȱourȱcompetitorȱcountriesȱ
inȱtheȱMediterranean.ȱWhilstȱweȱhadȱanȱincreaseȱofȱ12ȱperȱcentȱinȱtheȱ
numberȱ ofȱ touristsȱ whoȱ visitedȱ ourȱ country,ȱ ourȱ competitorȱ
countriesȱhadȱonlyȱsmallȱincreases.ȱ

Weȱ wouldȱ notȱ haveȱ achievedȱ theseȱ resultsȱ hadȱ weȱ notȱ workedȱ toȱ
achieveȱ moreȱ airȱ routes,ȱ inȱ orderȱ toȱ strengthenȱ theȱ marketingȱ andȱ
intensiveȱadvertising,ȱandȱinȱorderȱtoȱimproveȱourȱproduct.ȱ

Todayȱ ourȱ countryȱ hasȱ airȱ servicesȱ scheduledȱ nonȬstopȱ withȱ 76ȱ
airports.ȱ Theȱ increaseȱ inȱ theȱ routesȱ fromȱ andȱ towardsȱ Italy,ȱ Spainȱ
andȱtheȱScandinavianȱcountriesȱledȱtoȱourȱsubstantialȱincreaseȱinȱtheȱ
numberȱofȱtouristsȱfromȱtheseȱthreeȱdestinations.ȱ

32
Mr.ȱSpeaker,ȱȱ

Thisȱ yearȱ weȱ areȱ allocatingȱ aȱ recordȱ sumȱ ofȱ 35ȱ millionȱ euroȱ toȱ theȱ
Maltaȱ Tourismȱ Authorityȱ toȱ continueȱ itsȱ work,ȱ andȱ soȱ thatȱ weȱ willȱ
keepȱ ourȱ pace.ȱ Weȱ willȱ continueȱ toȱ improveȱ theȱ Malteseȱ touristicȱ
product,ȱ whilstȱ continuingȱ toȱ helpȱ theȱ operatorsȱ ofȱ hotels,ȱ
restaurantsȱandȱagenciesȱrelatedȱtoȱtheȱtourismȱsector.ȱTherefore:ȱ

x Byȱ meansȱ ofȱ aȱ fundȱ ofȱ 10ȱ millionȱ euro,ȱ weȱ willȱ helpȱ
businessesȱinȱtheȱtourismȱsectorȱtoȱdevelopȱtheirȱproduct;ȱ

x Weȱ willȱ continueȱ withȱ theȱ projectȱ ofȱ theȱ Pembrokeȱ Gardensȱ
andȱtheȱAquariumȱinȱBugibba,ȱbeȱmeansȱofȱanȱinvestmentȱofȱ
11ȱmillionȱeuro;ȱ

x Weȱ willȱ continueȱ toȱ provideȱ incentivesȱ inȱ theȱ townsȱ andȱ
villagesȱinȱorderȱtoȱattractȱtouristsȱtowardsȱtheseȱlocalitiesȱasȱ
well;ȱȱ

x Weȱ willȱ investȱ furtherȱ inȱ touristicȱ zonesȱ beȱ meansȱ ofȱ anȱ
investmentȱofȱ6.5ȱmillionȱeuro;ȱ

x Weȱ willȱ continueȱ withȱ projectsȱ ofȱ embellishmentȱ inȱ ruralȱ

zones,ȱbyȱmeansȱofȱanȱinvestmentȱofȱ1.6ȱmillionȱeuro;ȱ

x Weȱ willȱ continueȱ withȱ theȱ projectȱ ofȱ 3ȱ millionȱ euroȱ forȱ theȱ
improvementȱ inȱ theȱ capacitiesȱ andȱ qualificationsȱ ofȱ peopleȱ
whoȱworkȱinȱtheȱtourismȱindustryȱatȱmanagementȱlevel;ȱ

Theȱhistoryȱandȱcultureȱofȱourȱcountryȱareȱalsoȱaȱmeansȱofȱgivingȱtheȱ
touristȱ thatȱ addedȱ valueȱ whichȱ heȱ doesȱ notȱ findȱ inȱ otherȱ
destinations.ȱ Therefore,ȱ inȱ theȱ pastȱ yearsȱ weȱ haveȱ investedȱ inȱ thisȱ
veryȱimportantȱsector.ȱAndȱthisȱisȱwhatȱweȱintendȱtoȱcontinueȱdoing.ȱ

33
Afterȱ launchingȱ lastȱ Septemberȱ theȱ projectȱ ofȱ theȱ Visitors’ȱ Centreȱ
andȱ theȱ protectiveȱ tentsȱ inȱ @aÄarȱ Qimȱ andȱ Imnajdra,ȱ throughȱ anȱ
investmentȱofȱ4.7ȱmillionȱeuro,ȱnowȱit’sȱtimeȱtoȱbuildȱaȱnatureȱtrail,ȱ
inȱtheȱnaturalȱsceneryȱasȱaȱbackgroundȱtoȱtheȱArchaeologicalȱParkȱofȱ
@aÄarȱQimȱandȱImnajdra.ȱ

Weȱstartedȱworkingȱonȱtheȱprojectsȱofȱ>gantijaȱinȱGozo,ȱtheȱtemplesȱ
ofȱ @alȱ Tarxien,ȱ theȱ Catacombsȱ ofȱ Saintȱ Paulȱ inȱ Rabat,ȱ theȱ Romanȱ
BathsȱinȱGÆajnȱTuffieÆa,ȱandȱtheȱCatacombsȱofȱBistraȱinȱMosta.ȱThisȱ
workȱisȱexpectedȱtoȱbeȱcompletedȱtowardsȱtheȱendȱofȱ2013,ȱbyȱmeansȱ
ofȱanȱinvestmentȱofȱ14ȱmillionȱeuro.ȱ

Thisȱ wasȱ doneȱ duringȱ ourȱ commencementȱ ofȱ theȱ workȱ onȱ Fortȱ St.ȱ
Angelo,ȱ andȱ weȱ areȱ makingȱ plans,ȱ inȱ future,ȱ toȱ implementȱ aȱ widerȱ
projectȱforȱtheȱrestorationȱandȱrehabilitationȱofȱthisȱFort.ȱ

Weȱwillȱcontinueȱtoȱhelpȱtheȱhotelsȱandȱrestaurantsȱbyȱmeansȱofȱtheȱ
subsidyȱ schemeȱ onȱ interests,ȱ forȱ projectsȱ ofȱ theȱ upgradingȱ andȱ
improvementȱ ofȱ theȱ touristicȱ product.ȱ Weȱ haveȱ alreadyȱ allocatedȱ
approximatelyȱ 1.7ȱ millionȱ euroȱ toȱ 35ȱ establishmentsȱ inȱ orderȱ toȱ
implementȱconservationȱprojectsȱandȱprojectsȱforȱtheȱsupplyȱofȱcleanȱ
air.ȱ Weȱ believeȱ thatȱ weȱ mustȱ stillȱ continueȱ toȱ aidȱ thisȱ sectorȱ toȱ
remainȱ competitive.ȱ Thus,ȱ weȱ willȱ launchȱ aȱ schemeȱ ofȱ softȱ loansȱ
targetingȱ theȱ hotelsȱ andȱ restaurantsȱ sectorȱ forȱ projectsȱ whichȱ
diminishȱ theȱ dependenceȱ onȱ traditionalȱ energy,ȱ andȱ inȱ orderȱ toȱ
generateȱcleanȱair.ȱ

InȱtheȱBudgetȱofȱtwoȱyearsȱago,ȱweȱhadȱdeclaredȱthat,ȱbyȱmeansȱofȱ
anȱagreementȱwithȱ MHRA,ȱ weȱwereȱgoingȱtoȱincreaseȱtheȱfundsȱtoȱ
theȱ MTAȱ byȱ ȱ fourȱ millionȱ euroȱ inȱ orderȱ toȱ strengthenȱ theȱ tourismȱ
sectorȱinȱourȱ country.ȱWeȱhadȱagreedȱtoȱintroduceȱaȱ50ȱcentȱtaxȱonȱ
everyȱ nightȱ whichȱ aȱ touristȱ spendsȱ inȱ ourȱ country.ȱ Eventually,ȱ theȱ
MHRAȱ requestedȱ thatȱ theȱ introductionȱ ofȱ thisȱ measureȱ beȱ
suspendedȱandȱthatȱanotherȱalternativeȱmethodȱforȱtheȱcollectionȱofȱ

34
thisȱ taxȱ beȱ found.ȱ Duringȱ 2010,ȱ theȱ Governmentȱ continuedȱ toȱ
discussȱ withȱ MHRAȱ inȱ orderȱ toȱ findȱ theȱ bestȱ formula.ȱ Weȱ doȱ notȱ
believeȱ thatȱ theȱ proposalȱ forȱ travelȱ taxȱ isȱ theȱ bestȱ solution.ȱ Thisȱ
substantiallyȱappliesȱtoȱMalteseȱcitizensȱandȱaffectsȱAirȱMalta.ȱ

Inȱ viewȱ ofȱ allȱ this,ȱ fromȱ theȱ firstȱ ofȱ January,ȱ theȱ Governmentȱ willȱ
increaseȱ theȱ rateȱ ofȱ VATȱ onȱ theȱ collectiveȱ andȱ privateȱ
accommodationȱ fromȱ 5ȱ toȱ 7ȱ perȱ cent.ȱ Itȱ mustȱ beȱ clarifiedȱ thatȱ theȱ
otherȱ productsȱ andȱ servicesȱ whichȱ toȱ thisȱ dayȱ wereȱ 5ȱ perȱ centȱ willȱ
remainȱ theȱ same.ȱ Fromȱ thisȱ measure,ȱ theȱ Governmentȱ estimatesȱ toȱ
generateȱsixȱmillionȱeuroȱaȱyear.ȱ

Mr.ȱSpeaker,ȱȱ

Theȱ successȱ weȱ hadȱ inȱ tourismȱ duringȱ thisȱ yearȱ isȱ alsoȱ aȱ clearȱ
indicationȱofȱtheȱradicalȱchangesȱwhichȱareȱcurrentlyȱgoingȱonȱinȱtheȱ
areaȱofȱtravellingȱdueȱtoȱservicesȱofferedȱbyȱlowȱcostȱcarriers.ȱThisȱisȱ
havingȱ aȱ significantȱ impactȱ onȱ Airȱ Maltaȱ andȱ isȱ stronglyȱ affectingȱ
theȱ company’sȱ income.ȱ Thisȱ realityȱ subsistsȱ evenȱ ifȱ weȱ hadȱ toȱ shutȱ
outȱ lowȱ costȱ carriersȱ becauseȱ theȱ priceȱ forȱ theȱ journeyȱ isȱ crucialȱ inȱ
theȱ choiceȱ ofȱ theȱ tourist.ȱ Apartȱ fromȱ theȱ factȱ thatȱ suchȱ aȱ decisionȱ
hindersȱtourismȱsinceȱaȱfourthȱofȱtheȱtouristsȱareȱarrivingȱbeȱmeansȱ
ofȱtheseȱaircraft.ȱ

Thisȱ isȱ aȱ realityȱ whichȱ weȱ cannotȱ avoid.ȱ Theȱ responsibilityȱ meansȱ
thatȱweȱmustȱaddressȱtheȱchallengesȱaheadȱofȱusȱwisely.ȱȱ

Forȱ theȱ pastȱ fewȱ months,ȱ theȱ Governmentȱ wasȱ discussingȱ withȱ theȱ
Europeanȱ Commissionȱ howȱ toȱ findȱ theȱ bestȱ pathȱ toȱ supportȱ Airȱ
Malta.ȱ ȱ Theȱ Governmentȱ isȱ seekingȱ theȱ Europeanȱ Commission’sȱ
approvalȱ toȱ makeȱ aȱ substantialȱ injectionȱ ofȱ capitalȱ byȱ meansȱ ofȱ anȱ
investmentȱofȱmoreȱthanȱ100ȱmillionȱeuro.ȱȱȱ

35
Ourȱcountryȱcannotȱaffordȱnotȱtoȱhaveȱitsȱownȱinternationalȱairline.ȱ
Butȱ actingȱ responsiblyȱ meansȱ thatȱ weȱ mustȱ recogniseȱ theȱ radicalȱ
changesȱ whichȱ areȱ currentlyȱ takingȱ place.ȱ Duringȱ theȱ comingȱ daysȱ
theȱ Governmentȱ mustȱ workȱ togetherȱ withȱ allȱ theȱ unionsȱ andȱ
stakeholders,ȱincludingȱtheȱOpposition,ȱinȱthisȱregard.ȱȱ

Ifȱweȱchooseȱnotȱtoȱrecogniseȱthisȱtoday,ȱweȱwillȱhaveȱtoȱpayȱaȱveryȱ
costlyȱpriceȱinȱfuture.ȱ

36
4.ȱ Infrastructureȱ

Theȱnationalȱinfrastructureȱisȱaȱbasicȱelementȱinȱtheȱdevelopmentȱofȱ
ourȱ countryȱ andȱ inȱ ourȱ effortsȱ toȱ generateȱ work.ȱ Ourȱ countryȱ
deservesȱtheȱbestȱalsoȱinȱthisȱareaȱandȱthereforeȱweȱchoseȱtoȱhaveȱanȱ
infrastructureȱofȱtheȱhighestȱstandards.ȱ

4.1ȱ Newȱarterialȱandȱresidentialȱroadsȱ

Mr.ȱSpeaker,ȱȱ

Weȱshallȱcontinueȱwithȱworksȱonȱtheȱroadsȱwhichȱlinksȱtheȱendsȱofȱ
ourȱ islandsȱ withȱ theȱ portsȱ andȱ theȱ urbanȱ centre.ȱ Weȱ willȱ investȱ 40ȱ
millionȱeuroȱinȱtheȱconstructionȱofȱtheȱroadsȱbetweenȱ-irkewwaȱandȱ
TorriȱlȬAÆmar,ȱbetweenȱMarsaȱandȱLuqa,ȱtheȱaccessȱfromȱtheȱMenqaȱ
inȱ Marsaȱ toȱ theȱ passengerȱ terminalȱ inȱ theȱ Grandȱ Harbourȱ andȱ theȱ
roadȱ betweenȱ Xewkijaȱ andȱ Victoriaȱ inȱ Gozo.ȱ Weȱ finishedȱ theȱ workȱ
onȱtwoȱotherȱmainȱroads,ȱthoseȱthatȱgiveȱaccessȱtoȱtheȱcommunitiesȱ
ofȱ Marsascalaȱ andȱ …urrieq.ȱ Weȱ startedȱ theȱ processȱ forȱ theȱ
constructionȱofȱroadsȱinȱKappara,ȱtheȱcoastȱroadȱbetweenȱPembrokeȱ
andȱQawraȱandȱtheȱroadȱbetweenȱMellieÆaȱandȱTorriȱlȬAÆmar.ȱ

Theȱ Governmentȱ willȱ investȱ 15ȱ millionȱ euro,ȱ aȱ millionȱ euroȱ moreȱ
thanȱ thisȱ yearȱ toȱ continueȱ theȱ extensiveȱ programȱ ofȱ roadsȱ inȱ
residentialȱareasȱasȱwellȱasȱmajorȱroads.ȱAȱnumberȱofȱtheseȱareȱbeingȱ
builtȱforȱtheȱfirstȱtime.ȱ65ȱnewȱroadsȱwillȱbeȱbuiltȱuntilȱtheȱendȱofȱthisȱ
year.ȱ Then,ȱ duringȱ theȱ firstȱ halfȱ ofȱ nextȱ yearȱ weȱ shallȱ buildȱ moreȱ
thanȱ80ȱnewȱroads.ȱThisȱmeansȱthat,ȱfromȱtheȱlistȱofȱroadsȱpublishedȱ
hereȱinȱParliament,ȱaroundȱ100ȱroadsȱwouldȱstillȱneedȱtoȱbeȱbuilt,ȱaȱ
numberȱofȱwhichȱareȱscheduledȱtoȱbeȱreadsȱbyȱtheȱendȱofȱtheȱyear.ȱȱ

Thisȱ yearȱ weȱ haveȱ adoptedȱ forȱ theȱ firstȱ timeȱ theȱ conceptȱ ofȱ publicȱ
privateȱ partnershipȱ inȱ residentialȱ roadsȱ byȱ meansȱ ofȱ aȱ pilotȱ projectȱ
inȱ threeȱ localities.ȱ Anotherȱ amountȱ ofȱ moreȱ thanȱ fiveȱ millionȱ euroȱ
wasȱ reservedȱ fromȱ theȱ financialȱ allocationȱ ofȱ theȱ Localȱ Councilsȱ
37
whichȱ canȱ onlyȱ beȱ usedȱ forȱ roadȱ works.ȱ Thisȱ hasȱ leadȱ toȱ workȱ
currentlyȱ beingȱ doneȱ onȱ 475ȱ residentialȱ roadsȱ inȱ 49ȱ townsȱ andȱ
villagesȱwithȱaȱtotalȱinvestmentȱofȱ14ȱmillionȱeuro.ȱTheseȱroadsȱwillȱ
benefitȱthousandsȱofȱMalteseȱandȱGozitanȱfamiliesȱwhoȱliveȱinȱthemȱ
andȱhaveȱtheirȱbusinessesȱinȱthem.ȱ

Weȱ wantȱ toȱ seeȱ moreȱ localȱ councilsȱ benefitingȱ fromȱ thisȱ schemeȱ soȱ
thatȱweȱcontinueȱimprovingȱtheȱnetworkȱofȱresidentialȱroadsȱinȱourȱ
localities.ȱȱ

4.2ȱ PublicȱTransportȱreformȱ

Mr.ȱSpeaker,ȱ

Trasportȱhasȱanȱenormousȱimpactȱonȱtheȱairȱqualityȱandȱtheȱqualityȱ
ofȱlife.ȱȱWeȱshallȱthereforeȱcontinueȱaȱnumberȱofȱinitiativesȱandȱshallȱ
takeȱnewȱonesȱwhichȱshouldȱleadȱtoȱaȱsignificantȱimprovementȱofȱairȱ
quality.ȱȱ

Theȱ publicȱ transportȱ reformȱ shallȱ continueȱ soȱ thatȱ weȱ shallȱ haveȱ aȱ
reformedȱ highȱ qualityȱ service.ȱ Theȱ wholeȱ fleetȱ ofȱ serviceȱ shallȱ beȱ
EuroȱV,ȱtheȱcleanestȱandȱmostȱmodernȱtechnology.ȱAllȱvehiclesȱshallȱ
beȱ accessibleȱ toȱ wheelchairȬboundȱ personsȱ andȱ toȱ thoseȱ havingȱ
difficultyȱ climbingȱ stairs.ȱ Thisȱ renewalȱ processȱ shallȱ beȱ doneȱ
withoutȱincreasingȱtheȱcostȱforȱregularȱusersȱofȱtheȱpublicȱtransportȱ
serviceȱandȱwithȱourȱelderlyȱandȱstudentsȱhavingȱreducedȱprices.ȱȱ

Weȱ shallȱ ensureȱ thatȱ smallȱ andȱ remoteȱ villagesȱ willȱ beȱ givenȱ aȱ
transportȱserviceȱevenȱifȱthisȱisȱnotȱprofitableȱandȱthatȱaȱviableȱandȱ
regularȱalternativeȱtoȱprivateȱcarsȱisȱcreatedȱinȱGozo.ȱ

Theȱ publicȱ transportȱ reformȱ shallȱ bringȱ directȱ investmentȱ toȱ ourȱ
countryȱfromȱanȱoperatorȱwithȱexperienceȱinȱseveralȱotherȱcountries.ȱ
Itȱ willȱ bringȱ competence,ȱ experienceȱ andȱ training,ȱ whilstȱ bringingȱ
theȱserviceȱprovidedȱinȱMaltaȱinȱlineȱwithȱmodernȱpracticesȱinȱotherȱ
citiesȱandȱcountries.ȱAroundȱaȱthousandȱjobsȱwillȱbeȱcreatedȱinȱthisȱ
38
sectorȱ which,ȱ apartȱ fromȱ providingȱ aȱ service,ȱ willȱ beȱ contributingȱ
towardsȱourȱcountry’sȱeconomy.ȱ

Incentivesȱforȱcleanȱprivateȱvehiclesȱ

Inȱ theȱ lastȱ fewȱ years,ȱ weȱ startedȱ aȱ reformȱ withȱ theȱ aimȱ ofȱ havingȱ
cleaner,ȱ smallerȱ andȱ newȱ carsȱ onȱ theȱ Malteseȱ roads.ȱ Inȱ 2009,ȱ weȱ
reformedȱtheȱregistrationȱtaxȱandȱlicensingȱofȱvehiclesȱknownȱasȱM1,ȱ
soȱ thatȱ nowȱ itȱ isȱ calculatedȱ onȱ emissions,ȱ theȱ lengthȱ ofȱ theȱ vehicle,ȱ
andȱitsȱvalue.ȱȱ

Toȱcontinueȱbuildingȱonȱthisȱreform,ȱweȱshallȱincentiviseȱtheȱpublicȱ
toȱ scrapȱ anȱ oldȱ carȱ whenȱ aȱ newȱ carȱ isȱ bought.ȱ Theȱ newȱ carȱ mustȱ
haveȱ aȱ lowȱ levelȱ ofȱ emissions,ȱ causeȱ lessȱ harmȱ toȱ theȱ environmentȱ
andȱ beȱ ofȱ aȱ stipulatedȱ size.ȱ Whenȱ someoneȱ buyingȱ aȱ newȱ carȱ doesȱ
notȱ intendȱ toȱ scrapȱ anȱ oldȱ car,ȱ halfȱ ofȱ theȱ benefitȱ willȱ goȱ towardsȱ
removingȱoldȱcarsȱfromȱtheȱroad.ȱ

Theȱ schemeȱ willȱ comeȱ intoȱ effectȱ fromȱ theȱ comingȱ 15thȱ Novemeberȱ
andȱshallȱremainȱinȱeffectȱforȱaȱyear,ȱtheȱscopeȱisȱachieved.ȱȱ

Soȱ asȱ toȱ encourageȱ moreȱ hybridȱ vehiclesȱ weȱ areȱ amendingȱ theȱ lawȱ
soȱ thatȱ inȱ theȱ computationȱ ofȱ theȱ registrationȱ taxȱ theȱ amountȱ ofȱ
carbonȱdioxideȱisȱreducedȱbyȱ30ȱperȱcent,ȱfromȱ20ȱperȱcent.ȱ

Electricȱvehiclesȱ

Duringȱ theȱ comingȱ years,ȱ aȱ significantȱ developmentȱ isȱ expectedȱ inȱ

electricȱ carȱ technology,ȱ whichȱ isȱ aȱ cleanȱ technology.ȱ Maltaȱ hasȱ anȱ
indicativeȱaimȱofȱ5,000ȱelectricȱcarsȱuntilȱ2020ȱasȱpartȱofȱtheȱplanȱofȱ
reductionȱinȱemissions.ȱInȱorderȱtoȱstartȱimplementingȱourȱprogramȱ
inȱfavourȱofȱtheȱadoptionȱofȱelectricȱcars,ȱweȱareȱallocatingȱtheȱinitialȱ
sumȱofȱ400,000ȱeuro.ȱ

39
Weȱ needȱ aȱ rechargingȱ infrastructureȱ byȱ meansȱ ofȱ chargingȱ pointsȱȱ
Asȱ fromȱ nextȱ yearȱ aȱ numberȱ ofȱ chargingȱ pointsȱ willȱ startȱ toȱ beȱ
installedȱ inȱ strategicȱ sitesȱ andȱ aȱ bodyȱ whichȱ willȱ beȱ operatingȱ thisȱ
chainȱofȱchargingȱpoints.ȱ

TheȱGovernmentȱunderstandsȱthatȱtheȱpriceȱofȱtheseȱkindȱofȱvehiclesȱ
isȱ higherȱ whenȱ comparedȱ withȱ conventionalȱ vehicles.ȱ Therefore,ȱ
apartȱ fromȱ theȱ benefitȱ fromȱ theȱ schemeȱ forȱ theȱ purchaseȱ ofȱ newȱ
vehiclesȱafterȱtheȱscrappingȱofȱanȱoldȱoneȱwhichȱIȱannouncedȱearlier,ȱ
weȱ areȱ alsoȱ offeringȱ aȱ schemeȱ whereȱ aȱ personȱ buyingȱ anȱ electricȱ
vehicleȱ canȱ benefitȱ fromȱ aȱ subsidyȱ upȱ toȱ 5,000ȱ euroȱ forȱ theȱ
installationȱofȱgridȬconnectedȱrenewableȱenergyȱsources.ȱAlongȱwithȱ
this,ȱ theȱ annualȱ circulationȱ licensesȱ willȱ beȱ reducedȱ fromȱ 75ȱ toȱ 10ȱ
euroȱforȱallȱelectricȱvehicles.ȱȱ

Weȱ areȱ alsoȱ offeringȱ aȱ reductionȱ onȱ companyȱ taxȱ equivalentȱ toȱ 125ȱ
perȱcentȱonȱamountsȱspentȱbyȱcompaniesȱonȱelectricȱcars.ȱInȱadditionȱ
toȱthese,ȱtheȱGovernmentȱwillȱalsoȱgiveȱgrantsȱonȱtrainingȱinȱtheȱareaȱ
ofȱtechnicalȱservicesȱtoȱworkersȱinȱthisȱsector.ȱȱ

Forȱcommercialȱvehicles,ȱafterȱhavingȱchangedȱtheȱtaxȱinȱlastȱyear’sȱ
budgetȱtoȱoneȱbasedȱonȱtheȱconceptȱthatȱwhoȱpollutesȱtheȱleastȱpaysȱ
theȱ least,ȱ thisȱ yearȱ weȱ areȱ alsoȱ introducingȱ theȱ conceptȱ ofȱ
depreciation,ȱaccordingȱtoȱtheȱyearȱandȱtheȱmileageȱofȱtheȱvehicleȱtoȱ
continueȱrenderingȱourȱsystemȱmoreȱtransparentȱandȱfair.ȱ

Increaseȱinȱexciseȱdutiesȱonȱfuelȱ

Exciseȱtaxesȱonȱfuelȱwillȱincreaseȱbyȱthreeȱcentsȱaȱlitre.ȱAsȱfromȱtheȱ
beginningȱ ofȱ nextȱ yearȱ anȱ obligationȱ toȱ useȱ aȱ proportionȱ ofȱ
renewableȱfuelȱwillȱbeȱintroducedȱalongȱwithȱmineralȱoilsȱalreadyȱonȱ
theȱmarket.ȱTherefore,ȱinȱorderȱtoȱencourageȱtheȱuseȱofȱbiodiesel,ȱtheȱ
exemptionȱ fromȱ exciseȱ taxȱ willȱ nowȱ beȱ removed.ȱ Measuresȱ willȱ beȱ
takenȱ asȱ wellȱ toȱ encourageȱ theȱ useȱ ofȱ biologicalȱ fuelȱ madeȱ fromȱ
recoveredȱandȱrecycledȱmaterial.ȱ
40
4.3ȱ Investingȱinȱtheȱsupplyȱofȱenergyȱ

Mr.ȱSpeaker,ȱ

Theȱeconomyȱisȱlinkedȱtoȱsecurityȱinȱtheȱsupplyȱofȱenergy.ȱ

Theȱ investimentȱ inȱ theȱ extensionȱ ofȱ theȱ powerȱ stationȱ inȱ Delimaraȱ
andȱtheȱinterconnectorȱprojectȱwithȱSicilyȱareȱtwoȱessentialȱprojectsȱ
forȱmoreȱjobsȱandȱsoȱthatȱourȱcountry’sȱeconomyȱcontinuesȱtoȱgrow.ȱ
Theȱ extensionȱ ofȱ theȱ powerȱ station,ȱ anȱ investmentȱ ofȱ 165ȱ millionȱ
whichȱ isȱ expectedȱ toȱ beȱ readyȱ inȱ 2012,ȱ paysȱ particularȱ attentionȱ toȱ
theȱ environment.ȱ Asȱ weȱ announcedȱ duringȱ theȱ year,ȱ theȱ emissionsȱ
generatedȱ byȱ theȱ plantȱ willȱ beȱ madeȱ knownȱ andȱ continuouslyȱ
accessibleȱandȱitȱwillȱbeȱmadeȱsureȱthatȱtheseȱareȱinȱaccordanceȱwithȱ
allȱ Europeanȱ standards.ȱ Weȱ areȱ alsoȱ investingȱ oneȱ millionȱ euroȱ toȱ
modifyȱtheȱboilersȱandȱthereforeȱcontinueȱtoȱreduceȱemissions.ȱ

Theȱ interconnectorȱ projectȱ willȱ helpȱ usȱ addressȱ theȱ factȱ thatȱ ourȱ
countryȱisȱcompletelyȱdependentȱonȱoil,ȱasȱwellȱasȱtheȱrisksȱrelatedȱ
toȱ ourȱ geographicȱ realities.ȱ Theseȱ projectsȱ willȱ helpȱ usȱ reachȱ theȱ
targetsȱestablishedȱbyȱtheȱEuropeanȱUnionȱandȱtheȱenvironment.ȱȱ

Weȱshallȱcontinueȱinvestingȱcontinuouslyȱinȱtheȱstrengtheningȱofȱtheȱ
infrastructureȱ ofȱ distributionȱ ofȱ electricity.ȱ Untilȱ nowȱ aboutȱ 32,000ȱ
smartȱ metersȱ haveȱ beenȱ installed.ȱ Theȱ rateȱ ofȱ installationȱ isȱ
increasingȱandȱourȱtargetȱisȱthatȱallȱsmartȱmetersȱareȱinstalledȱbyȱtheȱ
endȱofȱ2012.ȱWithȱthisȱproject,ȱourȱfamiliesȱshouldȱbeȱableȱtoȱcontrolȱ
theirȱconsumptionȱbetterȱandȱtoȱlimitȱtheȱtheftȱofȱelectricityȱwhichȱisȱ
ultimatelyȱpaidȱforȱbyȱhonestȱfamiliesȱandȱbusinesses.ȱȱ

41
Moreȱcleanȱenergyȱandȱwaterȱconservationȱ

Mr.ȱSpeaker,ȱȱ

Theȱ environmentȱ willȱ remainȱ oneȱ ofȱ theȱ mainȱ pillarsȱ inȱ thisȱ
Government’sȱ agenda.ȱ Theȱ environmentalȱ challengesȱ areȱ notȱ
overcomeȱwithȱdiscussionsȱbutȱwithȱtheȱchoicesȱmade.ȱ

Ourȱ countryȱ needȱ toȱ generateȱ moreȱ energyȱ fromȱ cleanȱ sourcesȱ soȱ
thatȱourȱchildrenȱwillȱenjoyȱbetterȱhealth.ȱȱ

Withȱ satisfactionȱ Iȱ stateȱ thatȱ moreȱ thanȱ 2,000ȱ applicationsȱ forȱ

incentivesȱforȱtheȱpurchaseȱofȱphotovoltaicȱpanelsȱannouncedȱinȱtheȱ
lastȱbudgetȱhaveȱbeenȱsubmitted.Weȱshallȱcontinueȱwithȱtheȱprocessȱ
toȱ installȱ photovoltaicȱ panelsȱ onȱ 67ȱ thousandȱ squareȱ metersȱ ofȱ
publicȱroofs.ȱ

Duringȱnextȱyearȱweȱshallȱreopenȱtheȱaidȱschemeȱforȱtheȱpurchaseȱofȱ
solarȱ waterȱ heatersȱ toȱ complementȱ theȱ existingȱ scheme.ȱ Forȱ thisȱ
reasonȱ weȱ areȱ allocatingȱ theȱ sumȱ ofȱ 800,000ȱ euroȱ andȱ willȱ giveȱ aȱ
subsidyȱ upȱ toȱ aȱ maximumȱ ofȱ 400ȱ euroȱ onȱ theȱ priceȱ ofȱ thisȱ
equipment.ȱAroundȱ2,000ȱotherȱfamiliesȱareȱexpectedȱtoȱbenefitȱfromȱ
thisȱscheme.ȱ

Weȱ shallȱ beȱ investingȱ aȱ millionȱ euroȱ forȱ theȱ continuationȱ ofȱ
environmentalȱ studiesȱ andȱ otherȱ studiesȱ onȱ theȱ feasibilityȱ ofȱ
windfarmsȱonȱlandȱandȱatȱseaȱaccordingȱ toȱtheȱapplicationȱthatȱtheȱ
Governmentȱ hasȱ lodgedȱ withȱ MEPA.ȱ Weȱ shallȱ alsoȱ beȱ investingȱ toȱ
obtainȱcleanȱenergyȱfromȱwaste.ȱȱȱȱ

TheȱsewageȱplantȱprojectȱinȱTa’ȱBarkat,ȱanȱinvestmentȱofȱaroundȱ60ȱ
millionȱ euro,ȱ willȱ continueȱ toȱ improveȱ theȱ qualityȱ ofȱ theȱ waterȱ weȱ
discardȱandȱthereforeȱreduceȱtheȱimpactȱonȱourȱenvironment.ȱGoodȱ
progressȱ hasȱ beenȱ madeȱ andȱ itȱ isȱ expectedȱ thatȱ toȱ beȱ readyȱ byȱ theȱ
endȱofȱthisȱyear.ȱInȱaddition,ȱweȱshallȱfinishȱtheȱpumpingȱstationȱinȱ

42
GÆarb.ȱThisȱwillȱmeanȱthat,ȱasȱfromȱnextȱyear,ȱweȱwillȱbeȱtreatingȱallȱ
drainageȱgeneratedȱinȱourȱcountry.ȱȱ

Preparationsȱ onȱ theȱ €56ȱ millionȱ Nationalȱ Floodȱ Reliefȱ Project,ȱ areȱ
underway.ȱMEPAȱhasȱalreadyȱissuedȱthreeȱpermitȱandȱpresently,ȱanȱ
EIAȱisȱunderwayȱonȱotherȱaspects.ȱȱItȱisȱestimatedȱthatȱworksȱonȱfourȱ
localitiesȱwillȱstartȱnextȱyear.ȱ

4.4ȱ Maritimeȱinfrastructureȱ

Concerningȱ maritimeȱ infrastructure,ȱ weȱ willȱ beȱ startingȱ repairȱ

worksȱonȱtheȱbreakwaterȱofȱtheȱGrandȱHarbour.ȱThisȱwillȱfinallyȱbeȱ
againȱ linkedȱ byȱ aȱ bridgeȱ forȱ theȱ firstȱ timeȱ sinceȱ theȱ Secondȱ Worldȱ
War.ȱWithȱanȱinvestmentȱofȱ10.6ȱmillionȱeuroȱinȱtheȱnextȱthreeȱyears,ȱ
worksȱwillȱbeȱcarriedȱoutȱonȱtheȱDeepȱWaterȱQuayȱandȱfacilitiesȱforȱ
cruiseȱlinerȱpassengersȱalongȱtheȱshoresȱofȱVallettaȱandȱSenglea.ȱ

FollowingȱapprovalȱbyȱMEPA,ȱaȱliftȱwillȱbeȱbuiltȱfromȱtheȱHarbourȱ
toȱ Upperȱ Barrakkaȱ whichȱ willȱ allowȱ importantȱ andȱ comfortableȱ
accessȱtoȱtheȱthousandsȱofȱpeopleȱwhoȱvisitȱusȱonȱcruiseȱliners.ȱThisȱ
shouldȱ alsoȱ encourageȱ thoseȱ interested,ȱ toȱ restartȱ aȱ regularȱ ferryȱ
serviceȱbetweenȱVallettaȱandȱCottonera.ȱ

43
5.ȱ Gozoȱ
Mr.ȱSpeaker,ȱȱ

Forȱ usȱ Gozoȱ hasȱ greatȱ potentialȱ andȱ uniqueȱ opportunities.ȱ ȱ Ourȱ
policyȱisȱdirectedȱat:ȱȱ

x developingȱtheȱpotentialȱofȱthisȱisland;ȱ

x sustainingȱGozo’sȱdistinctȱeconomy;ȱandȱȱ

x continuingȱinvestmentȱinȱitsȱeconomicȱandȱsocialȱsectors.ȱ

Therefore,ȱ nextȱ yearȱ weȱ shallȱ beȱ allocatingȱ 73.4ȱ millionȱ euro,ȱ anȱ
increaseȱofȱ2.3ȱmillionȱfromȱthisȱyear.ȱ

Mr.ȱSpeaker,ȱȱ

Theȱ EcoȬGozoȱ Visionȱ protectsȱ Gozo’sȱ specificȱ interests,ȱ byȱ

promotingȱcontinuousȱandȱintegratedȱimprovementȱinȱitsȱeconomic,ȱ
socialȱ andȱ culturalȱ development.ȱ Forȱ thisȱ Vision,ȱ Governmentȱ hasȱ
votedȱ25ȱmillionȱeuroȱtoȱbeȱspentȱonȱprojectsȱinȱthreeȱyears.ȱ

Tendersȱ haveȱ beenȱ issuedȱ forȱ infrastructuralȱ worksȱ inȱ theȱ

Governmentȱ farmȱ inȱ Xewkija,ȱ forȱ thisȱ placeȱ toȱ beȱ developedȱ intoȱ aȱ
Centreȱ forȱ Research,ȱ Developmentȱ andȱ Innovationȱ inȱ Agriculture,ȱ
whileȱworkȱisȱongoingȱonȱtheȱfortificationsȱrestorationȱproject.ȱ

WeȱareȱcleaningȱtheȱstormwaterȱreservoirsȱinȱWiedȱta’ȱ…ejta,ȱandȱinȱ
Marsalfornȱ valley,ȱ andȱ weȱ areȱ improvingȱ theȱ stormwaterȱ storageȱ
facilitiesȱforȱtheȱwinterȱmonths.ȱȱȱ

Weȱ areȱ rebuildingȱ theȱ roadsȱ inȱ Xlendi,ȱ andȱ Ta’ȱ Pinu,ȱ whileȱ weȱ areȱ
issuingȱ tendersȱ forȱ worksȱ onȱ Triqȱ FranÄiskȱ Portelli,ȱ Triqȱ Sanȱ
LawrenzȱuȱTriqȱilȬ>eblaȱtalȬ>eneral.ȱȱ

44
WeȱhaveȱinauguratedȱtheȱnewȱRabatȱboys’ȱsecondaryȱschoolȱwhichȱ
isȱofferingȱeducationalȱservicesȱtoȱaboutȱ750ȱstudents,ȱandȱaȱnumberȱ
ofȱ structuralȱ worksȱ areȱ ongoingȱ inȱ schoolsȱ allȱ overȱ Gozo.ȱ Weȱ haveȱ
launchedȱ aȱ resourceȱ packageȱ forȱ teachers,ȱ onȱ themesȱ connectedȱ toȱ
sustainableȱdevelopmentȱandȱtheȱidentityȱofȱtheȱislandȱofȱGozo.ȱȱ

Atȱ theȱ Gozoȱ Generalȱ Hospital,ȱ weȱ haveȱ investedȱ inȱ newȱ facilitiesȱ
whichȱ shouldȱ improveȱ servicesȱ forȱ ourȱ patients.ȱ Amongȱ others,ȱ
theseȱ includeȱ theȱ installationȱ ofȱ aȱ newȱ Radiologyȱ Unitȱ andȱ theȱ
refurbishmentȱofȱtheȱoperatingȱtheatre.ȱ

Thisȱ year,ȱ weȱ haveȱ commissionedȱ aȱ studyȱ whichȱ willȱ establishȱ theȱ
bestȱ methodȱ ofȱ protectionȱ forȱ Marsalfornȱ bayȱ byȱ meansȱ ofȱ theȱ
reconstructionȱofȱtheȱbreakwater.ȱTheȱMÄarrȱyachtȱmarinaȱhasȱbeenȱ
privatized,ȱ whileȱ workȱ onȱ theȱ promenadeȱ alongȱ theȱ seafrontȱ hasȱ
started.ȱȱ

Nextȱyearȱweȱshall:ȱ

x closeȱdownȱtheȱlastȱdrainageȱoutfall;ȱ

x provideȱ moreȱ recreationalȱ spacesȱ forȱ familiesȱ andȱ

afforestationȱ andȱ embellishmentȱ projectsȱ aroundȱ theȱ island,ȱ
includingȱaȱnewȱpublicȱgardenȱinȱMarsalforn.ȱȱȱ

x developȱaȱhumanȱresourceȱstrategyȱsoȱthatȱindustryȱneedsȱareȱ
betterȱfulfilled;ȱ

x launchȱ anȱ internationalȱ advertisingȱ campaignȱ worthȱ fiveȱ

hundredȱ thousandȱ euroȱ toȱ promoteȱ Gozoȱ asȱ aȱ separateȱ
destination;ȱ

x beginȱ researchȱ onȱ windȱ potentialȱ asȱ aȱ sourceȱ ofȱ alternativeȱ

energyȱinȱGozo;ȱ

45
 x useȱ theȱ waterȱ whichȱ isȱ beingȱ producedȱ byȱ theȱ drainageȱ
purificationȱ plantȱ forȱ secondaryȱ use,ȱ forȱ exampleȱ inȱ theȱ
agriculturalȱsector;ȱ

x startȱbuildingȱaȱcoveredȱpoolȱnowȱthatȱtheȱnecessaryȱpermitsȱ
haveȱbeenȱissued;ȱ

x continueȱ theȱ refurbishmentȱ worksȱ inȱ theȱ Dentistryȱ

DepartmentȱinȱtheȱGozoȱGeneralȱHospital;ȱandȱȱ

x continueȱtheȱworkȱonȱprojectsȱalreadyȱstartedȱonȱroads,ȱwhileȱ
tendersȱwillȱbeȱissuedȱforȱotherȱroads.ȱ

Aboveȱall,ȱweȱareȱdeterminedȱtoȱkeepȱworkingȱforȱGozoȱtoȱmeetȱtheȱ
challengesȱitȱisȱfacing,ȱandȱkeepȱmovingȱahead.ȱȱȱ

46
6.ȱ Educationȱandȱtheȱcreativeȱeconomyȱȱ
6.1ȱ Educationȱaȱpriorityȱforȱourȱchildren’sȱwelfareȱȱ

Mr.ȱSpeaker,ȱȱ

Educationȱ isȱ theȱ strongestȱ economicȱ policy,ȱ theȱ strongestȱ socialȱ

policy,ȱandȱtheȱstrongestȱenvironmentalȱpolicyȱwhichȱaȱcountryȱcanȱ
embrace.ȱEducationȱisȱtheȱguaranteeȱofȱourȱcountry’sȱsuccess.ȱ

Weȱbelieveȱthatȱeveryoneȱshouldȱhaveȱeveryȱopportunityȱtoȱdevelopȱ
hisȱ maximumȱ potential.ȱ Ourȱ country’sȱ competitivenessȱ alsoȱ
dependsȱ onȱ howȱ muchȱ weȱ investȱ inȱ theȱ educationȱ ofȱ ourȱ childrenȱ
andȱofȱallȱourȱpeople.ȱȱ

Weȱhaveȱmadeȱmassiveȱstrides.ȱWeȱareȱinvestingȱmillionsȱeveryȱyearȱ
forȱ eachȱ child,ȱ youthȱ andȱ moreȱ matureȱ person,ȱ toȱ growȱ inȱ theirȱ
capabilitiesȱandȱhaveȱeveryȱeducationalȱopportunity.ȱȱ

Weȱ mustȱ doȱ more.ȱ Noȱ matterȱ howȱ muchȱ weȱ doȱ inȱ thisȱ sectorȱ itȱ isȱ
neverȱenough.ȱ

Theȱinvestmentȱweȱareȱproposingȱinȱeducationȱnextȱyearȱisȱofȱ330.1ȱ
millionȱeuro.ȱȱ

Early,ȱprimaryȱandȱsecondaryȱeducationȱȱ

Mr.ȱSpeaker,ȱ

Investmentȱinȱearlyȱeducationȱhasȱnowȱtakenȱoff.ȱChildcareȱCentresȱ
areȱofferingȱaȱqualityȱserviceȱforȱchildrenȱatȱanȱearlyȱageȱwhileȱtheseȱ
children’sȱparentsȱareȱbeingȱofferedȱtheȱopportunityȱtoȱkeepȱtrainingȱ
andȱworking.ȱInȱrecentȱyearsȱweȱhaveȱsetȱupȱaȱnumberȱofȱChildcareȱ
Centresȱ inȱ differentȱ localities.ȱ Afterȱ helpingȱ aȱ numberȱ ofȱ centresȱ
attainȱ establishedȱ levels,ȱ weȱ areȱ nowȱ offeringȱ incentivesȱ toȱ

47
registeredȱcentresȱandȱtoȱparents.ȱNextȱyearȱweȱshallȱbeȱsettingȱupȱaȱ
numberȱofȱotherȱcentres,ȱamongȱthemȱinȱStȱVeneraȱandȱFloriana.ȱȱ

TheȱreformȱinȱtheȱwayȱchildrenȱprogressȱfromȱPrimaryȱtoȱSecondaryȱ
educationȱisȱmovingȱasȱplanned.ȱAsȱfromȱthisȱyear,ȱchildrenȱinȱYearȱ
6ȱ willȱ beȱ followingȱ aȱ programmeȱ whichȱ focusesȱ moreȱ onȱ theirȱ
individualȱneedsȱratherȱthanȱonȱexams.ȱThisȱisȱanȱimportantȱreformȱ
highlyȱsupportedȱbyȱtheȱcollegeȱsystemȱwhichȱweȱbeganȱaȱfewȱyearsȱ
ago.ȱ

Throughȱ thisȱ reform,ȱ weȱ areȱ revisingȱ theȱ Minimumȱ Nationalȱ

CurriculumȱandȱSyllabus,ȱandȱsoonȱaȱpublicȱconsultationȱaboutȱthisȱ
willȱbeȱinaugurated.ȱ

Nowȱ weȱ mustȱ alsoȱ addressȱ theȱ pathȱ fromȱ Secondaryȱ toȱ PostȬ
Secondary.ȱ Weȱ shallȱ studyȱ MATSEC,ȱ aimingȱ atȱ continuingȱ toȱ offerȱ
standardsȱofȱtheȱhighestȱqualityȱwhileȱencouragingȱmoreȱstudentsȱtoȱ
carryȱ onȱ theirȱ studies.ȱ Thisȱ exerciseȱ willȱ includeȱ anȱ analysisȱ ofȱ theȱ
impactȱthatȱexamsȱandȱotherȱassessmentȱmethodsȱhaveȱonȱstudentsȱ
andȱ theirȱ families,ȱ ofȱ theȱ educationalȱ structureȱ andȱ ofȱ theȱ labourȱ
market.ȱ ȱ Studentsȱ mustȱ allȱ terminateȱ compulsoryȱ educationȱ withȱ aȱ
lifelongȱlearningȱcapacity.ȱ

Inȱ2011,ȱGovernmentȱwillȱcommissionȱaȱnewȱsystemȱofȱelearningȱbyȱ
whichȱ weȱ shallȱ continueȱ updatingȱ ourȱ children’sȱ educationȱ byȱ
electronicȱ means.ȱ Weȱ areȱ alreadyȱ veryȱ advancedȱ inȱ theȱ electronicȱ
equipmentȱ ofȱ schools.ȱ Evenȱ childrenȱ inȱ Kindergartensȱ haveȱ
computers,ȱ andȱ weȱ haveȱ initiatedȱ aȱ pilotȱ projectȱ wherebyȱ primaryȱ
schoolȱchildrenȱareȱusingȱnetbooksȱforȱtheirȱstudies.ȱ

Weȱareȱincreasingȱfacilitiesȱforȱteachingȱmusic,ȱdrama,ȱartȱandȱsport.ȱ
Thisȱ yearȱ weȱ haveȱ alsoȱ startedȱ toȱ offerȱ teachingȱ andȱ informationȱ
aboutȱ musicȱ inȱ differentȱ localities,ȱ soȱ thatȱ weȱ canȱ reachȱ otherȱ
students.ȱ Inȱ fact,ȱ theȱ numberȱ ofȱ applicantsȱ hasȱ increasedȱ
substantially.ȱAtȱtheȱsameȱtimeȱweȱareȱconsideringȱtheȱrestructuringȱ

48
andȱ renovationȱ ofȱ theȱ Johannȱ Straussȱ Schoolȱ ofȱ Music,ȱ forȱ itȱ toȱ
becomeȱtheȱmusicȱacademyȱweȱwouldȱlikeȱtoȱhaveȱinȱourȱcountry.ȱ

Mr.ȱSpeaker,ȱ

Iȱ haveȱ noȱ doubtȱ thatȱ allȱ theȱ Houseȱ agreesȱ withȱ meȱ whenȱ Iȱ expressȱ
Government’sȱ specialȱ appreciationȱ ofȱ theȱ principalȱ actorsȱ inȱ ourȱ
children’sȱ education.ȱ Everyȱ dayȱ hundredsȱ ofȱ teachersȱ workȱ andȱ
striveȱ withȱ suchȱ dedicationȱ forȱ ourȱ childrenȱ toȱ obtainȱ theȱ bestȱ
educationȱ andȱ formation.ȱ Aȱ fewȱ weeksȱ agoȱ weȱ concludedȱ aȱ newȱ
agreementȱwithȱtheȱMaltaȱUnionȱofȱTeachers.ȱThisȱnewȱagreementȱisȱ
clearȱproofȱofȱtheȱgreatȱtrustȱGovernmentȱhasȱinȱourȱeducators.ȱȱItȱisȱ
anȱagreementȱwhichȱprovidesȱtheȱnecessaryȱtoolsȱforȱourȱteachersȱtoȱ
reachȱtheȱhighestȱstandardȱinȱtheirȱprofession.ȱ

Weȱ shallȱ continueȱ implementingȱ ourȱ choiceȱ toȱ inaugurateȱ aȱ newȱ

schoolȱ eachȱ year.ȱ Thisȱ yearȱ weȱ shallȱ haveȱ inauguratedȱ theȱ boys’ȱ
Secondaryȱ schoolȱ inȱ Rabat,ȱ Gozo.ȱ ȱ Nextȱ yearȱ weȱ shallȱ completelyȱ
finishȱ theȱ schoolȱ atȱ taČȬ…okrija,ȱ Mosta,ȱ andȱ inȱ 2011ȱ weȱ shallȱ
commenceȱ inȱ orderȱ toȱ completeȱ inȱ 2012ȱ theȱ newȱ girls’ȱ secondaryȱ
schoolȱatȱSaintȱIgnatiusȱCollegeȱinȱQormi.ȱInȱ2013ȱweȱshallȱcompleteȱ
theȱnewȱgirls’ȱsecondaryȱschoolȱatȱSaintȱBenedict’sȱCollege.ȱȱȱ

MrȱSpeaker,ȱ

Theseȱareȱourȱchoicesȱforȱourȱchildren.ȱ

Atȱ theȱ sameȱ time,ȱ maintenanceȱ workȱ onȱ schoolsȱ whichȱ todayȱ areȱ
fulfillingȱourȱneedsȱwillȱcontinueȱatȱtheȱsameȱrhythm.ȱWeȱwantȱtheȱ
bestȱenvironment,ȱequippedȱforȱourȱchildren’sȱeducationalȱneeds.ȱȱ

Anotherȱimportantȱsectorȱinȱourȱcountry’sȱeducationalȱinfrastructureȱ
isȱtheȱchurchȱandȱindependentȱschoolȱsector.ȱTheseȱschoolsȱprovideȱ
aȱchoiceȱofȱtheȱhighestȱqualityȱeducationȱwhileȱoperatingȱwithinȱtheȱ
frameworkȱ ofȱ theȱ Nationalȱ Curriculum.ȱ Governmentȱ isȱ investingȱ
43.2ȱmillionȱeuroȱinȱ2011ȱforȱtheȱfinancingȱofȱChurchȱschools.ȱȱAtȱtheȱ
49
sameȱ time,ȱ independentȱ schoolsȱ areȱ alsoȱ facingȱ significantȱ
challengesȱtoȱachieveȱsustainability.ȱ

Governmentȱwouldȱlikeȱtoȱincreaseȱitsȱsupportȱofȱthoseȱparentsȱwhoȱ
decideȱ toȱ sendȱ theirȱ childrenȱ toȱ privateȱ schools.ȱ Therefore,ȱ theȱ
maximumȱamountȱgivenȱinȱtaxȱdeductionȱtoȱparentsȱwhoȱpayȱschoolȱ
feesȱforȱtheirȱchildrenȱwhoȱattendȱgovernmentȱschoolsȱwillȱincrease:ȱ
inȱ theȱ caseȱ ofȱ childrenȱ inȱ primaryȱ schoolsȱ orȱ inȱ kindergartens,ȱ theȱ
maximumȱ deductionȱ shallȱ riseȱ toȱ 1,200ȱ euro,ȱ andȱ inȱ theȱ caseȱ ofȱ
privateȱsecondaryȱschoolsȱthisȱwillȱriseȱtoȱ1,600ȱeuro.ȱ

Besides,ȱ Governmentȱ isȱ involvedȱ inȱ discussionsȱ withȱ theȱ Privateȱ

Schools’ȱ Associationȱ toȱ studyȱ areasȱ ofȱ cooperationȱ which,ȱ whileȱ
guaranteeingȱtheȱindependenceȱofȱtheseȱschoolsȱfromȱtheȱState,ȱwillȱ
ensureȱ theirȱ viabilityȱ asȱ muchȱ asȱ possible.ȱ Governmentȱ willȱ giveȱ aȱ
refundȱ ofȱ 15.2ȱ percentȱ ofȱ eligibleȱ expensesȱ connectedȱ toȱ newȱ
constructionȱwhichȱtheseȱschoolsȱwillȱundertake.ȱ

Advancedȱandȱhigherȱeducationȱȱ

Atȱ theȱ postȬsecondaryȱ andȱ tertiaryȱ level,ȱ weȱ haveȱ continuedȱ

workingȱtoȱofferȱmoreȱcoursesȱwhichȱfulfillȱtheȱneedsȱofȱsocietyȱandȱ
ofȱ ourȱ students.ȱ Theȱ numberȱ ofȱ studentsȱ atȱ Universityȱ andȱ Juniorȱ
College,ȱMCAST,ȱITSȱandȱtheȱHigherȱSecondaryȱSchoolȱisȱconstantlyȱ
increasing,ȱandȱhasȱnowȱreachedȱaȱtotalȱofȱ23,597ȱstudents.ȱ

Atȱ Universityȱ alone,ȱ thisȱ yearȱ weȱ haveȱ 3,370ȱ newȱ studentsȱ inȱ 31ȱ
Facultiesȱ orȱ Institutesȱ withȱ 28ȱ newȱ courses.ȱ Investmentȱ inȱ researchȱ
byȱ academicsȱ isȱ continuing.ȱ Nextȱ year,ȱ weȱ shallȱ increaseȱ theȱ
allocationȱ forȱ Universityȱ byȱ 3.5ȱ millionȱ euro,ȱ aimingȱ toȱ sustainȱ lastȱ
year’sȱexpansionȱofȱtheȱUniversity.ȱWorkȱonȱtheȱbuildingȱofȱtheȱICTȱ
Facultyȱisȱongoing,ȱwithȱanȱinvestmentȱofȱseveralȱmillions.ȱȱ

50
Mr.ȱSpeaker,ȱ

Theȱ Universityȱ ofȱ Maltaȱ isȱ ofȱ strategicȱ importanceȱ forȱ theȱ
developmentȱ ofȱ ourȱ country.ȱ Governmentȱ believesȱ thatȱ thisȱ sectorȱ
requiresȱmoreȱinvestment.ȱCapitalȱasȱwellȱasȱrecurrentȱinvestmentȱisȱ
requiredȱ whichȱ isȱ higherȱ thanȱ theȱ oneȱ weȱ areȱ allocatingȱ toȱ it.ȱ
Thereforeȱ weȱ needȱ toȱ examineȱ closeȱ newȱ sourcesȱ ofȱ financingȱ forȱ
thisȱ sector,ȱ mainlyȱ byȱ theȱ creationȱ ofȱ privateȱ investmentȱ
opportunitiesȱforȱtheȱdevelopmentȱofȱthisȱinstitutionȱwhichȱisȱcrucialȱ
forȱourȱcountry.ȱ

Theȱ opportunitiesȱ forȱ studentsȱ whoȱ wishȱ toȱ carryȱ onȱ theirȱ studiesȱ
afterȱ obtainingȱ theirȱ firstȱ degree,ȱ inȱ Maltaȱ asȱ wellȱ asȱ abroad,ȱ haveȱ
increasedȱsubstantiallyȱthanksȱtoȱtheȱSTEPSȱandȱMGSSȱprogrammes,ȱ
whichȱofferȱscholarshipsȱatȱMastersȱandȱDoctorateȱlevel.ȱInȱtheȱpastȱ
fiveȱ yearsȱ 1,100ȱ studentȱ haveȱ benefittedȱ fromȱ aȱ Governmentȱ
scholarship.ȱ Iȱ wouldȱ likeȱ toȱ remindȱ youȱ thatȱ financialȱ assistanceȱ isȱ
alsoȱ beingȱ givenȱ toȱ thoseȱ studentsȱ whoȱ areȱ readingȱ forȱ theirȱ firstȱ
degreeȱ onȱ aȱ fullȬtimeȱ basisȱ inȱ otherȱ recognizedȱ universities.ȱ Theȱ
bandsȱ ofȱ studentsȱ whoȱ receiveȱ aȱ stipendȱ haveȱ increasedȱ withȱ theȱ
aimȱthatȱmoreȱstudentsȱwillȱchooseȱtoȱcontinueȱtheirȱeducationȱafterȱ
completingȱcompulsoryȱeducation.ȱ

EvenȱatȱMCAST,ȱweȱhaveȱseenȱanȱincreaseȱinȱtheȱnumberȱofȱstudentsȱ
andȱ theȱ numberȱ ofȱ courses.ȱ Asȱ fromȱ thisȱ year,ȱ theȱ processȱ ofȱ
incorporatedȱlearningȱhasȱalsoȱbeenȱinitiatedȱforȱthoseȱstudentsȱwhoȱ
requireȱ additionalȱ helpȱ inȱ theirȱ studies.ȱ MCASTȱ isȱ offeringȱ newȱ
opportunitiesȱ forȱ thoseȱ whoȱ previouslyȱ usedȱ toȱ terminateȱ theirȱ
studiesȱforȱvariousȱreasons.ȱInȱaȱfewȱweeks’ȱtimeȱworkȱwillȱstartȱonȱ
theȱ newȱ campusȱ whichȱ shouldȱ provideȱ aȱ muchȱ moreȱ spaciousȱ
collegeȱ withȱ theȱ facilitiesȱ requiredȱ inȱ aȱ modernȱ environmentȱ andȱ
wellȱequippedȱwithȱtheȱbestȱfacilities.ȱ

51
Atȱ ITSȱ weȱ shouldȱ alsoȱ seeȱ everȱ moreȱ focusedȱ actionȱ onȱ students’ȱ
developmentȱ inȱ relationȱ toȱ theȱ tourismȱ industry’sȱ needs.ȱ Thisȱ
institutionȱ isȱ attractingȱ aȱ numberȱ ofȱ foreignȱ studentsȱ whichȱ
appreciateȱitsȱworth.ȱITSȱisȱreceivingȱ2.5ȱmillionȱeuroȱperȱyear.ȱ

Interactiveȱscienceȱcentreȱȱ

Mr.ȱSpeaker,ȱ

Theȱsuccessȱofȱourȱcountryȱwillȱalsoȱdependȱonȱhowȱfarȱweȱmanageȱ
toȱ achieveȱ theȱ highestȱ levelȱ ofȱ talentȱ inȱ researchȱ andȱ innovation.ȱ
Thereforeȱ itȱ isȱ crucialȱ forȱ usȱ toȱ nurtureȱ educationȱ andȱ scientificȱ
trainingȱ fromȱ aȱ youngȱ age.ȱ Toȱ reachȱ thisȱ strategicȱ objective,ȱ
GovernmentȱwillȱinvestȱinȱtheȱdevelopmentȱofȱaȱNationalȱCentreȱforȱ
InteractiveȱScienceȱinȱVillaȱBighi,ȱKalkara.ȱȱ

ThisȱNationalȱCentreȱforȱInteractiveȱScienceȱwillȱcompriseȱmoreȱthanȱ
4,500ȱsquareȱmetres.ȱ Itȱwillȱserveȱasȱaȱmeansȱtoȱintroduceȱanȱactiveȱ
interestȱ inȱ researchȱ andȱ innovationȱ atȱ everyȱ age,ȱ whileȱ weȱ willȱ
encourageȱstudentsȱtoȱembarkȱonȱaȱcareerȱinȱscienceȱandȱtechnology.ȱ
Theȱ Centreȱ forȱ Interactiveȱ Scienceȱ willȱ offerȱ visitorsȱ anȱ excitingȱ
experience,ȱ completelyȱ interactiveȱ andȱ educational.ȱ Thereȱ willȱ beȱ
exhibitsȱ ofȱ theȱ bestȱ andȱ mostȱ recentȱ quality,ȱ whichȱ willȱ involveȱ
activeȱparticipationȱtoȱarouseȱcuriosityȱandȱinnovativeȱthinking.ȱȱ

Theȱ Nationalȱ Centreȱ forȱ Interactiveȱ Scienceȱ willȱ alsoȱ serveȱ asȱ anȱ
entertainmentȱ andȱ educationȱ platformȱ forȱ students,ȱ parentsȱ andȱ
professionalsȱ andȱ willȱ expandȱ anȱ interestȱ inȱ science,ȱ engineeringȱ
andȱtechnology.ȱ

52
6.2ȱ Sportȱȱ

Mr.ȱSpeakerȱ

Weȱ believeȱ thatȱ byȱ investingȱ inȱ sport,ȱ weȱ willȱ alsoȱ beȱ investingȱ inȱ
ourȱ country’sȱ economicȱ andȱ socialȱ growth.ȱ Government’sȱ policyȱ
remainsȱoneȱofȱnourishingȱaȱsportsȱculture,ȱandȱofȱpromotingȱsportsȱ
participationȱinȱtheȱwholeȱofȱsociety.ȱWeȱareȱdoingȱthisȱthroughȱtheȱ
Maltaȱ Sportsȱ Council,ȱ andȱ byȱ introducingȱ variousȱ initiatives,ȱ forȱ
LocalȱCouncilsȱandȱsportsȱclubs.ȱȱ

Mr.ȱSpeaker,ȱȱ

Weȱ areȱ committedȱ toȱ keepȱ supportingȱ sportsȱ clubs,ȱ asȱ wellȱ asȱ
individualsȱwishingȱtoȱpursueȱphysicalȱtraining.ȱTherefore:ȱ

x WeȱareȱcreatingȱaȱFundȱforȱtheȱassistanceȱofȱpromisingȱqualityȱ
athletesȱ employedȱ withinȱ theȱ privateȱ sectorȱ andȱ who,ȱ inȱ
agreementȱ withȱ theirȱ employer,ȱ optȱ forȱ aȱ reducedȱ workingȱ
weekȱtoȱgetȱbetterȱtraining;ȱȱȱ

x Togetherȱwithȱtheȱinstitutionsȱforȱtertiaryȱeducation,ȱweȱshallȱ
seeȱhowȱpromisingȱqualityȱathletesȱundertakingȱstudiesȱcouldȱ
strikeȱ aȱ betterȱ balanceȱ betweenȱ theirȱ needsȱ asȱ athletesȱ andȱ
thoseȱasȱstudents;ȱ

x Sportsȱorganisations,ȱrecognisedȱbyȱtheȱMaltaȱSportsȱCouncil,ȱ
willȱbeȱableȱtoȱbenefitȱfromȱgrantsȱequivalentȱtoȱ15.25ȱpercentȱ
ofȱ theȱ costȱ ofȱ sportsȱ equipmentȱ purchasedȱ inȱ supportȱ ofȱ theȱ
developmentȱ ofȱ theirȱ athletes.ȱ Thisȱ schemeȱ doesȱ notȱ includeȱ
companiesȱpurchasingȱsportsȱequipmentȱforȱcommercialȱuse;ȱ

x Thereȱ willȱ beȱ theȱ reȬintroductionȱ ofȱ theȱ schemeȱ ofȱ aȱ 15.25ȱ
percentȱ refundȱ ofȱ theȱ priceȱ ofȱ bicycles,ȱ upȱ toȱ aȱ maximumȱ ofȱ
150ȱeuro;ȱȱ

53
 x ȱTheȱregistrationȱtaxȱofȱ6.5ȱpercentȱonȱsportsȱvehiclesȱthatȱmayȱ
beȱ usedȱ onȱ racingȱ tracksȱ andȱ otherȱ sitesȱ authorisedȱ byȱ
TransportȱMaltaȱwillȱbeȱrepealed;ȱ

x Theȱ uniqueȱ licenceȱ plateȱ conceptȱ willȱ beȱ introducedȱ forȱ

collectorsȱ ofȱ classicȱ vehicles.ȱ So,ȱ oneȱ licenceȱ willȱ beȱ paid,ȱ
alongȱ withȱ aȱ smallȱ processingȱ fee,ȱ forȱ allȱ vehiclesȱ inȱ theseȱ
collections;ȱ

x Weȱ shallȱ reallocate,ȱ forȱ anotherȱ year,ȱ 250,000ȱ euroȱ inȱ

assistanceȱ toȱ clubsȱ inȱ orderȱ toȱ attractȱ foreignȱ clubsȱ andȱ
associationsȱ forȱ trainingȱ sessionsȱ inȱ ourȱ country,ȱ andȱ toȱ
organiseȱ internationalȱ competitions.ȱ Thisȱ year,ȱ thisȱ schemeȱ
createdȱmoreȱthanȱ39,000ȱbedȱnights;ȱandȱ

x Weȱ willȱ invest,ȱ overȱ aȱ periodȱ ofȱ threeȱ years,ȱ inȱ theȱ fundingȱ
necessaryȱ forȱ theȱ constructionȱ ofȱ aȱ footballȱ andȱ aȱ waterpoloȱ
pitchȱatȱBirČebbuÄa.ȱ

6.3ȱ Theȱcreativeȱeconomyȱ

Mr.ȱSpeaker,ȱȱ

Weȱhaveȱtoȱfurtherȱstrengthenȱtheȱculturalȱandȱcreativeȱsectors.ȱNotȱ
onlyȱwillȱcreativityȱrevitaliseȱourȱidentity,ȱbutȱitȱwillȱalsoȱcontributeȱ
aȱhighȱaddedȱvalueȱtoȱtheȱeconomy.ȱItȱisȱestimatedȱthatȱtheseȱsectors,ȱ
includingȱtheȱarts,ȱtheȱmedia,ȱandȱotherȱenterprisesȱofferingȱcreativeȱ
services,ȱ suchȱ asȱ architecture,ȱ designȱ andȱ theȱ advertisingȱ industry,ȱ
areȱ contributingȱ moreȱ thanȱ fourȱ percentȱ ofȱ theȱ Grossȱ Domesticȱ
Product.ȱ Weȱ shallȱ allocateȱ 1.1ȱ millionȱ euroȱ toȱ continueȱ toȱ continueȱ
strengtheningȱthisȱsector.ȱȱȱ

54
Weȱ mustȱ continueȱ toȱ investȱ inȱ theseȱ sectors.ȱ Theȱ nationalȱ strategyȱ
forȱ theȱ creativeȱ economy,ȱ whichȱ weȱ shallȱ launchȱ inȱ aȱ fewȱ months,ȱ
embracesȱfourȱpriorities:ȱȱ

1. Theȱ educationalȱ aspectȱ andȱ professionalȱ formationȱ inȱ theȱ

culturalȱandȱcreativeȱsectors;ȱȱ

2. Marketȱaccessȱandȱenterpriseȱdevelopmentȱinȱtheȱsector;ȱȱ

3. Malta’sȱ promotionȱ asȱ aȱ creativeȱ hubȱ ,ȱ withȱ emphasisȱ onȱ theȱ

internationalȱmarkets;ȱandȱȱ

4. Theȱ strategicȱ strengtheningȱ ofȱ governanceȱ structuresȱ inȱ theȱ

creativeȱsector.ȱȱ

Toȱpaveȱtheȱwayȱforȱthisȱstrategy,ȱduringȱtheȱcomingȱyearȱweȱshallȱ
beȱ introducingȱ threeȱ newȱ initiatives,ȱ withȱ anȱ investmentȱ ofȱ 430,000ȱ
euro.ȱForȱthisȱreason,ȱweȱshall:ȱ

x createȱaȱschemeȱwherebyȱallȱstudentsȱinȱtheȱfirstȱthreeȱyearsȱofȱ
secondaryȱ schoolȱ willȱ beȱ grantedȱ aȱ creditȱ ofȱ 15ȱ euroȱ toȱ beȱ
spentȱonȱartisticȱandȱculturalȱactivities,ȱandȱhistoricalȱsites;ȱ

x initiateȱ aȱ pilotȱ programmeȱ byȱ meansȱ ofȱ whichȱ teachers,ȱ

studentsȱ andȱ creativeȱ professionalsȱ mayȱ joinȱ primaryȱ andȱ
secondaryȱ schoolȱ projects,ȱ forȱ theȱ purposeȱ ofȱ establishingȱ anȱ
innovativeȱ collaborationȱ betweenȱ schoolsȱ andȱ theȱ creativeȱ
industries;ȱandȱ

x ensureȱ assistanceȱ toȱ childrenȱ andȱ youthsȱ whoȱ haveȱ theȱ

potentialȱ toȱ developȱ theirȱ talents,ȱ andȱ assistanceȱ willȱ alsoȱ beȱ
grantedȱtoȱchildrenȱandȱyouthsȱforȱcreativeȱprojectsȱhavingȱaȱ
socialȱobjective.ȱ

55
Inȱ orderȱ toȱ strengthenȱ innovationȱ andȱ competitiveness,ȱ trainingȱ inȱ
theseȱ fieldsȱ shouldȱ remainȱ aȱ priority.ȱ Therefore,ȱ weȱ areȱ allocatingȱ
fundsȱ forȱ aȱ trainingȱ programmeȱ inȱ films,ȱ asȱ wellȱ asȱ inȱ cultureȱ
management.ȱ Theseȱ initiativesȱ areȱ beingȱ takenȱ withinȱ theȱ
preparatoryȱframeworkȱofȱaȱdevelopmentȱplanȱsoȱthatȱourȱcountry’sȱ
educationalȱ institutionsȱ mayȱ provideȱ furtherȱ vocationalȱ trainingȱ inȱ
theȱculturalȱandȱcreativeȱfields.ȱ

Anȱ importantȱ project,ȱ whichȱ shouldȱ improveȱ marketȱ accessȱ forȱ theȱ
creativeȱ enterprise,ȱ isȱ thatȱ ofȱ creativeȱ clusters.ȱ Therefore,ȱ theȱ
developmentȱ andȱ sustainabilityȱ ofȱ suchȱ clustersȱ willȱ beȱ examined,ȱ
withȱ aȱ focusȱ onȱ theȱ digitalȱ media,ȱ performingȱ arts,ȱ andȱ design,ȱ
sensitiveȱtoȱtheȱsocialȱfabric,ȱandȱtheȱhistoricalȱvalueȱofȱtheȱareasȱandȱ
buildingsȱidentifiedȱforȱthisȱpurpose.ȱȱ

Mr.ȱSpeaker,ȱ

Aȱ numberȱ ofȱ nongovernmentalȱ organisationsȱ andȱ culturalȱ

enterprisesȱ areȱ workingȱ atȱ nationalȱ levelȱ soȱ thatȱ ourȱ countryȱ mayȱ
attainȱ itsȱ culturalȱ policyȱ objectives.ȱ Toȱ furtherȱ incentiviseȱ theȱ
professionalȱworkȱofȱtheseȱorganisationsȱinȱtheȱfieldsȱofȱart,ȱculturalȱ
heritage,ȱ andȱ theȱ audiovisualȱ sector,ȱ weȱ shallȱ introduceȱ aȱ fundȱ ofȱ
150,000ȱeuro.ȱȱ

Aȱ newȱ initiativeȱ willȱ alsoȱ beȱ introducedȱ soȱ that,ȱ inȱ 2012,ȱ weȱ shallȱ
presentȱ theȱ firstȱ showcaseȱ ofȱ theȱ bestȱ artisticȱ andȱ creativeȱ workȱ
producedȱ inȱ Maltaȱ andȱ Gozo,ȱ toȱ attractȱ internationalȱ producers,ȱ
curatorsȱ andȱ agents,ȱ andȱ assistȱ themȱ inȱ furtherȱ reachingȱ
internationalȱmarkets.ȱȱ

56
Mr.ȱSpeaker,ȱ

Ourȱ investmentȱ inȱ theseȱ sectorsȱ mustȱ beȱ usedȱ inȱ aȱ sustainableȱ
manner.ȱ So,ȱ weȱ shallȱ establishȱ aȱ Creativityȱ Trustȱ comprisingȱ
contributionsȱ byȱ theȱ publicȱ andȱ privateȱ sectors,ȱ whichȱ willȱ stepȱ upȱ
investmentȱ inȱ existingȱ schemes,ȱ andȱ otherȱ newȱ ones.ȱ Weȱ shallȱ alsoȱ
beȱgivingȱfiscalȱincentivesȱtoȱwhoeverȱcontributesȱtoȱthisȱFund.ȱ

Theseȱinitiatives,ȱalongȱwithȱotherȱinitiativesȱannouncedȱinȱtheȱpast,ȱ
andȱ theȱ inclusionȱ ofȱ theseȱ sectorsȱ inȱ Government’sȱ Visionȱ 2015,ȱ
confirmȱourȱcommitmentȱtowardsȱtheȱcreativeȱindustries.ȱInȱviewȱofȱ
theȱpreparationsȱforȱtheȱEuropeanȱCulturalȱCityȱ2018,ȱweȱmustȱkeepȱ
strengtheningȱ thisȱ investment,ȱ notȱ onlyȱ byȱ restoringȱ andȱ
rehabilitatingȱ historicalȱ buildings,ȱ butȱ alsoȱ byȱ meansȱ ofȱ aȱ soundȱ
investmentȱ whichȱ reflectsȱ aȱ longȬtermȱ visionȱ forȱ theȱ potentialȱ ofȱ
everyȱindividual,ȱsoȱthatȱweȱcanȱmakeȱofȱMaltaȱaȱcentreȱofȱculturalȱ
andȱcreativeȱexcellence.ȱ

57
Investȱfurtherȱinȱaȱhealthyȱsocietyȱȱ
7.1ȱ Theȱsocialȱaspectȱ

Mr.ȱSpeaker,ȱThisȱisȱaȱbudgetȱwhichȱfocusesȱonȱworkȱandȱeconomicȱ
growth.ȱAtȱtheȱsameȱtimeȱthisȱisȱequallyȱaȱbudgetȱwhichȱstrengthensȱ
theȱ networkȱ ofȱ socialȱ benefitsȱ andȱ servicesȱ andȱ healthcareȱ inȱ ourȱ
country.ȱ

Thisȱisȱbeingȱdoneȱatȱtheȱsameȱtimeȱasȱotherȱcountriesȱareȱdecreasingȱ
theirȱ socialȱ services,ȱ healthcareȱ services,ȱ andȱ pensionsȱ toȱ addressȱ
theirȱeconomicȱproblems.ȱȱȱ

Mr.ȱSpeaker,ȱ

Weȱareȱchosingȱtoȱsustainȱthemȱcautiously,ȱasȱaȱresultȱofȱtheȱwayȱinȱ
whichȱourȱcountryȱhasȱresistedȱtheȱeconomicȱturmoils.ȱ

Weȱ wantȱ toȱ incentiviseȱ workȱ andȱ enterprise,ȱ weȱ wantȱ toȱ rewardȱ
industry.ȱȱ

EveryȱMalteseȱfamilyȱrecognisesȱtheȱvalueȱofȱtheȱnetworkȱofȱservicesȱ
andȱ benefitsȱ createdȱ byȱ ourȱ countryȱ inȱ orderȱ forȱ everyoneȱ toȱ
participateȱ inȱ theȱ creationȱ andȱ distributionȱ ofȱ wealthȱ createdȱ byȱ
enterpriseȱinȱourȱcountry.ȱȱ

ThisȱGovernmentȱfirmlyȱbelievesȱinȱanȱinclusiveȱsociety,ȱwhereȱeachȱ
personȱcontributesȱactivelyȱinȱsociety.ȱȱ

Inȱtheȱcontextȱofȱaȱbudgetȱwhichȱreducesȱdeficit,ȱdraftedȱinȱdifficultȱ
economicȱconditions,ȱandȱfocusedȱonȱensuringȱtheȱbestȱenvironmentȱ
forȱ theȱ creationȱ ofȱ jobs,ȱ Governmentȱ isȱ addressingȱ specificȱ sectorsȱ
whichȱrequireȱmostȱattention.ȱ

58
Increaseȱinȱsupplementaryȱassistanceȱȱ

Weȱ wantȱ toȱ keepȱ onȱ assistingȱ theȱ weakest.ȱ Forȱ thisȱ reason,ȱ theȱ
supplementaryȱassistanceȱwillȱbeȱincreasedȱtoȱaȱweeklyȱmaximumȱofȱ
€4.57ȱ forȱ singleȱ persons,ȱ andȱ toȱ €8.13ȱ weeklyȱ forȱ marriedȱ couples.ȱ
Thisȱmeasureȱisȱexpectedȱtoȱcostȱ800,000ȱeuroȱyearly.ȱ

Adjustingȱtheȱmeansȱtestȱ

Soȱ farȱ theȱ meansȱ test,ȱ forȱ thoseȱ benefitsȱ whichȱ dependȱ onȱ suchȱ
meansȱ test,ȱ hasȱ notȱ beenȱ adjustedȱ followingȱ theȱ costȱ ofȱ livingȱ
allowances.ȱ Thisȱ wasȱ leadingȱ toȱ casesȱ whereȱ certainȱ peopleȱ wereȱ
losingȱmoreȱinȱtermsȱofȱbenefitsȱthanȱtheyȱwereȱgainingȱthroughȱtheȱ
costȱofȱlivingȱadjustments.ȱAsȱfromȱtheȱ1stȱofȱJanuary,ȱtheȱmeansȱtestȱ
willȱbeȱadjustedȱsoȱthatȱtheȱcostȱofȱlivingȱallowanceȱwillȱnotȱresultȱinȱ
aȱ lossȱ inȱ benefitsȱ forȱ theseȱ people.ȱ ȱ Thisȱ appliesȱ particularlyȱ inȱ theȱ
caseȱ ofȱ pensionersȱ who,ȱ throughȱ increasesȱ inȱ theirȱ pension,ȱ mayȱ
forfeitȱsicknessȱbenefits.ȱ

Measuresȱinȱfavourȱofȱchildrenȱandȱtheȱfamilyȱȱȱ

Mr.ȱSpeaker,ȱȱȱ

Governmentȱ isȱ currentlyȱ workingȱ inȱ orderȱ toȱ launchȱ aȱ Nationalȱ

Policyȱ inȱ favourȱ ofȱ Childrenȱ nextȱ year.ȱ Thisȱ Policyȱ willȱ lookȱ
holisticallyȱatȱtheȱservices,ȱtheȱneedsȱandȱtheȱrightsȱofȱchildren.ȱȱ

Theȱbiggestȱchallengeȱfacingȱourȱcountryȱinȱthisȱsectorȱrelatesȱtoȱtheȱ
residentialȱservicesȱforȱchildrenȱinȱneedȱofȱsuchȱservices.ȱȱȱ

Inȱ thisȱ year’sȱ budgetȱ weȱ haveȱ increasedȱ theȱ benefitsȱ forȱ fosterȱ
families.ȱTodayȱweȱareȱproposingȱaȱnewȱallocationȱofȱ400,000ȱeuroȱsoȱ
thatȱ childrenȱ andȱ youngȱ people,ȱ whoȱ todayȱ cannotȱ enjoyȱ existingȱ
residentialȱ orȱ fosteringȱ servicesȱ becauseȱ ofȱ theirȱ greatȱ andȱ specificȱ
difficulties,ȱcanȱbeȱgivenȱaȱnewȱalternativeȱinȱaȱfamilyȱenvironment.ȱ
Thisȱ isȱ theȱ beginningȱ ofȱ significantȱ changesȱ whichȱ willȱ beȱ
59
implementedȱinȱtheȱcomingȱyearsȱinȱtheȱfieldȱofȱresidentialȱservicesȱ
forȱchildrenȱandȱyoungȱpeopleȱspurredȱbyȱevolvingȱrealities.ȱȱ

Itȱisȱimportantȱthatȱthisȱmeasureȱisȱreadȱinȱtheȱlightȱofȱtheȱsignificantȱ
increaseȱallocatedȱlastȱyearȱforȱtheȱfinancingȱofȱentitiesȱtakingȱcareȱofȱ
childrenȱ facingȱ difficulties,ȱ asȱ wellȱ asȱ forȱ theȱ servicesȱ providedȱ byȱ
theȱAÄenzijaȱAppoÄÄ,ȱAÄenzijaȱSapport,ȱandȱAÄenzijaȱSedqa.ȱTheseȱ
agenciesȱ provideȱ aȱ wideȱ rangeȱ ofȱ personalisedȱ socialȱ servicesȱ
offeringȱcomfortȱandȱshelterȱtoȱchildren,ȱyouths,ȱandȱfamiliesȱfacingȱ
difficulties.ȱ Thisȱ budgetȱ ensuresȱ thatȱ theȱ levelȱ ofȱ servicesȱ achievedȱ
soȱfarȱcanȱbeȱmantainedȱȱ

Theȱallocationȱforȱvoluntaryȱorganisationsȱisȱalsoȱbeingȱincreasedȱsoȱ
thatȱtheȱservicesȱagreedȱonȱcanȱbeȱgiven.ȱȱ

DisabledȱPersonsȱ

ApartȱfromȱtheȱextensiveȱservicesȱprovidedȱbyȱtheȱAÄenzijaȱSapport,ȱ
andȱ voluntaryȱ organisationsȱ throughȱ financialȱ supportȱ fromȱ
Government,ȱweȱwantȱtoȱkeepȱonȱimprovingȱtheȱmeasuresȱintendedȱ
toȱhelpȱpersonsȱwithȱmobilityȱproblems.ȱWeȱhaveȱalreadyȱdoneȱaȱlotȱ
inȱthisȱfieldȱbutȱweȱwillȱtakeȱfurtherȱstepsȱinȱorderȱtoȱkeepȱon,ȱonȱaȱ
practicalȱ level,ȱ improvingȱ theȱ livesȱ ofȱ theseȱ personsȱ andȱ theirȱ
families:ȱȱ

x Aȱ familyȱ unitȱ withȱ moreȱ thanȱ oneȱ personȱwhoȱ isȱ wheelchairȱ

boundȱ willȱ benefitȱ fromȱ theȱ currentȱ exemptionsȱ forȱ eachȱ
person,ȱevenȱwhenȱitȱbuysȱoneȱwheelchairȱaccessibleȱvehicle;ȱ

x Aȱfamilyȱunitȱwithȱoneȱpersonȱwhoȱisȱwheelchairȱboundȱwillȱ
benefitȱ fromȱ theȱ currentȱ exemptionsȱ alsoȱ forȱ theȱ secondȱ
wheelchairȱaccessibleȱvehicle;ȱandȱȱ

x Theȱlicenceȱpaymentȱforȱwheelchairȱaccessibleȱvehiclesȱwillȱbeȱ
abolished,ȱevenȱafterȱtheȱfifthȱyearȱfromȱregistration.ȱ

60
Theȱhousingȱsectorȱ

Inȱ theȱ housingȱ sector,ȱ Governmentȱ isȱ committedȱ toȱ keepȱ

administeringȱ andȱ financingȱ schemesȱ andȱ initiativesȱ thatȱ caterȱ forȱ
people’sȱneeds.ȱTheseȱresultȱinȱassistanceȱforȱhomeȱrefurbishingȱandȱ
improvements,ȱ assistanceȱ toȱ disabledȱ persons,ȱ andȱ assistanceȱ toȱ
firstȬtimeȱbuyers.ȱWeȱareȱinvestingȱoneȱmillionȱeuroȱeachȱyearȱinȱtheȱ
rentȱ subsidyȱ scheme,ȱ whichȱ isȱ benefittingȱ moreȱ thanȱ oneȱ thousandȱ
applicants.ȱAnotherȱsuccessfulȱschemeȱisȱthatȱgrantingȱassistanceȱtoȱ
firstȬtimeȱbuyers,ȱwhichȱisȱbenefittingȱaroundȱ340ȱapplicantsȱyearly.ȱ
Itȱ isȱ ourȱ intentionȱ toȱ keepȱ developingȱ moreȱ schemesȱ inȱ orderȱ forȱ
moreȱpersonsȱtoȱbenefitȱfromȱthem.ȱȱ

7.2ȱ TheȱHealthȱSectorȱȱ

Mr.ȱSpeaker,ȱȱ

Weȱareȱinvestingȱ332.3ȱmillionȱEuroȱinȱtheȱhealthȱsector,ȱanȱincreaseȱ
ofȱ13ȱmillionȱeuroȱfromȱtheȱpreviousȱyear.ȱ

TheȱmajorityȱofȱtheȱMalteseȱpeopleȱusingȱpublicȱhealthȱservicesȱareȱ
satisfiedȱwithȱtheȱserviceȱthatȱisȱbeingȱprovided.ȱInȱJuneȱandȱJulyȱofȱ
thisȱ year,ȱ moreȱ thanȱ 80ȱ percentȱ haveȱ reviewedȱ theȱ serviceȱ theyȱ
receivedȱ atȱ Materȱ Deiȱ asȱ veryȱ goodȱ orȱ excellent.ȱ Despiteȱ allȱ theȱ
criticismȱ thatȱ isȱ leviedȱ byȱ thoseȱ whoȱ tryȱ toȱ turnȱ thisȱ sectorȱ intoȱ aȱ
politicalȱ issue,ȱ everyoneȱ acknowledgesȱ theȱ dedicationȱ ofȱ doctors,ȱ
nurses,ȱandȱotherȱprofessionals.ȱButȱthereȱareȱareasȱinȱwhichȱweȱaimȱ
toȱmakeȱsubstantialȱprogress.ȱ Andȱtheseȱdoȱnotȱnecessarilyȱdependȱ
onȱnewȱresources.ȱForȱinstance,ȱthereȱisȱnoȱneedȱforȱmoreȱfinancesȱinȱ
orderȱ forȱ aȱ patientȱ toȱ beȱ givenȱ moreȱ informationȱ toȱ understandȱ
betterȱwhatȱoneȱisȱgoingȱthrough.ȱȱȱ

Government’sȱaimȱremainsȱthatȱMaltaȱbecomesȱaȱregionalȱcentreȱofȱ
excellenceȱinȱtheȱmedicalȱsectorȱbyȱtheȱyearȱ2015.ȱAsȱweȱhaveȱalwaysȱ
maintained,ȱ ourȱ peopleȱ deserveȱ theȱ bestȱ servicesȱ inȱ theȱ medicalȱ
61
sector.ȱ Weȱ areȱ committedȱ toȱ keepȱ developingȱ ourȱ servicesȱ inȱ theȱ
medicalȱ sector,ȱ bothȱ inȱ termsȱ ofȱ treatmentȱ asȱ wellȱ asȱ inȱ termsȱ ofȱ
prevention.ȱȱ

Besidesȱmaintainingȱallȱtheȱhealthȱservicesȱprovidedȱsoȱfar,ȱthereȱareȱ
aȱ numberȱ ofȱ newȱ programsȱ andȱ projectsȱ whichȱ addressȱ specificȱ
sectors.ȱȱȱȱ

Aȱcureȱforȱcancerȱȱ

TheȱbattleȱagainstȱcancerȱisȱaȱpriorityȱissueȱforȱGovernment.ȱDuringȱ
thisȱ year,ȱ constructionȱ workȱ hasȱ commencedȱ onȱ theȱ Cancerȱ Centreȱ
inȱ Materȱ Deiȱ Hospitalȱ withȱ anȱ investmentȱ ofȱ 14ȱ millionȱ euro.ȱ
Excavatingȱ workȱ isȱ currentlyȱ beingȱ carriedȱ out.ȱ Untilȱ thisȱ Centreȱ isȱ
ready,ȱ workȱ isȱ alsoȱ beingȱ carriedȱ outȱ inȱ Boffaȱ Hospital,ȱ soȱ asȱ toȱ
ensureȱ thatȱ patientsȱ areȱ treatedȱ inȱ aȱ moreȱ comfortableȱ andȱ worthyȱ
environment.ȱ

WeȱareȱinȱtheȱfinalȱstageȱofȱdevelopingȱtheȱNationalȱStrategyȱforȱtheȱ
Treatmentȱ ofȱ Cancer.ȱ Theȱ Breastȱ Screeningȱ Centre,ȱ whichȱ wasȱ
inauguratedȱlastȱyear,ȱisȱdeliveringȱresults.ȱMoreȱthanȱ5,000ȱwomenȱ
haveȱ attendedȱ thisȱ Centre,ȱ withȱ 42ȱ ofȱ themȱ beingȱ inȱ needȱ ofȱ
immediateȱ treatment.ȱ ȱ Ourȱ planȱ isȱ toȱ keepȱ onȱ expandingȱ ourȱ
screeningȱservicesȱtoȱcoverȱotherȱconditions.ȱȱ

Medicinesȱ

Mr.ȱSpeaker,ȱȱ

Thisȱ year,ȱ weȱ haveȱ addedȱ 16ȱ newȱ medicinesȱ toȱ theȱ Government’sȱ
formularyȱlist,ȱ11ȱofȱwhichȱrelateȱtoȱcancerȱtreatment.ȱȱ

Weȱ haveȱ reachedȱ theȱ targetȱ establishedȱ atȱ theȱ lastȱ budgetȱ thatȱ theȱ
creditȱ daysȱ forȱ theȱ purchaseȱ ofȱ medicinesȱ areȱ reducedȱ toȱ 120ȱ daysȱ
andȱ theȱ paymentsȱ toȱ importersȱ areȱ beingȱ processedȱ withinȱ theȱ
stipulatedȱperiod.ȱȱȱ

62
Weȱ mustȱ nowȱ reformȱ theȱ systemȱ byȱ whichȱ theȱ Governmentȱ isȱ
buyingȱmedicines.ȱThisȱreformȱmustȱaddressȱtheȱinefficienciesȱinȱthisȱ
sector,ȱ theȱ inconvenienceȱ enduredȱ byȱ patientsȱ andȱ theȱ wasteȱ ofȱ
resourcesȱ inȱ theȱ distributionȱ ofȱ medicines.ȱ Weȱ wantȱ toȱ renderȱ theȱ
freeȱmedicineȱserviceȱprovidedȱbyȱtheȱGovernmentȱfairerȱandȱmoreȱ
accessibleȱ toȱ thoseȱ whoȱ areȱ trulyȱ inȱ needȱ soȱ asȱ toȱ curtailȱ abuses.ȱȱȱȱ
Weȱalsoȱwantȱtoȱincludeȱmoreȱmedicalȱconditionsȱthatȱareȱprevalentȱ
inȱtoday’sȱsociety.ȱȱȱ

Theȱpharmacyȱofȱyourȱchoiceȱschemeȱȱȱ

Theȱ pharmacyȱ ofȱ yourȱ choiceȱ schemeȱ isȱ operatingȱ successfully.ȱ Weȱ
haveȱalsoȱextendedȱthisȱserviceȱtoȱGozo,ȱSliemaȱandȱIklin.ȱTheȱplanȱ
isȱtoȱfurtherȱextendȱthisȱserviceȱtoȱotherȱlocalities.ȱForȱthisȱpurpose,ȱ
weȱ areȱ allocatingȱ aȱ furtherȱ million,ȱ apartȱ fromȱ 400,000ȱ euroȱ toȱ
strengthenȱtheȱelectronicȱsystem.ȱȱȱȱ

Primaryȱtreatmentȱ

Inȱtheȱcontextȱofȱprimaryȱtreatment,ȱworkȱisȱcurrentlyȱbeingȱcarriedȱ
outȱ inȱ Healthȱ Centres,ȱ includingȱ theȱ Mostaȱ Healthȱ Centre,ȱ whereȱ aȱ
digitalȱ xȬrayȱ machineȱ hasȱ beenȱ installedȱ thusȱ doingȱ awayȱ withȱ theȱ
needȱforȱpatientsȱtoȱgoȱtoȱMaterȱDei.ȱAȱnewȱclinicȱhasȱbeenȱopenedȱ
inȱVittoriosa,ȱwhilstȱ furtherȱworkȱwillȱbeȱcarriedȱoutȱinȱtheȱvariousȱ
HealthȱCentresȱandȱclinicsȱspreadȱaroundȱourȱcountry.ȱȱȱȱ

Anȱincreaseȱinȱoperationsȱȱ

Asȱpromisedȱinȱtheȱlastȱbudget,ȱweȱareȱworkingȱtowardsȱincreasingȱ
cataractsȱ operations.ȱ Suchȱ operationsȱ haveȱ doubled.ȱ Inȱ fact,ȱ theȱ
numberȱofȱeyeȱoperationsȱduringȱtheȱfirstȱsixȱmonthsȱofȱtheȱyear,ȱhasȱ
increasedȱ fromȱ 589ȱ inȱ 2008ȱ toȱ 1,160ȱ inȱ 2010.ȱ Itȱ isȱ worthȱ mentioningȱ
that,ȱ betweenȱ Januaryȱ andȱ Augustȱ ofȱ thisȱ year,ȱ 27,898ȱ operationsȱ
tookȱ placeȱ inȱ Materȱ Deiȱ Hospital,ȱ whichȱ amountȱ toȱ 4,940ȱ moreȱ
operationsȱ thanȱ thoseȱ whichȱ tookȱ placeȱ betweenȱ Januaryȱ andȱ

63
Augustȱ ofȱ theȱ finalȱ yearȱ ofȱ operationȱ ofȱ St.ȱ Lukeȱ Hospital,ȱ anȱ
averageȱofȱmoreȱthanȱ20ȱoperationsȱeveryday.ȱȱȱȱȱ

Weȱshallȱkeepȱonȱworkingȱtoȱreduceȱtheȱwaitingȱlistsȱevenȱinȱotherȱ
sectors.ȱ Forȱ thisȱ purpose,ȱ weȱ areȱ allocatingȱ moreȱ thanȱ 2.3ȱ millionȱ
euro.ȱȱȱ

HumanȱresourcesȱandȱITȱinfrastructureȱȱ

Theȱ Governmentȱ wantsȱ toȱ seeȱ aȱ furtherȱ increaseȱ inȱ theȱ levelȱ ofȱ
professionalismȱamongstȱworkersȱinȱtheȱhealthȱsector.ȱAtȱthisȱstage,ȱ
Iȱ wouldȱ likeȱ toȱ thankȱ theȱ professors,ȱ doctors,ȱ paramedics,ȱ nurses,ȱ
andȱ socialȱ workersȱ forȱ theirȱ hardȱ workȱ andȱ dedicationȱ toȱ ourȱ
patients.ȱȱ

Ourȱ aimȱ isȱ notȱ justȱ toȱ makeȱ anȱ effortȱ toȱ increaseȱ theȱ numberȱ ofȱ
professionals,ȱ butȱ alsoȱ forȱ suchȱ professionalsȱ toȱ beȱ trainedȱ andȱ
qualifiedȱaccordingȱtoȱtheȱhighestȱstandards.ȱWeȱwantȱtoȱintroduceȱ
newȱ professionals,ȱ whoȱ haveȱ receivedȱ trainingȱ locallyȱ asȱ wellȱ asȱ inȱ
foreignȱUniversities.ȱȱȱ

Duringȱ theȱ comingȱ year,ȱ weȱ shallȱ continueȱ toȱ renewȱ theȱ electronicȱ
toolsȱusedȱinȱhealthȱservices,ȱwithȱelectronicȱclinicsȱforȱdoctorsȱandȱ
betterȱ accessȱ toȱ medicalȱ recordsȱ soȱ thatȱ theȱ patientȱ receivesȱ betterȱ
treatment.ȱȱ

Contributionȱtoȱtheȱhealthȱbillȱ

Toȱ beȱ ableȱ toȱ furtherȱ sustainȱ theȱ healthȱ sector,ȱ theȱ exciseȱ dutyȱ onȱ
tobaccoȱwillȱincreaseȱbyȱ3ȱandȱ4ȱpercent,ȱwhilstȱtheȱtaxȱonȱlocalȱbeerȱ
willȱincreaseȱbyȱslightlyȱlessȱthanȱoneȱeuroȱcentȱonȱaȱ25clȱbottle,ȱandȱ
13ȱpercentȱonȱspirits.ȱAllȱrevenueȱfromȱthisȱmeasureȱwillȱbeȱdirectedȱ
toȱtheȱhealthȱbill.ȱ

64
MentalȱHealthȱ

Mr.ȱSpeaker,ȱ

Inȱtheȱmentalȱhealthȱtreatmentȱsector,ȱweȱhaveȱcontinuedȱourȱworkȱ
toȱfurtherȱextendȱtheȱtreatmentȱwithinȱtheȱcommunityȱforȱthoseȱwhoȱ
sufferȱ fromȱ mentalȱ healthȱ problems.ȱ Today,ȱ weȱ haveȱ aroundȱ 130ȱ
professionals,ȱ includingȱ psychologistsȱ andȱ socialȱ workers,ȱ whoȱ
workȱ withinȱ theȱ communityȱ inȱ 30ȱ differentȱ locations.ȱ Duringȱ thisȱ
year,ȱ twoȱ newȱ dayȱ centresȱ haveȱ openedȱ forȱ personsȱ sufferingȱ fromȱ
mentalȱhealthȱproblems,ȱoneȱinȱ…ejtunȱandȱtheȱotherȱinȱPaola,ȱwhichȱ
takesȱtheȱnumberȱofȱsuchȱcentresȱtoȱfour.ȱMoreover,ȱaȱclinicȱforȱsuchȱ
patientsȱhasȱopenedȱinȱImtarfa.ȱ

TheȱGovernment’sȱaimȱisȱtoȱensureȱthatȱthoseȱsufferingȱfromȱmentalȱ
healthȱproblemsȱfindȱtheȱtreatmentȱandȱhelpȱwithinȱtheȱcommunity.ȱ
Ourȱexperienceȱshowsȱusȱthatȱwhenȱyouȱextendȱsuchȱservicesȱwithinȱ
theȱcommunity,ȱlessȱpatientsȱwillȱeventuallyȱneedȱtoȱbeȱadmittedȱtoȱ
MountȱCarmelȱhospital,ȱandȱwhenȱtheseȱareȱsoȱadmittedȱasȱaȱresultȱ
ofȱsomeȱcrisis,ȱtheȱtimeȱspentȱinȱthisȱhospitalȱisȱreducedȱconsiderablyȱ
byȱsendingȱthemȱhomeȱtoȱcontinueȱreceivingȱtheȱsupportȱtheyȱneedȱ
withinȱ theȱ community.ȱ Thisȱ serviceȱ isȱ beingȱ extendedȱ toȱ Floriana,ȱ
KirkopȱandȱGČira.ȱ

Weȱ haveȱ alsoȱ startedȱ allocatingȱ flatsȱ toȱ Mountȱ Carmelȱ Hospitalȱ
underȱtheȱHousingȱAuthority’sȱsupportiveȱhousingȱscheme,ȱwithȱtheȱ
underlyingȱaimȱbeingȱthatȱofȱprovidingȱhousingȱtoȱpatientsȱwhoȱareȱ
releasedȱfromȱtheȱhospitalȱandȱwhoȱhaveȱnoȱplaceȱwhereȱtoȱlive.ȱȱ

65
7.3ȱ Theȱelderlyȱȱ

Mr.ȱSpeaker,ȱ

Theȱ elderlyȱ haveȱ anȱ importantȱ placeȱ inȱ ourȱ society,ȱ andȱ theyȱ mustȱ
continueȱtoȱcontributeȱtoȱtheȱcountry.ȱWeȱmustȱkeepȱonȱofferingȱtheȱ
opportunityȱtoȱthoseȱelderlyȱpersonsȱwhoȱwantȱtoȱworkȱtoȱbeȱableȱtoȱ
keepȱ onȱ doingȱ so.ȱ Weȱ mustȱ striveȱ soȱ thatȱ theȱ pensionsȱ systemȱ isȱ aȱ
sustainableȱ one,ȱ whichȱ ensuresȱ aȱ goodȱ standardȱ ofȱ livingȱ toȱ theȱ
elderly.ȱWeȱbelieveȱthatȱourȱelderlyȱshouldȱbeȱgivenȱtheȱbestȱservicesȱ
andȱcare.ȱȱȱ

Onceȱ again,ȱ pensionersȱ willȱ receiveȱ theȱ fullȱ COLAȱ increaseȱ duringȱ
theȱcomingȱyear.ȱȱȱ

WeȱshallȱcontinueȱtoȱaddressȱtheȱanomalyȱthatȱexistsȱinȱtheȱServicesȱ
pensions.ȱ Inȱ 2008,ȱ weȱ hadȱ startedȱ thisȱ process,ȱ whereȱ theȱ firstȱ 466ȱ
euroȱ ofȱ everyȱ Servicesȱ pensionȱ isȱ noȱ longerȱ consideredȱ forȱ theȱ
purposesȱ ofȱ reȬassessmentȱ ofȱ everyȱ pensionerȱ whoȱ alsoȱ receivesȱ aȱ
Servicesȱ pension.ȱ Aroundȱ 4,350ȱ pensionersȱ benefitedȱ fromȱ thisȱ
measure.ȱWeȱcontinuedȱthisȱprocessȱinȱ2009,ȱwhereȱtheȱamountȱwasȱ
increasedȱtoȱ666ȱeuro.ȱWeȱshallȱincreaseȱthisȱamountȱofȱreductionȱbyȱ
anotherȱ 200ȱ euroȱ whichȱ involvesȱ aȱ totalȱ expenditureȱ ofȱ 1.3ȱ millionȱ
euro.ȱAroundȱ6,200ȱpensionersȱwillȱbenefitȱfromȱthisȱmeasure.ȱȱȱ

Investingȱinȱcareȱforȱtheȱelderlyȱȱ

Insofarȱasȱcareȱforȱtheȱelderlyȱisȱconcerned,ȱweȱareȱinvestingȱmillionsȱ
ofȱ euroȱ toȱ ensureȱ thatȱ ourȱ elderlyȱ haveȱ theȱ bestȱ careȱ possibleȱ fromȱ
specialisedȱprofessionals.ȱȱ

Untilȱ aȱ rehabilitationȱ centreȱ withȱ allȱ theȱ necessaryȱ facilitiesȱ isȱ builtȱ
forȱthoseȱwhoȱareȱrecoveringȱfromȱaȱseriousȱillnessȱorȱtreatment,ȱweȱ
haveȱproceededȱwithȱtheȱmaintenanceȱofȱKarinȱGrechȱHospital.ȱTheȱ
servicesȱ atȱ Zammitȱ Clappȱ Hospitalȱ haveȱ beenȱ transferredȱ toȱ thisȱ

66
hospital,ȱ soȱ thatȱ todayȱ theȱ Karinȱ Grechȱ Rehabilitationȱ Hospitalȱ isȱ
underȱoneȱroof.ȱȱȱ

Duringȱthisȱyear,ȱworkȱonȱtheȱextensionȱofȱtheȱHomeȱforȱtheȱElderlyȱ
atȱ Msidaȱ hasȱ begunȱ soȱ asȱ toȱ accommodateȱ 167ȱ beds,ȱ meaningȱ anȱ
increaseȱofȱ105ȱbeds.ȱȱȱȱȱ

Zammitȱ Clappȱ Hospitalȱ willȱ beȱ developedȱ intoȱ aȱ nursingȱ homeȱ

havingȱoneȱhundredȱbedsȱforȱtheȱelderly,ȱwithȱanȱinvestmentȱofȱ1.8ȱ
millionȱeuro.ȱȱ

Weȱ haveȱ openedȱ theȱ Johnȱ Paulȱ IIȱ Blockȱ atȱ St.ȱ Vincentȱ deȱ Pauleȱ
residence.ȱ Thisȱ Blockȱ isȱ equippedȱ forȱ patientsȱ sufferingȱ fromȱ
dementiaȱ andȱ itsȱ staffȱ isȱ specificallyȱ trainedȱ forȱ thisȱ condition.ȱ
Refurbishmentȱ workȱ willȱ alsoȱ commenceȱ inȱ twoȱ hallsȱ andȱ weȱ areȱ
thusȱtakingȱfurtherȱinitiativesȱforȱtheseȱpatients.ȱȱ

TheȱnightȱshelterȱpilotȱprojectȱinȱZejtunȱhasȱstartedȱaccommodatingȱ
theȱfirstȱelderlyȱpersonsȱduringȱtheȱnight,ȱandȱinȱtheȱcomingȱweeksȱ
weȱshallȱbeȱopeningȱanotherȱnightȱshelterȱinȱMellieÆa.ȱ

Moreover,ȱ duringȱ thisȱ year,ȱ aȱ groupȱ ofȱ multidisciplinaryȱ

professionalsȱhaveȱbeenȱtrainedȱtoȱbeȱableȱtoȱprovideȱsupportȱtoȱtheȱ
elderlyȱtoȱenableȱthem,ȱasȱfarȱasȱpossible,ȱtoȱcontinueȱtoȱliveȱwithinȱ
theȱ community.ȱ Thisȱ pilotȱ projectȱ willȱ startȱ offeringȱ thisȱ serviceȱ inȱ
Msida.ȱȱȱ

Thisȱyear,ȱweȱhaveȱalsoȱopenedȱaȱDayȱCareȱCentreȱinȱMellieÆa,ȱandȱ
thereȱareȱalsoȱplansȱtoȱopenȱmoreȱcentresȱinȱvariousȱotherȱlocalities.ȱ
Soȱfar,ȱweȱhaveȱ17ȱcentresȱspreadȱaroundȱMalta,ȱwhichȱaroundȱ1,400ȱ
elderlyȱpersonsȱattend.ȱȱȱ

67
8.ȱ Environmentȱ
8.1ȱ Projectsȱ

Mr.ȱSpeaker,ȱȱ

Theȱ investmentȱ toȱ achieveȱ aȱ beautifulȱ Maltaȱ andȱ Gozoȱ isȱ anȱ
investmentȱinȱtheȱcountry,ȱinȱourȱfamiliesȱandȱinȱtheȱtouristȱproduct.ȱȱ

Duringȱ theȱ pastȱ yearsȱ weȱ haveȱ investedȱ stronglyȱ inȱ projectsȱ ofȱ
embellishmentȱ andȱ restorationȱ ofȱ ourȱ publicȱ placesȱ andȱ historicalȱ
sites.ȱWeȱshallȱcontinueȱdoingȱthatȱnextȱyear.ȱ

Theȱ projectȱ forȱ aȱ newȱ entranceȱ toȱ Vallettaȱ isȱ gatheringȱ momentumȱ
andȱ theȱ Governmentȱ aimsȱ toȱ completeȱ itȱ byȱ 2013.ȱ Asȱ weȱ alreadyȱ
mentionedȱ inȱ otherȱ occasions,ȱ theȱ fundingȱ forȱ thisȱ projectȱ fallsȱ
outsideȱtheȱGovernment’sȱestimatesȱandȱwillȱbeȱfundedȱbyȱmeansȱofȱ
aȱseparateȱmechanism.ȱTheȱpavementȱworksȱinȱtheȱcentreȱofȱVallettaȱ
areȱalsoȱproceedingȱwellȱandȱareȱexpectedȱtoȱbeȱreadyȱbyȱnextȱyear.ȱ

Weȱwillȱcontinueȱtoȱinvestȱstronglyȱtoȱgiveȱaȱfutureȱtoȱourȱpast.ȱ

Asȱ weȱ hadȱ announced,ȱ weȱ haveȱ takenȱ upȱ anȱ ambitiousȱ projectȱ forȱ
theȱrestorationȱofȱtheȱbastionsȱwithȱanȱinvestmentȱofȱ36ȱmillionȱeuro.ȱ
Weȱ areȱ alreadyȱ seeingȱ theȱ resultsȱ onȱ theȱ bastionsȱ inȱ Valletta,ȱ Birguȱ
andȱ Mdina.ȱ Withȱ thisȱ projectȱ weȱ willȱ ȱ haveȱ restored,ȱ tillȱ 2013,ȱ
approximatelyȱ sixȱ kilometresȱ ofȱ bastions,ȱ andȱ weȱ wouldȱ alsoȱ haveȱ
givenȱbackȱspacesȱtoȱtheȱpublicȱwhichȱitȱpreviouslyȱhadȱnoȱaccessȱto.ȱ

Nextȱ year,ȱ weȱ willȱ startȱ worksȱ ofȱ embellishmentȱ onȱ Numberȱ One,ȱ
DockȱAreaȱinȱBormlaȱandȱtheȱhistoricalȱbuildingsȱsurroundingȱit,ȱonȱ
FortȱSt.ȱElmo,ȱonȱNumberȱOne,ȱDockȱArea,ȱinȱtheȱPixkerija,ȱandȱonȱ
thatȱwhichȱtoȱthisȱdayȱisȱSirȱPaulȱBoffaȱHospital.ȱ

68
Weȱ willȱ continueȱ restoringȱ theȱ facadesȱ ofȱ theȱ Aubergeȱ deȱ Castilleȱ
andȱ theȱ Grandȱ Master’sȱ Palaceȱ inȱ Valletta,ȱ whilstȱ launchingȱ anȱ
ambitiousȱ projectȱ inȱ Collacchioȱ inȱ Birgu.ȱ Weȱ willȱ continueȱ workingȱ
onȱ theȱ Informationȱ Centreȱ onȱ theȱ Bastionsȱ whichȱ isȱ beingȱ builtȱ inȱ
Biagioȱ Stepsȱ inȱ Vallettaȱ andȱ whichȱ shouldȱ beȱ completedȱ atȱ theȱ
beginningȱofȱ2012.ȱȱ

Weȱ shallȱ continueȱ toȱ giveȱ backȱ openȱ spacesȱ toȱ ourȱ families,ȱ asȱ weȱ
didȱwithȱSt.ȱAnne’sȱSquareȱinȱSliema,ȱSt.ȱGeorge’sȱSquareȱinȱValletta,ȱ
andȱtheȱAdventureȱParkȱinȱTa’ȱQali.ȱWeȱalsoȱintendȱtoȱbuildȱaȱWaterȱ
Parkȱ inȱ BuÄibbaȱ andȱ toȱ continueȱ workingȱ onȱ theȱ Nationalȱ Parkȱ inȱ
Xrobbȱ lȬGÆaÄin,ȱ anotherȱ extensionȱ inȱ theȱ Parkȱ inȱ Ta’ȱ Qaliȱ andȱ
continueȱ workingȱ onȱ theȱ Familyȱ Parkȱ inȱ MellieÆaȱ inȱ collaborationȱ
withȱtheȱLocalȱCouncilȱofȱMellieÆa.ȱ

Weȱshallȱcontinueȱworkingȱonȱtheȱembellishmentȱofȱtheȱcommercialȱ
andȱtouristȱzoneȱinȱSliemaȱwhereȱthisȱyearȱweȱshallȱalsoȱfinishȱaȱnewȱ
andȱ biggerȱ gardenȱ inȱ QuiȬsiȬSana.ȱ Thisȱ isȱ linkedȱ withȱ otherȱ
embellishmentȱ worksȱ ofȱ touristȱ zonesȱ inȱ ourȱ countryȱ likeȱ
Marsaxlokk,ȱSt.ȱJulians,ȱandȱotherȱplaces.ȱ

8.2ȱ LocalȱCouncilsȱȱ

Mr.ȱSpeaker,ȱȱ

Anotherȱimportantȱreformȱwhichȱweȱstartedȱtoȱimplementȱlastȱyearȱ
isȱ thatȱ ofȱ theȱ Localȱ Councils.ȱ Afterȱ aȱ wideȱ processȱ ofȱ consultation,ȱ
thisȱ Parliamentȱ agreedȱ unanimouslyȱ withȱ theȱ amendmentsȱ
presentedȱ byȱ theȱ Government.ȱ Theȱ majorityȱ ofȱ theȱ Localȱ Councilsȱ
workedȱhardȱandȱincreasedȱtheirȱworkȱinȱorderȱtoȱprovideȱtheȱbestȱ
serviceȱtoȱtheirȱresidents.ȱ

TheȱincreaseȱinȱtheȱresponsibilitiesȱofȱtheȱLocalȱCouncils,ȱasȱaȱresultȱ
ofȱ theȱ renewalȱ whichȱ theyȱ underwentȱ lastȱ year,ȱ broughtȱ theȱ
necessityȱ ofȱ greaterȱ resourcesȱ includingȱ theȱ financialȱ ones.ȱ Inȱ theȱ
firstȱtwoȱyearsȱofȱthisȱlegislature,ȱtheȱLocalȱCouncilsȱwereȱawardedȱ
69
67.2ȱmillionȱeuroȱamongstȱthem.ȱTheseȱalsoȱincludeȱspecialȱfundsȱtoȱ
implementȱprojectsȱinȱtheȱinterestȱofȱtheirȱresidentsȱandȱtoȱorganiseȱ
particularȱactivitiesȱinȱorderȱtoȱattractȱvisitors.ȱȱ

Apartȱ fromȱ that,ȱ weȱ haveȱ launchedȱ variousȱ specialȱ fundsȱ andȱ
schemes,ȱ whichȱ amountȱ toȱ 6.2ȱ millionȱ euroȱ andȱ whichȱ becauseȱ ofȱ
them,ȱ theȱ Localȱ Councilsȱ wereȱ aidedȱ inȱ implementingȱ importantȱ
projects.ȱ Itȱ isȱ worthȱ notingȱ hereȱ that,ȱ byȱ meansȱ ofȱ theseȱ specialȱ
funds,ȱnearlyȱ550ȱdifferentȱprojectsȱorȱinitiativesȱwereȱimplemented.ȱȱ

Mr.ȱSpeaker,ȱȱ

Currentlyȱ theȱ Localȱ Councilsȱ haveȱ aȱ formȱ ofȱ reliefȱ inȱ orderȱ toȱ doȱ
theirȱ workȱ inȱ theȱ bestȱ possibleȱ way.ȱ Whilstȱ receivingȱ millionsȱ ofȱ
eurosȱ inȱ fundsȱ fromȱ theȱ Centralȱ Government,ȱ weȱ encourageȱ themȱ
andȱhelpȱthemȱtoȱapplyȱforȱEuropeanȱFunds.ȱInȱtheseȱtwoȱyears,ȱ52ȱ
LocalȱCouncilsȱreceivedȱmoreȱthanȱ14ȱmillionȱeuroȱfromȱtheseȱfunds.ȱ

Thisȱ yearȱ asȱ wellȱ weȱ willȱ allocateȱ halfȱ aȱ millionȱ eurosȱ forȱ theȱ coȬ
fundingȱ ofȱ projectsȱ whichȱ areȱ implementedȱ byȱ theȱ Localȱ Councilsȱ
withȱEuropeanȱUnionȱfunds.ȱ

ThisȱGovernmentȱhasȱprovedȱwithȱfactsȱthatȱitȱhasȱfaithȱinȱtheȱLocalȱ
Councils.ȱ Therefore,ȱ duringȱ theȱ comingȱ yearȱ theȱ directȱ financialȱ
allocationȱshallȱincreaseȱtoȱ32ȱmillionȱeuroȱsoȱthatȱtheȱLocalȱCouncilsȱ
willȱbeȱaided:ȱ

x inȱtheȱrestorationȱofȱhistoricalȱsites;ȱ

x inȱ theȱ embellishmentȱ ofȱ urbanȱ centresȱ andȱ worksȱ inȱ ruralȱ
zones;ȱ

x toȱincreaseȱtheȱaccessibilityȱtoȱpublicȱplaces;ȱ

x inȱ theȱ implementationȱ ofȱ theȱ schemeȱ ofȱ projectsȱ inȱ smallȱ
localities;ȱ

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 x toȱinvestȱinȱalternativeȱenergy;ȱ

x toȱofferȱmoreȱcoursesȱofȱlifeȬlongȱlearning;ȱ

x soȱthatȱtheȱlocalȱlibrariesȱbuyȱmoreȱnewȱbooks;ȱȱ

x inȱtheȱorganisationȱofȱculturalȱactivities;ȱandȱ

x toȱorganiseȱmoreȱsportsȱactivities.ȱ

Thisȱ year,ȱ weȱ haveȱ widenedȱ theȱ principleȱ ofȱ subsidiarityȱ whenȱ theȱ
16ȱ communitiesȱ electedȱ theirȱ Administrativeȱ Committees.ȱ Evenȱ
theseȱwillȱbeȱgivenȱtheȱnecessaryȱtoolsȱinȱorderȱtoȱwork.ȱInȱtheȱfirstȱ
fewȱmonthsȱofȱtheirȱwork,ȱapartȱfromȱtheȱdirectȱfinancialȱallocation,ȱ
aȱ schemeȱ ofȱ oneȱ thirdȱ ofȱ aȱ millionȱ eurosȱ wasȱ implementedȱ soȱ thatȱ
theȱCommitteesȱcouldȱbeȱableȱtoȱimplementȱaȱprojectȱofȱtheirȱchoice.ȱȱ

Alsoȱnextȱyear,ȱweȱshallȱlaunchȱaȱseriesȱofȱinitiativesȱwithȱwhichȱweȱ
shallȱ aidȱ theȱ Localȱ Councilsȱ inȱ orderȱ toȱ takeȱ careȱ ofȱ theȱ commonȱ
partsȱ ofȱ theȱ Governmentȱ housing;ȱ andȱ provideȱ childȬmindingȱ
servicesȱ forȱ childrenȱ whoȱ arriveȱ earlyȱ orȱ leaveȱ lateȱ fromȱ theȱ schoolȱ
whichȱtheyȱattend.ȱ

Toȱ continueȱ improvingȱ theȱ environment,ȱ withinȱ theȱ conceptȱ ofȱ theȱ
polluterȬpaysȬprinciple,ȱanȱexciseȱdutyȱofȱ€9ȱisȱbeingȱintroducedȱonȱ
everyȱtonneȱofȱcement.ȱ

8.3ȱ MEPAȱreformȱ

Mr.ȱSpeaker,ȱȱ

Theȱenvironmentȱbelongsȱtoȱeveryone.ȱEverybodyȱmustȱprotectȱit.ȱȱ

Forȱ thisȱ reason,ȱ lastȱ Marchȱ weȱ launchedȱ theȱ Nationalȱ Environmentȱ
Policyȱ whichȱ shouldȱ leadȱ toȱ aȱ newȱ strategyȱ towardsȱ theȱ regulationȱ
andȱ theȱ managementȱ ofȱ theȱ environment.ȱ Theȱ firstȱ stageȱ ofȱ publicȱ
consultationȱ wasȱ closedȱ lastȱ monthȱ byȱ meansȱ ofȱ aȱ nationalȱ
71
workshopȱregardingȱtheȱIssuesȱPaper.ȱInȱtheȱsecondȱstage,ȱthereȱwillȱ
aȱ developmentȱ ofȱ scenariosȱ andȱ options.ȱ Theȱ draftȱ environmentȱ
policyȱwillȱbeȱcompletedȱtowardsȱtheȱendȱofȱnextȱyear.ȱ

MEPAȱ willȱ beȱ protectingȱ everythingȱ thatȱ theȱ environmentȱ

encompasses,ȱ whichȱ includesȱ bothȱ theȱ manȱ madeȱ andȱ theȱ natural.ȱ
MEPAȱwillȱbeȱimplementingȱaȱ4.9ȱmillionȱeuroȱprojectȱinȱtheȱfieldȱofȱ
environmentalȱmonitoringȱwithȱregardsȱtoȱfiveȱelements:ȱwater,ȱair,ȱ
radiation,ȱnoise,ȱandȱsoil.ȱ

WhilstȱtheȱGovernmentȱcontinuedȱitsȱworkȱinȱtheȱimplementationȱofȱ
theȱReformȱofȱtheȱAuthority,ȱthisȱParliamentȱapproved,ȱonȱallȱstages,ȱ
theȱ Environmentȱ andȱ Developmentȱ Planningȱ Act,ȱ whichȱ willȱ takeȱ
effectȱinȱtheȱcomingȱweeks,ȱtogetherȱwithȱaȱnumberȱofȱLegalȱNoticesȱ
whichȱregulateȱdifferentȱaspectsȱofȱplanningȱandȱtheȱenvironment.ȱȱ

Amongstȱotherȱthings,ȱthisȱActȱshall:ȱ

x establishȱ twoȱ fullȬtimeȱ Environmentȱ andȱ Planningȱ

Commissions;ȱ

x establishȱ aȱ fullȬtimeȱ Environmentȱ andȱ Planningȱ Reviewȱ

TribunalȱtoȱdealȱwithȱappealsȱfromȱdecisionsȱbyȱMEPA;ȱ

x introduceȱ aȱ screeningȱ processȱ ofȱ notȱ moreȱ thanȱ fourȱ

weeks.ȱSubsequently,ȱapplicationsȱinȱareasȱofȱdevelopmentȱ
classifiedȱ asȱ simple,ȱ andȱ inȱ conformityȱ withȱ theȱ ȱ policies,ȱ
mustȱ beȱ decidedȱ inȱ 12ȱ weeksȱ timeȱ fromȱ theȱ dateȱ ofȱ
validation;ȱȱ

x leadȱ toȱ aȱ decision,ȱ inȱ 26ȱ weeks’ȱ timeȱ fromȱ theȱ dateȱ ofȱ
validation,ȱ regardingȱ nonȱ simpleȱ applicationsȱ inȱ areasȱ ofȱ
developmentȱandȱtheȱsimpleȱonesȱinȱODZȱareas;ȱȱ

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 x leadȱ toȱ aȱ decision,ȱ inȱ 52ȱ weeks’ȱ time,ȱ regardingȱ
applicationsȱ inȱ nonȬscheduledȱ areasȱ whichȱ involveȱ otherȱ
complexȱprocesses;ȱ

x leadȱtoȱaȱdecisionȱbetweenȱMEPAȱandȱtheȱapplicantȱonȱtheȱ
stipulatedȱtimeȱforȱcomplexȱapplicationsȱofȱlargeȱprojects;ȱ

x leadȱ toȱ electronicȱ communicationȱ betweenȱ theȱ Authorityȱ

andȱtheȱarchitect;ȱandȱȱ

x establishȱ aȱ Directorateȱ forȱ Enforcementȱ whichȱ willȱ focusȱ

solelyȱonȱenforcement.ȱȱ

Alsoȱ duringȱ thisȱ year,ȱ weȱ haveȱ completedȱ theȱ firstȱ draftȱ ofȱ theȱ
NationalȱBiodiversityȱStrategyȱandȱActionȱPlan.ȱLastȱFebruary,ȱnewȱ
sitesȱofȱNaturaȱ2000ȱwereȱdeclaredȱandȱthusȱourȱcountryȱhasȱaroundȱ
13ȱ perȱ centȱ ofȱ theȱ territoryȱ onȱ landȱ coveredȱ byȱ thisȱ network,ȱ andȱ
anotherȱfourȱ4ȱperȱcentȱisȱprotectedȱthroughȱotherȱinstruments.ȱFourȱ
newȱmarineȱprotectedȱareasȱwereȱalsoȱapprovedȱinȱtheȱMalteseȱseas,ȱ
whichȱ willȱ beȱ proposedȱ toȱ theȱ Europeanȱ Unionȱ asȱ partȱ ofȱ theȱ
networkȱofȱNaturaȱ2000.ȱȱ

8.4ȱ Makingȱtheȱbestȱuseȱofȱpublicȱlandȱȱ

Mr.ȱSpeaker,ȱȱ

Weȱhaveȱcontinuedȱtheȱreformȱinȱtheȱinformationȱtechnologyȱsystemȱ
ofȱ theȱ Governmentȱ Propertyȱ Division.ȱ Thisȱ reform,ȱ whichȱ willȱ costȱ
theȱ Governmentȱ twoȱ millionȱ euro,ȱ willȱ leadȱ toȱ aȱ radicalȱ
improvementȱinȱtheȱmanagementȱofȱGovernmentȱproperty,ȱaȱgreaterȱ
efficiency,ȱ accountability,ȱ andȱ aȱ betterȱ serviceȱ forȱ theȱ public.ȱ Theȱ
firstȱ stageȱ wasȱ aȱ detailedȱ analysisȱ ofȱ theȱ systemsȱ andȱ allȱ theȱ
processesȱinȱorderȱforȱmoreȱthanȱ160,000ȱfilesȱtoȱbeȱadministeredȱandȱ
isȱ expectedȱ toȱ beȱ completedȱ towardsȱ theȱ endȱ ofȱ thisȱ year.ȱ Inȱ theȱ
secondȱ stage,ȱ informationȱ technologyȱ systemsȱ willȱ beȱ designedȱ toȱ
achieveȱgreaterȱefficiency.ȱ
73
Lastȱ year,ȱ weȱ paidȱ 10ȱ millionȱ euroȱ inȱ arrearsȱ forȱ paymentsȱ forȱ
expropriations.ȱ Thereȱ wasȱ alsoȱ aȱ paymentȱ ofȱ 900,000ȱ euroȱ toȱ theȱ
originalȱownersȱofȱtheȱlandȱwhichȱtheȱGovernmentȱhadȱexpropriatedȱ
inȱ1982ȱandȱ1983ȱinȱtheȱHomeȱOwnershipȱSchemes.ȱTheseȱresidentsȱ
wereȱstillȱonȱaȱpromiseȱofȱsale.ȱNow,ȱ211ȱfamiliesȱhaveȱbecomeȱtheȱ
trueȱownersȱofȱtheirȱownȱhomes.ȱ

Alsoȱ forȱ nextȱ year,ȱ theȱ Governmentȱ isȱ allocatingȱ threeȱmillionȱeuroȱ

forȱ theȱ paymentȱ ofȱ expropriationsȱ ofȱ landȱ ofȱ theȱ Homeȱ Ownershipȱ
Schemes.ȱ Thisȱ isȱ aȱ veryȱ costlyȱ processȱ andȱ hasȱ significantȱ legalȱ
complications.ȱ However,ȱ determinedȱ toȱ continueȱ addressingȱ theȱ
injusticesȱ ofȱ theȱ past,ȱ weȱ areȱ allocatingȱ sixȱ millionȱ toȱ payȱ otherȱ
expropriations.ȱ

8.5ȱ Wasteȱmanagementȱ

Weȱshallȱcontinueȱtoȱinvestȱinȱwasteȱmanagementȱwhereȱinȱtheȱpastȱ
yearsȱweȱhaveȱgivenȱriseȱtoȱaȱsilentȱrevolution.ȱȱ

Duringȱthisȱyear,ȱweȱhaveȱmadeȱtheȱfirstȱrevisionȱofȱtheȱstrategyȱofȱ
wasteȱ management.ȱ Thisȱ meansȱ thatȱ weȱ shallȱ continueȱ toȱ investȱ inȱ
moreȱplantsȱinȱourȱcountryȱsoȱthatȱweȱwillȱtransformȱwasteȱintoȱanȱ
importantȱ resourceȱ andȱ generateȱ cleanȱ energy.ȱ Weȱ shallȱ continueȱ
withȱ theȱ ambitiousȱ projectȱ toȱ changeȱ theȱ landfillsȱ ofȱ MagÆtabȱ andȱ
QortinȱinȱGozoȱintoȱrecreationalȱparksȱforȱourȱfamiliesȱbyȱmeansȱofȱ
anȱinvestmentȱofȱ28ȱmillionȱeuro.ȱ

Weȱ shallȱ analyseȱ howȱ weȱ canȱ provideȱ furtherȱ incentivesȱ forȱ theȱ
collectionȱofȱrecycledȱwasteȱfromȱourȱhomes.ȱWeȱshallȱevaluateȱtheȱ
possibilityȱ thatȱ theȱ bagsȱ forȱ mixedȱ wasteȱ willȱ beȱ customisedȱ bags.ȱ
Allȱthisȱisȱdoneȱwithȱtheȱaimȱthatȱourȱfamiliesȱtackleȱmoreȱrecyclableȱ
waste,ȱandȱthusȱleadingȱtoȱaȱdecreaseȱinȱtheȱamountȱofȱmixedȱwasteȱ
whilstȱprovidingȱaȱgreaterȱincentiveȱforȱtheȱseparationȱofȱwaste.ȱ

74
8.6ȱ Agricultureȱ

Neverȱlikeȱtodayȱhasȱtheȱagriculturalȱsectorȱfacedȱchangesȱwhichȱareȱ
leadingȱ usȱ toȱ addressȱ theȱ challengesȱ andȱ transformȱ themȱ intoȱ
opportunities.ȱ Weȱ haveȱ madeȱ theȱ firstȱ stepsȱ ofȱ theȱ reformȱ ofȱ theȱ
Pitkalija.ȱWeȱshallȱestablishȱanȱagencyȱwithȱtheȱaimȱofȱimplementingȱ
thisȱ reformȱ afterȱ aȱ processȱ ofȱ discussionȱ whichȱ weȱ hadȱ withȱ theȱ
farmersȱandȱtheȱpersonsȱinvolvedȱinȱthisȱsector.ȱȱ

Sinceȱthisȱyearȱweȱhaveȱgivenȱtheȱopportunityȱtoȱtheȱfarmersȱtoȱsellȱ
theirȱ productsȱ toȱ theȱ consumersȱ inȱ anȱ organisedȱ market.ȱ Thereforeȱ
weȱ haveȱ notȱ merelyȱ givenȱ anotherȱ choiceȱ toȱ theȱ farmers,ȱ butȱ weȱ
haveȱalsoȱgivenȱanotherȱchoiceȱtoȱtheȱconsumerȱasȱtoȱwhereȱheȱcanȱ
buyȱ theȱ freshȱ productȱ andȱ aȱ relativelyȱ cheaperȱ oneȱ fromȱ normalȱ
sources.ȱ Duringȱ nextȱ yearȱ weȱ shallȱ organiseȱ threeȱ otherȱ marketsȱ ofȱ
farmersȱinȱdifferentȱareasȱofȱMaltaȱandȱGozo.ȱ

Theȱ agriculturalȱ sectorȱ isȱ undergoingȱ anotherȱ change.ȱ Aȱ transitionȱ

fromȱ dependenceȱ onȱ subsidiesȱ toȱ sustainability.ȱ Inȱ theȱ pastȱ fewȱ
years,ȱ theȱ Governmentȱ financedȱ someȱ 100ȱ millionȱ euroȱ inȱ aidȱ forȱ
investmentsȱinȱthisȱsectorȱinȱorderȱforȱthisȱtoȱbeȱsustainable.ȱJustȱthisȱ
year,ȱthisȱsectorȱhasȱinvestedȱaroundȱ40ȱmillionȱeuroȱinȱinvestmentsȱ
inȱagriculturalȱagencies.ȱ

AsȱsupportȱtoȱtheȱfullȬtimeȱfarmersȱandȱbreeders,ȱweȱshallȱdecreaseȱ
theȱtheirȱsocialȱsecurityȱcontributionsȱtoȱ12ȱperȱcent.ȱThereforeȱeachȱ
farmerȱandȱbreederȱshallȱpayȱanȱaverageȱofȱaroundȱ520ȱeuroȱaȱyearȱ
lessȱinȱsocialȱsecurityȱcontributions.ȱ

Theȱ pricesȱ forȱ wheatȱ andȱ cerealsȱ inȱ internationalȱ marketsȱ areȱ
increasingȱ rapidly.ȱ Inȱ orderȱ toȱ softenȱ theȱ impactȱ ofȱ thisȱ onȱ ourȱ
breeders,ȱtheȱGovernmentȱhasȱallocatedȱaȱfundȱofȱ400,000ȱeuro.ȱȱ

75
8.7ȱ Theȱprotectionȱofȱanimalsȱ

MrȱSpeaker,ȱȱ

Someȱ sayȱ thatȱ man’sȱ greatestȱ friendsȱ areȱ theȱ animals.ȱ Theȱ
Governmentȱ isȱ workingȱ towardsȱ continuingȱ toȱ giveȱ thisȱ sectorȱ theȱ
importanceȱ itȱ deserves.ȱ ȱ Inȱ theȱ pastȱ twoȱ yearsȱ weȱ hadȱ madeȱ hugeȱ
stepsȱaheadȱinȱthisȱsector.ȱThisȱyearȱweȱhaveȱopenedȱtheȱSt.ȱFrancisȱ
Centreȱ Ȭȱ aȱ centreȱ whichȱ welcomesȱ animals,ȱ primarilyȱ thoseȱ
abandoned,ȱ treatsȱ themȱ andȱ alsoȱ offersȱ aȱ convalescenceȱ service.ȱ
Duringȱtheȱcomingȱyear,ȱweȱshallȱcontinueȱtoȱbuildȱonȱtheȱsuccessesȱ
whichȱweȱhaveȱachieved,ȱandȱshallȱstrengthenȱtheȱservicesȱwhichȱareȱ
beingȱofferedȱtoȱanimals.ȱ

76
9.ȱ Conclusionȱ
Mr.ȱSpeaker,ȱ

Thisȱisȱaȱbudgetȱinȱfavourȱofȱwork.ȱThisȱisȱwhatȱourȱfamiliesȱexpect.ȱ

Malteseȱfamiliesȱwantȱjobs.ȱToȱwork.ȱToȱsucceed.ȱ

Inȱthisȱlastȱcoupleȱofȱyearsȱweȱhaveȱsharedȱtheȱanxietiesȱofȱworkersȱ
whoseȱ employmentȱ wasȱ inȱ jeopardy,ȱ theȱ painsȱ ofȱ thoseȱ familiesȱ
whoseȱ membersȱ lostȱ theirȱ employment,ȱ andȱ theȱ worriesȱ ofȱ
employersȱ inȱ theirȱ strugglesȱ notȱ toȱ reduceȱ theȱ numberȱ ofȱ theirȱ
employees.ȱȱȱ

Mr.ȱSpeaker,ȱ

Weȱareȱnotȱworriedȱaboutȱstatisticsȱbutȱaboutȱtheȱlivelihoodȱofȱeachȱ
family.ȱȱȱȱ

Togetherȱweȱhaveȱmadeȱhugeȱsacrificesȱbecauseȱweȱrecognizedȱthatȱ
workȱisȱaȱpriority.ȱ

Butȱ weȱ didȱ notȱ loseȱ twoȱ years.ȱ Theȱ sacrificesȱ madeȱ byȱ theȱ Malteseȱ
people,ȱ theȱ hardȱ workȱ andȱ Government’sȱ carefulȱ management,ȱ areȱ
nowȱ bearingȱ fruit.ȱ Weȱ savedȱ jobs.ȱ Weȱ createdȱ newȱ jobs.ȱ Weȱ
supportedȱhealthcare,ȱpensionsȱandȱsocialȱbenefits.ȱWeȱstrengthenedȱ
investmentȱinȱeducation.ȱȱ

Thisȱ isȱ aȱ budgetȱ favouringȱ work.ȱ Butȱ itȱ isȱ alsoȱ aȱ budgetȱ
strengtheningȱ whatȱ formsȱ theȱ Malteseȱ societyȱ inȱ theȱ sectorsȱ ofȱ
education,ȱ healthcare,ȱ socialȱ servicesȱ andȱ benefitsȱ andȱ theȱ
environment.ȱThroughȱworkȱweȱcanȱkeepȱonȱinvestingȱinȱaȱhealthyȱ
societyȱforȱourȱchildren,ȱyouths,ȱfamilies,ȱelderlyȱandȱeachȱandȱeveryȱ
oneȱofȱus.ȱ

77
WeȱareȱagainȱatȱcrossȬroads.ȱWeȱhaveȱchoicesȱinȱfrontȱofȱus.ȱȱȱ

Weȱdoȱnotȱagreeȱwithȱthoseȱwhoȱwantȱtoȱleadȱusȱdownȱtheȱroadȱofȱ
recklessȱ spending.ȱ Weȱ doȱ notȱ believeȱ inȱ diminishingȱ essentialȱ
services.ȱNorȱdoȱweȱagreeȱwithȱthoseȱwhoȱwantȱtoȱburyȱtheirȱheadsȱ
inȱtheȱsandȱandȱpretendȱthatȱthereȱisȱnoȱstormyȱweatherȱaroundȱus.ȱ

Weȱ believeȱ weȱ shouldȱ keepȱ onȱ movingȱ towardsȱ theȱ targetȱ ofȱ aȱ
balancedȱ budget.ȱ Evenȱ ifȱ dueȱ toȱ theȱ crisesȱ whichȱ haveȱ hitȱ theȱ
economiesȱaroundȱusȱthisȱmayȱtakeȱsomeȱmoreȱtime.ȱ

Governmentȱ isȱ invitingȱ theȱ Malteseȱ peopleȱ toȱ makeȱ thisȱ choiceȱ itsȱ
own.ȱ Everyoneȱ hasȱ anȱ importantȱ roleȱ inȱ realisingȱ theirȱ ȱ wishesȱ forȱ
themselves,ȱforȱtheirȱchildrenȱandȱforȱtheirfamily.ȱ

Weȱareȱchosingȱtoȱworkȱmoreȱandȱgenerateȱmoreȱwealth,ȱinsteadȱofȱ
decreasingȱtheȱqualityȱofȱtheȱlifeȱweȱareȱleadingȱtoday.ȱ

Weȱ areȱ chosingȱ toȱ furtherȱ controlȱ publicȱ expenditureȱ ratherȱ thanȱ
increaseȱtaxes.ȱ

Weȱ areȱ chosingȱ toȱ keepȱ onȱ doingȱ everythingȱ possibleȱ soȱ thatȱ ourȱ
childrenȱwillȱbeȱinȱaȱbetterȱpositionȱthanȱus.ȱ

TonightȱweȱareȱbuildingȱonȱtheȱwiseȱdecisionsȱofȱtheȱMalteseȱpeople:ȱ
theȱ choiceȱ inȱ favourȱ ofȱ Independence,ȱ theȱ choiceȱ inȱ favourȱ ofȱ
democracy,ȱ theȱ choiceȱ inȱ favourȱ ofȱ theȱ Europeanȱ Union,ȱ andȱ theȱ
choiceȱinȱfavourȱofȱtheȱeuro.ȱȱȱ

Weȱareȱbuildingȱonȱtheȱsolidȱfoundationsȱofȱtheseȱchoicesȱinȱorderȱtoȱ
ensureȱ thatȱ everyoneȱ inȱ ourȱ countryȱ leadsȱ theȱ lifeȱ he/sheȱ deserves,ȱ
hasȱ satisfyingȱ jobȱ opportunitiesȱ whichȱ giveȱ himȱ orȱ herȱ aȱ decentȱ
living,ȱandȱaȱhealthyȱcommunityȱwhereȱoneȱcanȱraiseȱaȱfamily,ȱandȱ
anȱenvironmentȱwhichȱattractsȱandȱfostersȱinvestment.ȱȱ

78
Weȱ areȱ proposingȱ aȱ responsibleȱ andȱ prudentȱ budgetȱ withȱ clearȱ
proritiesȱ andȱ whichȱ wasȱ draftedȱ followingȱ hoursȱ ofȱ dialogueȱ andȱ
consultation.ȱ

Mr.ȱSpeaker,ȱ

ThisȱbudgetȱhasȱmadeȱtheȱclearȱchoiceȱofȱmovingȱonȱtowardsȱVisionȱ
2015ȱ andȱ beyond.ȱ Inȱ theȱ sectorsȱ ofȱ informationȱ technology,ȱ
communicationȱ andȱ creativity,ȱ inȱ education,ȱ healthcare,ȱ financialȱ
services,ȱ tourism,ȱ addedȱ valueȱ manufacturing,ȱ andȱ inȱ theȱ
developmentȱofȱGozoȱasȱanȱecologicalȱisland.ȱȱThisȱisȱtheȱVisionȱofȱaȱ
country.ȱ Itȱ isȱ aȱ Visionȱ forȱ theȱ successȱ ofȱ Malteseȱ families.ȱ ȱ Ourȱ
country’sȱsuccessȱdependsȱonȱtheȱsuccessȱofȱMalteseȱfamilies.ȱȱ

Whatȱ weȱ haveȱ managedȱ toȱ accomplishȱ togetherȱ inȱ theȱ pastȱ twoȱ
yearsȱ ofȱ turmoilȱ givesȱ usȱ courageȱ andȱ determinationȱ forȱ nextȱ year.ȱ
Thisȱ isȱ aȱ crucialȱ yearȱ forȱ ourȱ country.ȱ Itȱ isȱ aȱ yearȱ inȱ which,ȱ ifȱ
everyoneȱplaysȱhisȱpart,ȱweȱcanȱkeepȱonȱstrengtheningȱourselves.ȱ

Theȱ moreȱ weȱ workȱ togetherȱ andȱ towȱ theȱ sameȱ line,ȱ theȱ moreȱ ourȱ
countryȱwillȱsucceed.ȱ

Togetherȱweȱcanȱturnȱchallengesȱintoȱnewȱworkȱopportunities.ȱAndȱ
weȱcanȱemergeȱfromȱtheȱcurrentȱturmoilȱasȱaȱstrongerȱcountryȱandȱaȱ
moreȱcohesiveȱsociety.ȱ

79
Governmentȱisȱmakingȱclearȱchoices.ȱ

Butȱourȱcountry’sȱsuccessȱdependsȱonȱeachȱandȱeveryȱoneȱofȱus:ȱ

x CentralȱGovernmentȱandȱlocalȱgovernment;ȱ

x Socialȱpartners;ȱ

x Civilȱsociety;ȱandȱ

x Usȱall,ȱtheȱresidentsȱofȱMaltaȱandȱGozo.ȱ

Theȱ Malteseȱ peopleȱ alsoȱ lookȱ atȱ howȱ weȱ inȱ thisȱ Houseȱ willȱ workȱ
togetherȱ inȱ theseȱ specialȱ momentsȱ forȱ ourȱ country.ȱ Howȱ weȱ willȱ
protectȱjobs,ȱhowȱ weȱwillȱworkȱtoȱcreateȱmoreȱjobsȱandȱbetterȱjobs.ȱ
Howȱweȱwillȱinvestȱwealthȱinȱaȱstrongerȱsociety.ȱ

Mr.ȱSpeaker,ȱȱ

Thisȱ isȱ aȱ budgetȱ builtȱ onȱ theȱ convictionȱ thatȱ throughȱ workȱ weȱ canȱ
keepȱonȱbuildingȱaȱstrongȱsocietyȱforȱusȱandȱforȱourȱchildren.ȱ

80
AppendixȱAȱȱ Proposalȱ forȱ theȱ reformȱ ofȱ theȱ systemȱ ofȱ taxȱ toȱ
beȱ paidȱ onȱ theȱ registrationȱ ofȱ commercialȱ
vehiclesȱȱ
CategoryȱA:ȱN1,ȱN2ȱandȱN3ȱvehicles,ȱspecialȱpurposeȱvehiclesȱandȱ
tractorȱunitsȱ
N1ȱvehicles,ȱspecialȱpurposeȱvehiclesȱandȱtractorȱunitsȱ
ȱ
LatestȱEuroȱStandardȱ ȱ
ȱ
vehiclesȱwithȱaȱmaximumȱauthorisedȱmassȱofȱ Kgȱxȱ0.40ȱ+ȱccȱxȱ0.45ȱxȱ€1ȱ
upȱtoȱ1,305ȱkgȱ
vehiclesȱ withȱ aȱ maximumȱ authorisedȱ massȱ ȱ
exceedingȱ1,305ȱkgȱupȱtoȱ1,706ȱkgȱ Kgȱxȱ0.45ȱ+ȱccȱxȱ0.50ȱxȱ€1ȱ
vehiclesȱ withȱ aȱ maximumȱ authorisedȱ massȱ ȱ
exceedingȱ1,706ȱkgȱupȱtoȱ3,500ȱkgȱ Kgȱxȱ0.50ȱ+ȱccȱxȱ0.55ȱxȱ€1ȱ
LatestȱEuroȱStandardȱȬ1ȱȱ
ȱ
vehiclesȱwithȱaȱmaximumȱauthorisedȱmassȱofȱ Kgȱxȱ1.00ȱ+ȱccȱxȱ1.10ȱxȱ€1ȱ
upȱtoȱ1,305ȱkgȱ
vehiclesȱ withȱ aȱ maximumȱ authorisedȱ massȱ ȱ
exceedingȱ1,305ȱkgȱupȱtoȱ1,706ȱkgȱ Kgȱxȱ1.10ȱ+ȱccȱxȱ1.20ȱxȱ€1ȱ
vehiclesȱ withȱ aȱ maximumȱ authorisedȱ massȱ ȱ
exceedingȱ1,706ȱkgȱupȱtoȱ3,500ȱkgȱ Kgȱxȱ1.20ȱ+ȱccȱxȱ1.30ȱxȱ€1ȱ
LatestȱEuroȱStandardȱȬ2ȱ
ȱ
vehiclesȱwithȱaȱmaximumȱauthorisedȱmassȱofȱ Kgȱxȱ6.00ȱ+ȱccȱxȱ6.00ȱxȱ€1ȱ
upȱtoȱ1,305ȱkgȱ
vehiclesȱ withȱ aȱ maximumȱ authorisedȱ massȱ ȱ
exceedingȱ1,305ȱkgȱupȱtoȱ1,706ȱkgȱ Kgȱxȱ7.00ȱ+ȱccȱxȱ7.00ȱxȱ€1ȱ
vehiclesȱ withȱ aȱ maximumȱ authorisedȱ massȱ ȱ
exceedingȱ1,706ȱkgȱupȱtoȱ3,500ȱkgȱ Kgȱxȱ8.00ȱ+ȱccȱxȱ8.00ȱxȱ€1ȱ

81
LatestȱEuroȱStandardȱȬ3ȱandȱolderȱ
ȱ
vehiclesȱwithȱaȱmaximumȱauthorisedȱmassȱofȱ Kgȱxȱ25.00ȱ+ȱccȱxȱ25.00ȱxȱ€1ȱ
upȱtoȱ1,305ȱkgȱ
vehiclesȱ withȱ aȱ maximumȱ authorisedȱ massȱ ȱ
exceedingȱ1,305ȱkgȱupȱtoȱ1,706ȱkgȱ Kgȱxȱ27.00ȱ+ȱccȱxȱ27.00ȱxȱ€1ȱ
Vehiclesȱ withȱ aȱ maximumȱ authorisedȱ massȱ ȱ
exceedingȱ1,706ȱkgȱupȱtoȱ3,500ȱkgȱ Kgȱxȱ30.00ȱ+ȱccȱxȱ30.00ȱxȱ€1ȱ
ȱ
N2ȱvehicles,ȱspecialȱpurposeȱvehiclesȱandȱtractorȱunitsȱȱ
ȱ
LatestȱEuroȱStandardȱandȱLatestȱEuroȱStandardȱȬ1ȱ
ȱ
vehiclesȱ withȱ aȱ maximumȱ authorisedȱ massȱ 0ȱ
exceedingȱ3,500ȱkgȱupȱtoȱ12,000ȱkgȱ
LatestȱEuroȱStandardȱȬ2ȱ ȱ
ȱ
vehiclesȱ withȱ aȱ maximumȱ authorisedȱ massȱ Kgȱxȱ5.00ȱ+ȱccȱxȱ7.00ȱxȱ€1ȱȱ
exceedingȱ3,500ȱkgȱupȱtoȱ12,000ȱkgȱ
LatestȱEuroȱStandardȱȬ3ȱandȱolderȱ
ȱ
vehiclesȱ withȱ aȱ maximumȱ authorisedȱ massȱ Kgȱxȱ12.00ȱ+ȱccȱxȱ15.00ȱxȱ€1ȱ
exceedingȱ3,500ȱkgȱupȱtoȱ12,000ȱkgȱȱ
ȱ

82
N3ȱvehicles,ȱspecialȱpurposeȱvehiclesȱandȱtractorȱunitsȱ
ȱ
LatestȱEuroȱStandardȱandȱLatestȱEuroȱStandardȱȬ1ȱ
ȱ
vehiclesȱ withȱ aȱ maximumȱ authorisedȱ massȱ 0ȱ
exceedingȱ12,000ȱkgȱȱ
LatestȱEuroȱStandardȱȬ2ȱ
ȱ
vehiclesȱ withȱ aȱ maximumȱ authorisedȱ massȱ ȱ
exceedingȱ12,000ȱkgȱupȱtoȱ25,000ȱkgȱ Kgȱxȱ2.10ȱ+ȱccȱxȱ2.50ȱxȱ€1ȱ
vehiclesȱ withȱ aȱ maximumȱ authorisedȱ massȱ Kgȱxȱ2.70+ȱccȱxȱ3.50ȱxȱ€1ȱ
exceedingȱ25,000ȱkgȱ
LatestȱEuroȱStandardȱȬ3ȱandȱolderȱȱ ȱ
ȱ
vehiclesȱ withȱ aȱ maximumȱ authorisedȱ massȱ ȱ
exceedingȱ12,000ȱkgȱupȱtoȱ25,000ȱkgȱ Kgȱxȱ9.00.+ȱccȱxȱ12.00ȱxȱ€1ȱ
vehiclesȱ withȱ aȱ maximumȱ authorisedȱ massȱ Kgȱxȱ10.00ȱ+ȱccȱxȱ13.00ȱxȱ€1ȱ
exceedingȱ25,000ȱkgȱ
ȱ

83
Taxȱrateȱformula:ȱ
ȱ
Followingȱ theȱ applicationȱ ofȱ theȱ relevantȱ tablesȱ underȱ theȱ headingȱ
“Theȱ amountȱ ofȱ registrationȱ taxȱ toȱ beȱ paidȱ onȱ motorȱ vehiclesȱ usedȱ
forȱtheȱtransportȱofȱgoodsȱ(N1,ȱN2ȱandȱN3),ȱspecialȱpurposeȱvehiclesȱ
andȱ tractorȱ units”,ȱ theȱ totalȱ amountȱ ofȱ theȱ registrationȱ taxȱ shallȱ beȱ
equalȱ toȱ theȱ sumȱ totalȱ ofȱ theȱ maximumȱ authorisedȱ massȱ (kg)ȱ ofȱ aȱ
motorȱ vehicleȱ multipliedȱ byȱ theȱ factorȱ indicatedȱ plusȱ theȱ cubicȱ
capacityȱ(cc)ȱofȱtheȱengineȱofȱaȱmotorȱvehicleȱmultipliedȱbyȱtheȱfactorȱ
indicatedȱ multipliedȱ byȱ €1,ȱ multipliedȱ byȱ ȱtheȱ differenceȱ betweenȱ
100ȱ percentȱ ȱandȱ theȱ aggregateȱ percentageȱ consistingȱ ofȱ theȱ
percentageȱofȱtheȱtotalȱannualȱdepreciationȱasȱspecifiedȱinȱtheȱtableȱ
hereunderȱ plusȱ 0.5%ȱ forȱ eachȱ 10,000ȱ kmsȱ showingȱ onȱ aȱ vehicle’sȱ
odometer:ȱ
ȱ
{[(kgȱxȱY)ȱ+ȱ(ccȱxȱY)]ȱxȱ€1}ȱxȱ{100%ȱȬȱ[Y%ȱofȱtotalȱannualȱdepreciationȱ
+ȱ0.5%ȱforȱeachȱ10,000ȱkms]}ȱ
ȱ
Providedȱthatȱtheȱmaximumȱdepreciatedȱvalueȱofȱaȱmotorȱvehicleȱinȱ
thisȱ categoryȱ cannotȱ exceedȱ 95%,ȱ andȱ onceȱ thisȱ valueȱ isȱ reachedȱ
thereȱshallȱbeȱnoȱfurtherȱreductions.ȱ
ȱ

84
 Depreciationȱaccordingȱtoȱageȱofȱvehicleȱ
ȱ
Yearȱ AnnualȱDepreciationȱ TotalȱDepreciationȱ
0ȱ 12%ȱ 12%ȱ
1ȱ 14%ȱ 26%ȱ
2ȱ 19%ȱ 45%ȱ
3ȱ 5%ȱ 50%ȱ
4ȱonwardsȱ 5%ȱ 55%ȱ
5ȱ 5%ȱ 60%ȱ
6ȱ 5%ȱ 65%ȱ
7ȱ 5%ȱ 70%ȱ
8ȱ 5%ȱ 75%ȱ
9ȱ 5%ȱ 80%ȱ
10ȱ 5%ȱ 85%ȱ
11ȱ 5%ȱ 90%ȱ
12ȱ 5%ȱ 95%ȱ
13ȱonwardȱ N/Aȱ 95%ȱ
ȱ
Forȱ theȱ purposeȱ ofȱ registrationȱ tax,ȱ whereȱ aȱ vehicleȱ usedȱ forȱ theȱ
transportȱofȱgoodsȱ(N1,ȱN2ȱandȱN3),ȱorȱaȱspecialȱpurposeȱvehicleȱorȱ
aȱ tractorȱ unit,ȱ whoseȱ yearȱ ofȱ manufactureȱ fallsȱ underȱ anyȱ ofȱ theȱ
followingȱyearsȱofȱmanufacture,ȱisȱnotȱaccompaniedȱbyȱaȱcertificateȱ
showingȱ theȱ emissionȱ levelsȱ equivalentȱ toȱ Euroȱ standards,ȱ theȱ
registrationȱtaxȱratesȱtoȱbeȱpaidȱthereonȱshallȱbeȱequivalentȱtoȱthoseȱ
underȱtheȱdifferentȱEuroȱstandards:ȱ
ȱ
ȱ Upȱtoȱandȱincludingȱ Euroȱ3ȱ/ȱIIIȱ Euroȱ4ȱ/ȱIVȱ Euroȱ5ȱ/ȱVȱandȱ
Euroȱ2ȱ/ȱIIȱ overȱ
N1ȱ Upȱtoȱandȱincludingȱ 2001ȱtoȱ2005ȱ 2006ȱtoȱ2010 fromȱ2011ȱ
yearȱ2000ȱ
N2ȱ Upȱtoȱandȱincludingȱ 2001ȱtoȱ2005ȱȱ 2006ȱtoȱ2008 fromȱ2009ȱ
yearȱ2000ȱ
N3ȱ Upȱtoȱandȱincludingȱ 2001ȱtoȱ2005ȱ 2006ȱtoȱ2008 fromȱ2009ȱ
yearȱ2000ȱ
ȱ
ȱ
85
Whereȱanȱimporterȱorȱdealerȱorȱownerȱofȱaȱmotorȱvehicleȱprovidesȱaȱ
certificateȱasȱapprovedȱbyȱanȱaccreditedȱtechnicalȱserviceȱestablishedȱ
withinȱ aȱ Memberȱ State,ȱ thatȱ theȱ engineȱ ofȱ thatȱ particularȱ vehicleȱ
meetsȱ lowerȱ emissionsȱ despiteȱ theȱ vehicle’sȱ yearȱ ofȱ manufacture,ȱ
thatȱ vehicleȱ shallȱ onȱ registrationȱ beȱ taxedȱ theȱ rateȱ pertainingȱ toȱ itsȱ
equivalentȱeuroȱstandard.ȱȱ
ȱ
“CategoryȱF:ȱM2ȱandȱM3ȱmotorȱvehiclesȱwhetherȱnewȱorȱused”ȱ
ȱ
2.ȱM2ȱandȱM3ȱmotorȱvehicles,ȱincludingȱtracklessȱtrainsȱandȱ
amphibiousȱmotorȱvehiclesȱ
ȱ
LatestȱEuroȱ
Standardȱandȱ
LatestȱEuroȱStandardȱȬ3ȱ LatestȱEuroȱStandardȱȱ LatestȱEuroȱ
ȱȱ andȱolderȱ Ȭ2ȱ StandardȱȬ1ȱ
Kgȱxȱ12.00ȱ+ȱccȱxȱ15.00ȱxȱ Kgȱxȱ1.50ȱ+ȱccȱxȱ2.40ȱxȱ
M2ȱ €1ȱ €1ȱȱ 0ȱ
Kgȱxȱ10.00ȱ+ȱccȱxȱ12.00ȱxȱ Kgȱxȱ2.20ȱ+ȱccȱxȱ2.60ȱxȱ
M3ȱ €1ȱ €1ȱȱ 0ȱ
ȱ
Inȱrespectȱofȱtheȱtotalȱamountsȱofȱregistrationȱtaxȱreachedȱusingȱanyȱ
ofȱ theȱ aboveȱ formulas,ȱ thereȱ shallȱ beȱ deductedȱ theȱ aggregateȱ
percentageȱ consistingȱ ofȱ theȱ percentageȱ ofȱ theȱ totalȱ annualȱ
depreciationȱasȱspecifiedȱinȱtheȱtableȱtitledȱ“Depreciationȱaccordingȱ
toȱ ageȱ ofȱ vehicle”ȱ inȱ Categoryȱ Aȱ ofȱ theȱ Firstȱ Scheduleȱ hereof,ȱ plusȱ
0.5%ȱforȱeachȱ10,000ȱkmsȱshowingȱonȱaȱvehicle’sȱodometer.ȱ
ȱ
Forȱ theȱ purposeȱ ofȱ registrationȱ tax,ȱ whereȱ anȱ M2ȱ orȱ M3ȱ vehicle,ȱ
whoseȱyearȱofȱmanufactureȱfallsȱunderȱanyȱofȱtheȱfollowingȱyearsȱofȱ
manufacture,ȱ isȱ notȱ accompaniedȱ byȱ aȱ certificateȱ showingȱ theȱ
emissionȱ levelsȱ equivalentȱ toȱ Euroȱ standards,ȱ theȱ registrationȱ taxȱ
ratesȱ toȱ beȱ paidȱ thereonȱ shallȱ beȱ equivalentȱ toȱ thoseȱ underȱ theȱ
differentȱEuroȱstandards:ȱ
ȱ
86
 ȱ Upȱtoȱandȱ EuroȱIIIȱ EuroȱIVȱandȱ
includingȱEuroȱIIȱ overȱ
M2ȱ Upȱtoȱandȱ 2001ȱtoȱ2005ȱ 2006ȱonwardsȱ
includingȱyearȱ2000ȱ
M3ȱ Upȱtoȱandȱ 2001ȱtoȱ2005ȱ 2006ȱonwardsȱ
includingȱyearȱ2000ȱ
ȱ
Whereȱanȱimporterȱorȱdealerȱorȱownerȱofȱaȱmotorȱvehicleȱprovidesȱaȱ
certificateȱasȱapprovedȱbyȱanȱaccreditedȱtechnicalȱserviceȱestablishedȱ
withinȱ aȱ Memberȱ State,ȱ thatȱ theȱ engineȱ ofȱ thatȱ particularȱ vehicleȱ
meetsȱ lowerȱ emissionsȱ despiteȱ theȱ vehicle’sȱ yearȱ ofȱ manufacture,ȱ
thatȱ vehicleȱ shallȱ onȱ registrationȱ beȱ taxedȱ theȱ rateȱ pertainingȱ toȱ itsȱ
equivalentȱeuroȱstandard.ȱ

87
Appendix B STATEMENT A
REVENUE 2010 : REVISED ESTIMATES COMPARED TO APPROVED ESTIMATES
Head Approved Revised Variation
Estimate Estimate + - Remarks
€ € € €

TAX REVENUE
Direct - Income Tax 850,000,000 810,000,000 - 40,000,000 Receipts were lower than originally forecast mainly
under Provisional Tax.

Social Security 550,000,000 550,000,000 - -

Indirect - Customs and Excise Duties 198,700,000 191,400,000 - 7,300,000 Lower receipts than originally expected mainly from
Import Duty and Excise Duties on Machine-made
Cigarettes and Sprits.
Licences, Taxes and Fines 254,554,000 234,463,000 - 20,091,000 Receipts from Motor vehicle registration tax and
Annual circulation licence fees are expected to be
lower than forecast. These shortfalls were partly
offset by higher receipts from Duty on Documents.
Value Added Tax 478,000,000 478,000,000 - -

TOTAL TAX REVENUE 2,331,254,000 2,263,863,000 67,391,000

 STATEMENT A
REVENUE 2010 : REVISED ESTIMATES COMPARED TO APPROVED ESTIMATES
Head Approved Revised Variation
Estimate Estimate + - Remarks
€ € € €

NON-TAX REVENUE
Fees of Office 42,695,000 38,609,000 - 4,086,000 Lower receipts than originally expected mainly from
Eco-Contribution, partly offset by income in respect
of Fees from Searches.

Reimbursements 29,446,000 26,798,000 - 2,648,000 Variance arises through administrative arrangements

in connection with the financing of the public
transport administration.

Public Corporations 815,000 815,000 - -

Central Bank of Malta 37,000,000 45,634,000 8,634,000 Bank profits for 2009 passed to Government have
been higher than originally forecast.

Rents 21,250,000 31,823,000 10,573,000 - Higher receipts than projected are mainly due to part
payment of agreed encroachment compensation
amounts.

Dividends on Investment 9,500,000 11,750,000 2,250,000 - Higher dividends than originally forecast have been
received mainly from the Malta Financial Services
Authority.
 STATEMENT A
REVENUE 2010 : REVISED ESTIMATES COMPARED TO APPROVED ESTIMATES
Head Approved Revised Variation
Estimate Estimate + - Remarks
€ € € €

Repayment of Government Loans and 82,000 332,000 250,000 - Interest received on loans is expected to be higher
Interest than the original forecast due to interest receivable in
respect of the Loan Facility Agreement with the
Hellenic Republic.

Grants 184,375,000 162,887,000 - 21,488,000 Although reimbursements received under the EU

Structural Funds 2007-2013 Programme during the
period January - September 2010 were significantly
higher than receipts for the corresponding period last
year, it is not envisaged that the original forecast will
materialise. Reimbursement is to continue throughout
the duration of the Programme.

Miscellaneous Receipts 18,520,000 27,854,000 9,334,000 - Revenue under this Head is expected to be higher
than originally anticipated due to receipts arising
through the shipyards' concession agreements.

TOTAL NON-TAX REVENUE 343,683,000 346,502,000 2,819,000

TOTAL RECURRENT
2,674,937,000 2,610,365,000 64,572,000
REVENUE
 STATEMENT A
REVENUE 2010 : REVISED ESTIMATES COMPARED TO APPROVED ESTIMATES
Head Approved Revised Variation
Estimate Estimate + - Remarks
€ € € €

NON-ORDINARY REVENUE
Sale of shares --- --- --- ---

Sinking Funds of converted loans --- --- --- ---

Local Loans 550,000,000 550,000,000 --- ---

TOTAL NON-ORDINARY
550,000,000 550,000,000 --- ---
REVENUE

GRAND TOTAL 3,224,937,000 3,160,365,000 64,572,000

 STATEMENT B
RECURRENT EXPENDITURE 2010: REVISED ESTIMATES COMPARED TO APPROVED ESTIMATES
Approved Revised Variation
Vote Estimate Estimate + - Remarks
€ € € €

1 Office of the President 2,009,000 2,209,000 200,000 - Approved funds have been duly transferred onto the
Personal Emoluments category. Higher expenditure
is anticipated under the Operational and
Maintenance Expenses category, mainly for
Hospitality and Improvements to Property.
2 House of Representatives 3,160,000 3,238,000 78,000 -

3 Office of the Ombudsman 473,000 373,000 - 100,000

4 National Audit Office 1,950,000 2,400,000 450,000 - Higher expenditure is anticipated as a result of
recruitment of staff and an increase in fees for Local
Councils' audits.
5 Office of the Prime Minister 23,355,000 24,378,000 1,023,000 - Approved funds have been duly transferred onto the
Personal Emoluments category. Higher expenditure
than originally forecast is anticipated under the
Operational and Maintenance Expenses category.
This will be partly offset by savings under the
Programmes and Initiatives category.
6 Public Service Commission 519,000 476,000 - 43,000

7 Armed Forces of Malta 42,112,000 43,059,000 947,000 - Approved funds have been duly transferred onto the
Personal Emoluments category. Lower expenditure
is expected under Third Country Nationals.
 STATEMENT B
RECURRENT EXPENDITURE 2010: REVISED ESTIMATES COMPARED TO APPROVED ESTIMATES
Approved Revised Variation
Vote Estimate Estimate + - Remarks
€ € € €

8 Tourism 33,156,000 37,467,000 4,311,000 - Higher expenditure is expected under the

Programmes and Initiatives category for Route
Development and under the Contributions to
Government Entities category (subvention to the
Malta Tourism Authority ).
9 Local Government 32,105,000 32,139,000 34,000 -

10 Information 1,165,000 1,327,000 162,000 - Approved funds have been duly transferred onto the
Personal Emoluments category to cover staff in
post.
11 Government Printing Press 1,386,000 1,419,000 33,000 -

12 Electoral Office 2,187,000 2,137,000 - 50,000

13 Ministry of Foreign Affairs 25,105,000 25,119,000 14,000 -

14 Ministry for Gozo 55,511,000 56,601,000 1,090,000 - Approved funds have been duly transferred onto the
Personal Emoluments category to cover staff in
t
 STATEMENT B
RECURRENT EXPENDITURE 2010: REVISED ESTIMATES COMPARED TO APPROVED ESTIMATES
Approved Revised Variation
Vote Estimate Estimate + - Remarks
€ € € €

15 Ministry for Infrastructure, Transport and
Communications
65,931,000 69,783,000 3,852,000 - Increased expenditure resulting from payments
under the Guaranteed Earnings Agreement with the
Public Transport Association is expected to be
partly offset by savings in the payment of Pensions
under the MDD/MSCL/MSY Voluntary Retirement
Schemes/Early Retirement Schemes and the Malta
Information Technology Agency subvention.

16 Civil Aviation 2,448,000 0 - 2,448,000 Expenditure of the Department of Civil Aviation has
been incorporated within Transport Malta.
17 Land and Public Registry Division 2,535,000 3,185,000 650,000 - Expenditure has been higher than originally
expected due to the taking over of searches formerly
made through contracted services.

18 Ministry for Resources and Rural Affairs
93,516,000 93,620,000 104,000 - Approved funds have been duly transferred onto the
Personal Emoluments category. Expenditure under
the Operational and Maintenance expenses category
(mainly Transport and Incidental Expenses ) is
expected to be higher than originally anticipated.
Savings are, however, anticipated under Recovery
Schemes , Motor Vehicles End-of-Life Fund , Solid
Waste Management Strategy and other items under
the Programmes and Initiatives category.
 STATEMENT B
RECURRENT EXPENDITURE 2010: REVISED ESTIMATES COMPARED TO APPROVED ESTIMATES
Approved Revised Variation
Vote Estimate Estimate + - Remarks
€ € € €

19 Ministry of Education, Culture, Youth and 150,326,000 156,894,000 6,568,000 - An increase in expenditure is anticipated under the
Sport Programmes and Initiatives category, mainly under
the Church Schools , Students' Maintenance Grants
and Public Service Obligation - Public
Broadcasting Services Ltd items.
20 Education 134,690,000 142,146,000 7,456,000 - Approved funds have been duly transferred onto the
Personal Emoluments category, partly to cover
emoluments of staff recruited as a result of Capacity
Building undertaken during the year
21 Libraries 1,440,000 1,477,000 37,000 -

22 Ministry for Social Policy 39,856,000 37,179,000 - 2,677,000 Lower expenditure than anticipated will be
registered under the Programmes and Initiatives
category.

23 Social Security 189,127,000 189,423,000 296,000 - Approved funds have been duly transferred onto the
Personal Emoluments category. Higher expenditure
than originally forecast is expected under
Contractual Services.
24 Social Security Benefits 722,500,000 725,000,000 2,500,000 - Increased expenditure under Non-contributory
Benefits was partly offset by savings under
Contributory Benefits.
25 Social Welfare Standards 922,000 892,000 - 30,000
 STATEMENT B
RECURRENT EXPENDITURE 2010: REVISED ESTIMATES COMPARED TO APPROVED ESTIMATES
Approved Revised Variation
Vote Estimate Estimate + - Remarks
€ € € €

26 Health 289,065,000 293,172,000 4,107,000 - Approved funds have been duly transferred onto the
Personal Emoluments category. Savings are
expected to materialise under Materials and
Supplies and Repair and Upkeep, as well as under
the Programmes and Initiatives and Contributions to
Government Entities categories.

27 Elderly and Community Care
28 Industrial and Employment Relations
53,498,000 55,196,000 1,698,000 - Increased expenditure under Contractual Services ,
Residential Care in Private Homes and Home
Care/Help Services Scheme will be partly offset by
savings under the Personal Emoluments category
and other items under the Operational and
Maintenance Expenses and the Programmes and
Initiatives categories.
1,248,000 1,240,000 - 8,000

29 Ministry of Finance, the Economy and 100,847,000 112,875,000 12,028,000 - An increase in expenditure is expected under the
Investment Programmes and Initiatives category, International
Memberships and under the Contributions to
Government Entities category.
30 Treasury 9,593,000 33,662,000 24,069,000 - An extraodinary expense incurred in connection
with a Loan Facility Agreement with the Hellenic
Republic is being partly offset by savings registered
under the Personal Emoluments category.
 STATEMENT B
RECURRENT EXPENDITURE 2010: REVISED ESTIMATES COMPARED TO APPROVED ESTIMATES
Approved Revised Variation
Vote Estimate Estimate + - Remarks
€ € € €

31 Pensions 87,485,000 86,035,000 - 1,450,000 Savings are expected in respect of payments of

32 Public Debt Servicing
33 Inland Revenue
pensions, allowances and gratuities paid under the
Pensions Ordinance (Cap. 93).
403,063,000 405,563,000 2,500,000 - Increase in expenditure incurred in respect of
interest payable on Malta Government Stocks is
expected to be partly offset by savings on interest
payable on Treasury Bills .
6,080,000 6,315,000 235,000 - Expenditure under Refund of Entertainment Duty,
Succession Duty and Stamp Duty overpaid is higher
than originally anticipated.

34 Customs 11,756,000 11,595,000 - 161,000 Savings are expected mainly under Allowances and
Contractual Services.
35 VAT 6,512,000 6,811,000 299,000 - Higher expenditure than originally forecast under
the Personal Emoluments category and the
Programmes and Initiatives category in connection
with the Fiscal Receipts Lottery Programme will be
partly offset by savings under the Operational and
Maintenance Expenses category.
36 Contracts 1,195,000 1,207,000 12,000 -

37 Economic Policy 1,108,000 1,095,000 - 13,000

 STATEMENT B
RECURRENT EXPENDITURE 2010: REVISED ESTIMATES COMPARED TO APPROVED ESTIMATES
Approved Revised Variation
Vote Estimate Estimate + - Remarks
€ € € €

38 Government Property Division 4,215,000 3,762,000 - 453,000 Approved funds have been duly transferred onto the
Personal Emoluments category. Expenditure under
Charges on Property transferred from the Church is
expected to be lower than originally anticipated.

39 Commerce 2,223,000 1,896,000 - 327,000 Expenditure under Contractual Services , the

40 Consumer and Competition
41 Ministry for Justice and Home Affairs
42 Judicial
Business Support Fund for Crafts and Food
Subsidies was lower than originally anticipated.
2,214,000 2,075,000 - 139,000 Increased expenditure is envisaged under
Contractual Services. This is being offset by
savings registered under the Personal Emoluments
category.
16,381,000 16,293,000 - 88,000 Approved funds have been duly transferred onto the
Personal Emoluments category. Higher expenditure
is expected under the Programmes and Initiatives
category (mainly Compensation to Victims of Crime
and Third Country Nationals ). This is being offset
by savings registered under the Attorney General's
Office.
9,860,000 10,397,000 537,000 - Approved funds have been duly transferred onto the
Personal Emoluments category. Higher expenditure
is expected under the Programmes and Initiatives
category (mainly in connection with Summoning
and Expenses of Witnesses, Jurors and Experts in
Criminal Court Trials) .
 STATEMENT B
RECURRENT EXPENDITURE 2010: REVISED ESTIMATES COMPARED TO APPROVED ESTIMATES
Approved Revised Variation
Vote Estimate Estimate + - Remarks
€ € € €

43 Police 45,013,000 47,869,000 2,856,000 - Approved funds have been duly transferred onto the
Personal Emoluments category.
44 Correctional Services 8,674,000 8,778,000 104,000 - Approved funds have been duly transferred onto the
Personal Emoluments category.

45 Civil Protection 4,070,000 4,120,000 50,000 -

TOTAL RECURRENT EXPENDITURE

2,691,584,000 2,761,897,000 70,313,000
AND PUBLIC DEBT SERVICING
 STATEMENT C
CAPITAL EXPENDITURE 2010: REVISED ESTIMATES COMPARED WITH APPROVED ESTIMATES

Approved Revised Variation

Vote Estimate Estimate + - Remarks
€ € € €

I Office of the Prime Minister
21,308,000 16,675,000 - 4,633,000 Additional funding will be required mainly under the
Armed Forces of Malta - Construction Works and
Equipment Item of expenditure for External Border
Fund Specific Actions. Expenditure under the EU
Structural Funds 2007 - 2013 Programme is expected
to be lower than originally anticipated.

II Ministry of Foreign Affairs 746,000 942,000 196,000 - Higher expenditure is expected mainly under ICT and
the Mediterranean Academy for Diplomatic Studies ,
the latter being partly financed by the Swiss Fund.

III Ministry for Gozo 22,065,000 14,507,000 - 7,558,000 Programmed expenditures under Eco-Gozo and the
EU Structural Funds 2007 - 2013 Programme are
expected to continue in 2011.

IV Ministry for Infrastructure, Transport and 121,988,000 111,989,000 - 9,999,000 Higher expenditure recorded under the EU Cohesion
Communications Funds 2007 - 2013 Programme and the EU Structural
Funds 2007 - 2013 Programme are expected to be
offset by savings registered under the ICT Core
Services Agreement and the Malta Freeport
Corporation - Development of Facilities Items of
expenditure.
 STATEMENT C
CAPITAL EXPENDITURE 2010: REVISED ESTIMATES COMPARED WITH APPROVED ESTIMATES

Approved Revised Variation

Vote Estimate Estimate + - Remarks
€ € € €

V Ministry for Resources and Rural Affairs
50,821,000 50,521,000 - 300,000 Expenditure in connection with Rehabilitation
Projects is expected to be higher than originally
forecast but will be offset by lower expenditure under
the EU Fisheries Fund and various other Items of
expenditure.

VI Ministry of Education, Culture, Youth and 51,132,000 42,240,000 - 8,892,000 Lower expenditure is envisaged mainly under the EU
Sport Structural Funds 2007 - 2013 Programme , the ICT
Faculty (University of Malta), Restoration of Fort St
Angelo .
VII Ministry for Social Policy 37,696,000 33,023,000 - 4,673,000 Savings registered under the Swiss Fund , Sir Paul
Boffa Hospital , the National Blood Transfusion
Centre - New Facilities - Construction and
Equipment , the New Rehabilitation Facility and
Karen Grech Rehabilitation Centre - Upgrading
works and equipment Items of expenditure are
expected to offset higher expenditure recorded in
respect of Construction Works in Government
Cemeteries .
 STATEMENT C
CAPITAL EXPENDITURE 2010: REVISED ESTIMATES COMPARED WITH APPROVED ESTIMATES

Approved Revised Variation

Vote Estimate Estimate + - Remarks
€ € € €

VIII Ministry of Finance, the Economy and
Investment
103,598,000 93,216,000 - 10,382,000 The Contribution towards the Treasury Clearance
Fund and expenditure under Investment Incentives
and Adaptation Works at the Malta National
Laboratory are expected to be higher than originally
anticipated. Savings are expected to materialise under
EU Projects Co-financing , the EU Structural Funds
2007 - 2013 Programme , ICT Corporate Projects and
ICT .

IX Ministry for Justice and Home Affairs 20,341,000 19,897,000 - 444,000 Lower expenditure is anticipated on ICT , the EU
Security and Safeguarding Liberties Framework
Programme and the Premises for the Judiciary .
Expenditure under the Police Capital Programme will
be higher than originally forecast, mainly because of
commencement of the Prum Project.

TOTAL CAPITAL EXPENDITURE 429,695,000 383,010,000 46,685,000