He also said that he did not exclude launching an inquiry into the case. However, before doing anything of the sort, he said, he wanted to have all the information he could on the matter. He added that a factor which had to be take into consideration was Dr Sant’s credibility.

Speaking during his monthly meeting with the press, Dr Gonzi said the allegations were serious because they concerned someone who has ministerial duties and therefore he is not taking them lightly.

However, he repeated, before taking any position on the matter, he will be looking at all aspects of the case, including Dr Sant’s credibility. He said that after Dr Sant made the allegation during the MLP mass meeting last Sunday, he had challenged him to make the information he had public.

Dr Gonzi said that Dr Sant’s reply was that he (Dr Gonzi) had the same information he had. This made him not credible. Dr Gonzi also mentioned the fact that Mr Dalli completely denied the allegations and had filed a libel case against Dr Sant.

He said that Dr Sant had been using this negative campaigning tactic since he became MLP leader, and when he became prime minister in 1996, he had conducted several investigations, but they all came to nothing.

Asked about the country’s financial situation and prospects for the future, Dr Gonzi said indications show that the financial picture is better than that of last year. However, he said, things might change. He mentioned, as an example, the increase in the cost of oil, which will definitely have a negative impact on the country’s economy. “The indications look good but we should always keep our feet firmly on the ground,” he said

Dr Gonzi also said that the government’s deficit decreased from Lm70 million to Lm50 million in the first four months this year. He said the main reason for this achievement was increased revenue and better control of the government’s recurrent expenditure, especially on large projects being undertaken.

He said other indicators were also positive. Sales in the manufacturing industry increased by four per cent in the first four months of this year compared to the same period last year, from Lm244 million to Lm254 million.

He added that investment in the manufacturing industry increased in the first four months this year, from Lm11 million to Lm14 million. The consumers’ expenditure on durable products increased by 63 per cent in the first four months of the year. Regarding expenditure on day-to-day products, Dr Gonzi said he did not have the figures in hand. However, he said, owing to the fact that most prices, especially on food products, had decreased, he expects a good increase in expenditure in this regard.

He also spoke about the government’s attempt to control expenditure of its authorities, adding that he felt this monitoring had to increase in momentum.

He mentioned, as an example, the Mater Dei Hospital, undoubtedly the largest project currently being undertaken by the government. He has held a meeting with the company responsible for the project in order to understand better the target date for completion and to also control expenditure. When asked if he had a date for when the hospital will be ready to open to the public, Dr Gonzi said he did not.

On the number of people on the unemployed list, Dr Gonzi said he particularly liked the system whereby the unemployment number is take from part one of the unemployment register of the Employment and Training Corporation.

Asked to comment on Investment Minister Austin Gatt’s recent remarks in parliament on the drydocks, Dr Gonzi said the targets set for this company were being reached. However, he said, with more cooperation, the targets could be arrived at with greater ease.

“The public played its part when the government absorbed the drydocks’ Lm300 million deficit. But now we expect the workers to play their part to increase results. In the past four months, there have been disagreements which could have been avoided in the best interests of the workers and the company. The workers’ behaviour and efficiency are very important for the company, especially in view of the marketing strategy being used to bring work to Malta. We are on the right track,” he said.

On the choice of a site for the engineered landfill, Dr Gonzi said he has just been informed that a study on an alternative site to those proposed close to the Mnajdra Temples has been concluded. He said next Tuesday’s cabinet meeting will be called purposely to discuss this report so that a decision can be taken.

The Malta Independent asked Prime Minister Gonzi about the situation whereby, despite his numerous invitations, the law setting up the Malta Council for Economic and Social development did not give the party in Opposition the right to participate on this council.

His reply was: “I once again invite the MLP to participate because it has a contribution to give to the country. The law does not give the National Youth Council or the National Pensioners’ Association the right to participate on MCESD level, but they still make an active contribution there.

“When the government set up the Welfare Reform Commission, the MLP was invited to participate but Dr Sant refused. The commission is discussing the pensions issue at the MCESD, so if the party accepted the offer, it would also be part of the discussion at MCESD level. As soon as he gives me a reply, I will provide the solutions by this (yesterday) evening. If I receive no reply, it would be another banal excuse. The government is not going to wait any longer for the Opposition,” he said.

Dr Gonzi also said that when the MCESD was being set up, the model used was a tripartite one, with the union, employers and the government. Asked if he thought there was the need to change the law, Dr Gonzi said that if there was the need he would, but added that solutions are there.

Asked about the importance of the European Parliament election, Dr Gonzi said that the Maltese representatives will be there during the 2007-2013 budget. He said we will be at the discussion table to obtain the best for the country.

During yesterday’s meeting, Dr Gonzi also mentioned that in the days to come, the government will announce the appointment of the first female permanent secretary. He also commented about Dr Sant’s promise that an MLP government would not change the pension system, describing this as the “most irresponsible comment I have heard ever since I started my political career”.