Speaking during his monthly press briefing during which he replies to journalists’ questions, Dr Gonzi said the auditor was conducting the exercise to ensure that all ministries were following government procedures, including in the purchase of flight tickets when ministers and their representatives go overseas for work.

The decision to conduct this exercise was taken after it was alleged that former Foreign Minister John Dalli purchased flight tickets from a specific travel agency in which, it was alleged, his children had some kind of interest.

Dr Gonzi said a benchmarking exercise was underway in order to establish the procedures. “The auditor is just making sure that no government policies or rules are being broken,” he said. He added that this process was important in order to continue controlling government expenditure.

During the press briefing, Dr Gonzi was also subjected to a bombardment of questions on last week’s resignation of Mr Dalli from his post as Foreign Minister. Dr Gonzi kept, more or less, a standard reply. He said he had accepted Mr Dalli’s resignation “because, in the circumstances, I had no option but to accept it”.

He said the decision did not, in any way, take into consideration the fact that public perception was that Mr Dalli should step down or be removed. When asked, Dr Gonzi denied that the issue could have been a frame-up organised by Nationalist Party insiders and added that today’s PN executive council meeting was being held to discuss the party’s performance in the 12 June European Parliament and local council elections. Dr Gonzi was also asked, on numerous occasions, about the Ecofin meeting held earlier this week and the government’s plans to control its budget deficit. Ecofin is a meeting of the finance ministers of all European Union member states.

The convergence plan presented by the government is exactly as was announced during the November 2003 budget for 2004. He said that during the first six months this year the government started implementing this plan.

This will also form part of the process leading to the country’s 2005 budget.

He explained that Malta has to give the European Union Malta’s plans to keep the country’s fiscal deficit under control in 2005 and 2006. Dr Gonzi said the government’s target for the deficit to reach the 1.4 per cent level of the gross domestic product is achievable. However, he said this can only take place if the country remains focused on its objectives and if the government’s expenses are controlled.

He said the government had to take the necessary steps to control its deficit independently of the EU membership. Dr Gonzi said the chairman of the Malta Council for Economic and Social Development had asked him to attend an urgent meeting requested by the social partners.

The date for this meeting has not yet been set.

On the pension system, Dr Gonzi said the next step was to prepare a white paper and hold a national discussion for a good, alternative, sustainable pension system to be agreed upon. “Opposition leader Alfred Sant is the only politician in the world who ever made an irresponsible comment to the effect that the pension system should remain as it is. I am convinced that if we make an intelligent reform, we can also use this reform to create more jobs,” he said.