Speaking to journalists following the meeting with the 47 entities,

Dr Gonzi said that the government was determined to reach the targets it had set for the year.

He announced that, to this effect, the government was setting up a special unit as part of the Finance Ministry, which had the specific aim of monitoring the financial performance of every government entity.

He said that in order to do this the government was going to use the technical expertise of several people who already work for the government. He mentioned as examples experts who work for the Management Efficiency Unit and the National Statistics Office.

When asked, Dr Gonzi said the initial reaction from the chairmen and chief executive officers was positive.

Dr Gonzi said the government and its entities have long been trying to control and cut down their costs and have achieved a lot. However, there was still a lot that had to be done in order to reach the targets the government had set during the last budget.

ìWe have achieved a lot but I am still not satisfied. There is more space to improve. We are determined to reach the targets by the end of this year. Controlling the deficit is important for the countryís economic development. Results achieved so far are positive but not enough,î he said.

Dr Gonzi said that some of the entities will be facing problems to their financial situations if the price of oil continues to rise. He mentioned Air Malta as one entity that would suffer if the price of oil continued to increase.

He also spoke about the government projects that are currently under way and how the expenses on these projects need to be monitored closely. He mentioned, as an example, the Mater Dei Hospital, adding that its expense is being monitored on a daily basis. Other expenses, such as salaries and wages, overtime and allowances can be controlled, he said.

Dr Gonzi also spoke about an exercise that was currently being carried out by the government to clamp down on entrepreneurs who were evading Value Added Tax and also clamping down on abuses to various social services. He said the government was also working on eliminating abuse by those entrepreneurs who overcharge tourists.

When asked about the problem of illegal immigrants being faced by Malta, Dr Gonzi said the government is trying to find a practical solution to the problem without putting aside the human element of why these people were fleeing their country.

Dr Gonzi was also asked about the Malta House in Brussels that was recently purchased by the government. He said this was an investment because if it had to be sold, it would generate more money than had been spent because of its commercial potential.

He said that the building was not just an embassy but was the building from where the Maltese government will operate as a European Union Member State in order to bring to Malta all the possible advantages of EU membership.