Replying to questions at his monthly press conference, Dr Gonzi was asked by this paper if the amount of time devoted to meeting the social partners in the Malta Council for Economic and Social Development has turned out to be “a waste of time”.

Time spent with the social partners, he added, is valuable time for government because it helps government hear what the country is saying.

He considers one of his biggest challenges is seeing if government and the social partners can get to agree about a social pact.

This is no easy process, he emphasised: each side must be prepared to concede something. The over-riding concern must be to defend and promote the national interest, not sectoral interests.

There is also a need for open discussion among people who are sincere with each other and who put all the facts on the table.

When he said that everyone must sacrifice his sectoral interest to the national interest, Dr Gonzi was also referring to government. Government’s sectoral interest is its popularity. If there is a need for government to take difficult decisions, government is ready to take them, he added.

Parliamentary secretary Tonio Fenech has been representing government at the frequent MCESD meetings. These have proved to be useful consultations but so far the talks have not led to an agreement.

Government still hopes that agreement can be reached before the coming Budget Speech so that the substance of the agreement can be included as an Annex to the Budget Speech, but if that is not possible, that agreement must follow later on.

Disregarding the fact that almost all the social partners have been talking in the media about the MCESD meetings, Dr Gonzi said that all the parties at MCESD have agreed not to talk about what is being discussed.

He did however acknowledge that even the social partners, and not just the government side, have dedicated a lot of time to the long and intense discussions.

Up till now, no agreement has been reached, Dr Gonzi said, but there is goodwill and a general feeling that agreement will be reached.

The European Council

Dr Gonzi spoke first about the Brussels European Council held on Thursday and Friday.

There were four main highlights of the meeting, he said.

The heads of EU governments first considered a report on illegal migration. This report has been four years in preparation. The EU, following the summit, is now committed to accepting that illegal immigration is a challenge to be tackled. All EU countries share responsibility for this problem and all countries will contribute financially to tackle the issue.

By 2005 a plan of action will be proposed to the EU so that specific measures can be taken.

The second subject to be discussed by the Brussels summit regarded the Lisbon strategy. It is already difficult to see the EU reaching its own targets by 2010. Malta’s targets are not so ambitious, said Dr Gonzi, but the coming Budget Speech will include government’s proposals to widen job participation through the Job Action Plan.

Thirdly, the summit discussed the aftermath of the Rocco Buttiglione case and approved the changes to the Barroso commission. This will now go once again before the European Parliament for approval.

At the end of the council meeting, on Friday, the EU heads of government met the Iraqi prime minister who explained the situation in Iraq and insisted how important it is for the whole world that Iraq gets to vote next January.

The EU peoples and governments want to help the new Iraqi government and the Iraqi people to promote stability in the country and the region.

The Freeport in Brindisi

Dr Gonzi pre-empted questions by journalists regarding the controversy over the Malta Freeport’s investment in the Brindisi Freeport and the Labour Party claim that government has “invested Lm4 millions” in the Brindisi Freeport.

Dr Gonzi said that it was Cabinet which decided and which instructed Minister Austin Gatt so that Malta Freeport divests itself of its investment in the Brindisi freeport as soon as its privatisation allows.

But the Brindisi shareholding includes assets of value, Dr Gonzi argued, and so government is trying to get the best conditions for its sale.

It was for this reason that there arose the need to refinance the loan extended to the Brindisi freeport by an Italian bank through a Maltese bank. Also agreed upon was the need to get absolute control over the Italian Freeport.

All the Malta Freeport’s accounts have been made public, Dr Gonzi said, but Dr Sant still insists on saying that the Lm4 million were an investment in a failed company.

Dr Sant keeps making the same allegations, Dr Gonzi said, and his claims have been denied five times.

BOV chairman resignation

Dr Gonzi was asked by this paper and by other journalists to provide the reason for the resignation of the Bank of Valletta chairman Joseph F.X. Zahra. He was asked to confirm that Mr Zahra did not resign in connection with the mention of the bank in the Brindisi Terminal freeport issue and the leaking of documents from the bank, and also to confirm that Mr Zahra resigned because he did not agree with the privatisation of the bank.

He replied by confirming that Mr Zahra’s resignation had nothing to do with the leaking of documents, which emerged after he had submitted his letter of resignation, but he was rather nuanced in denying Mr Zahra had resigned because he did not agree with BOV’s privatisation.

Dr Gonzi publicly thanked Mr Zahra for his signal contribution to the bank. Under his management, he said, the bank has made a huge change.

Government had decided four years ago, to divest itself of its shares in BOV. There is another big shareholder, the Banco di Sicilia. However, he added, once government is planning to do away with its shareholding in the bank, the government-appointed chairman should reign.

Mr Zahra himself admitted it had been a hard decision to take for him, but government is very near to offering the BOV shares to others, if it succeeds in getting the right price for them.

It was pointed out to Dr Gonzi that Mr Zahra’s term came to an end in the coming month. He said he met Mr Zahra last July and explained to him the government’s strategy as regards BOV and the sale of shares. At no point, Dr Gonzi said, did Mr Zahra tell him he did not agree with the government strategy, but, he added, Mr Zahra had his own ideas.

Dr Gonzi was also told that this is the second chairman to resign under Minister Austin Gatt, following Michael Mallia’s resignation at PBS.

Dr Gonzi said Dr Gatt has so many corporations and enterprises under him. Two resignations in a row do not signify anything particular. He said he is not aware that Dr Gatt is experiencing difficulties with his chairmen.

As for Mr Mallia, this was a particular situation and it was brought about by a situation which was created, Dr Gonzi said, by Mr Mallia himself.

And, anyway, Dr Gonzi added, he has said many times that he does not want chairmen to think they are there for life. He is all for periodic changes, even if there is no reason at all except the value of change. He would also like to see even more people being tried at the head of various enterprises.

Optimistic figures

Dr Gonzi referred in his presentation to recent National Statistics Office figures for the gainfully employed. By September, these had reached 137,000, which is 4,000 up on five years ago. Unemployment is stable at around 7,300.

Other statistics regarding tourism show that Malta is recuperating in this regard. There is an overall two per cent increase and all indications for November are positive.

As to figures about the deficit, it seems that government expenditure is now under control and revenue is up. The deficit running now is 19 per cent less than last year and it also seems that government will keep to its target as announced in last year’s Budget Speech.

There is still concern about the price of oil, and government is still discussing which is the best option to choose regarding how the price of oil products is to be adjusted to the real price of oil. Over the next few days, Cabinet will be discussing these possibilities and after that discussions will take place within MCESD. The increase in oil product prices may be announced on Budget Day but it may also be announced earlier, Dr Gonzi said.

Budget Day will be either be 22 or 24 November, depending on when the Economic Survey is ready, as government wants to have all statistics to hand, thus providing it with a clear picture.

Boarded out in Gozo

Dr Gonzi was asked to provide the real figures for the number of people who have been boarded out in Gozo as it seems, the questioner stated, that this number shoots up on the eve of every election.

Dr Gonzi replied he did not have the figures present but government is looking at the whole issue of doctors’ certificates since this is “open to abuse”.

Dr Gonzi said that at the end of last year MAM, the doctors’ association, had reacted to government talk about doctors’ certificates and said this puts all doctors under a shadow. There are many honest doctors, Dr Gonzi said, but the whole system, including also the issuing of sickness certificates and injury leave, is in dire need of a reform. Discussions have begun and he hopes the issue will be settled by next year.

Investments

One of the key issues on Budget Day, said Dr Gonzi, regards promoting more investment to Malta.

Figures in government’s possession show that investment in manufacturing shot up by 26 per cent in the first nine months of this year compared to last year. That is an increase of Lm30 million.

But we must aim to attract more, Dr Gonzi said.

Rubbish on the streets

At its last meeting, Cabinet approved proposed regulations drawn up by the Environment Minister which impose harsher penalties on those who throw rubbish on the streets.

But before these are put in place, Dr Gonzi added, he must get the implementation structure in place.

Minister Pullicino is thus talking to local councils to get wardens to be effective on this matter as well. Once the enforcement system is in place, the regulations will be published.

Education

Another key issue in the coming Budget Speech will regard education.

Government wants Malta’s students to have the best education possible. The more the education system is improved and opened up, the more the levels of the local schools will be raised and the more students will go on to higher education such as university or MCAST.

This requires more investment but it also offers the challenge of reforming and upgrading what already exists. That is why there will now be a national discussion on education and how we can provide an even higher quality of education.

Clustering schools, he added, will provide schools with an incentive to become better and stimulate all involved to own the process of education being provided by them.