Following the discussion and approval of the agreement at Cabinet level, Dr Gonzi is to make a government statement in Parliament this evening, during which he will be revealing more information and details about the agreement which the government struck with Skanska about the highly-controversial hospital.

Speaking to party supporters at the Santa Lucia Nationalist Party club yesterday morning, a visibly relieved Dr Gonzi said that thanks to the agreement reached with Skanska on Saturday, following four months of painstaking negotiations, the Mater Dei Hospital will now be fully operational by 1 July 2007.

He also drew a comparison between his term as Prime Minister and the time when Opposition leader Alfred Sant was Prime Minister between 1996 and 1998. “We both had the Mater Dei problem to solve. I solved it in seven months and he did not manage to solve it in 22 months, not to say that he increased the problem during his term,” Dr Gonzi said.

Even though he was asked directly by Net TV journalist Lourdes Pullicino how much the new hospital was going to cost, Dr Gonzi was cautious not to divulge information before he refers the matter to Cabinet this morning. He said, however, that the government had agreed with Skanska on the total cost of the new hospital and also on the penalties that will have to be paid if the set targets are not met.

Without giving a final figure, Dr Gonzi, said the money is going to be “well-spent” and described the hospital as a “good investment”. He laughed off Mrs Pullicino’s remark that the Labour Party is claiming that the Mater Dei Hospital is costing the government Lm250 million.

Moreover, he said the government will be saving between Lm12 and Lm15 million on the cost after managing to strike an agreement with Skanska on phases two and three of the project, which were originally scheduled to be completed by 2010.

He explained that instead of building a new block between University and the new hospital, the Medical School, which is presently situated at St Luke’s Hospital, will be relocated to part of the new hospital building. This would also host the Institute of Health Care.

He said that this move, while ensuring that the available space is used to it maximum effect, would save the government between Lm12 and Lm15 million. On the other hand, the government would have to spend around Lm5 million for the mechanical and engineering costs related to this decision to relocate the school and the institute.

On St Luke’s Hospital and Boffa Hospital, which would be empty after the transfer to the new hospital, Dr Gonzi said the government will be discussing what the space will be used for. He hinted at using the area for some kind of tourist development, which he described as an “intelligent solution”.

On a final note about the new hospital, Dr Gonzi praised whoever was involved in the negotiations with Skanska, especially parliamentary secretary Tonio Fenech, Health Minister Louis Deguara and all the government’s experts who came under fire by Labour leader Alfred Sant when he said that one of them was Dr Gonzi’s cousin while others were “friends of friends”.

Dr Gonzi also said that during today’s Cabinet meeting, the issue of electricity rates will also be tackled. He said the decision will then be taken before the Malta Council for Economic and Social Development to be discussed with the social partners sitting on this council. He said this decision has to be taken in view of the rise in the cost of oil.

Following the Cabinet meeting, Dr Gonzi said, he will start one-to-one meetings with individual ministers as part of the process which would lead to the Budget 2005, expected to be presented on 22 or 24 November.

When asked about the budget, Dr Gonzi said the government will be concentrating its efforts on three main issues: education, the environment and the country’s economy.

Dr Gonzi also spoke about fines for littering. He explained that during its last meeting, the Cabinet approved proposed regulations which impose harsher penalties on those who throw rubbish on the streets. But before these regulations come into force, the government has to get the implementation structure in place. Who is going to be responsible for its implementation? he asked. To this effect, he said, Environment Minister George Pullicino is talking to local councils to get wardens to be effective on this matter as well.

Dr Gonzi said the government was committed to establishing a consensus-building process. He also referred to this during his monthly meeting with the media on Saturday, when he stated that the MCESD and the discussions there are “not a waste of time”.

Dr Gonzi criticised the Opposition for its negative attitude and for criticising all the government does. On the MLP’s call for a national conference on illegal immigration, Dr Gonzi said the government agreed with this idea but until the end of this year the political parties and the interested NGOs should prepare documents on their positions. The conference will be held at the beginning of next year, he said.