Parliamentary Secretary in the Finance Ministry Tonio Fenech said in Parliament on Monday that economic growth in the third quarter had been 2.7 per cent and there was the possibility that a growth rate of close to three per cent might be registered at the end of the fourth quarter.

Mr Fenech was speaking during the discussion of a bill to amend the Central Bank of Malta Act that will enable the bank to call in Maltese lira notes and replace them with euros, once Malta joins the eurozone.

Labour MP Charles Mangion said that the government needed to tackle inflation if the levels were to fall below the EU’s reference value.

“The government also needs to make sure that the regulatory bodies are working effectively to prevent abuse,” said Dr Mangion.

He pointed out that the Medicines Authority should investigate the reason behind the constantly increasing cost of medicines.

Even though the government is saying that foreign investment in Malta has reached Lm1 million a day, this is not all due to

productive investment, said Dr Mangion.

He explained that the sale of Maltacom and the purchase of property by foreigners was also included in this category.

Parliamentary Secretary in the Communications and Competitiveness Ministry Edwin Vassallo said that Malta’s economic growth can be gauged by the number of those gainfully employed and the rise in the number of businesses.

“The number of employees in the private sector has increased while those employed in the public sector has fallen,” said Mr Vassallo. “Even though the number of people employed in the manufacturing industry is lower, this has been compensated for by an increase in the number of jobs in private market services.”

Mr Vassallo pointed out that the bill will help Malta adopt one of the world’s most important currencies, while the Central Bank of Malta will become part of the European Central Bank.

Labour MP Jose Herrera said that the Labour Party will not hinder Malta’s commitment to join the eurozone and has no interest in doing so.

He pointed out that the people voted for EU membership and that the MLP will respect this decision.

“However, the MLP has its reservations regarding the timing of the euro adoption,” said Dr Herrera.

The Central Bank will give up its monetary policy-making role and participate in the decision-making process within the European Central Bank – which is positive, he said.

However, the Labour Party’s main concern was the high inflation that might result from the introduction of the euro, said Dr Herrera.

In his winding up, Parliamentary Secretary Tonio Fenech said it was positive that the local economy was growing when there had been a reduction in government expenditure.

“This means that the growth is a result of foreign investment,” he said.

Mr Fenech pointed out that the gross fixed capital formation between January and September was in excess of Lm330 million, amounting to an investment of over Lm1 million a day.

He added that the investment in Maltacom can only be categorised as foreign investment.

He also pointed out that while the Central Bank will lose its independent monetary

policy role, it will participate in the decision-making process of the European Central Bank.