Tourism and Culture Minister Francis Zammit Dimech said that the World Tourism Barometer showed that in the last eight month, tourism in Malta has grown by 7.6 per cent; more than the European Average of 4.2 per cent and that of Mediterranean states 6.7 per cent.

The World Travel Organisation mentions two factors as being those that will make tourism in Europe grow come 2008 – the expansion of the Schengen Area, and the impact of Euro-zone enlargement. “These shall be particularly positive developments for Malta,” he said.

Addressing Parliament on Monday, the minister said that it has been the best September since statistics on tourism began here in Malta. This is due to the government’s introduction of low cost airlines last year. “We are practising ‘growth on growth’ – reaping the benefits of that which we sowed last year and the years before, as well a planting more. EU membership is also aiding in gathering the crop – thanks to the visionary attitude this government has taken,” said Dr Zammit Dimech.

The minister said that so far this year 969,572 tourists had come to Malta, and addition of 80,000 people or nine per cent more than the same period last year. These spent Lm366.8 million. Tourism has also increased from cruise liners - 21% more than last year.

He went on to outline the 2008 budget measures for Tourism, with Lm16.8 Million being allocated to the whole sector; Lm10.5 Million of which shall go to the Tourism Authority so as it can continue its work – an addition of over Lm2 million from the previous year.

Labour MP Karl Chircop, MLP’s main spokesperson for Social Protection, remarked that the fact that the government did not call an election before the Christmas recess shows that this budget did not have the desired effect, and as PN’s own polls are showing, “you are not pushing through”.

‘You have been squeezing the families coffers - a sponge which has gone dry.’ Families, Dr Chircop went on, cannot cope with the cost of living, they are simply living with the sufficient funds for day-to-day expenses. He gave figures to evidence this, the Harmonised Price Index having increased from 104.62 to 105.53 in a year.

Dr Chircop complained about the increase in prices, family income having increased by such a marginal amount that people will not cope with the price hike that is and will inevitably happen. Medicines, he said, have also increased so much in price that people are opting to buy them from overseas.

He also gave an example with an Electricity and Water Bill – a couple consumed Lm400 in a year and were given a rebate of solely Lm27.44 – “a miserly sum”. “We have the highest taxation rates in Europe, and one of the lowest income increase rates in Europe – our families have it very bad!” Dr Chircop said, mentioning a long list of price increases in various areas which effect everyday life.

Also commenting about the Children’s Allowance, the Labour MP stated that it may be found that over a period of 10 years this has been decreased by Lm50 Million. “Now that you have added Lm5 million you expect that you should be patted on the back and congratulated – You took five and you’re giving back one!! People are not stupid The motto that we [the Labour Party] have come up with for this budget – ‘too little, too late,’ is very much evidenced in this situation.”

Nationalist MP Micheal Asciak’s intervention was very critical of the opposition. “The opposition is saying that this was an election budget, and through this is in turn opening its arms up to a favour of votes.” He reiterated that Members to the EU have to face certain competitive measures, and that the first few years of membership are tough for everyone.

Dr Asciak showed how the shortfall in the work force occurred solely in 2004, but since then it has increased exponentially every year. In the space of three years the government, he said, has managed membership to the eurozone - a certificate that the Maltese economy is on solid foundations. This is the reason why the government has “opened its arms” in this budget. ‘Few EU countries have a 3.6 per cent rate of economic growth.’ This having been said, the Nationalist MP also spoke of accession to the Schengen area.

“The Maltese population does not believe MLP.” The opposition are looking at a ‘zero sum game’ meaning that they will take money and not put any in. They are trying to take people for a ride. If in government, however, Dr Asciak stressed, they will nonetheless be bound by Euro rules and cannot veer from them.

Carmelo Abela, the Labour Party’s main spokesperson for education, youth and culture, commented about the fact that it seemed the government side of the House was more discussing Labour party proposals than talking about their own budget. Referring to taxes, he asked about why it is that the Nationalist party keeps saying that when Labour was in government they introduced many new taxes, when it is that they have not abolished any and introduced many more - Taxes on income tax currently being the highest ever.

Rebutting Dr Asciak’s claim that Labour has no credibility, he questioned the government’s credibility when it comes to the cost of living. ‘Factory workers have lost their jobs! You lied to hunters!’

Mr Abela also complained about what is being done with the people’s taxes, their being spent on fancy colourful leaflets about the budget being sent to homes, and useless billboards. He also complained about the numerous cost overruns that seem to occur with every project.