Surprised is the best way to describe my reaction to the opposition’s interventions in Parliament during the budget debate. Admittedly, following the repetitive promises of a new beginning and a new way of doing politics, I anticipated that, maybe for the first time in years, a reaction tainted with some positive remarks will be forthcoming from the opposition benches.

Unfortunately my wishes remained just that. The promises remained unfulfilled and instead of a new beginning we were treated with more of the same. One opposition speaker after another could not manage to find anything positive about the budget and went out of their way to paint a picture of doom and gloom. If you allow me to exaggerate a bit, listening to the opposition speakers in Parliament you would think that Armageddon is around the corner.

The opposition promised us that they will not just criticise but will also put practical proposals on the table. Amid the black clouds the Opposition Leader did come up with some proposals regarding the electricity and water tariffs. Pity they were either already in practice, impractical, or bordering on the fantastic.

Of course the current world economic situation is not an ideal scenario in which to present a budget. But certainly, prophesising darkness and ignoring challenges is not the answer.

The government is not in a position to sit back and criticise. The government is not in a position to evade challenges. The government is there to take action. In the current situation the government’s duty was to act responsibly with sustainability and solidarity in mind. A synergy between these ideals is what we delivered.

Responsibility, sustainability and solidarity are the three pillars upon which the government built this year’s budget. Through these concepts the government will be facing the economic challenges that lay ahead while putting investment as a priority and ensuring that everyone has the opportunity to progress. Parallel to this government will continue with its endeavours to achieve the concept of sustainable development as epitomised by Government’s Vision 2015.

Government intends to continue with its policy of liberalisation in those sectors that are still operating within a restricted environment. This will be done with the interest of the consumer in mind. After launching our vision for a reform in the public transport sector we will continue with the privatisation process of those non-strategic entities that can be run better and more efficiently by the private sector. The shipyards, Enemalta’s petroleum division and the yacht marinas will pass on to the private sector and will eventually become more competitive.

The government will invest EUR124 million in infrastructural projects that are of primary importance for Malta’s economic and social enlargement. This investment will comprise construction of roads, factories, schools and other facilities.

We have also invested EUR61 million in environmental projects while EUR 30 million will be invested in alternative energy projects and initiatives for more efficient energy use.

EUR58 million will go towards the training of our workforce and those who have yet to enter or are trying to re-enter the employment sector. This allocation does not include the budget reserved for education. We have also voted EUR47 million to incentivise small and medium size enterprises, various economic sectors and the tourism industry.

The budget contains a number of measures that will incentivise work and attract the resources we need to sustain and enlarge the economic sectors of our islands.

It is not possible to go into detail about all the sectors mentioned in the budget. But it would be interesting to take a glimpse at the steps the government will be taking to ensure sustainable development in our localities. In a budget I described as a budget for local councils, the government has increased the direct allocation to them by EUR4 million, which is the biggest increase ever.

Apart from this allocation, EUR2 million will be used to aid the restoration of facades of buildings that were built before 1950 with particular attention to protected buildings in the heart of our towns and villages. Residents who opt to restore these facades will benefit from a 30 per cent refund of the total cost. It is estimated that around 700 buildings in Malta and Gozo will benefit from this scheme.

An allocation of EUR50,000 will fund two pilot projects regarding sustainable development in two localities. Our localities will also benefit from an allocation of EUR100,000 under the local council Green Challenge Award Scheme. This scheme will benefit those local councils that take initiatives to enhance the environment. On the other hand the local council Enterprise Support Scheme has a budget of EUR100,000 and will reward those local councils that incentivise businesses in their localities.

In the field of investment Malta Enterprise will launch five schemes with a total investment of EUR20 million. EUR2.5 million will go towards the development of new initiatives that will help our industry penetrate new markets while an allocation of EUR3.5 million will facilitate investment in research and development.

The Innov Act will entail an investment of EUR9 million to assist small and medium sized enterprises in the development of processes, products and innovative services. A Small Start Up Scheme will carry an investment of EUR2.5 million as start up aid for innovative companies while another EUR2.5 million will be invested in the E-business Development Grant Scheme to encourage the use of technology and information technology in the operations of our industrial undertakings.

These initiatives will be supported by the enlargement of the KBIC, a Bio-technology Park in San Gwann and an investment of about Euro 20 million to upgrade the industrial zones. To complement this investment, the Better Regulation Unit within the Office of the Prime Minister will take the necessary measures to reduce the administrative burden on businesses by 15 per cent. This goal is to be reached by 2010.

This year Malta’s economy is expected to grow by three per cent while The government is anticipating a growth of 2.4 per cent next year. In the first six months of this year full time jobs increased by 3.3 per cent when compared to the same period last year while labour costs increased by two per cent. This is a relatively low increase when compared with our competitors. In this same period the number of those registering for work went down to 5,390 which is the lowest level in many years.

These statistics augur well for the future but the budget shows that we do not view these positive results as a certificate of success. They are just the first step towards the real success which is Government’s Vision 2015. A budget of doom and gloom? You decide.

Chris Said is Parliamentary Secretary in the Office of the Prime Minister