I refer to the letter Open Letter to the Finance Minister (TMID, 24 November), and would like to thank you, Ms Agnes Debono, for expressing your thoughts about this month’s budget in a very eloquent

matter.

I would like to comment on some of your remarks by pointing out some important issues. I agree that governments are being looked upon as a solution to the present economic recession. In times when all major economies are looking at major economic downturns, if not outright recession, and with jobs being lost by the millions, we have to act responsibly and think of our longer-term future.

We are with our European counterparts in this stand. Yes, we want people to pay fewer taxes. But we do not want them to pay less tax simply because they have no jobs. That is why this budget was intended to safeguard our jobs. This is why the budget has made so much emphasis on a programme of investment, even if this meant that postponement of our balanced budget targets for 2010.

We need to support our industry and enterprises, in finding new markets, in research and in innovation, in the support to start up and in the facilities we offer. That is way we have launched an investment programme in infrastructure and incentives of over e40 million for the coming three years. It is through these measures that we can create new and better jobs.

Indeed, contrary to your assertion, we have sought to strengthen the purchasing power through this budget, through a number of measures, namely reducing income tax for the third consecutive time, giving a one year tax break to all mothers returning to work after childbirth, and giving the full cost of living increase of e6.41 also to our pensioners. This has meant close to e100 million in the consumers’ pockets – an average of e250 per citizen.

Ironically, you seem to have summarised our budget when identifying the actions we need to take. We did identify the real problems facing the specific sectors. Take tourism for example. We know that the financial crisis will hit tourism hard. That is why we have invested heavily in embellishing our country while increasing substantially MTA’s advertising budget. We want to make more efficient use of our national assets – that is why we are putting so much investment in our educational and training institutions – that is why we have preferred to build a new MCAST, to expand University and Junior College rather than lengthen the subsidisation of waste through the electricity tariffs

And finally the environment. Certainly, never a budget has committed so many resources towards a greener future. We have put together a package exceeding e30 million to support citizens and industry in reverting to alternative energy while being more energy efficient. These will go into the delivery of the energy saving lamps, the subsidisation of solar water heaters, photovoltaic panels, insulation and double-glazing as well as a strong educational campaign in support of them.

Therefore, I thank you once again for your letter, which truly, highlighted the most strategic principles that this budget has sought to achieve, and which as a government we are committed to continue following during this legislature.

Tonio Fenech

Finance, the Economy and Investment Minister

Valletta