A couple of months ago the Finance Ministry published its annual pre-budget document supposedly as a preparation for the forthcoming budget. The pre-budget document had little or nothing new to say about Gozo. The government continues to state the obvious ad nauseam, offering nothing concrete and mostly re-packaging empty measures under the ‘Eco-Gozo’ slogan

The release of this document also coincided with the peaking of the summer activities on the island, when the business community tries to take in some essential oxygen before the end of summer. During these few weeks, the ferry will usually see an increase in commuters, patrons at restaurants will have fewer choices where to sit, salesgirls at retail outlets will be busier, and cash will change hands more frequently. However, this seasonal bonanza lasts only for a few weeks and as the end of summer gets closer, reality will start to bite again. Gozitans know that for the remaining months of the year their opportunities will be severely limited.

Despite the self-congratulating press releases dished regularly by the Gozo Ministry, official figures published by NSO and information I obtain from numerous Parliamentary Questions point to a much less rosy picture. While in 2000, the size of Gozo’s economy accounted for 6.4% of the national GDP, the ratio decreased to around 6% in 2009. This shrinking share of output compared to the national economy is the direct result of low growth rates achieved during the last decade. Indeed, while the Maltese economy grew by 53% from 1999 to 2009, the Gozitan economy expanded by 43% during the same period. This happened despite the fact that GDP per capita in Gozo stands at around €4,000 lower than that in Malta. Expressed as a ratio of the national average, GDP per capita in Gozo in 2009 stood at 0.73, down from 0.79 registered in 1999. This represents a decline of around six percentage points over a decade.

As a consequence of this sluggish performance, employment in Gozo suffered disproportionately. The activity rate in Gozo in 2009 stood at around 55% compared to a rate of 62% registered in the mainland. This amounts to a difference of seven percentage points, a worrying economic indicator indeed. Similarly worrying is the fact that public employment in Gozo stands at around 40% of total employment compared to 28% on the mainland. These figures are the direct consequence of the loss of the manufacturing industry, where total employment in the industry sector declined by 500 persons from 1999 to 2009, with its share out of total employment falling from 19% to 12% in 2009.

Instead of catching up, Gozo finds itself worse off compared to 10 years ago. This did not occur by coincidence but is the result of years and years of wastage, both in terms of investment and of scarce human resources. Suffice it to say that whereas in Malta foreign direct investment (FDI) amounts to over €7 billion, FDI in Gozo amounts to €1 million. Moreover, some 1,400 Gozitans had to seek and find work in Malta as jobs could not be found for them in Gozo. The excessive policy of clientelism left the great majority of Gozitans disenchanted and fed up with the current state of play. Many people I meet on a daily basis are tired of platitudes and promises, of slogans and gimmicks, of postponing decisions and procrastination. People are tired of token toy projects wrapped under the ‘Eco-Gozo’ marketing plot.

Viewed from this perspective and away from the simple wafer-thick analysis presented by the current administration, it is easy to understand why many Gozitans feel insecure and at the mercy of events.

The solutions are more practical than one can imagine. Solutions need not be bombastic. Instead they should be built on a clear and honest strategy, on a plan of action that is tangible and doable. A plan of action that consists of a leaner and efficient public administration, adequate and appropriate assistance to the tourism industry, continuous support for education, measures to overcome the transportproblem between the islands, and concrete measures to consolidate and possibly expand existing services and manufacturing firms in Gozo and to attract new ones to the island.

Gozo has already witnessed a lost decade in terms of opportunities and economic growth. I am afraid that more years of such performance will leave ugly scars on the social fabric of Gozo, as Gozitans ill-afford to continue struggling to fulfill their ambitions.

Anton Refalo is Labour spokesperson for Gozo and MP