The estimates for 2012, as announced recently in Parliament, include a great number of benefits for all families and their members – both young and old. It must be seen in the light of what is happening elsewhere, with dangerous waves eroding the economies of most European countries, which are now “tightening their belts and having to remove excess fat” – to quote a favourite expression of Dom Mintoff when the situation was not half as bad as it is today.

Most European governments have been introducing austerity measures; it’s not merely Greece, Spain, Portugal, Italy and Ireland. Other countries are doing the same and even France is being watched closely. The Greek and Spanish premiers, together with Italy’s Berlusconi, have had to make way for others because of the precarious situation in their countries. An in-depth study of what these countries are going through should be enough to make us all proud of our government’s vision and actions. The PM continually repeats “Judge us not by what we say but what we do”, and lately he is rightly adding “and take note of what we have managed to accomplish, even in very difficult times.” Last Wednesday, in his reply to the speech by the Leader of the Opposition, the PM could not have given a clearer analysis on the budget and the government’s commitment.

Of course, we have had to make sacrifices and the measures that have had to be introduced have not made Gonzi’s team very popular, to say the least. But now we are all convinced that we are reaping the benefits of those hard but much-needed decisions. We all remember how, two years back, the economic crunch had hit a number of local companies that were on the verge of sacking employees and ready to introduce a four-day week. Ultimately, the government saved the day for these workers and, what’s more, the companies in crisis diversified and expanded in different fields with the result that they employed more staff and continued to prosper.

Throughout the budget speech delivered in the House, my colleague Tonio Fenech kept emphasising the fact that the family – young and old – is always the number one priority for this government. The family is the core of our society and government’s job is to sustain our families in order that they can do their best for their children and other family members.

He summed up by declaring that the main targets for 2012 are to ensure our country’s stability, to safeguard and increase jobs, encourage people to use their skills, protect our environment, invest more in education and training and protect our families and the vulnerable members of society.

In the meantime, figures show that currently 148,546 people are gainfully employed, while Malta is in fifth place on the EU list of countries with the lowest unemployment, with 6.6 per cent. The prediction that we will register an economic growth of 2.8 per cent is very positive. One has to consider the investment of €359m in education including €58.2 to be invested in the University and Junior College; an additional allocation of €15.4m for MCAST; continuation of the building of the MCAST campus, which will cost €120m; €45.2m for church schools; an investment of €1m for independent schools. The sum of €350,000 has been allocated for sports tourism; €100,000 for the new school of sport; more than €1bn in social benefits, including an increase in children’s allowance and the introduction of a €300 annual payment to those who are aged 80 and above who either live on their own or with their families, and there are a number of initiatives in addition to more than €390m aimed at industry, small and medium enterprises and tourism. The one-year tax free scheme for women who return to work will be continued – this year some 8,600 women have benefited from a total saving of €10m in tax.

A total of 55,000 people will be benefiting from a newly introduced reduction in income tax for parents, while government will pay for the extension of four more weeks of maternity leave over a two-year period. The amount paid in children’s allowance will also increase by a total of €2.8m.

We can hold on with a certain sense of cautious optimism as we have done in previous years. “We can only ride out the financial crisis around us through good governance and responsibility” was the first sentence in Tonio Fenech’s budget speech, and this is exactly what we aim to do.