We started a new year but the old problems seem to persist. In the last week of last year, the National Statistical Office published its provisional regional estimates for 2011. The figures indicate that Gozo’s contribution to national Gross Domestic Product stood at just 5.3 %. The same release showed that while the economy in Malta increased by 3.0 % in 2011, that for Gozo went up by only 2.5 %.
Manufacturing and construction continued to decline in Gozo. Even sectors which are doing well in Malta, such as financial and insurance activities, and real estate activities managed to registered negative growth in Gozo. The only economic activities which contributed to growth in Gozo were wholesale and retail trade and public administration.
This performance was reflected in the labour market. While employment went up by 3.3% in Malta over the 2008-2011 period, it increased by only 3.1% in Gozo. This 3.1% increase in employment amounts to 320 person out of which 70 were employed in the public administration. The rest of the employment over the four-year period was created in the retail sector.
As a consequence the output per capita in Gozo stands at €11,044 compared with €16,075 in Malta. This means that in 2011 an average Gozitan earned €5,000 less than his Maltese compatriot.
Instead of catching up, Gozo is constantly facing a struggle to keep in pace with Malta. It is no coincidence that many feel they are worst off compared to 10 years ago. This assessment was confirmed by the same Prime Minister in his letter to the President of the European Commission dated 21 May 2012.
The letter states that “a comparison of the socio-economic developments levels, based on the latest Eurostat data, reveals that disparities persist and that Gozo’s developments lags significantly behind that of Malta…during 2007-2009 period, GDP per capita of Gozo in Purchasing Power Standard stood on average at 57% of the EU27, significantly lower than that of the Island of Malta. Furthermore, income and employment figures for this same period exhibit the same trend”.
This is a total admission that the policy of the present adminstation for Gozo is failing. It is failing to create wealth and it is failing to create employment opportunities in Gozo.
The gap in income between Malta and Gozo has persisted over all these years. This is no coincidence and it is neither the natural order to things. The double insularity which subjects Gozo to added constraints plays this part but this cannot be used as an excuse. The big factor that contributed to this gap is the lack of proper policies and the inability to implement the necessarily measures.
Examples illustrating this lack of effectiveness in carrying out the policies are not difficult to find. The much celebrated Vision2015 and Eco-Gozo are prime examples.
One is left with little option but to ask what happened to the Vision2015. This, for those who can remember what Vision2015 is, forms part of long list of cliches which were dished out regulary by the admistration to create a sense of belonging. If you’re still struggling to put things in perspective, don’t worry, you’re not alone. A survey carried out back in 2010 reveals that 89% of respondents polled have no idea what Vision 2015 is, and only 9.6% hinted at a correct answer when asked to specify what this vision entails. The report that was published in the official website of the Prime Minister had nothing to say about Gozo, despite that in the original terms of reference Gozo featured predominately.
And what about the eco-gozo concept? A document intended to be a action plan covering 2010-2012 was published but no follow up was mentioned. The document refered to several attractive concepts such as the creation of a multi-floor complex to be used as a small eco-friendly business park having the necessary infrastructure to attract offices in financial services, ICT, and related technology companies, and the setting up a one-stop-shop in Gozo where potential investors and company officials can meet with regulators, inland revenue officials, employment and training officials, and Malta Enterprise Gozo Desk in one location. Unfortunately, these remained just concept as till now nothing of concrete materialise.
We are now at the end of this legislation. A new adminstration will take office after the general elections in March. Whoever will hold office must make a list of priorities to tackle the chronic issue of the disparing in income. Whatever the solutions put forward none can do without specific targets and measures. Targets set in advance together with a proper criteria how to measure results. This is the least that Gozitans expect.
Anton Refalo is Labour spokesman for Gozo