Every week we learn more how beneficial it was that, since day one, the Labour government chose prosperity over austerity so that no one would be left behind.
This has been yet another week that has consolidated the widespread belief that the innovative measures applied, and the bold decisions taken, as far back as March 2013 have yielded the best results all along.
This week it was the turn of the International Monetary Fund to confirm the many elements of sound fiscal transparency practices adopted by Malta. It should be noted that the evaluation was requested by the Maltese government itself and was carried out by the IMF in May. Ironically, it was taking place at the peak of ferocious attempts to tarnish Malta’s reputation on financial and rule of law issues in all European fora.
The world body’s Fiscal Affairs Department certified that Malta met the standard of good or advanced level practice in most principles in the IMF’s fiscal transparency code. The technical assessment looked into the manner by which Malta reports its fiscal results, forecasts and risk evaluations. As Minister Scicluna pointed out, Malta compares very well with the EU average, and it is good that, as a country, we are peer reviewed because it benchmarks us with other countries and helps us identify any further changes we need to implement.
Timely results
As if this was not enough, this week the European Banking Authority (EBA) has confirmed the diligence adopted by the Maltese Financial Services Authority in its handling of locally registered banking institutions. The EBA has, in fact, closed its investigation of the MFSA’s practices, saying there had been no breach of European financial rules, as was maliciously alleged by those who certainly do not use their seat in Brussels in the national interest.
More excellent news this week referred to the Individual Investor Programme (IIP) which has been under fierce attack from the Opposition since its inception. We now know that the total revenue recorded by the National Development and Social Fund (NDSF) as at August 2018 stood at €432,014,517. The NDSF is an autonomous agency established for the purpose of managing and administering 70 per cent of the contributions received from the Individual Investor Programme.
This places the total revenue generated by the IIP scheme so far at €617,163,571. Apart from the already known millions in contributions for social needs and other good causes, the NDSF has committed a further €55 million towards other initiatives related to social housing and healthcare.
The real facts
Prime Minister Dr Joseph Muscat and Finance Minister Prof. Scicluna must certainly be elated by such results, particularly while we are in the process of fine-tuning the final touches for the 2019 budget, to be announced within three weeks. Over and above the undeniable feel-good factor and well-being around – which is basically the main purpose of Labour’s policies, this week Standard and Poor’s affirmed Malta’s A-/A-2' ratings with a positive outlook. It attributed Malta’s exceptional economic performance to the Government’s economic, fiscal, and social policies and the undertaking of reforms. The Government intends to continue along this successful path as promised in its election programme.
Standard and Poor’s acknowledged that, in recent years, the Government had consolidated government finances, reduced general government debt relative to GDP and undertaken several structural reforms, notably those that have increased female participation in the labour market and reduced the country’s energy bill. The highly positive rating reflects Malta’s strong growth performance, the recurring current account surpluses driven by Malta’s large services exports and the improving general government budgetary position and fiscal management.
This week’s Labour Force Survey also show that employment increased by six per cent in the second quarter, compared to the same period last year. Figures indicate that, during the second quarter, total employment stood at 231,152 accounting for more than half the population aged 15 and over. On average, 71 out of every 100 people aged between 15 and 64 were in employment, while the unemployment rate for the second quarter of 2018 went down to a lowest at 3.8 per cent. The main reason for inactivity relates to people either reaching retirement age or taking early retirement.
The Gozo scenario
Undoubtedly, the same mood is felt around Gozo. With all the projects underway in various parts of the island, and the many more due to start in the coming months, the Gozo Ministry has been fully charged with other commitments.
The consultation process on the Gozo Regional Development Authority has now been concluded. The past few weeks were intended to enable the public and local bodies to voice their thoughts and suggestions on this proposed Authority. The institutional framework of Gozo will be strengthened and the Ministry will focus on the political direction within the framework of national policies, zooming in on the island-region's special needs.
The Authority will ensure that Gozo has a regional development strategy – which will be reviewed every three years – for the economic and social framework, as well as the island’s environmental aspect, so that they are constantly updated according to changing circumstances and opportunities.
The draft document is now being published for eventual discussion in Parliament, for the necessary and procedural debate – after being first tabled before summer – leading to the final bill to be approved and enacted. This is a historic step towards a holistic and all-inclusive development in Gozo, ensuring continuity in what needs – and is planned – to be implemented. Notwithstanding the closure of the consultation period, further dialogue and discussions will surely be welcome in the coming months.
New reverse osmosis plant for Gozo
All Gozitans will have certainly welcomed the Planning Authority’s unanimous approval this week of a reverse osmosis plant in Gozo on the site of the old distilling station at Ħondoq. The Water Services Corporation will be restoring the derelict building, built in the 1960s, and using its current footprint for the new project.
We welcome this €10 million project and the fact that Gozo will no longer be dependent upon groundwater and the Cirkewwa RO plant for its water needs. The new plant will produce up to 9,000 cubic metres of water daily. Ten bids have been submitted for the building of the RO plant and the adjudication process will be carried out in the coming weeks.
Tourist and voluntary sectors
This week I was very pleased to address a seminar, organised by the Gozo Tourism Association and the Gozo NGOs Association for this year’s World Tourism Day. The chosen theme is ‘Optimising the synergies within the tourism and volunteering sectors’, with the aim of fostering an environment of collaboration and promoting dialogue between the two sectors.
Indeed, in the Gozo Ministry’s leading role, it becomes very evident that interaction between tourism and volunteering is important for the future of the tourism industry. In view of our frequent collaboration with the GTA and other bodies, we intend that, as a result of such a dialogue, both sectors will better understand their respective roles, which have a practical effect on each others’ objectives. It is no secret that, many times, enthusiasm is not fully au fait with business strategies.
In recent months we have worked together on various popular festivals and entertainment events all over Gozo – practically every week of the year. I am also particularly proud of our new initiative: Opera month in Gozo. We have been discussing the need for this for years and years, and have finally got all the stakeholders on board and have mobilised our cultural sector for this fantastic event that will make Gozo the destination for opera. The Ministry for Gozo is investing hugely in Gozitan talent and potential and this is ample proof that, yes, Gozo is a cultural destination . These last months have been full of successes, which augurs well for further cooperation in all the necessary bold decisions that are to be taken to guarantee better results. Hard work does, indeed, pay and Labour really works.