Prime Minister Robert Abela referred to the 2024 budget as a social budget “designed by people for the people”. He is right. Beneficiaries welcome the social benefits and pension increases, announced in this budget. Still few are those that spare an afterthought from where this money is coming. 

Former Prime Minister Joseph Muscat supported the pension scheme from the contributions of foreign workers in Malta. So much so in February 2019, during a political activity in Labour Party Club Birkirkara, he stated, “If you don’t want more foreigners, say goodbye to pensions”. In 2018, foreign workers in Malta financed 25 per cent of the Maltese pension fund. 

The then Executive Chairperson of state employment agency Jobs Plus, Clyde Caruana supported this economic model but later, as Finance Minister, admitted that this brought about a strain on the country’s infrastructure, education, and healthcare. On Sep 2023, Prime Minister Robert Abela side-tracked from this model and asserted, “Foreign workers will come to the country depending on where employers may need them”. So national debt may cover this shortfall in social and pension payments.

The opposition PN highlighted the fact that “Malta is paying €4 million weekly in interest as national debt rises to €9.7 billion.” 

This budget opted for stability but needs additional incentives and infrastructural projects concerning Gozo, while depending on the continuation of energy subsides and cash handouts.

These energy subsidies come despite the warnings by the Malta Fiscal Advisory Board, Central Bank Governor and IMF (International Monetary Fund) to phase them out gradually.

In 2019, Gozo Minister Clint Camilleri inaugurated the Gozo Innovation Hub, ‘a place where inspiration meets innovation’, which cost €9 million. This project was part-financed by EU funds. Four years later, the Gozo Minister admitted on Xtra TVM programme that this project failed to reach its full potential. Presently, this houses only four companies, which occupy less than a tenth of the office space in the hub. 

This budget failed to introduce incentives that attract companies to Gozo as an investment hub. If studied carefully, this would enable policymakers to embark on the right projects in the future. 

There is no reference in this budget regarding the: New Gozo Hospital, Marsalforn breakwater, “ambitious project” for parking and open spaces in Victoria, expansion of Gozo ferry terminal, renovation of Gozo ferries, incentives and training programmes for the Gozitan Tourist sector, and major uplift of the present terrible roads all over the island.

But will the €20 million capital expenditure (the lowest since 2021) forecast in the 2024 budget reach its intended aim towards enhancing Gozo’s economy and standard of living? I beg to differ! Money is being misused as if it was nothing more than confetti. 

The European Union is mainly funding the Gozo Museum project announced by the Gozo Minister in 2016, with construction starting in 2017. Yet, up to this year, work is still at an early stage with the government approving direct orders that exceed the original budget and scope of the project. So much so, Gozo Minister Clint Camilleri stated in Parliament “we will conclude this project during this legislature”. Big deal! The current legislature ends in 2027. That is over ten years since the first announcement, and that is not all. The cost of the original tender was €1.2 million, now the cost is already at €4 million!

Another project launched in 2012 by the Gozo Ministry is The Gozo Aquatic and Sports centre with an Olympic-size pool and adjacent sports hall facility. This project suffered several major construction delays and the total cost has exceeded the original estimate of €9 million by another €9 million.

Government earmarked this project as the main crowd puller for the Games of the Small States of Europe (GSSE) that were held this year between 28 May and 2 June. Unfortunately, they missed the deadline. Now Gozo Minister stated in parliament that this project was in its ‘final phase’ but would be ready after June 2024 –12 years later. 

Gozitan projects under this administration have become notorious for long delays and budget overruns, costing taxpayers many millions of euros more than initially projected. 

Last January at a press event, Gozo Minister Clint Camilleri, and Parliamentary Secretary for EU Funds Chris Bonett refrained from providing further information about the 75 per cent EU funded project involving 30 kilometres of rubble wall built over the last two years at a cost of about €10 million. The Shift News found out that this actual cost was about €12 million. This included an over run from the original estimate of €1.5 million and a project management fee of another €400,000, thus reaching the total amount of €12 million for 30 kms of rubble wall, which ended up costing roughly €400 per metre. But the current market price for rebuilding rubble walls with traditional methods was about €80 and €100 per square metre. So the government has paid at three times than the going market rate. It is still an unknown if the EU is investigating this project.

The Gozo Ministry started renting St Joseph’s home – ‘Dar San Gusepp’ in 2013 and to this date, after more than €1 million taxpayers’ money, this house is still not operational. The Minister expects this house to welcome the first old age retirees in March 2024. But there is a flaw in the present contract signed 10 years ago. The government may throw away more than €30 million investment in this home in Ghajnsielem, and the taxpayers may end up with limited returns. According to a hidden deal signed with the Church in 2013, the government must return this fully refurbished Dar San Gusepp to the Gozo Diocese 18 years later in 2031, unless the Church and Government agree to a separate agreement to amend the present contract.

Construction work started on a Park and Ride project costing €7 million, of which €4.7 million are EU funds in 2018 in an area on the limits of Xewkija known as ‘Ta’ Xħajma’. This was part of the government’s efforts to reduce carbon emissions in Gozo and five years later this is still unfinished, only adorned with concrete beams and roof. To complement this project in 2019, the government purchased six electric buses from TUM Invest for €1.7 million, but without the required charging points which the supplier provided by ‘direct order’ two years later at a cost of €217,000. The government planned to use these electric buses from the Park and Ride site to service the Xewkija Heliport (presently deserted and unused) and Mgarr Harbour. The Gozo Minister expects to complete this project by the end of this year and start operations in the first quarter of 2024.

One last curious comment regarding the tourist sector in Gozo concerning human resources. 

SME Chamber CEO Abigail Agius Mamo said: “Pre-election, many Gozitan businesses experienced an exodus of workers. Some report even highly valuable and skilled workers leaving for much simpler jobs where they are surely not using their talent.” Ms Agius Mamo added: “These employees are forcing the businesses to allow them the opportunity to go into their public employment, punch in, spend some time there, and then come to their private sector job at 10am.”

Can Gozo’s economy and standard of living improve under such circumstances? Did the budget address any of these issues? No, because for the Government the only matter that counts is “votes”.