Gonzi: home at 101, trumpets economic credentials

It was a soft touch interview from Stephen Calleja, the managing editor of the Malta Independent on Sunday, which allowed the prime minister to trumpet his economic credentials to explain that the government had sailed itself out of stormy waters, and proved itself right in not heeding “the doomsayers from Labour”.

Gonzi said government would still control its spending, but focus its investment on job creation. “Our focused spending on saving jobs has seen companies today emerging from the recession and even expanding… unlike those in other countries where billions were spent on economic stimulus packages.”

The PM said the Maltese economy had grown at seven times the rate of the Eurozone average, thanks to the reforms in the energy sector and the privatisation effort. “If we did not address these problems, we would still be footing anything between €20 to €40 million for the shipyards.”

This led Gonzi to address concerns that he will be spending €80 million on the City Gate regeneration and the new parliament building: “Won’t it be Maltese contractors, builders, electricians and plumbers who will be working on this project? Won’t it be these people who will be earning cash on this project? This project is an entire machine that creates employment.”

Stephen Calleja had started the session softly, with a long-winded question tied to the current World Cup fever to plug the White Rocks sporting complex. Gonzi said the sporting facilities and the operation of the entire village will be financed entirely from the revenue derived from the residential component.

Gonzi said the project, which comes at ‘zero cost’ to the government, was unique for Malta in a time where it was still weathering “the financial storm”.

This was the cue for Gonzi to publicise the deficits and national debts of countries in Europe, such as Greece, which are facing high rates of unemployment. “Thankfully, we’re out of the recession… the rate of our economic growth shows we’re well on the way to stability.”

The PM said Malta can compete on touristic niches that others find hard to retain their edge. He cited Malta’s weather, and year-round sun, as reasons that make sports tourism one of the most lucrative opportunities available to the economy.

Calleja, clinging on to the sporting metaphor for his questioning, said he had recently written about referees not paying tax on their payments from the Malta Football Association. He asked what sort of action the government was taken in this regard.

“We do take tax evasion seriously, not just in football…” Gonzi replied.

“Whenever I receive any report, I pass it on to whoever is competent to carry out an investigation… the 16 years of socialist government when corruption was institutionalised, taught us that leaving investigative powers to the politicians was dangerous.

“We introduced the Auditor General, the public accounts committee, and gave additional powers to the Commissioner to the Police to investigate, and we will increase powers for the Permanent Commission Against Corruption.”

Gonzi accused Labour of neglecting the importance of financing healthcare, rekindling a vote of no confidence the Opposition had presented against him as prime minister and finance minister while he was in negotiations with the Mater Dei builders Skanska. “Labour is negative and it’s their strategy: they believe that targeting government means targeting the country itself, or healthcare. It’s a shame and it’s scandalous.”