Lawrence Gonzi lauds education, health successes in conference marking four years of administration

Updated with Labour reaction at 1:29pm

Prime Minister Lawrence Gonzi has deflected direct questions made to him on the latent threat of Nationalist MP Franco Debono, and how budgetary cuts in health and education had overshadowed the success of his four years in government.

Addressing a conference in Castille today, Gonzi said his government had managed to create 20,000 jobs, most of them productive, in a programme of modernisation that had also put the economy on sound footing during the last four years.

"Compared to other countries, Malta is one of the best performers in Europe, with the fifth-lowest rate of unemployment, and the second best in full-time job creation," the Prime Minister said.

Gonzi also said he had managed to decrease the deficit to below 3% of gross domestic product, as well as reduce income tax - specifically creating a new, lower tax band for parents - within the limits of the prevailing economic circumstances. "There are 55,000 parents paying less income tax, and family-friendly measures such as a tax-free year for mums has helped them return to the labour market."

The prime minister said the last four years had seen new schools being built, more money poured into university stipends, and continuous improvement in the services at Mater Dei Hospital with a new oncology centre now being completed.

"In terms of community care, we have also introduced night shelters and special care for dementia patients, apart from measures to ensure that the elderly remain active in community. Even employees are now allowed to continue working and still receive their pensions after pensionable age."

The prime minister however refused to concede that the health and education budgets had been cut as part of a €40 million decrease in 2012's budget announced last January, when he categorically stated the cuts would not affect any of the social, health or education sectors. Labour's shadow education minister has claimed the cuts in education alone amount to some €7.6 million, while €8.5 million had to be cut from the health budget.

"It is recurrent expenditure that has been cut and not capital projects. Government must be careful about what it spends recurrently because these are annual expenses," Gonzi said.

The prime minister insisted that overall - irrespectively of the budgetary cuts - the total budget for health and education was still higher when compared to the previous year, even after the cuts. "Journalists must be correct when reporting about the budgetary cuts," Gonzi said.

Asked how such budgetary cuts could be reconciliated with the capital overrun of €10 million in the Life Sciences bio-industry park being completed by Malta Enterprise, the prime minister again refused to describe the spend as an "overrun". "These are capital projects that are done once, so the Life Sciences park is not part of recurrent expenditure."

Gonzi was also asked on the suspended animation in which parliament has found itself since the January cabinet reshuffle, where prior to the Easter hiatus he announced and the vote of confidence he won, no divisions (parliamentary votes called by the Opposition) have been taken.

But the prime minister failed to answer whether his Whip's filibustering in parliament - delaying specific votes concerning the home and justice affairs portfolios, and the Budget Measures Implementation money bill - was down to the threat posed by rebel MP Franco Debono.

"No divisions have been taken, but votes have been taken in parliament," Gonzi said. "After the recess, a number of bill will be debated and voted on. And our main priority remains the creation of jobs," he said.

Gonzi was also keen in mentioning the ongoing restoration work around Valletta, which will be the European Capital of Culture in 2018. Reflecting on the past year, he hailed the historical role played by Malta during the Libyan conflict. "Looking back, we can look forward with courage. I am sure the Maltese will overcome the challenges ahead if we remain focused, and competitive, to respond to circumstances."

The prime minister hailed the increase in employment in most sectors bar the construction industry, but noted that of the 6.2% unemployed problems were more acute for over-40s looking for work. He also said that a legal notice issued in December would strengthen the laws against labour abuse and precarious work.

Gonzi defended the role played by the Malta Resources Authority in ensuring a fair price for gas, while mentioning ongoing discussions with Italy, Libya and Tunisia in joint oil exploration talks. "Fuel and gas are brought from abroad, and Malta has to pay the international price, which is up globally and not just in Malta. When gas prices went up, the government issued aid benefits for families."