‘Long term stability will allow economy to flourish’ – finance minister

In the first business breakfast for social partners organised by the finance ministry in the run-up to the 2014 Budget, minister Edward Scicluna started proceedings with a lengthy presentation which did not leave much time for representatives of unions, employers and civil society to ask questions or express their thoughts - the message: Scicluna stressing the "importance of economic stability".

Scicluna said stability would "give certainty to local and foreign investors" and lead to more enterprise, generation of wealth and job creation.

"The strengthening of our public finances plays a fundamental part in our plans, as is our intent to implement greater fiscal responsibility," Scicluna said.

In the meantime, the government was addressing the country's pressing fiscal deficit and debt levels, while guiding the public sector, including entities such as Enemalta, towards financial sustainability.

Underlining the government's "energetic" efforts to implement its energy plans, the finance minister said that the reduction of energy tariffs would "enhance our enterprises' competitiveness and our households' disposable income."

Scicluna also highlighted the importance of boosting the country's capacity to grow which in turn was vital in enhancing the country's competitiveness and fiscal sustainability.

Insisting that investment must grow in order to achieve economic growth, the minister sounded an optimist note on the government's push to control the country's deficit and debt.

Scicluna said the 2.7% deficit target for 2013 was doable and added that the government was on track to push the deficit down to 2.1% next year.

Government's revenue  was also on track according to the monthly projections and results, Scicluna said. Moreover, expenditure targets were also spot on and the minister said that the expenditure review which was underway would eliminate deadwood in the public sector.

 "We are confident in our ability to deliver on our commitments to the country. We are confident that in the partnership with key stakeholders and the people in general we can move forward together," Scicluna said.

He added that the government was intent on creating a society that empowers people and offeers the right opportunities for all. "We are determined to create an all-inclusive and fair society."

GRTU director-general Vince Farrugia urged the minister to present a "bold" budget and singing the minister's praises he said Scicluna was "an economist before being a politician.

While Farrugia protested at the minister's failure to mention small businesses, the General Workers Union boss Tony Zarb complained that not enough importance was given to precarious job conditions and green jobs.

The Malta Council for Science and Technology chairman Jeffrey Pullicino Orlando underlined the importance of research and development and in his reply, the finance minister expressed his agreement and said that small and big businesses were dependent on innovation. The sector should be strengthened to the benefit of businesses of all sizes, the minister concluded.