PN urges government to incentivise declining economic sectors

The Nationalist Party today urged government to incentivize the financial services and manufacturing sectors, which MP Tonio Fenech said suffered a dip according to latest statistics published by the National Statistics Office.

While welcoming the global GDP growth, especially in key sectors such as tourism and information technology, Fenech said that government needs to focus on areas which are not performing well.

According to the figures published yesterday by the NSO, the economy registered a 3.5% growth rate in GDP above the EU average for the same quarter.

However, the former PN finance minister noted that the opposition was concerned at the fact that “the public sector played a significant part, contributing almost one third of total growth.”

Moreover, Fenech said, more than half of the increase in salaries originated from the public sector.

“This confirms government’s policy to conceal the growing problems by expanding the public service. This throws further doubts over government’s ability to reach its own financial targets, as confirmed by the European Commission’s recent warning on the country’s finances.”

Fenech added that government should examine the NSO indicators thoroughly and address declining sectors by introducing concrete measures which would create new jobs.

Finance minister pleased

In a statement issued earlier today,  the finance minister Edward Scicluna welcomed the figures published by the NSO and underlined the growth registered in the wholesale and retail trade sector, which the minister said dismisses claims that retail trade is declining.

“In my view, the most welcome indicator is the one for the construction industry which has experienced an upturn,” Scicluna said, adding that the published figures confirm that the construction industry is no longer following a declining trend, but is experiencing an upturn.

The construction industry has been on the decline for at least twelve consecutive quarters but has registered an increase in value added of 3 per cent in the first quarter of 2014.

Scicluna pointed out that the latest figures confirm that  government is achieving a sustained economic turnaround, and that the economy is geared to keep performing well and continue generating quality employment.