EDITORIAL | Wednesday, 25 July 2007

Planning the final budget

It is a known fact the forthcoming Budget will definitely be the last one for the Gonzi government. However from the indications we have as regards the Pre-Budget document published last Saturday, there is no real sign that the PM is ready to start dishing out the dosh in the hope of winning more electoral support.
The document is singular in its considerable amount of rhetoric and limited concrete plans. Apart from the awaited reform in Children’s Allowance, some welcome tax credits for the elderly using private residences and a much-needed proposal for assistance on interest payments for first time property buyers.
One has to keep in mind this is actually a Pre-Budget document and as such, it only contains proposals, which could be refined, amended or changed according to discussions with the social partners. However the document usually contains clear indicators of the government’s budgetary intentions and this time there is no quantifiable amount that it intends to spend as was the case last year with the tax cut which was proposed at Lm 8 million and eventually turned out to be Lm 12 million.
The 155-page document includes lengthy chapters on the economic progress of Malta , which shows that inflation and deficit are under control although public debt does remain slightly high.
Notwithstanding this, the economic picture looks quite rosy with healthy growth rates of over 3 per cent projected for next year alongside similarly high growth this year. All looks set for a good Budget and a possible election in March or April.
When asked on the date of when he intends to go to the polls, Dr Gonzi again kept his cards close to his chest and repeated he intends to keep everyone guessing. Although one must respect the fact it is the PM’s prerogative to call an election, it has to be noted that the business community feels uneasy with elections.

Entertainment as a catalyst for growth

Undoubtedly one of the industries which is growing fastest in Malta is that of entertainment. This burgeoning sector is a welcome case of private enterprise working hand in hand with the help of government sponsorship and with so much going on in the country at the moment, this industry can only grow accordingly.
One has to keep in mind that the average event costs between Lm 20,000 and Lm 200,000 to organize but the spin offs are enormous especially with regard to drink suppliers, advertising, media exposure and stage construction amongst other items.
However although this industry is growing by leaps and bounds there still remains a lot to be done for it to continue being sustainable. It definitely needs less red tape and bureaucracy and needs a drastic improvement in safety standards. Outdoor functions should have a one-stop shop from where permits can be applied for, as at present it requires permission from a minimum of 6 departments.
Safety is another important consideration especially in view of the large numbers of persons who normally congregate at such events. The onus is also on parents and organizers to ensure that no one under 16 years of age goes to such parties. The availability of ambulances and doctors on site is another important consideration.
Most importantly such events should be marketed abroad to bring over foreign youths and students. Apart from helping to boost our tourism industry, it also justifies government sponsorships in this field.