Maintaining the momentum

True leaders are those who can outline the broad vision and the direction, and say here is where we are going, here is why we need to go there and here is how we are going to get there. Time and again, Dr Joseph Muscat’s dynamic management has led this co

Dr Caruana is Minister for Gozo

First surplus in 35 years

The latest figures show that an increase of €484.2 million in revenue as a result of economic growth ensured that 2017 closed with a surplus of €182.7 million. This surplus represents an increase of 1,959 per cent over the previous year when, for the first time in 35 years, the country’s consolidated fund registered a modest surplus of €8.9 million. The results are more significant in view of the fact that 2017 was also an election year, which traditionally contributes to fiscal slippage.

It is even more impressive that 2017 was the second consecutive year that a cash surplus in our public finances has been registered. It adds confidence to the belief that when the same figure is accounted on an accrual basis for general government, this surplus will be maintained. Labour is resolved to maintain this momentum in significantly reducing the national debt, which had accumulated over the years through runaway, irresponsible expenditure by previous governments. The €182.7 million surplus stands out in sharp contrast to the €300+ million deficit recorded by the last Nationalist administration up to 2013.

This remarkable surplus reflected an effort by the Government to contain the increase in expenditure below the increase in revenue. A number of comprehensive spending reviews were carried out to ensure effective public spending. Indeed, recurrent revenue registered an increase of €484.2 million, or 12.7 per cent, while total expenditure rose by €310.4 million, or 8.2 per cent. This brought about a positive change of €173.8 million in the Government’s Consolidated Fund.

Robust economic growth

The remarkable increase in recurrent revenue was a result of robust economic and employment growth translating into higher compensation for employees and business profits. Indeed, all categories of tax revenue recorded increases with the highest contributors being Income Tax and Value Added Tax.

During 2017, expenditure also rose by €310.4 million, with the largest increase being for programmes and initiatives, including social benefits, education, health and pension increases. These results do not take into account the multi-million wealth fund that holds money derived from the Individual Investor Programme. The consolidated fund is the first tranche of figures that are used to compile the general government accounts that will eventually include external agencies.

At the end of December 2017, Central Government Debt had fallen in absolute terms by €103.1 million over the corresponding month the previous year, confirming that the government is, indeed, reducing the debt burden on Maltese and Gozitan families. It also confirms that Labour’s commitment in favour of future generations is not merely just a slogan.

Gozo on the national agenda

Together with Minister Joe Mizzi, I visited the Water Services Corporation site at Ħondoq ir-Rummien, built in the 1960s, where a new Reverse Osmosis plant for Gozo is to be built. We also visited other WSC premises and facilities in Gozo, where I expressed my heartfelt thanks to Minister Mizzi, CEO Richard Bilocca and all the Gozo team for their sterling work and strong collaboration with the Ministry for Gozo.

I have previously written that Gozo will be a direct beneficiary of a €17 million project to improve the management and protection of water throughout the country. The programme, in which four Ministries will be involved – including the Ministry for Gozo – will ensure improvements in the management and protection of water in the valleys, the water table and sea- water. This has been further enhanced with better news that a major project is being planned for better water production on the island.

The new plant will be commissioned within the buildings that already exist, thus avoiding environmental problems: music to the ears of Qala mayor Paul Buttigieg and to all of us who treasure the picturesque shoreline at Ħondoq. It will produce fresh water for Gozo, eliminating the need to obtain the water from Malta, ensuring self-sufficiency in water production for the island. The new plant, which will produce up to 9,000 cubic metres a day, means that the quality of water in Gozo will be improved and, at the same time, there will be a reduction in the amount of water extracted from the aquifer.

Enhancing water production

The project further confirms the long-range vision and innovative measures adopted by the government for future generations. It is also clear proof that stands taken by the Gozo Min- istry at Cabinet and inter-ministerial levels lead to further placing the island’s needs and expectations high on the national agenda.

More than €100 million, a significant amount of which comes from European funds, are being invested by the Water Services Corporation in this and other projects, guaranteeing a better future for the generations to come.

It is an ambitious plan that will improve water management in both Gozo and Malta at all stages of use – from production to disposal. The new plant will be of great benefit to Gozitan residents and visitors, especially considering that the increasing influx of tourists may, at times during the high season, almost double the island’s population.

The Operational Programme being drawn up will contain a number of measures and projects to ensure the safety of the water supply, improvements in water quality and sustainable management as well as mixtures of various resources targeted for maximum efficiency of resource use.