The Gozo Business Chamber (GBC) noted in a statement that this year’s Budget was geared principally to cater for the effects of the pandemic both socially and economically.

In its budgetary proposals document the Chamber said that it had also included the results of a survey which had indicated the impact of the Covid-19 on Gozitan businesses, including the impact of Government measures.

The Chamber had reiterated that the Government should “take this situation into account in considering the continuation of these measures.”

To this end, the Chamber welcomed the economic stimulus provided through the Budget, especially the measures intended to enhance consumption in targeted economic areas, particularly:

• The €100 vouchers for persons over 16 years old. This was a measure which has impacted positively on the Gozitan economy, and the Chamber said that it expects that this measure will again prove beneficial for the island.

• The extension of existing schemes on property purchases and sales. The Chamber noted that these initiatives have “worked well, and it is expecting that they will continue to provide an important economic impetus during the upcoming year.”

The Chamber also noted the measures targeted towards business continuity principally:

• The extension of the reduced stamp duty to 1.5% on the transfer of family businesses;

• The increased VAT threshold exemption for small operators, from 20,000 to 30,000 euro;

• The extension of the Covid-Wage Supplement till March 2021, though, it said that in this case “one has to evaluate how this will be implemented in practice given that as indicated in the budget speech, this will be related to turnover;” and

• The continuation of the schemes currently implemented by the Ministry for Gozo in various economic sectors.

The Chamber also noted the Government’s commitment in terms of transport and connectivity, mainly:

• Government’s renewed commitment on the permanent link between Gozo and Malta, the fourth ferry on a permanent basis, and the implementation of the fast ferry service.

The Chamber said that it “expects the latter to be implemented.” As indicated in its budgetary document Gozo needs “multi modal forms of accessibility.”

The Chamber added that it “also expects the Government to go a step further in ensuring that the fourth ferry will be a hybrid ferry, in line with its commitment towards the Green Economy, and Gozo as an ecological island.”

It welcomed the emphasis on Digitalisation, and the Green Economy. These were 2 economic pillars that the Chamber had also proposed in its budgetary document.

Nonetheless in this case the Chamber stressed that it would like to see that specific initiatives for Gozo are formulated, especially when it comes to attracting foreign direct investment. To this end:

• The Chamber said that it expects Gozo to merit special attention especially when it comes to digitalisation. Government has highlighted its commitment towards introducing innovative technologies such as Virtual reality, Augmented Reality, Immersive technology, 3d printing, Quantum and High Performance Computing.

Given Government’s investment in the Digital innovation Hub in Xewkija, and the second fibre optic link between the two islands, “it is now important as indicated in the Chamber’s post Covid-19 strategic and policy document, and in its budgetary document, that a holistic incentive package specific to Gozo in this sector is formulated. This is necessary to really incentivise the take-off of this industry on the island, ensuring the development of an eco-system of companies in the digital sector.”

The Chamber argued that “given Gozo’s present problems related to double insularity, it is important that Gozo is positively discriminated to attract investment to the island. This would ensure its diversification, from an economy which is presently over dependent on the tourism sector.”

As regards tourism the Chamber welcomed the emphasis on quality, with respect to this sector, and the planned review of the diving master plan. “Gozo should feature in the planned review of the national tourism strategy, given its distinct product, and its ability to attract specific tourism niches,” it said.

The Chamber also noted the Government’s emphasis on the Green Economy in order to reach carbon neutrality. The GBC said that it believes that Gozo can set the pace in this area. However, specific incentives for Gozo need to be drawn up.

To this end the Chamber said that it would like the Government to reconsider the proposals it put forward in this sector, specifically when it comes to the refund on electric vehicles for Gozo residents, and the incentives on ferry tickets for these type of vehicles.

As regards infrastructure, the Chamber welcomed the Government’s programme in this area, especially the investment in Gozo’s road infrastructure.

“Nonetheless as highlighted in its budgetary proposals there are urgent infrastructural projects which merit special attention mainly: a new breakwater for Marsalforn, the provision of a multi storey underground car park in Victoria, and the building of a new hospital for Gozo,” the Chamber said.

It stressed that “the latter is necessary to cater for Gozo’s population and also to complement the investment made in the Barts Medical School.”

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