On Monday evening, Finance Minister Prof Edward Scicluna presented Budge 2021 in the House of Representatives.

Below is the excerpt from the Budget of his full speech in English on matters relating to Gozo:

Further investment in Gozo

“Mr Speaker, this Government believes wholeheartedly in Gozo, and throughout this year, we have achieved excellent results which we want to build upon. From a mere beneficiary, Gozo has become a contributor to the economy of these islands due to its economic growth which, proportionally, is even bigger than Malta’s. This is expected to continue increasing throughout the coming year, thanks to the measures included in this Budget.

Gozo once again saw new foreign investment from Microsoft and Noovle, a Google premium partner. New MCCA and MFSA offices were opened while the Tax Department’s back office is also being extended.

This has led to the creation of more jobs in Gozo, and we saw a growing number of Gozitan workers who used to work in Malta, start working in Gozo.

The Gozo Employment Scheme is reaping results by attracting private Maltese companies to open offices in Gozo. Next year, besides continuing to create jobs, we will continue to ensure improvements in working conditions while seeking to reduce the pay gap between Malta and Gozo.

We are also overseeing the establishment of a Gozo Regional Authority. This is a courageous step for this Government, which will ensure that Gozo itself can ensure that its developmental needs are being addressed. Through the enacted law, this Authority will ensure that the character and beauty of Gozo will always be safeguarded.

Incentives for the creation of jobs in Gozo

Mr Speaker, this Government will make sure that Gozo is also able to attract and foster new niches of economic activity.

This year, we introduced the Film Fund so that cinematic productions can be launched in Gozo. For next year, we have set up a new fund so that we can establish Gozo as a meetings, incentives, conferences and events (MICE) destination.

Through the Gozo Business Scheme, Government will continue incentivising the private sector, by improving the start-up tax credit for new businesses to set up economic activity in Gozo.

We will be introducing fiscal initiatives on, among others, translocation expenses, to those companies which move their operations to Gozo, as well as to those companies which create new jobs in Gozo within the teleworking and back office sector.

Further details of how these incentives will operate shall be given in due course.

Following the success of the financial package introduced this year for Gozitan workers and students who work and study in Malta, we will continue to extend it in 2020. Besides the rent benefits being granted to Gozitan students who study and live in Malta, the package will be further strengthened through the Villa Lauri hostel project.

Connectivity

Connectivity is, was and will remain a key priority, in order to address the difficulties brought about by insularity.

Throughout this year, we clearly proved that these difficulties need to be addressed through various approaches. The Gozo Channel is implementing a strategy to not only improve its operations and be more efficient, but above all, to offer a service that addresses the present and future requirements of its clients.

The addition of the fourth vessel to the Gozo Channel fleet this summer, was a successful pilot project. With the introduction of a fourth vessel, the queues and complaints from passengers in Mgarr and Cirkewwa were eliminated. This is because the overall journey time between the two islands decreased drastically.

Gozo Channel learned from this experience and is now in a much better position to make the necessary investment in a permanent fourth vessel. Preparations are currently underway to plan the prerequisites for the fourth vessel. After these preparations are concluded, the tendering process will be launched.

Gozo Channel is also investing in an electronic ticketing system to modernise this important aspect of its operations. while also improving on controls.

Work on the introduction of a fast ferry service will continue. Connectivity will also improve through the installation of the second fibre optic cable, a project which is now in an advanced stage of completion.

The Malta-Gozo tunnel

The Government is determined to fulfil the Gozitan dream of having a permanent connection between Malta and Gozo, a connection which will open up Gozo to many opportunities of economic and social development that will encourage young Gozitans to stay in their home island.

Studies for the tunnel link project between the two islands, which are being carried out by various experts in different fields, will be concluded in the coming months. Among these, one can find the preliminary design of the tunnel, and the environmental, economic and social impact that this investment will have.

Following the publication of the pre-information notice in the official journal of the European Union last December, Infrastructure Malta is putting the finishing touches on a pre-qualification questionnaire which will be published in the coming weeks.

The questionnaire will have all the technical information necessary for prospective investors/contractors to confirm that they have the skills and abilities necessary to fulfil this project. More details about this project will be announced shortly.

Other projects

Mr Speaker, despite several criticisms levelled at this Government, Gozo has never seen such high levels of investment when it comes to road infrastructure. Not only that, but we are also rebuilding arterial roads which were hastily built in the past, without having had any studies of the surroundings or the terrain conducted, which had caused these roads to collapse.

With a well-planned works programme, we are rebuilding these roads as standards dictate.

In the coming year, we will be commencing works on Mgarr Road. which goes from Nadur all the way to the port, as well as the road from Victoria leading to Marsalforn.

The investment being carried out in Gozo, and which will continue throughout the coming year, is unprecedented.

In a few weeks’ time, we will inaugurate the Research and Innovation Hub in Xewkija, as well as the Barts Medical School.

Throughout the coming year, a number of currently ongoing projects will reach completion. Among these, I must mention the new Health Centre, and the St Joseph Home for elderly residents.

For the small business enterprises, the project in the area known as Tal-Hofra will be completed, which will be giving them a base from where to carry out their economic activities.

Next year, work will start on the Park and Ride project, which will be built near the racehorse track, while the Ghajnsielem Hub project will continue.

We will also be carrying out most of the phases of the masterplans which have to do with the embellishment of Marsalforn Bay and Xlendi Bay, in order to make the touristic zones in Gozo more attractive. The Marsalforn project will also include the building of a breakwater, a project that Gozitans have been promised for years, and which will now be fulfilled.

Besides finishing works on St Francis Square and the square in Sannat, throughout the coming year we will begin embellishment works on main piazzas in other villages.

And apart from these arterial roads, we will continue ongoing roadworks on 33 roads, and start work on another 11 roads.

Mr Speaker, I must point out that this investment in road infrastructure in Gozo, for the coming year alone, will amount to ten million euro (€10 million). This is an unprecedented investment for Gozo.

However, investment in Gozo’s infrastructure goes beyond its roads. Restoration works, to the tune of eleven million euro (€11 million) have also started on the existing Water Services Corporation building in Hondoq ir-Rummien, which will give Gozo its first reverse osmosis plant, capable of producing nine million litres of water every day.

Using this reverse osmosis, we will be safeguarding groundwater and reducing Gozo’s dependency on the existing submarine pipeline, which is currently used to transport reverse osmosis water from Cirkewwa.

In the coming year, we will continue investing in various greening measures, smart parking and changing Government vehicles into electric vehicles, so that we can continue implementing the Decarbonisation Strategy under EcoGozo.

Following the investment made in the rehabilitation of valleys and the improvement of the rural infrastructure, and the restoration which was carried out at Cittadella, next year we will commence the restoration of Ghar Gerduf and the aqueducts.

Gozo’s natural and rural heritage is an essential component so that it can remain unique and distinct. We will continue investing in Gozo so that it can truly be an ecological island.

Gozitan cultural heritage

Themed festivals will continue to be held, as thanks to this initiative, we now have cultural activities all year round in Gozo. These events have helped Gozo overcome the challenge of seasonality, and there has been a considerable increase in tourism compared with the previous year.

The Ministry for Gozo, along with the voluntary and cultural organisations in Gozo, will work together to create a varied cultural program with a range of activities that continue to entice domestic and international tourists to visit Gozo all year round.”

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