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NEWS | Wednesday, 12 September 2007

Growth must trickle down – Sant on Reporter

James Debono

Opposition Leader Alfred Sant set a future Labour government’s tourism target at 1.6 million tourists a year.
Interviewed by Saviour Balzan in yesterday’s Reporter, on TVM, Sant also announced that Gozo will need a standalone golf course at Ta’ Cenc, but that it should not be accompanied by any residential development.
Sant also declared that a future Labour government would consider a “standalone” yacht marina at Hondoq ir-Rummien, but again ruling out any residential development around it.
A four to five per cent economic growth remains the key to find the finance necessary to fund Labour’s list of social priorities, which includes grants to first-time homeowners and subsidies on interests paid by homeowners.
But now that Eurostat statistics registered a 4% growth rate for Malta in the first quarter of the year, Sant insists this is not enough because current growth is not trickling down to the people.
“Current economic growth comes from sectors which do not create a trickle-down effect by creating work for Maltese people.”
One sector which according to Sant is growing but not filtering out its wealth is the gaming sector. “This sector employs Swedes or Portugese workers as they have to operate in these markets.”
He outlined tourism and manufacturing as the two sectors which can create a trickle-down effect. But Sant would not commit himself to introduce taxes to redistribute wealth created by these sectors.
An example on how to achieve sustainable growth according to Sant is Labour’s costly proposal to decrease the surcharge on water and electricity bills. “If one decreases the surcharge on water and electricity this money will go back to the economy.”
While recognising that tourism in the past summer was better than the past two years, he insisted that tourism must improve all year round, setting a target of 1.6 million tourists every year.
Asked how the country’s infrastructure can cater for such a large number of tourists, Sant insisted on the need to utilise more alternative energy and to decrease the waste in water resources.
The Labour leader also said he is ready to dismiss some of the most controversial reforms enacted in the 1996-1998, namely a loan system to replace stipends for university students. Now the MLP’s new policy document states that stipends are an important incentive for students.
Sant justified this change saying that “times change; one has to change according to circumstances.”
As regards divorce, a future Labour government will remain silent until civil society speaks up. “We will wait for a debate within civil society. Labour will not be the one to commence debate.”
He justified this volte-face claiming that “while in 1996 there was a debate in civil society there is no debate now.” But Sant also conceded a wider definition of the family to include single parents. “Our focus is on children. Therefore any family which takes care of children should be assisted.”
When it comes to the people who will implement Labour’s vision, Sant also has clear ideas: ministers must show managerial skills. And he also sent a clear message that political appointees must agree with Labour’s plans.
“The people appointed to implement Labour’s plan must agree with our plan and must be competent. Change must be brought about by people who want change and who are able to implement it. They must be convinced of the need for change.”

Reporter is aired on TVM, Tuesday at 8.45pm. Next week, Saviour Balzan interviews Prime Minister Lawrence Gonzi

 



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