Balanced budget by 2010 not top priority for MLP

Labour Leader Alfred Sant said yesterday that while a Labour government would try to achieve a balanced budget by 2010, as planned by the current Administration, his government's priority would be the implementation of its economic plan.

Dr Sant was asked by The Times whether, in the light of a decline in government revenue that would result from Labour's proposal to halve the surcharge and remove income tax on overtime, he would continue along the path agreed with the EU towards a balanced budget by 2010.

The commitment has been made by all the states in the eurozone.

"Our aim is to adhere to the eurozone target of reaching a balanced budget by 2010. However, France also has this target and is not following it," he said.

"Germany, Italy and Spain are doing the same. So we will continue to pursue the eurozone target, but overall, we will follow our plan for a new beginning," he said.

Currently, the European Commission has ongoing legal procedures against Italy and Portugal, both eurozone members, for overshooting their budget deficit. France has also been warned informally over the issue.

During his weekly electoral press conference at the party headquarters in Ħamrun, Dr Sant focused on the creation of wealth, particularly via tourism.

He said the building of golf courses, one in Malta and the other in Gozo, were among the party's top priorities.

"We intend to create more space for golf tourism. Our plan includes enlarging the current golf course in Marsa and a new one in Magħtab, instead of the former rubbish dump.

"In Gozo we are open to all suggestions, like for example, building a new golf course in the area of Il-Qortin, also a former rubbish dump," he said.

Labour will also evaluate the current proposal for a golf course at Ta' Ċenċ, insisting that these golf courses will be built on a "stand-alone" basis, meaning that no other facilities, such as hotels, will be included in their development.

Acknowledging that over the last year tourism has improved, particularly with the introduction of low-cost airlines, he said this is still not enough.

"Our aim is that in five years' time, the number of arrivals will surge to 1.6 million a year while tourism spending will reach €1.5 billion," he said.

Asked whether a Labour government will reinforce Malta's marketing efforts through its overseas offices and whether he still plans to close and sell Dar Malta in Brussels, Dr Sant called Malta's permanent representation in Brussels "an albatross around the government's neck". Labour will evaluate the situation and see what to do with it.

"It's too big and there are problems to run it particularly with its extra floors," he said.

A Labour government would also aim to strengthen the three-star hotels sector and replace the Jerma Hotel in Marsascala which has closed down with another hotel.