Government, Opposition clash over Gozo's regional status

Government and Opposition last week clashed over whether the European Union has agreed to consider Gozo as a separate region.

Foreign Minister Joe Borg on Monday, announced that Gozo is being officially recognised as a separate region in the regional policy chapter closed in Malta's EU accession talks in Brussels.

But the Labour Party said that Gozo will not be considered as a region. It said the government will only be compiling separate statistical data for Gozo.

The EU's regional policy is based on financial solidarity. Part of the member states' contributions to the community budget goes to the less prosperous regions and social groups. The government pointed out that Gozo will be treated as a region since it falls within the periphery of a mainland and is therefore considered to suffer from certain disadvantages.

The first draft of Malta's single programming document to be forwarded to the European Commission by the first quarter of next year is to include a separate priority entitled, 'Regional Development in Gozo,' which will be focusing on Gozo's special needs.

Addressing the meeting in Brussels, the head of the core negotiating group, Richard Cachia Caruana, explained that the disadvantages faced by Gozo derived particularly from the island's double insularity and its over-dependence on the primary and secondary sectors of employment.

In 2000 Gozo's regional gross domestic product per capita stood at u6,160 or 71.7 per cent of the national average.

The economic and social development of the island was limited by its small size and resources, which made large investment projects unprofitable and did not allow economies of scale.

"We have reached an agreement with Eurostat concerning the NUTS classification for the Maltese Islands. Under this agreement the Maltese territory will be designated as one single region at NUTS levels one and two, and two regions at NUTS level three consisting of Malta and of Gozo and Comino respectively.

"It was in a spirit of compromise that we agreed on a solution that would define Gozo's separate regional status at NUTS level three rather than NUTS level two. This classification will be complemented by a separate proposal to provide for suitable measures under an appropriate framework to address the issues specific to Gozo," Mr Cachia Caruana said.

"The agreement would take into account Gozo's permanent and specific needs stemming from the structural handicaps linked to its island status, such as double insularity, environmental fragility and its small population coupled with a high population density," Mr Cachia Caruana continued.

But during a social activity held in Xaghra on Tuesday, Opposition Leader Alfred Sant denied the EU had accepted Gozo as a region. Brussels had only given the right for the compilation of statistics for Gozo separately from those for Malta.

In a statement on Wednesday, Minister Joe Borg and Gozo Minister Giovanna Debono reiterated that the MLP was trying to invent a new reality with the aim of creating confusion.

"The government has ensured that in the single programming document, which will explain how Malta plans to spend EU funds after membership, there will be a separate priority. Consultations are underway with the European Commission about the measures - which will be negotiated separately - that would provide for the specific needs of Gozo, in particular its double insularity, its fragile environment, the small size of the island and its population density as well as its extremely limited resources," Dr Borg and Mrs Debono said.

Carmel Attard, Malta-EU Information Centre (MIC) information officer, said that Gozo was being considered a region at NUTS level three. "This means that statistics would have to be collected on a regional basis for Gozo and not as one country.

"Gozo will not receive funds directly for its needs. Funds will be allocated to Malta and Gozo as one unit. It will be up to the Maltese authorities to see how these funds will be allocated, spent and all accounts verified," he added.

The Iva Movement on Tuesday welcomed the EU's decision to recognise Gozo as a separate region following the closure of the regional policy chapter. Iva said Gozitans should be satisfied that their island had been recognised as a region different from Malta, despite its small size.

The movement said that the conclusion of the regional policy chapter proved that negotiations were reflecting the views of all parties concerned, including the Gozo Business Chamber and the Gozo Tourism Association.

The MLP on Thursday again denied that the EU had accepted to treat Gozo as a separate region, dismissing the government's explanation of Gozo's regional status as mere words. In a statement, the MLP said that NUTS or no NUTS, the reality remained that Gozo would not have its own regional institutions and it would not receive any special treatment as a region in favour of farming, industry, crafts or tourism.

"Neither had it been accepted as a region of the EU in terms of separate assistance from Malta in the social, economic, administrative and cultural fields," the MLP added.

Antoine Vassallo, of Victoria, said that he spent several years promoting the need for Gozo to be treated differently in decision-making especially due to its special circumstances, and more importantly, its disadvantages.

"There clearly is agreement across the social and political spectrum that Gozo has specific needs and opportunities. Decisions taken by the Gozo Ministry, boards and other national bodies affect Gozitans differently," he said.