Issue link: https://maltatoday.uberflip.com/i/1477075
NEWS 5 maltatoday | WEDNESDAY • 24 AUGUST 2022 KURT SANSONE THE University of Malta has been in- formed that its budget for this year is being reduced by €1.1 million as part of govern- ment's spending review. In an internal communication, UOM Rector Alfred Vella informed faculty deans on Tuesday that the university's recurrent budget has been reduced. He also informed them that the UOM's budget for next year is likely to be kept at the same level as this year after the cut. According to the budget estimates for this year, the UOM was allocated €89.3 million. Vella expressed concern that the budget cut will leave very little money for any- thing else apart from salaries and essential services. At least 85% of the UOM's recurrent expenditure is committed to salaries and 10% to essential services such as utili- ties, cleaning, periodicals and software licences. "Not much will be left over to manoeuvre the various other needs or improvements," Vella told deans. He added that what was more worrying is the indication that next year's budget al- location will be kept the same as this year. "Taking into account the salary increases and inflation on other expenditure, the estimated recurrent budget reduction will amount to between €3 and €5 million," Vella said. This is the first public entity – the UOM is funded by the government despite en- joying a degree of independence – for which a specific budgetary cut has been made public. The rector's letter was leaked to Nationalist Party education spokesper- son Justin Schembri, who published it on his Facebook page. Spending review to curb expenditure Government is currently undertaking a spending review to curb expenditure as a result of a much bigger outlay on energy and fuel subsidies. MaltaToday had reported at the end of last month that Finance Minister Clyde Caruana had asked ministers to find €200 million in budgetary cuts. Caruana had set aside €200 million to cushion the impact of rising energy prices when presenting this year's budget. How- ever, this was before the Russian invasion of Ukraine that has caused energy and food prices to spike. Government has been pumping subsi- dies to keep electricity and fuel prices sta- ble and also helping wheat importers with a further outlay of €6 million. Malta's inflation remains the lowest in the Eurozone thanks to government in- tervention but questions have been raised on the sustainability of public finances if the prices of energy and fuel continue to increase. The deficit last year stood at 8%, the highest in the EU, although Malta's public debt remained well below the 60% mark. However, the expenditure on energy and fuel subsidies has prompted the spending review in a bid to keep the deficit in check. PN condemns university budget cut In a statement on Tuesday, the PN spokesperson "condemned" the universi- ty's budgetary cut, accusing the govern- ment of being stingy. "The PN believes that money spent on education is an investment for the future and not a propaganda tool," Schembri said. "The beautiful statements used by government, such as 'The Malta we want for our children' as a theme for this year's budget, were nothing more than cheap propaganda that do no justice to our chil- dren's future." The PN spokesperson said the UOM, which is already operating on a restricted budget, faces cuts that will shackle its pro- fessional development. University rector informs deans of this year's budgetary cut LUKE VELLA THE Gozo Tourism Associ- ation has called for works to commence on an airfield for the fixed wing air link between Malta and Gozo. But the association said that the proposed Malta-Gozo road tunnel should be scrapped once and for all, as a first step to safe- guard the island's character. The proposals were made in the GTA's budget document titled 'Recover and Consolidate Growth: Budget 2023'. It also proposed that the ex- isting fast ferry service is sus- tained and improved, whilst a fourth Gozo Channel ferry is built identical to the existing ones, in order to replace the Nikolaus. With regards to the envi- ronment, the association said that it does not want Gozo to become another smaller Mal- ta and that it was essential for Gozo to remain distinct and re- tain its unique identity. It said that the environmental planning should not be limit- ed to land but also include the coast and surrounding seas, en- suring the enforcement of ma- rine protected areas. GTA proposed that all of Gozo be designated as a Design Priority Area and that the Planning Au- thority Rural Policy is amended to reflect Gozo's size. It said that Gozo should get a specific agri business policy and specifically drawn planning policies. Gozo should retain its appeal The association said that after the "disastrous" consequences of the pandemic, the tourism sector needed to focus on prop- er recovery whilst consolidating growth. GTA said that there was a lack of investment and organisation in the Gozitan tourism infra- structure and that unfinished projects were giving the island a shabby look. "Gozo has a distinctive cul- tural, heritage and natural re- source base with a quality range of products. These inherent strengths have to be guarded and enhanced to ensure that they retain their appeal." The association said that the eco contribution collected from Gozitan accommodation units should be invested in Gozo's product upgrading. The right of access to the div- ing sector for the shoreline on the North and Northwest of Gozo should be ensured and enforced, GTA said. It also proposed the develop- ment of a water park and the in- corporation of sports facilities in one project at the Ta' Xħajma horse race complex. Tour operators specializing in winter breaks and longer stays, should be encouraged to mar- ket and sell Gozo for the No- vember to April period, the as- sociation said. It also proposed that the vouchers scheme for the domestic market should be re-introduced to cover the No- vember to March period. "Create, offer, support and en- tice new niches like adventure, activity, sports, walking, digital nomads and well-being," GTA said. In a bid to address the short- age of workers in the touristic sector and improve the service, GTA proposed the introduc- tion of a grant scheme for stu- dents who opt to work during the weekends or their holidays in Gozitan tourism establish- ments. It said that courses should be organised for foreign employ- ees to learn basics of Maltese and English and the history and culture of the islands. The ITS Gozo Campus should be developed into a specialised vocational tourism institution, catering also for Maltese and foreign students, the GTA said. Gozo Tourism Association calls for fixed wing air link between islands