Issue link: https://maltatoday.uberflip.com/i/1510683
12 maltatoday | TUESDAY • 31 OCTOBER 2023 BUDGET2024 No plans to start construction of new Gozo hospital in 2024 Multi-million cash grants and investments announced MATTHEW FARRUGIA GOVERNMENT has no plans in place to start the construction of a new hospital in Gozo, Clyde Caruana's budget speech shows. In a 134-page document, the new hospi- tal in Gozo which had been promised to be completed by 2018, was not featured once, indicating that government will not work on building a new Gozitan hospital in 2024. Meanwhile, a closer look at the projected cost of running the Gozo General Hospi- tal shows that government will be spend- ing less than what it spent when it was being run by Steward Healthcare. In fact, government's health estimates show that while the cost of running the hospitals stood at €50,424,000 in 2023, this is ex- pected to decrease to €42,994,000 in 2024. Budget 2024 comes exactly one week after the Court of Appeal had dismissed Steward Healthcare's appeal against the decision to annul the hospitals' privatisa- tion deal. The deal was also described by court being the result of collusion between government and Steward Healthcare. While not mentioning the deal, Caruana stated that government took over control of the three once-privatised hospitals, including the Gozo General Hospital. Caruana stated that government would be spending €75 million, which doesn't include wages, to operate the three hos- pitals. The finance minister also noted that government is, "working to protect Mal- ta's interests," in the ongoing internation- al arbitration proceedings regarding the privatisation deal. MATTHEW AGIUS A number of government-led initi- atives aimed at bolstering several in- dustry sectors are to be launched in 2024. The initiatives target the manufac- turing and financial services indus- tries, as well as family businesses, air- craft leasing and green bonds. A total of €40 million are to be dis- bursed as cash grants to small and medium sized enterprises (SMEs) under the Business Enhance scheme. These grants are aimed at startups, to help them develop, diversify and reach new markets. Small and medi- um size enterprises are to continue to benefit from free energy audits. Financial instruments for EU funds will be invested to assist small and medium size Maltese businesses by facilitating their access to financing by local banks, by reducing interest rates and collateral requirements. A €9.5 million allocation from the European Regional Development Fund and around €7 million in re- funds from the JEREMIE ("Joint Eu- ropean Resources for Micro to Medi- um Enterprises") scheme, means that a total of €16.5 million will be availa- ble to SMEs. "Family businesses are the back- bone of the economy," Caruana said, announcing an extension on the tax concession reducing stamp duty from 5% to 1.5% when family businesses are transferred from parents to chil- dren during the parents' lifetimes. Family businesses that are reg- istered as such will benefit from a higher capping in tax credits on in- vestments made in their businesses. The minister promised to see that family charters are expressly recog- nised at law and suitably regulated as special contracts and that family businesses benefit from fiscal incen- tives as they internationalise, inno- vate and digitalise. A number of other existing schemes aimed at strengthening enterpris- es, such as the Skills Development Scheme,the Rent Subsidy Scheme, the Innovate scheme and the Smart & Sustainable u Investment Aid for En- ergy Efficiency Projects schemes will also be extended. STMicroelectronics A multi-million euro investment in electronic component maker STMi- croelectronics was announced. The investment will enable the company to increase its manufacturing capacity under the European Chips Act. Local microchip production is a €600 million industry, Clyde Caruana said, announcing that Malta has part- nered with France and Italy to keep ST's manufacturing operation inside the EU in response to a US bid aimed at attracting microchip manufactur- ers to relocate across the Atlantic. Caruana described the microchip industry as a strategic one in the glob- al economy. The sector employs over 1,800 workers in Malta and results in exports in excess of €600 million. Last June, the European Commission an- nounced that a joint project by Malta Enterprise and ST Malta was one of 55 strategic projects selected as Im- portant Projects of Common Europe- an Interest (IPCEI), which should lead to further investment and innovation in the microchip sectors in Malta, he said. Next year the government will be building on the Malta Financial Services Strategy, a long-term plan, which was launched earlier this year, intended to revitalise and transform the financial services sector by build- ing on the established foundations and Malta's solid reputation in the sector. GOVERNMENT will invest €215 million in capital in- vestment towards Malta's new national airline, which is set to open on 31 March 2024. Finance Minister Clyde Caruana once again stressed the importance of Malta having its own national airline, citing its inseparable ties with economic growth. Earlier in October, Caruana had announced that Air Mal- ta would officially cease operations on 30 March 2024. The new airline will operate eight aircraft and eventually, three of these will be fully owned by the company rather than leased. The airline will operate on 17 routes. The new company will re-employ the 390 people cur- rently on Air Malta's books and the recruitment process will start in December this year. A few weeks ago, govern- ment said it will invest €350 million in the new airline. Of these, €300 million will be used to purchase three aircraft, purchase back the Heathrow and Gatwick airport slots from a government company, and the hangar and grounds around it at Gudja airport. Injection of €215 million in new national airline GOZO HOSPITAL BUSINESS INCENTIVES AIR MALTA