Jun 30 - Budget Speech 2014 - Live Updates
Chief Minister's Budget Announcement - Follow live updates from Parliament this morning, here:
10:10am - CM announces this is his 3rd Budget Speech as the leader of his GSLP/ Liberal Administration and 11th as a Member of Parliament. He highlighted the achievements of his Government in the past two and a half years. He went on to praise the service of Parliament staff for their work in making Parliamentary proceedings transparent for the public.
'This budget is carefully designed to support working families, our youth and senior citizens...' Picardo goes on to highlight that Global growth is expected to be higher over the next few years. Global growth is expected to be 3.4% in 2015, Picardo announced.
10:16am - Picardo highlights the UK's unsteady potential position within the EU. He goes on to note that economic status in Spain is better, despite the continuing economic pressures in the Campo. He praises the La Linea council for paying the wages owed to them last year. He insists that the Government remains committed to dialogue with Spain in an effort to boost economic status in the country and help job growth.
10:20 am - Inflation at 2.7% in 2012 - has now grown to 1.8% in April 2014.
10:23 am - GDP analysis: Gross Domestic Product 2011/2012 £1.17 billion, now estimated at £1.28 billion, the 2015 estimation is £1.41 billion.
GDP growth expected and predicted to surpass original estimate of £1.65 billion, economy is on target to exceed the original target from the GSLP/ Liberals’ manifesto. Figures reflect growth of 10.3% per annum, ranking Gibraltar as one of the fastest growing economies in the World. Gibraltar now ranks in the top 5 countries in the world for GDP per Capita. Picardo insists Gibraltar is up from 9th to 3rd in two and a half years.
10:30am - Gross Public Debt is now £70 million lower than under previous GSD administration. Cash reserves have been restored to normal levels,, Picardo claims. He goes on to pledge his Government's policy to help reduce debt. He insists the Government is on target to reduce debt at a steady rate.
Government revenue collected over the past year have exceeded expectations, company tax increased by over 20%, Revenue is up from £387 million to £547 million in two and a half years. 'That reflects a growth in cash terms of £160 million,' Picardo claims.
Gibraltar's Surplus is much higher than expected, it is expected to be a 'record busting, economic strangulation beating £65 million.'
10:37am - Government congratulates the community of Gibraltar as a whole. 'This is the fruit of the labour of those who work', Picardo tells the House.
Picardo informs the house that a total of £45 million has been donated to The Community Care Trust, bringing the reserves of the charity up massively.
'The Government believes it is important to remain prudent.' Picardo touches upon an employment increase of 1336 people in 2011, from the previous year.
10:50am - Spending in Culture Agency has been reduced by almost £1 million Picardo announces, touching upon former GSD administration spending. Increase in cost of diesel for power station raised expenditure from £4 million to £5 million, Scholar costs for University students went from £6.5 million to £9.7 million in 2012 following UK Government hike in tuition fees. Now reaches £12.5 million, following inflation.
11:00am - Picardo explains reasons for the increase in expenditure during the final years of GSD adminsitration.
11:03am - Tuition fees expected to increase to £14.68 million, almost a quarter of the increase in current expenditure. GSD left the Government with a growth expectation of 18% a year Picardo notes. Govenrment to switch in fuel from diesel to gas to cut costs in power.
Government has invested £128million in capital projects, Picardo announces, including £5.8 million on Sandy Bay and £5.2 million in housing estate refurbishments.
11:10am - Gibraltar International Bank has now formed its Board of Directors. The Board of directors will, in addition to the CEO and COO, be joined by Albert Langston AP of LLyds bank in Gibraltar, Mr. Markus Killick former FSC CEO and various other well known names from the baking/ accounting industry in Gibraltar.
Gib Savings Bank reserves now stand at £11 million, which are projected to increase to over £20 million. 'Mr. Speaker we have therefore re-established the Savings Bank rainy day fund.' Reserves have been increased by 1,000,385% since the GSLP/ Liberals were elected.
11:16am - Credit Finance Company Ltd, is structed and operating with all relevant legislation. Picardo defends Credit Finance Limited which is 'not funding Government projects.'
Deposits at Gibraltar Savings Bank have risen to £800 million, from £330million. Picardo pledges for the GSB to remain to provide its services, with further branches and counter positions to open soon, including instant access to current account facitilies including the transfer of assets. The bank will make available a new Visa Debit card for the bank as well as a selection of ATM machines.
Touching upon the airport underpass and new power station, Picardo announces that £4.5 million has been received by the Government in the OHL case regarding the runway underpass. This represents 80% of money spent by the Government on the case.
11:40am - Picardo touches upon power station issues, announce sthat a tender has been awarded for just under £68million. Government explores renewable energy possibilities, including solar powered lights, Govt sees huge value in these possibilities.
GBC is to stop taking standard advertising in order to allow for smaller news outlets who depend on advertising, to thrive, Picardo notes that the board is pursuing other means of funding for the station.
11:48am - Gibraltar Freeview is engaged in talks over more television channels for Gibraltar, Picardo insists one major international broadcaster has already come on board and will be broadcasting soon. 'Potentinal benefits for the community are enormous.'
Gibraltar to open a one stop shop for births and deaths by Autumn 2014, the public will be able to handle births and deaths among other matters, online. The eGovernment portal is set to have new services introduced over the next few months. The new ID card is to be introduced by Autumn 2014.
12:00pm - Picardo talks of establishing a body similar to the Privy Council. 'I am a supporter and defender of the Westminster adversal system.' He proposes to create a body dubbed the Chief Minister's Consultative Council, they will be made up of all inderviduals who have been CM and DCM and Chief Justice in Gibraltar.
'In order to further stimulate the retail sector of Main Street the following reductions in import duty will be reduced...' LED lights reduced to 0%, writing implements including pens reduced to 0%, mobile phones reduced to 0%, import duty on yachts, and pleasurecraft as well as dog and cat food and further stationary is reduced to 0%. Import duty on umbrellas and sunglasses is reduced to 0%, import duty on pearls is reduced to 5%.
Electricity and water charges will not be increased this year. Passanger tax for those boarding vessels in Gibraltar is being abolished. Discount for rates for bars and restuarants to be increased, in order to assist in the introduction of the smoking ban. Government starting up a small fund to assist start ups. No stamp duty will be payable on the first £250,000 of the homes of first time home buyers.
Minimum wage is to be increased with the index of retail prices from £6 to £6.11 as from August.
Picardo announces that import duty on tobacco is to increase by 25%. 'This is an area exploited poinsonously against us...' For retailers willing to move out of Laguna and Glacis Estates will receive a 100% refund on moving costs as well as other benefits.
Single parent benefits, spousal allowance and personal allowances have all been increased.
12:30pm - Gross Income Based System will provide assistance for First-time buyers for pension savings & for private medical insurance.
Picardo announces a working group to be made up of Chamber of Commerce, GFSB, Unite the Unite and Gibraltar Betting and Gambling Association to discuss issues.
Two annual scholarships to be created for students exceptionally talented in the arts.
'This a game changing budget,' Picardo rounds up.
'Mr. Speaker more cash, more jobs, and much more surplus than ever before.'
