Jun 30 - Chief Minister's Budget 2014 Speech Part 2

Mr Speaker, despite the continuing pay restraints in the UK public sector over the last few years, Civil Service pay in Gibraltar has continued to increase over the years as a result of the introduction by my predecessor of increases in Gibraltar which kept up with the cost of living. These put the public sector in Gibraltar beyond parity. The Government will once again increase Public Sector salaries under the 2014 Pay Review, which will increase by 2.5%, with effect from 1st August 2014.

HM CUSTOMS

296. Her Majesty’s Government of Gibraltar felt, as expressed in its election manifesto, that HM Customs Gibraltar was under resourced in the execution of its role as one of our Law Enforcement bodies and in particular in the administration of our country’s imports and exports controls and one of our main sources of Government revenue.

297. HMGoG embarked on a review process with stakeholders which has now successfully concluded. The purpose of this process has been to deliver to our Community and to those working at Customs a stronger department that transitions to a statutory disciplined body with its discipline code, the law enforcement functions of which will be specifically recognised and enshrined in a tailor made Act of Parliament. Raising the status of the department to be in line with other Law Enforcement bodies has been a key aspiration of all members of staff of the department and of the representative bodies. This will also require the staff to adapt to these changes to meet the needs of the organisation.

298. To achieve this, Government and staff have now agreed to implement a roadmap in which individual points of this agreement will be introduced as and when these are ready to come into force. HM Customs have powers of arrest, search, detention, right of access, investigation, seizure of goods etc. The remuneration of officers has therefore been increased to reflect their rank, duties, responsibilities, risks and exposure and any other duties that may be assigned to it.

299. A general restructure of the department will be introduced to bring it in line with modern operational needs which will include, in salary terms, an agreed 12% increase which is in line with the proposal made by the previous administration to the men and women of that department. A change of nomenclature to the current grades will reflectthe new law enforcement status and separation from civil service grades. In order to deliver this change, Government will be creating new Custom Officer posts.

300. The advertisement for those posts has appeared in today’s national press. Applicants will need to meet entry qualification requirements and attend a one day selection programme to assess their suitability. With the introduction of a new structure, there will be six additional promotions at Senior Customs Officer level (HEO) and seventeen new Executive Customs Officer posts (EO).

301. This proposal provides for an excellent step forward for HM Customs. It is designed to enhance opportunities within the department and to add to officer’s career prospects. The Government thanks all the parties for their positive involvement in these negotiations and for their patience in seeing these proposals through – a process which, floundered under the previous administration as voted down and which has prospered now by a huge and overwhelming majority of officers.

THE CITY FIRE BRIGADE

302. Mr Speaker, it is also true that Government has been in negotiation with the members of the City Fire Brigade for some time. Under the previous administration there was little progress in the practices of the Brigade. Again, with good faith and hard work we have made huge advances in our discussions but have not yet reached final agreements in some areas; including progress on new premises. One thing that is clear is that the commitment is there from both the official and the CFB side to now accelerate and reach new agreements and understandings which are within reach and with which both sides will feel we are able to consider progressive and value for money whilst ensuring we have the fire service our Community deserves. For thisreason I am today able to announce that the public service pay review will be doubled for members of the City Fire Brigade and that the present 3% abatement applicable to their pay is henceforth eliminated.

THE ROYAL GIBRALTAR POLICE

303. Mr Speaker this Government’s commitment to law and order and the rule of law has been clear from the moment that we presented our manifesto to the electorate in November 2011. Mr Speaker the RGP has enjoyed unprecedented access to resources in the time since we have been elected. This year members of the public will have noted the arrival of splendid new BMW police bikes. New vehicles are on order. This week a further new police vessel has been launched after we agreed to fund a full refurbishment of a forfeited vessel. Another very large vessel will be delivered to the RGP also during this calendar year which will be aptly named “The Sir Adrian Johns”. Why so many resources to this organization: Because a commitment to law and order and a commitment as real as ours to the rule of law cannot materialize into reality without that level of delivery on resources and the commitment and ability of a Minister as able and dedicated as Mr Licudi.

304. Indeed, Mr Speaker, The only accusation levelled at us in this respect is that we are too committed to the Rule of Law, even if it has required us to make difficult decisions about not accepting agreements that some can break the laws of Gibraltar with impunity.

305. And the primary instrument of law and order amongst our law enforcement agencies is the Royal Gibraltar Police; an organisation of which everyone in this Community is and should be justly proud.

      

306. Last week we saw fourteen new Police Officers pass out on Parade in the square outside. We were all reminded then in the programme that “Policing in Gibraltar presents unique demands and challenges. It is a difficult and demanding role.”

307. Mr Speaker that is only the tip of the iceberg of what we as a nation expect of our Police men and women as they strive to work together with all of us to make our Community safer.

308. Only last week we have seen what is possible with figures that speak to continued decreasing crime. I am delighted to say that Commissioner Yome’s Neighbourhood Policing mechanisms are working at every level, something on which I am sure my colleague the Minister for Justice, Mr Licudi QC will be saying more.

309. Mr Speaker, deciding to join the police and deciding to stay are not things that anyone person would do simply on the basis of looking at earnings; but the Government accepts that such might could in the future affect recruitment and retention in this important body. I sincerely believe that the success of our Police is principally down to one thing above all else, the sense of vocation and love for this Community and its safety which makes our officers such an example to others.

310. Mr Speaker, for that reason I am today announcing the removal henceforth of the abatement of 3% from officers salary, and the doubling in the case of the RGP of the civil service pay award of 2.5% also as from 1st of August. In addition Mr Speaker, we have wanted to see Police Officers be able to purchase their own homes for some years now. Officers who enjoy the benefit of Government housing do not pay rent or rates. Officers who have bought their own homes have enjoyed an allowance pegged at £76 for some years now, analogue to the average rent of a 3RKB Governmentquarter. Years ago there was even a central area of residence for Police Officers in the Old and New Police Barracks. Those days are gone and more and more the new officers that are recruited are home buyers like so may others in our Community. I am therefore today formally breaking the analogue in the RGP’s housing allowance for officers who do not reside in Government accommodation. Given that it has been stuck so long at £76, I am raising it today to £125 per calendar month with immediate effect.

IMPORT DUTY ON TOBACCO

311. Mr Speaker how apposite after dealing with the RGP and Customs that I should now deal with the duties in relation to tobacco. In support of this Government’s continuing efforts to discourage smoking generally among our Community, and despite the sensitivities in raising the price of this commodity of which Honourable Members are fully aware of, Honourable Members will have noted that Import Duty on cigarettes was raised in April 2014 by 10p per packet, which followed a similar increase in December 2013.

312. We will now again raise the import duty on rolling tobacco, which was last raised in May 2013, with immediate effect on midnight last night, by 20% from £35 per kilo to £42 per kilo.

313. Mr Speaker, we are conscious of the growth of the import duty collected in respect of this particular commodity in the past 18 years. For reasons related to public health arguments around the world, this is not in our view a future proof source of revenue and we are therefore keen to move our economy back to the situation we were in in 1996, when we last left Government, which made income from that source surplus toexpenditure needs. This requires short, medium and long term work on which the Government is already embarked and is a sensitive area in which I trust that we will be able to work without attempts being made to undermine our efforts in the interests of the whole Community. As the whole House knows, this is an area exploited poisonously against us by our international political adversaries. We must not allow them to use any part of our national political debate to fuel their toxic discourse.

314. I will say no more at this stage about those strategic issues at this stage.

315. I am however very proud of the fact that the Government can further demonstrate our commitment to the rule of law and law and order in the manner in which we have acted decisively in the banning of retailing of tobacco in the residential estates at Laguna and Glacis. I particularly want to thank the RGP and Customs for the work they have done and are doing in curtailing activity in these estates, other estates where there are less serious but equally anti-social issues which are going to tackled and generally throughout Gibraltar.

316. We have also acted decisively in respect of the EU Commissions recommendations in this respect. The House has before it legislation to consider later in this session.

317. Mr Speaker, I am very happy to tell the House today, that in addition to the position we have taken in relation to Laguna and Glacis Estates, I have now directed the Trade Licensing Authority that I consider that it is not in Gibraltar’s public interest for any further retail licences to be granted given the serious reputational risk to Gibraltar and I have accordingly, within the parametres permissible in law, discouraged the Trade Licensing Authority from issuing any new retail or wholesale tobacco licences unless an existing one falls away. I have also directed the Authority that I strongly encourage it to grant requests from holders of existing tobacco retail licences who may wish to move out of residential areas to areas not designated as Special Zones. A copy of my Direction to the Authority will be annexed to printed copies of this address.

318. Mr Speaker, in order to assist those businesses which have had to move their tobacco retail licences out of Laguna and Glacis, a 100% discount will be applied on General Rates payable in their new premises for one year and an additional capital allowance or tax credit is allowed equivalent to the relocation costs approved by the Commissioner of Income Tax in his discretion.

319. This year Mr Speaker there will be no increases in the duties on fuels.

INCOME TAX

320. Mr Speaker, in pursuance of the Government’s commitment to reduce the level of personal taxation for every taxpayer in Gibraltar, the following reductions in income tax will apply, with effect from 1st July 2014:

321. Taxpayers with assessable income of £10,500 or less will be brought out of the taxation system altogether and will pay no income tax. This applies to taxpayers in both the Allowance Based System and the Gross Income Based System.

322. A tax free allowance up to £3,000 over two years is introduced for both the GIBs and Allowance Based System for the installation of solar energy for boilers. A stream lined application process will be applied for any necessary Town Planning applications along with a waiver of any fees payable.

ALLOWANCE BASED SYSTEM

323. Taxpayers under the Allowance Based System will benefit from the following increases in allowances:

1. Medical Insurance Allowance is increased by 100% from £2,000 to £4,000;

2. Nursery School Allowance is increased from £3,000 to £4,000 (per child);

3. Blind Persons Allowance is increased from £3,000 to £4,000;

4. Disabled Individuals Allowance is increased from £5,000 to £6,000. At present, any deductions for disabled individuals under the Income Tax (Allowances, Deductions and Exemptions) Rules 1992 are dependent on whether the parent or individual claiming the income tax allowance is in receipt of financial assistance out of the Social Assistance Fund. However, eligibility to financial assistance out of the Social Assistance Fund is dependent on the applicant residing in Gibraltar for a period of five years. Even though this five year residency requirement will remain in force for social assistance purposes, this requirement will be dispensed with for the purposes of obtaining an income tax allowance on the grounds of disability.

5. Single Parent Family Allowance is increased from £3,000 to £4,000;

6. Personal Allowance is increased from £3,000 to £3,100;

7. Spouse Allowance is increased from £3,000 to £3,100.

8. For those taxpayers who have elected to pay income tax under the Allowance Based System, the tax rate for the taxable income bracket ranging from £4,001 to £16,000 will be reduced from 24% to 18% as set out in our manifesto.

GROSS INCOME BASED SYSTEM

324. Taxpayers under the Gross Income Based System will benefit from the following measures

HELP FOR FIRST-TIME BUYERS

325. In order to further assist working families with the purchase of their first–time home, a deduction from assessable income of £6,000 will be made to taxpayers under the Gross Income Based System in respect of approved expenditure incurred towards the purchase of their home, during the tax year commencing 1st July 2014.

HELP WITH PENSION SAVINGS

326. In order to encourage saving for retirement by way of employee contributions to approved pension schemes, a deduction from assessable income of £1,200 per annum will be made to taxpayers, under the Gross Income Based System, in respect of contributions made with effect from the tax year commencing 1st July 2014.

HELP WITH PRIVATE MEDICAL INSURANCE

327. For those members of our community who choose to have private medical insurance, a deduction from assessable income of £2,5 00 per annum will be made to taxpayers, under the Gross Income Based System, in respect of premiums paid for such cover with effect from the tax year commencing 1st July 2014.

LOANS TO SHAREHOLDERS AND DIRECTORS

328. Mr Speaker, at present any employment-related loan made to a director, a shadow director or any connected person is treated as earnings from employment and is taxed as a benefit-in-kind. This applies to all loans or advances irrespective whether an arms-length rate of interest is paid or not. I believe that there are genuine cases where

a company may wish to make a loan to a director and expect a repayment to be made and interest paid. I am therefore happy to announce that, with effect from 1 July 2014, all loans or advances made to a director, a shadow director or any connected person and the terms of the loan is such that an arms length rate of interest is paid and that the loan agreement has received the approval of the Commissioner of Income Tax then such loans or advances shall not be treated as earnings from employment.

STANDARD RATE OF TAX

329. Mr Speaker, the standard rate of tax for individuals currently stands at 30%. This rate has remained unchanged for over 25 years notwithstanding reductions in tax rates in both the Allowance Based System and the Gross Income System. Today no one pays tax at an effective rate of more than 25% therefore, with effect from 1 July 2014, the standard rate of tax for individuals is reduced to 20%.

TRUST INCOME

330. Mr Speaker, the income of a trust resident in Gibraltar is currently charged to tax at the standard rate of 30%. With effect from 1 July 2014 the standard rate of tax for trusts is reduced to 10%.

TRANSFER OF PRIVATE PENSION SCHEMES

331. Mr Speaker, changes are being introduced to the Pension Scheme Guidelines by the Commissioner of Income Tax, which will permit members of Approved Pension Schemes in Gibraltar to continue as active members and make contributions to such pension schemes, even whilst not in employment.

332. Mr Speaker, this will encourage all members of our community, whether or not they are in active employment and indeed the self-employed, to save for their retirement.

333. Mr Speaker, the Government is also pleased to note that the Provident Trust Pension Schemes have been approved by HM Revenue and Customs as Qualifying Recognised Overseas Pension Schemes (QROPS).

334. This QROPS approval, together with the changes to the Pension Scheme Guidlines mentioned previously, will be of particular benefit to Barclays Bank employees who may wish to transfer their UK pension funds to Gibraltar, following the decision by Barclays Bank to close its retail business in Gibraltar.

SOCIAL INSURANCE CONTRIBUTION CREDITS

335. Mr Speaker, in my last Budget address I stated that occupational pensions received by retired members, aged 55 or over, of the Royal Gibraltar Regiment would be exempt from Income Tax. I am now delighted to announce that this measure will now also extend to members of HM Customs Department, in keeping with the implementation of the agreement entered into with Government which I have already announced to the House. In addition to this measure, we shall be awarding to retired members of the Royal Gibraltar Regiment and HM Customs social insurance contribution credits as from the age of 55. In doing so, we shall be bringing the Royal Gibraltar Regiment and HM Customs in line with the Royal Gibraltar Police and other uniformed bodies. This will take effect as from 1 July 2012 for the Royal Gibraltar Regiment and from the effective date of the implementation of the aforesaid agreement for Customs.

PAYROLL GIVING SCHEME

336. In last year’s budget, I announced that the Government was considering the introduction of a Payroll Giving Scheme, thereby allowing tax-free charitable donations to be made to approved charities through employment earnings. I am now delighted to confirm that this Scheme will shortly be introduced, enabling any person who pays income tax in Gibraltar to give regularly and on a tax-free basis to approved charities of their choice.

337. Donations under the Payroll Giving Scheme shall be capped at a maximum of £5,000 per taxpayer per annum.

PLACES OF WORSHIP

338. As a separate measure, Mr Speaker, places of worship of all faiths and denominations recognised as such by the Chief Executive Officer of the Gibraltar Electricity Authority will enjoy a credit against their electricity bill of the average of their consumption in the past 2 financial years.

COMMON LAW RELATIONSHIPS RECOGNISED FOR BENEFIT PURPOSES

339. Also separately, all spousal allowances will now apply between Civil Partners as a result of the Civil Partnership Act. Today, Mr Speaker, I am announcing that the Government will now consider claims for allowances or benefits payable from individuals who are or have been in common-law partnerships in respect of allowances of benefits payable to married couples or couples in a civil partnership, if the relevant individuals can satisfy the relevant officers of the administration who are in charge of payment that they are or have been in a common law relationship. Discretion will remain with the relevant officer, subject to review by the Chief Secretary as appropriate. Legislation will be required for this long over due change.

INCENTIVES FOR HIGH END ACCOMMODATION

340. Finally, in order to encourage the construction of office accommodation in Gibraltar last year I announced that any such developments on which construction commenced on or before 31 March 2015 would be allowed a Capital Allowance deduction in the first year following completion of construction equal to 30% of construction costs and the remaining 70% written down over the following 7 years. This allowance will be claimable in part or in full by either the developer or the occupant up to a maximum claim of the full construction costs. Construction costs will be considered to be those costs wholly, and exclusively laid out or expended in the construction of the office accommodation including all preliminary planning, design and associated costs but excluding the cost of the land.

341. That measure has met with huge success Mr Speaker. A number of such schemes are now in development and about to break ground seeking to meet the deadline of March 2015.

342. As the Government is presently providing for the market in affordable homes, we are therefore now extending the measure I made for office accommodation to developments of high value accommodation, where ground is broken before December 2015.

343. In the same way as Gibraltar needs affordable homes for our people we also need to stimulate the market in high end homes for those who wish to re-settle in Gibraltar.

CATEGORY 2 STATUS

344. Mr Speaker, one of the products in our Financial Services Sector which has certainly

stood the test of time and which has led to many people resettling in Gibraltar inluxury homes – and in that way added to our economy very significantly - is the Category 2 Individual Status. Professionals across the sector have used and worked with this status in the structuring of their clients personal affairs since this was first implemented in 1992 as the High Net Worth Individual Status.

345. Yes Mr Speaker, this hugely successful financial services product was introduced by the last GSLP administration and unfortunately has not been seriously reviewed since that time other than by the hiking of the tax payable by those who hold the status.

346. This particular product is one which involves personal status and residence issues and is therefore also one in respect of which I carry ministerial responsibility for that reason.

347. We firmly believe that it is the duty of Government to work In partnership with the private sector to maintain our portfolio of products current and updated in an ever- changing world and to ensure that these products remain relevant to the needs of Gibraltar’s clients.

348. I am therefore Mr Speaker delighted to announce today that in an inter-ministerial committee comprised of my office and the office of the Minister for Financial Services and Gaming, the Hon Albert Isola, my Government will has commissioned a long overdue review and report of the Category 2 product, and to this end has engaged and instructed the professional services of the leaders in their field in each of these areas.

349. Mr Speaker the professional working group will be asked to consider and report on all aspects of this product and its development. They will engage with existing holders of this status as well as with those involved in the application process to ensure that applicants enjoy the benefits of a product that is fit for purpose in todays world anddelivered in a manner that meets the expectations of those we are seeking to attract to Gibraltar. They will also be in contact with professional intermediaries outside of Gibraltar who are experts in the field.

Affordable Home Ownership

350. In terms of the Government’s affordable home ownership scheme, progress is huge and for all to see at the building sites at Eastern Beach and Waterport.

351. We are well down the road of the construction of the first projects and the acquisition of the Queen’s Hotel will allow us an opportunity to develop even more rental housing for the elderly near the town centre.

352. Mr Speaker, the Government is nonetheless of course conscious of the difficulties currently being experienced by prospective home owners in obtaining finance from mortgage-providers in Gibraltar, especially mortgages for financing the purchase of their homes under the Government’s home-ownership schemes.

353. The Government is in advanced discussions with the local banks and other financial institutions, in this respect, and is considering proposals which will lead to an increase in the availability of such mortgage finance in order to assist the growing number of working families who would like to own their own home.

354. Mr Speaker, the Government is also working on proposals to provide further assistance in order to free up some of the pressure on the mortgage market by arranging facilities for public sector employees who may wish to purchase their home under any of the Government’s home ownership schemes. Government is seeking to arrange that such loans to be secured against their pensions and gratuities. This would

     enable many public sector employees to purchase their home in cash and without theneed to have a mortgage on their property with interest charged at market rates, on a reducing-balance basis. Interest and any capital repayments would be deductible from their monthly salaries with the loans being repaid in full upon the employee’s retirement or earlier departure from Government Service.

355. Moreover, Mr Speaker, the Government will also now be extending the 50/50 scheme to the sale of its Post War Housing Stock to sitting tenants and eligible relatives. We shall shortly be communicating with those who were eligible to purchase to advise them of how this extension of the scheme will work in relation to that part of the Housing Stock.

356. Mr Speaker, as a further measure to assist those who may wish to buy their home in cash and who may have their savings locked-up in fixed-term debentures with either the Government or the Gibraltar Savings Bank, such debenture-holders will be given the option to redeem their debentures before the maturity date, with no penalty if they can satisfy the Financial Secretary that the redemption monies will be applied for that purpose.

PRIVATE SECTOR PENSIONS

357. Mr Speaker I have received a petition from Unite the Union signed, amongst many other, by members of the Government and the Opposition in which we are asked to consider the possibility of making it compulsory for every individual in the private sector to have a pension. I am today creating a working group to be made up of relevant unions and employers representative bodies including the Chamber of Commerce, the Gibraltar Federation of Small Businesses and onto which we will also invite the Gibraltar Betting and Gambling Association in order to consider whether such measures are feasible in the context of our economy. I am aware that these measures are now in place in the United Kingdom and I want to recognise and praise the work done by Unite in understanding the way in which these systems have been introduced in the UK by the Conservative Liberal Coalition who have done so in a manner that appears to have enjoyed the support of employers and employee organisations. I will be asking Michael Crome from my office to chair that Working Group.

ARTS SCHOLARSHIPS FOR UNDER 18s

358. Finally, before rounding up Mr Speaker, I am delighted to announce that the Government will be creating two annual scholarships to be available to children under the age of 18 who are exceptionally gifted in the arts and who are able to obtain placements to progress their development and study of music, dance another art other than at degree level which is covered by the present Scholarship programme.

359. CONCLUDING REMARKS

360. Mr Speaker, last year I was very disappointed that the Hon gentleman did not actually reply to my budget address. Just like I did last year, I have again made a very large number of announcements this morning which are clearly for the good of our community, I have disclosed important figures that demonstrate that some of his criticisms throughout the year have been unfounded. I have shown that his oft expressed concern about the growth of recurrent expenditure is actually something they created whilst in government that we are now taming and brining under control. I trust that this year he will in his speech respond to these matters and not simply deliver the speech he has come prepared with. I do hope he will specifically respond. 

to what I have said and not just fall into the trap of delivering his prepared text; because his analysis will be less than relevant if all he says to us is that he is worried about rising Recurrent Expenditure, blaming us for what he says is a £66m rise without addressing the fact that it actually has grown principally as a result of what his previous leader used to call untameable market forces and as a result of the things they did in Government before they left.

361. Mr Speaker I want to thank the unions who have worked with me this year, the Chamber, the Federation, ATCOM and the Finance Centre Council for their input. Not all their requests or shopping lists can be accommodated, but good input from those organisations helps us to better calibrate this appropriation and to consider how some structures may change to accommodate innovative suggestions in the future. We will certainly continue our full engagement with them.

362. It is also right of course that I should also thank all Public Servants of Gibraltar without whom Government cannot operate and who in great measure are as responsible for these great results as any of the 10 of us on this side of the House.

363. In particular Mr Speaker, our thanks to you, the Clerk and staff of the House for bearing with us this year. This month we continue the work of refurbishing the work areas of Parliament behind the Speaker’s Chair and as a result there will be no July session. I apologise in advance to you and your staff Mr Speaker for the disruption the refurbishment will create and trust that the absence of a meeting whilst it is ongoing will minimize the effects it will have on your work which as members know – but the rest of the Community may not be aware, continues even when Parliament is not in session. The installation of the lift to make the Chamber accessible will also no.

commence in earnest I understand and is expected to be finished in time for the October sitting.

364. Again, this year, this is a useful moment to extend a very special acknowledgment also to all the staff of No6 Convent Place; especially the team that works on my corridor of the building.

365. Two and a half years in it is very much thanks to them that I never feel alone at any time of the day or night when I am at work on our nation’s challenges at that emblematic address that is finally being transformed into a representation of the modern Gibraltar.

366. Today, I want also to continue the tradition I established, which I think is fitting in a system of real Cabinet Government of thanking all other members of the ministerial team; for their sterling endeavors in the course of the past financial year.

367. It is that work and the work of the civil servants who work alongside us that delivers these excellent results.

368. Because it is quite clear to me and no doubt to people outside this place that this is a GAME CHANGING BUDGET; a game changing appropriation of monies for our Community.

369. This Budget shows our Community that our long term strategy for the future of this Nation of ours is starting to bear fruit.

370. Already the rainy day funds are well established once again in Community Care, now with over £80m already.

371. Already the rainy day funds are well established once again in the Savings Bank where Reserves are estimated to be restored again to the level at which they were before members opposite took the money for their general purposes – talk about using savers’ money for the government’s own purposes!

372. Mr Speaker, this is the Socialist Liberal Government’s third budget, which once again delivers social justice for all our community.

373. This is a budget for people of aspiration; for hard working people who are the spine of our success as a community.

374. Because this budget demonstrates that we care about the people who can't pay their bills and who are not riding high and we care about businesses that are not doing as well as they could because of the attempts to strangle our economy.

375. This is a budget for the entrepreneurs and the working man and woman.

376. A budget not for those who put out their hands just to take; it is a Budget those who put out their hands to work and for those who genuinely cannot work.

377. And these are exciting times for businesses in Gibraltar.

378. Entrepreneurs can see that there is a Government in Gibraltar that is on their side.

379. A Government that understands their needs.

380. A Government that wants to see growth continue and to spread to every sector of the economy.

381. A Government that understands that each taxpayer is a shareholder in this common enterprise that we call the nation we are building.

382. And our role is to ensure we maximise shareholder value in everything we do; adding shareholder value in tangible, economic terms and in non-tangible non-economic ways to ways; a balancing act we are getting right at each turn.

383. We are delivering game changing developments like Commonwealth Park in partnership with responsible charitable organisations like the Kusuma Foundation; whilst also delivering game changing surpluses.

384. And we are not just relying on established industries and established standards.

385. We are dragging Gibraltar out of the culture of mediocrity; we are reaching out for a better standard and new business.

386. We take not just the low-lying fruit of the established sectors, we go further to try to establish new industries with innovative thinking and our sights set on the future and not just the present and the past.

387. And that is what is resulting in investors breaking ground on new office developments which just did not get off the ground before.

388. That is why we already have a fabulous, new, 5 star hotel already operating : barely 30 months after our election – organising functions Gibraltar could never have hosted before.

389. We can see we have the confidence of the financial services sector which has grown in jobs since our election despite the challenges that industry faces;

390. Confidence from the gaming sector which has grown in jobs since our election despite the challenges that industry faces.

391. We enjoy the confidence of unions and employers representative organisations because we listen and we act when we believe their ideas are better than ours.

392. But we are clear that we enjoy the confidence from all sectors of society because we are working for all sectors of society and delivering to all sectors of society.

393. And so I say to every member of our Community, Mr Speaker, whoever they may have supported at the last election: this is a budget for you; for those of you who voted GSD or PDP, for those of you who mixed your vote and for those who did not vote at all as much as for those who voted GSLP LIBERAL, because we are a government for all of Gibraltar - as we promised to be AND WE MAKE NO APOLOGY FOR THAT!

394. We are a government delivering a budget for workers and for entrepreneurs; for those on middle class incomes and working class incomes; for the worker and for the business man.

395. A budget that delivers social justice for all of our people, as we will endeavour to do in every appropriation bill we bring to this House.

396. A budget that demonstrates that we will take no lessons in finance from those who left Gibraltar with just £2m in the bank when they left.

397. We will take no lessons in democracy from those who financed their party newspaper exclusively with tax payers’ money or hardly called any meetings of this Parliament when they could.

398. Because this is a budget of a government that will always put country before party and not the other way round.