Budget Speech - Gilbert Licudi
Mr Speaker
My Honourable colleagues in Government, in particular Mr Cortes, Mr Daryanani, Sir Joe and Ms Sacramento have dealt with those areas which were part of my responsibilities as a Government minister when we were hit with the pandemic in March 2020.
I will not say any more than they have said but I do want to express my own appreciation to all heads of department and other public servants who worked with me in those very difficult times, particularly the early days, and who managed to adapt and change the way we provided a service to the public, to schoolchildren, to pensioners to users of the Port and the airport.
I owe them all a huge debt of gratitude for their assistance, their support and their dedication to duty.
The enormous effort by public servants was not just evident in departments for which I was responsible.
We saw it across the Government
It has certainly not been easy during the last year to deliver the public services that we are all accustomed to
Lockdown and restrictions have necessarily meant that things have had to be done differently
It was not possible simply to pop down to a public counter to get information, make or receive a payment or make an application
Suddenly none of this could be done
It was not a case of a planned closedown and a gradual shift to remote or online services
It happened almost overnight
There was a need to adapt
There was a need to devise new ways of delivering public services It was not without difficulty
It was not without hiccups
But again it involved a tremendous effort by all those public servants who sought to ensure that services continued to be provided in such circumstances
It is important to recognize this and to congratulate all of those involved in the delivery of public services
The CM has made it clear that this is not a give-away budget. We could not have expected any differently this year
The CM described this as a prudent budget – a rebuilding budget A budget to promote ambition and entrepreneurship
It was also described as a budget for young people
Protecting scholarships
Protecting the affordable housing schemes
Protecting the programme on new schools
All of this is to be welcomed.
It cannot have been easy to arrive at the right balance between prudence, rebuilding, making sure that ambition is not lost and protecting those areas which are of crucial importance to our youth
This budget does precisely that
I must therefore congratulate the Government and the CM in particular for a budget that seeks to navigate these treacherous waters carefully, but also with determination and steadfastness
It is, of course, a budget which must be looked at in its proper context
Indeed, all of the speeches in this debate have been marked in some way by the Covid pandemic.
This has touched each and every one of us in some way.
We have all been subject to a lockdown and significant restrictions on what we have and have not been able to do.
Some have caught the virus, others have been subject to self-isolation. But all of us have been affected.
We have not been able to see and be with loved ones.
We have not been able to visit our sick or elderly relatives as we would normally do.
We have not been able to travel when we want to.
Nothing is the same as it used to be.
And that is likely the way of things to come.
It is clear that despite the protection afforded by the vaccine we are going to have to learn to live with Covid being part of our community and our lives for a significant period.
There will be times when things appear almost totally normal.
Other times the numbers will start to rise again and it will be a stark reminder that the normality we used to know is gone and things are different now.
We have heard in the various speeches this week many words of tribute to those who have been in the front line, our health and care workers in particular, and have borne the brunt of the pressure which Covid has brought.
All of those words cannot properly express the deep gratitude that we must all feel to those who, unexpectedly, were called upon to go well beyond their normal duties and who rose to the challenge in an effort to keep us as well and as safe as it was possible.
But they are not the only ones to whom we must be grateful.
In one of the daily briefings held last year during the lockdown when I was still in Government I recalled the appearance at a symposium in 1976 of a world war two pilot.
He recounted how buildings, factories and buildings were devastated during the war
And yet there was a sense of coming together in a united effort which was strengthened at a time of crisis
He spoke of the many sacrifices which were made and of the unsung heroes who worked tirelessly including those making aircraft parts which allowed him and his colleagues to win the battle for the skies of Britain
He concluded by saying:
“That is what mattered, It was a united effort by everybody.”
And so it has been.
We must therefore by grateful to everyone in our community It was, and it continues to be, a collective effort.
As I said at the time:
We have to salute all those heroes in Gibraltar, front line staff, back-office workers, volunteers and those who stayed at home when they had to
Every one of us has had a role to play – whether by being directly involved or by complying with the rules
The whole community has had to make some sort of sacrifice
But despite all the tremendous effort by everyone, it has not been possible to keep all members of our community safe and well
Some have been affected more than others – some have had to be admitted to hospital – some have had to be cared for in our intensive care unit
And sadly, some have succumbed to the virus
We must therefore remember the 94 individuals who have sadly died from or with Covid and the sadness that this has brought to their families and friends.
Gibraltar being such a small place, it is inevitable that this has affected someone we know.
This pandemic is not something we hear about in the news or a disease that happens in a far away land and which we can think that distance in itself can protect us.
It has hit our community in the same way that it has affected or is affecting every single corner of our globe.
That is of course no consolation to us but what it does mean is that there has been a global effort with countries, scientists and others coming together in a fight the like of which most of us have not seen in our lifetimes.
I therefore also pay tribute to the science community.
They are not always in the visible front line but they are very much at the heart of our battle against Covid.
We have seen advances in scientific research that no-one thought possible.
In particular, we have seen the development of various vaccines in an unusually short time.
These have brought hope.
We always thought, and we now know for certain, that the vaccines would not eliminate Covid overnight.
But we have seen the positive effect that the vaccines have brought – at the very least by reducing the severity of symptoms and the risk of hospitalization or death.
We must commend the Government for having made early arrangements with the UK for the supply of vaccines – resulting in a vaccination programme which virtually no other country has been able to replicate and which has already seen a large percentage of our population receiving two doses of the vaccine
This has not happened by accident
And it was not just a question of securing the supply of the vaccine It also required a full-scale logistical effort which was nothing short of world class We have all seen it in practice
The arrangements have, to a very large extent, worked seamlessly
We must be thankful and congratulate all of those involved in both organizing and delivering the vaccination programme
I have no doubt that they have contributed significantly to ensure that the worst effects of Covid are reduced and will also have contributed to saving lives
Nothing could be more important
All of this must also be seen in conjunction with the enormous effort made with our testing programme
The figures on testing given earlier this week by my friend the honourable Samantha Sacramento are truly impressive
As with the vaccination programme, the numbers suggest that we are world leaders in this area
Again, it has required a great deal of planning, organizing and delivering – all of which has been seamless and effective
This has gone hand in hand with the work of our contact tracing team and those involved in checking how those who have tested positive are feeling or evolving
A big thank you and well done to all of them.
Unlike the Opposition, I welcome the announcement by the CM of the entire funding of the Mid-town park by Trusted Novus Bank
It is beautiful park already being used and enjoyed by many members of our community
The funding shows the commitment of the new owners of the bank to Gibraltar.
I also welcome the announcement by the Deputy Chief Minister of the generous donation by the Parasol Foundation for the refurbishment of the Parliament building and the Mount.
We have had other donations for public projects by the Kusuma Trust.
An example is the extension to St Martin’s which was done in our first term of office.
All of these are examples of people who come from abroad to invest in Gibraltar – but who also give back to Gibraltar.
Like Trusted Novus Bank, the Parasol Foundation and the Kusuma Trust we have other benefactors in our community including the Alwani Trust and many others.
All deserved to be thanked and I do so here today.
It was shocking to hear Mr Clinton mock the donations which were announced in the manner he did.
Shame he said
Doesn’t look right
If we cannot afford it then we should not do it
So the Honourable member, who criticizes Government spending on capital projects, prefers that we should not have a park in the centre of town, that we should not have Parliament refurbished – that we should not have the Mount refurbished
That is precisely what the Hon member is saying with his irresponsible comments
What I say is congratulations to the Government for having been able to attract these donations
And a huge thank you to those who are prepared to give for the public good.
The comments by the honourable member are not just misplaced and irresponsible, they are damaging to Gibraltar
The honourable member seems intent in discouraging benefactors from coming forward and doing good for the community
Not for the Government
But for the community
Who does the honourable member think benefits from a donation for the creation of a park?
It is the community not the Government
Who does the honourable member think benefits from a donation for the refurbishment of the Mount?
It is the community not the Government
Who does the honourable member think benefits from a donation for the refurbishment of Parliament
It is the community and members of parliament – including him – Not the Government
So let the community know
Let the people outside this Parliament know
The GSD Opposition opposes benefits to our community Opposes charitable donations
Opposes benefactors acting for the public good
The opposition should be welcoming philanthropy
Not knocking it down
Of course the reality is obvious
Anything goes when it comes to criticize the Government
Even acting contrary to the interests of the community
That is exactly what Mr Clinton has done
Mr Clinton also criticized the arrangement for the building of the new St Mary’s school
So the honourable member criticizes borrowing for capital projects and when the Government arranges for a new school to be built at no capital cost to the Government, he also criticizes that
So what is it?
Does the honourable member wish that there should not be a new St Mary’s school?
Is his position the same as with the Parliament, the Mount and the midtown park – if we can’t afford it we shouldn’t do it?
So let parents of young children know that the GSD prefers that there should not be a new St Mary’s school
And let them be judged on that
We learnt this week of the sad passing of former minister Brian Perez.
We heard various tributes to Mr Perez and I would add my own condolences to his wife and family.
We also heard that Mr Perez headed important public ministries at a time of great difficulties with a closed frontier and when money was tight.
I could not help reflecting once again that Gibraltar has faced difficult times before.
We have always come out stronger.
It is not a time to despair.
It continues to be a time, as I have said before, of hope.
The economic indicators give us hope.
It is true that the CM has indicated that the forecast GDP for 2020/21 is £2.44billion – a contraction of 4.9%
Much as we all regret any contraction in GDP, it has to be looked at in its context
It is a contraction from a position of consistent growth over many years GDP has grown in 10 years by 133% - an average of 13.3% a year
This is what is described by the leader of the opposition in his budget contribution as economic mismanagement
Economic growth of an average of 13.3% per year over a sustained period of ten years is considered economic mismanagement by the Opposition
Imagine a member of Parliament in another country – the UK or France – describing economic growth of 13.3% a year for 10 year as economic mismanagement
They would be laughed out of the chamber
GDP per capita has grown for 2019/20 to £79,707 – placing Gibraltar in first position in the world
That is considered economic mismanagement by the Opposition – also described as nonsense by Mr Clinton
We should be proud of our achievement as a nation – not seek to denigrate it
These indicators are testament, not just to the efforts of the Government, but of the private sector
That is what has led to the economic figures we have
The private sector are important drivers of our economy
The efforts of the private sector have contributed significantly to our economic growth and to an increase in GDP per capita
Those are the efforts that members opposite describe as nonsense
Government revenue has increased substantially
That is considered economic mismanagement by the Opposition
The reality is that the words of the leader of the opposition and of Mr Clinton ring very hollow
The reality is that GDP growth over many years and growth in Government revenues put Gibraltar in a solid economic position in which to face the pandemic
Indeed, it is precisely because of the impressive management of our economy that we have been in a position to meet the financial challenge which the pandemic has brought
It is because of that that our recovery will be less painful than in many other countries
It will still require a cautious approach to our finances – a prudent approach – and that is what we have with this budget
We have average gross earnings of £32,625.26, an increase of 26% since this Government has been in office
We have had 95% reduction of unemployment since the election of this Government in 2011
That is a remarkable achievement
These are of course more than just figures or a reflection of the state of our economy
These matters affects people directly
They affect the quality of life of members of our community
More people in employment and greater average gross earnings means more income to our households
All of that is to be welcomed
It is truly a shame and a sad reflection of the type of politics that the GSD engages in that they do no recognize that
The budget is about approving an Appropriation Bill so that funds are available to meet Government expenses
In this context it is difficult to understand the position of the official opposition in opposing this Bill
It is difficult to understand this in ordinary times but where we have faced and are still facing a pandemic the opposition’s stance is quite simply incomprehensible
As the CM said, this debate on the second reading is about the general principles of the Bill – that is what we are voting on.
Is the opposition not in favour of the general principle that funds have to be available to meet Government expenses?
Is the Opposition not in favour of the general principle that funds are required for the GHA or for pensions?
Where does the Opposition think that money will come from for these matters if not from the Appropriation Bill?
In fact, by law it can only come from an appropriation bill
So – what is the opposition saying by opposing this bill?
That the accountant general should act illegally by paying out money that has not been appropriated?
That is the only conclusion that one can come to from the opposition’s stance A stance is not just incomprehensible – it is irresponsible
It is, in any event, worth looking at the Bill itself and seeing what it is that the Opposition are opposing.
Clause 2(1)
So the Opposition is opposed to the general principle that the Accountant General may pay out a sum not exceeding £550,742,000.
How can they oppose this as a general principle.
This incudes expenditure of £26,000,000 for Treasury – a large part of that is salaries for civil servants
They are opposed to that as a general principle
It includes £58,000,000 for Education.
This includes books and other materials for schoolchildren and for scholarships They are opposed to that as a general principle
It includes £17,000,000 for policing
That money is essential to keep us safe
They are opposed to that as a general principle
Clause 6 of the Bill will authorize the Accountant General to pay out £285,386,000 for public utilities
How can the Opposition oppose this as a general principle
This includes £140,000,000 for the GHA
This is necessary to pay for nurses and doctors and equipment and medicines and sponsored patients
They and their families will benefit from that
And yes, Mr Speaker, the GSD are opposed to this as a general principle
The £285,000,000 for public utilities also includes sums for elderly residential services and the care agency
This is necessary to be able to look after our elderly in residential homes and to look after vulnerable children and adults.
The GSD are opposed to this as a general principle
It sounds incredible – but sadly it is true
Despite the difficult economic circumstances this year, the CM has been able to announce
An increase in disability benefit
An increase in the disability tax allowance
An increase in old age pension
An increase in minimum wage
At the same time there has been no increase in personal taxation
All of these things are part of a budget that the leader of the opposition describes as bad for ordinary people
What it is, is a budget that shows the commitment of this Government to the vulnerable, to the elderly and to all our workers
It is a commitment which has been present since elected into office in 2011 It is a commitment on which this Government has not wavered
It is a commitment on which the Government has delivered and deserves to be congratulated
Unlike honourable members opposite, I will unreservedly support this Appropriation Bill and make sure that the Accountant General has money available to him to continue to pay salaries, the GHA, pensions, the upkeep of schools, scholarships, policing and every thing else that this Bill will authorise him to pay.
