A regional Policy for Gozo

The Malta Independent

A regional policy for Gozo

The EU and the aspired relations therewith do not have to come into this.` Gozo deserves to be treated as an autonomous region. Evidently this is what Gozo residents aspire for.

The isolation of being detached from the main island and the lack of economic viability of permanent hard connection give Gozitans good reason` to seek autonomous regional administration which would help them overcome inherent logistical disadvantages.

I believe that the regional policy should be built on a framework based on three` major pillars. The first is financial autonomy. Gozo would have the right to administer the taxes paid by Gozo residents for Gozo`s own needs.

The second results from the first.` Once Gozo would ring fence its own tax contributions for its own benefits Gozo would have the right to set its own tax systems.` So the regonial council for` Gozo would have the right to authorise a more favourable tax regime to overcome Gozo regional disadvantages. For example Gozo business could opt out of VAT system and pay input VAT as an expense without the need to charge output VAT on sales. Gozo could offer Gozo residents lower direct taxation to attract Maltese to settle in Gozo.

Obviously the Gozo regional council has to be careful to ensure that the fiscal advantages work to expand economic activity to ensure that the tax take not only does not diminish but augments sufficiently to ensure that any` regional borrowing would be within pre-set limits and for very specific productive infrastructure purposes.

Beyond the set borrowing limits capital expenditure inside Gozo would have to be funded by the local regional council whilst Central government would remain responsible for that part of the capital expenditure necessary to deliver the service up to Gozo`s shores.

The third pillar of Gozo regional policy concerns transport between the two islands. Central Government should make it its business to render this transport free for all users. If cars do not pay to travel from Marfa to Marsaxlokk why should they pay for going from Marfa to Mgarr. Inland transport will remain at public transport prices but ferry crossings ought to be` free.

This is fair for Gozitans to alleviate the disadvantages of having to spend much more travelling time to get to the island`s main commercial and political arteries, and would help to attract business to Gozo by making it easier and cheaper for Maltese and tourists to cross over.

One could argue that this is positive discrimination in favour of Gozo residents. Note that I have not said in favour of Gozitans as any Maltese who resides in Gozo ( and genuinely so and not simply` having convenience addresses) would enjoy the same positive discrimination.

This is purposely so. Only through positive discrimination can Gozo be given a fair chance to share in the economic wealth that we can create as one nation. Funding this policy should not be a great burden on the central exchequer. Giving Gozo financial autonomy would probably be cash flow positive for the central budget as Gozitans will be more willing to pay they own taxes knowing that they are directly helping themselves.