THE BUDGET 2019 CHIEF MINISTER’S ADDRESS Her Majesty’s Government of Gibraltar 6 Convent Place Gibraltar 2 Mr Speaker, I have the honour to move that the Bill now be read a second time. Introduction 1. Mr Speaker, this is my sixteenth budget address as a Member of this Parliament. 2. It is my eighth budget address as Chief Minister. 3. Mr Speaker, as part of my address on this second reading of the Appropriation Bill, I have the honour to present the estimates of Government’s revenue and expenditure for the year ending 31st March 2020. 4. I also have the honour to present the out-turn for Government’s revenue and expenditure for the year ended 31st March 2019, which was the seventh full financial year of a Socialist Liberal Government since we took office in December 2011. 5. Mr Speaker, the House is having to meet today on a Jewish feast day, the day of Shavout. I wish all members of that important religion a happy feast and apologise to the Hon lady for having to meet today. She and I discussed options for adjournment which she knows we would have pursued if it had been possible. 6. Mr Speaker, this address will be the last of this Government in the lifetime of this Parliament and before a general election. It also comes some thirty six months after the decision of the British people in a referendum to leave the European Union. 7. Additionally, Mr Speaker, I rise to address the House this year on some other significant anniversaries which have a bearing on who we are today and our enduring security. It is 80 years since the formation of the Gibraltar Defence Force. 8. Indeed, perhaps most apposite Mr Speaker, is the fact that the Father of the House is 80 years old today. For most people, having a birthday on the day of the Budget might be a drag. For Sir Joe Bossano, I don’t think he would prefer to be anywhere else! I think it is fair to wish Sir Joe a very happy 3 birthday and a happy Budget Debate on behalf of the nation he has given most of his life to. 9. It is 75 years since D-Day and it is 50 years since both the 1969 Constitution and almost exactly 50 years since perhaps the most defining post wartime evacuation event in our history: the closure of the frontier. I shall have more to say about each of those relevant anniversaries later in this address, especially about the last of the ones I have mentioned. 10. Mr Speaker, as you know and as we all know, the UK should have left the EU by now, at the end of March this year. Instead, it has been granted an extension until the 31 October 2019. Again if the UK leaves on that date this will, sadly, be the last Budget Address that will ever be delivered in this House by a Chief Minister whilst we are members of the EU. We will all, no doubt, however, agree, that we hope that it might still be possible for the United Kingdom – and with it Gibraltar – to stay in the European Union. One way or another, the position of my Government will be to continue to navigate the months ahead with the same political tact and strategic care that have enabled us to reach today with no real materially adverse shocks affecting our economy since the date of the referendum. We will also seek to contribute our grain of sand in persuading whoever is the next Prime Minister of the United Kingdom in coming weeks and months that a confirmatory referendum should now be held before any type of Brexit is finalised. What is certainly true Mr Speaker is that history will show that none of my 2016, 2017 or 2018 Budgets turned out to be Brexit Budgets after all – although we were right to be prudent and careful in crafting them as such at the time that they were delivered. I will be no less careful and no less prudent today/ 11. And in the context of the developing situation in London, with the Prime Minister officially now resigned as leader of her party and awaiting the outcome of the leadership election in the Conservative Party, Mr Speaker, as is now traditional, my budget address to this House will be very much a ‘State of the Nation Address’. I will also, of course, report to the House on the state of our Public Finances as well as on our nation’s economic outlook. This year, regrettably, Mr Speaker, I will also during the course of this main address, also deal with certain innuendoes and aspersions cast wildly by some of the members opposite whose deep political frustrations at their repeated political failures have led them to make ever more 4 outlandish attacks on the integrity of members of the government, including some officials. It is a pity that, at this time in our history I will have no alternative but to set the record straight on some such wild allegations, but it is necessary that the reputations of good men should not be sullied by the allegations of ruthless men, and I shall endeavour to do that as part of this address. I shall no doubt also have to do so when I address my reply to the House, as it appears to have become commonplace in some quarters to raise the spectre of impropriety when there is none as a shield for their own political incompetence. More of that anon, Mr Speaker. 12. For now, Mr Speaker, I would just wish to start by reflecting on the fact that this is really the thirty first Budget of the modern era and the fiftieth Budget delivered in a Gibraltarian Parliament since the creation of the House of Assembly under the 1969 Constitution. I want to trace the economic development of our people in that half century which, ironically, coincides, almost to the day, with the closure of the frontier. 13. Last year I reminded the House that it was in 1988 when Sir Joe Bossano delivered his first Budget Address as Chief Minister to this House and that the then Financial and Development Secretary said in his address on the Second Reading of the Appropriation Bill that “el giri” as he referred to himself, was giving way to “el Jefe”. 14. Mr Speaker that was really the moment when we took control of Gibraltar’s economic and political future in a way that had previously been unheard of. That was when we really started to push the boundaries of the 1969 Constitution and started to re-write for ourselves how we would be governed. That was the beginning of the modern economic era in our political history. 15. But this year it is perhaps more important – in setting this moment in our history into its proper context – to look back even further than 1988 or 1989. It is incumbent on all of us to look back to those two key events that happened within weeks of each other in late May and early June of 1969. 16. The first key event is the grant to Gibraltar of the 1969 Constitution. For many of us, this was the Constitution under which we were brought up and for all of us the Constitution that carried on it the Preamble which set out – then for the first time in our history that: 5 "Whereas Gibraltar is part of Her Majesty’s dominions and Her Majesty’s Government have given assurances to the people of Gibraltar that Gibraltar will remain part of Her Majesty’s dominions unless and until an Act of Parliament otherwise provides, and furthermore that Her Majesty’s Government will never enter into arrangements under which the people of Gibraltar would pass under the sovereignty of another state against their freely and democratically expressed wishes" 17. Especially given the context of the United Nations resolutions of the 1960’s, these were hugely important words in cementing the relationship between people of Gibraltar and United Kingdom. 18. It is particularly important to note Mr Speaker that the Constitution was made on the 23rd May 1969. It came into effect on the 30th May 1969. 19. The connection between that Constitution and its preamble coming into effect and the events of the following week, on the 8th of June 1969 are obvious and unquestionable. 20. Both our decision as a people in the referendum of the 10th September 1967 and the Constitution of 1969 were to determine our course for the next half century that we as a people have lived since then. 21. When we look at the state of those around us and we look at the state of our own development and prosperity, I think it is clear that we made the right choices. And not just in economic terms, Mr Speaker, but also in economic terms. 22. it was from under even that Constitution that we would later start to emerge from 1988, as the economic lifeblood of colonialism was expunged from the veins of our public finances and our economy as we moved away from dependence on MOD spending as a result of the economic planning and vision of one man and the GSLP Government. 23. And this year, Mr Speaker, in this context, it is worth also perhaps considering why it was that some said that Sir Joe Bossano had a ‘secret economic plan’ behind the economic rebirth of which 6 we are now all so proud, which even the former Chief Minister, in his final address to this House, praised Sir Joe for.