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he felt that there was a risk which could emerge in the future and it was necessary to pre-empt the problem.
Most
The Chief Minister added that the Government had absorbed Moroccan workers who had earlier been made
made redundant when the Naval Dockyard closed in 1984. These workers had now become Gibraltar's responsibility. As a result of further MOD cutbacks, redundant Moroccan workers became a problem for the Gibraltar Government. Only recently, a number of unemployed Moroccans had threatened to occupy the employment exchange. The Chief Minister explained that unemployment benefit in Gibraltar was payable for a 13 week period and unemployed Moroccans were not entitled to supplementary benefits. Moroccan men married young women and extending social security benefits to them would
them would create a heavy burden on the social security budget. He reported that there was a need for
for an approach to the Moroccan Government in anticipation of redundancies in the MOD. anticipated that the MOD would be shedding Moroccan labour, for example in the catering
where no alternative prospects for reemployment were available, particularly with the recent decline in Gibraltar's tourist prospects.
there
trade
He
Mr Maude recognised that
were problems internationally for the growth of the tourist industry, but asked whether Gibraltar's economy was growing healthily with the increasing development momentum. The Chief Minister pointed out that the Government was targetting real economic growth at a rate of 12% per annum. The indications were that this was already being achieved. However, the main
main demand for labour stemming from growth in the economy was largely in the construction industry which depended heavily on Spanish workers. Mr Maude asked whether Gibraltar's unemployment rate was still low. The Chief Minister stated that it was running at around 4%. Mr Ratford asked whether the economy was suffering from inflationary pressures. The Chief Minister explained that inflation remained low because there had been no increase in Government charges since
since 1988. He explained that the Government had taken steps to restructure the costs and prices of municipal services. He gave as an example the recent decision to allow a private UK Company to supply electricity in Gibraltar. This was a cheaper alternative to investment and production of electricity by the Gibraltar Government. Mr Ratford asked whether the Gibraltar Government had considered the possibility of importing electricity supplies from Spain. The Chief Minister stated that this possibility had been explored by sharing imports of such supplies with the Ministry of Defence who had originally expressed an interest in importing its own electricity from Spain.
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