1985 Photo

Economic Standstill and the Stagnation of Wages

According to Mr Bossano, in their 1984 budget, the Government had laid out three elements which were essential to the economic well-being of Gibraltar. These were:

  1. The need to get the dockyard off the ground and produce higher levels of productivity;
  2. An open frontier in order to kick-start Gibraltar’s tourist industry; and
  3. An increase in Government land ownership following the transfer of substantial amounts of land from the MOD.

Despite having achieved all three goals there was still no economic improvement, which Mr Bossano suggested was because the Government had failed to ensure they have the sufficient money to capitalise on these achievements.

The stagnation of wages which had existed was of equal concern to Mr Bossano.

Between 1972 and 1978 there was an increase in the average earnings, a real increase in average earnings of 18%. Between 1978 and 1984 there is a real increase in average earnings of 2%.