2.                  Let me remind the House that we inherited an economy facing the triple shocks from loss of textile preferences, high oil prices and the impending cut in sugar prices. Growth was on a downward path heading for recession, unemployment was at the highest level in 20 years, purchasing power was falling, and investment was down.   At the same time, public finances were spinning out of control with debt service the largest item of Government spending and public debt unsustainably high and growing.

3.                  Mr Speaker, Sir, to turn this situation around, the last Budget proposed 40 major reforms. I told the House that while the ends are noble, the means may be painful, especially for the first two to three years.    

4.                  Now, only one year later, with the overwhelming majority of reforms implemented or on track, the evidence is there for all to see.  The early positive results and outcomes are beyond our own expectations.  The signs of economic renewal are vivid. 

Growth is on a rising path. It is also a balanced growth.

There is regained dynamism in private investment.

Foreign direct investment is flowing in at an unprecedented rapid pace.

The textile industry is no more mired in deep depression.

Construction and tourism are booming.

The seafood and the ICT sectors are doing well.

There is a new wave of SMEs rising.

New sectors are firming up their roots to become additional pillars.

Jobs are being created at more than twice the rate prior to reforms.

The unemployment rate has edged downward for the first time in more than sixteen years, from 9.6 percent to 9.1 percent.

Foreign exchange reserves have reached a record level of Rs 83.3 billion, representing 8.5 months of imports.

5.                  We are also restoring discipline in the public finances. Not only did we inherit a high budget deficit and a large debt but unfortunately there were many liabilities that were hidden in the closet. We have had to deal with many of them at a very expensive price.

Mr Speaker, Sir, no provision was made for the pensions of DWC employees by the former Government. We have had to pay Rs 267 million to ensure that employees get their pensions.

No provision was made for employees transferred to the Mauritius Post.  Retiring employees would not have received their pensions. We paid Rs 330 million.

No provision was made for the pension liabilities of MRA employees. I am making a provision of Rs 590 million for that purpose.

The Conference Centre at Pailles was not financially well structured and there were liabilities of Rs 310 million.  We have paid the amount.

The BPML was in a financial mess when we came to power.  The debt and losses are staggering.  We have paid Rs 280 million and the situation is still alarming. This year we have made an additional provision of Rs 84 million to meet its outstanding debt obligation.

The MHC is in financial difficulties because of the bad investment in the Cyber Village.  I am providing for Rs 150 million to get the MHC out of the mess.

The STC had not cleared its pre-Automatic Price Mechanism losses. We provided Rs 411 million to clear the debt of 2003.

We have removed the millstone placed on the Black River District Council by paying off its loan of Rs 95 million.

We have paid off Rs 200 million of loans taken by the Road Development Authority just before the 2005 elections.

We are clearing an advance of Rs 225 million made to State Land Development Company (SLDC) in 2004. 

6.                  Mr Speaker, Sir, our achievements are remarkable, given the legacy left to us. We have reversed a declining economy and have cleared skeletons in the cupboard amounting to a staggering Rs 3 billion.  Most of these skeletons were off-budget transactions.