● <B> What do you expect from tonight?s budget speech?</B>

Firstly, I would like to say that I know very few countries where there is such a pre-budgetary fascination. It?s striking how important this exercise is in Mauritius whereas in many other countries the budget is seen as a technocratic exercise. The interest demonstrated by the business community and the public at large shows that the budget is surrounded by a vibrant democracy.

I expect the consolidation of the reforms pertaining to the opening up and liberalization of the economy. I also agree with the private sector that there is a need to boost public infrastructure, meaning the airport, port and roads. I hope that this budget will be decisive.

In terms of social welfare, there is the expectation that government aid will be distributed in an equitable way. There has been, for example, the debate on ?ciblage?. I don?t believe that this budget will solve the problem, as it?s a very political one, but I do hope an intelligent system is found for gas subsidies, which currently are not targeted in the least.

● <B> There has been a lot of talk recently about the need for the country to reduce its energy import bill by promoting the use of renewable energies. What can the minister of Finance do to achieve this ? </B>

During his recent visit to La Réunion, Rama Sithanen was able to take stock of the political voluntarism in terms of a legal framework for renewable energies and energy management. I hope that the budget proposes some ambitious measures and clarifies the country?s energy policy. To encourage the use of solar water heaters, tax incentives and direct subsidies should be given.

One of the main priorities should be the creation of an independent regulatory authority to set the prices for the repurchase of energy. Without such an agency, renewable energies will never be able to take off. Photovoltaic energy shouldn?t be neglected either. In Réunion, for example, there are photovoltaic farms on the roofs of some hangars.

Mauritius has an inestimable asset in bagasse, especially with the advent of cane with a higher fiber content. I only hope that the Central Electricity Board (CEB) and the sugar industry will be able to overcome their dispute over prices.

When it comes to the transport sector, the government could set the example by using vehicles which pollute less. There is also the question of the ethanol mix and electric cars.

An important aspect will also be energy efficiency. The CEB wants to promote the use of low energy light bulbs but the onus should be placed on industry, which has a low amount of users but a high-energy use. If we can get industry to adopt sound energy policies, then we?ll be able to curb the increase in energy use.

● <B> Inflation is a growing problem. What can the government do to fight against it ? </B>

It?s a difficult question. With the salary increases offered by the Pay Research Bureau (PRB) report there will be more money in circulation. But one thing that we don?t control at all is imported inflation and I?m quite pessimistic about that. How do we encourage people to save ? Mauritius is a country where people spend a lot, often more than they have. There have to be measures to encourage people to save more money.

One of the reasons why it will be difficult to combat inflation is the decision to support the rupee. This does not favour saving. The price of petrol and foodstuffs continue to rise, which also make it very difficult to control inflation.

<I>«One thing that we don?t control at all is imported inflation and I?m quite pessimistic about that. Mauritius is a country where people spend a lot, often more than they have.»</I>

● <B> You spoke earlier of the liberalization of the economy. What needs to be done ? </B>

The groundwork that has been laid down ? such as IRS, ERS, the facilitation of work and residence permits ? the opening up of certain sectors, such as the legal profession has been effective. The danger comes from property speculation, which is already rife. Social housing policies need to be put in place in order to compensate for the feeling of frustration caused by this property speculation.

● <B> Last year, Rama Sithanen spoke of an ?early harvest?? Was his optimism justified ? </B>

In terms of Foreign Direct Investment (FDI), it certainly was. Despite this, there is still a lot of poverty. In the fight against poverty, the classic recipe is: education, employment and housing. These are the three levers that we have at our disposal. We live in a country that we all very attached to and hope to see succeed.