Malta lacks serious leadership and the country is being run by "friends of friends" who were fattening their pockets while the country was falling backward, Labour leader Alfred Sant yesterday said.

"People want a government that does things properly and in a serious and transparent manner," Dr Sant said.

Addressing a conference on the theme "Closer to the people - A Labour plan for a new beginning" in Valletta, Dr Sant spoke about the law courts cleaning contract scandal, and how this contract was awarded to members of the family of an inmate. He said the contract should never have been awarded in the first place and it was amazing that the law courts were not aware of the facts.

It was totally unacceptable, he said, that the Prime Minister, the Justice Minister and the Parliamentary Secretary were dismissing the matter as a "storm in a tea cup". Dr Sant said all three carried responsibility for the consequences of this case.

Dr Sant said the Nationalist Party functioned only thanks to networks of "friends of friends", but the Labour Party worked differently.

"Even within our ranks, there is no favouritism or special privileges. The party will remain serious and responsible to the end," Dr Sant said. So much so, he added, that when a friend of his, who presents a radio programme, had to appear in court on a private matter, he himself had spoken to the party's secretary general, and told him that this individual should auto-suspend himself and to appear before party's disciplinary board.

"This person has already taken these steps and has stopped working on radio until the case is heard by the party's disciplinary board and the courts. These are difficult decisions to take but they show how responsible the Labour Party is," Dr Sant said.

The Opposition Leader said the party last week had launched another plan focusing on the family. This document affirmed the importance of the family and it addressed economic, social and cultural issues for the benefit of future generations.

He said the party was proposing that the Commissioner for Children, who to date has a consultative role, should become an Ombudsman for Children with powers to investigate cases and make recommendations.

Dr Sant said single parent families were also given importance and their children should enjoy the same opportunities that other children have.

The Labour Party, he said, was willing to work with everyone in the best interests of the country and it was mobilising itself to show the people that Labour was capable of making a difference.

He added that the Labour Party was close to the people and it would continue to offer solutions to their problems. The greatest challenge, he said, remained the high cost of living, in particular the cost of medicines, educational services and water and electricity.

Dr Sant reiterated his party's plan to have the county's regulatory agencies provide him with a report of price movements every six months and to take action against those abusing the system.

The surcharge on water and electricity bills, Dr Sant added, would be cut by 40 to 50 per cent by a Labour government and it was not true that this was not possible.

He said that unless the government takes the necessary precautions, the switch to the euro currency would lead to hefty price increases. The government, he said, had to provide more resources and funds to the NECC to address consumer issues. Dr Sant said the Labour Party was willing to do its part in this regard.