The political process in our country has reached, I believe, a crossroads. We need to return to bread and butter issues that have in the past indicated who will stand up and be counted. The financial disasters that have taken place all over the world have, needless to say, placed pressure on our institutions, our financial resources and our accepted way of living.

I believe that there are a number of cardinal points that must now form the basis of our country’s finances. It is no longer acceptable (it never was but now all the more) to have the government go over-budget on almost every count. Mater Dei Hospital, Malta House in Brussels and the Regional Road bridge are but three recent examples.

This has to stop. It was the madness of uncontrolled finances that led to the huge problems all over the world. Attendant to this is regulation. It seems quite clear now that even at the political level the State must have its say on the country’s finances in a regulatory way. Although privatisation is in some respects necessary, how wise was it for our government to sell so many State assets? How wise was it for the government to allow private companies and individuals to take over essential services? Hindsight is of course wonderful, but, on this matter, the government was repeatedly warned that it was taking the wrong road financially. These warnings have been proven right. Privatisation has not invariably led to improved government finances, rather, the opposite!

A free market policy is fine, but we must have proper regulation. When market forces collide far too many people lose their savings. The issue has now also become one of trust. To this must be allayed a simple truth: unfettered greed does not lead to a better market place. This might sound utopian but is intended only to forward a simple thought. It is of course the love of money and power that keeps us going. This, coupled with ambition, is the driving force of all industry and where would we all be without industry? However the events of the past few months must make us stop to think. In the first place we must go back a few years and look for the warning signs. There were many. Unfettered house prices, unfettered loans, unfettered investment. The common denominator seems to have been lack of regulation. Or rather, lack of proper regulation. Another common denominator was the reliance on wrong statistics. The cold hard truth that emerges from cold hard statistics has far too often been brushed under the carpet.

Is an uncontrolled free market the answer to all financial worries? Is an uncontrolled free market the way forward? Truth be told: it was ridiculous to assume that the free market on its own would regulate itself. The stakes were, for the individuals concerned, far too high. The details we all know: some individuals bonused themselves into millionaires on the backs of shady dealings and statistics consistently and conveniently weighed in favour of bonuses.

The whole mess has left far too many people in our country penniless. The vast majority of us have become scared to spend our income, and rightly so! The government has offered no aid whatsoever to people in need bar that which has existed for decades in the form of social assistance. In fact, the government has done precisely the opposite in hiking up our water and electricity bills. Government spending remains uncontrolled and unfettered. This, in itself, shames the government.

This leads me to a wider discussion: the essence of social democracy, which is the politics I believe in. I do not say this simply out of allegiance to the Labour Party but because I truly believe that social democracy is the way forward. The very essence of social democracy is the very antithesis of what led to the huge problems around the world and in our country. Social democracy indicates the necessity of a mixed economy.

With a mixed economy private enterprise is encouraged, however, certain spheres, primarily education and health, require government assistance to a lesser or larger extent. Within this context social assistance is also given unwavering attention. This in turn leads to the necessity of proper social security which is handled by the government. In times of need like the ones we are going through, one wonders where we would be without the social security system in place originally introduced by previous Labour governments. Social democracy also entails respect for human rights, consumer protection, protection of workers’ rights and trade union rights, a fair taxation system and fair trade.

Social democracy is the best solution to our country’s ills.