Finance Minister Edward Scicluna today said the government is making good on its promises, and showing people that it has a vision.
Speaking during a public pre-budget consultation, Professor Scicluna said the Nationalist Party’s scaremongering about Labour’s economic management credentials have come to naught.
The government’s spending deficit has been reduced in moderation without stunting economic growth, he said.
The Finance Minister explained that the government has mainly been focussing on encouraging economic growth and incentivising people to work.
He said the decision to offer free childcare was not an easy one, yet it has paid off and is reaping benefits.
In just one year, female participation in the labour market shot up by 4 per cent, he said.
“We wanted to incentivise work. If you want to work, we will be generous with you, ” he said, pointing out that Malta has one of the lowest youth unemployed rates in the EU.
Asked about calls for a further 30 per cent reduction in energy tariffs – including by Opposition leader Simon Busuttil – Professor Scicluna pointed out that Dr Busuttil had questioned the financial viability of such energy tariff reductions, and is now calling for further cuts.
The Finance Minister said the delay in the building of the new power station – which was originally supposed to be operational by March 2015 – was explained and was down to the Chinese investment in Enemalta.
On the €360 million government guarantee given to ElectroGas – the consortium building the new power station – Professor Scicluna said there was nothing unprecedented in a government offering such a guarantee, citing the Hinkley Point nuclear in the UK as an example.
Last October, the European Commission, following a 10-month investigation, ruled that UK state aid measures in the form of a loan guarantee for the Hinkley Point nuclear power plant in Somerset were compatible with EU rules. The state aid in question was given in two tranches, both of which bear more than a passing resemblance to the Maltese situation.
On pension reforms, Professor Scicluna said the government has to both correct the situation for today’s pension as well as look towards the future, with a long-term plan going up to 2060.