Referring to statistics issued recently, Dr Mangion said that in real terms the Gross Domestic Product in 2003 fell by Lm25.2 million or 1.7 per cent to Lm1,419.6 million when compared to the previous year.

He said the statistics also revealed that the economy decreased in every quarter of the year – between January and March the economy decreased by four per cent, decreased again by 1.6 per cent in the second quarter, another 0.3 per cent in the third quarter and 1.3 in the last quarter of the year.

Dr Mangion criticised the government for attributing the problems the country was facing to the September 2001 tragic events in the United States. He said in 2002 the economy slowed down by 1.1 per cent, whereas in 2003 the economy dropped by 1.7 per cent. He said the country’s economic situation throws serious doubts on the country’s future economic performance.

On the budget deficit, Dr Mangion said the figure in 2003 reached Lm175 million, which was around Lm100 million off the government’s target. He said this figure is 9.7 per cent of the gross domestic product, “way off from the government’s target to get this down to three per cent,” Dr Mangion said.

He said national debt was around Lm1.3 billion, 72 per cent of the gross national product. According to EU criteria, this should not surpass the 60 per cent mark of the GNP.

Dr Mangion continued that according to a report issued by the Central Bank, between 27 February and 2 April this year, the government borrowed Lm34 million. This means that the deficit for the first three months this year is calculated at Lm65 million, a 10 per cent increase over the figure during the same months last year.

Dr Mangion also criticised the government about the 24 per cent increase in expenditure of its 64 entities. He also said that in 1999 the number of directors of these entities totalled 79, excluding chairmen and chief executive officers. These had increased to 121, he said.

On the situation at Air Malta, Dr Mangion said the government is dealing with the problems through a direct confrontation with the workers. He said it was not fair that the employees had to suffer and have their working conditions eaten away simply because of bad decisions in the past. Everyone should shoulder his responsibility, he said.

When asked, Dr Mangion said the tax rates needed to be revised in order to remain within the limits people could afford and for the quality of life of the citizens to improve.