Edward Fenech, Alternattiva Demokratika’s (AD) spokesperson on finances and tourism together with other members of AD’s sub committee on economic affairs are currently discussing this document,entitled Lejn Bidla Bil-Ghaqal fil-Finanzi ta’ pajjizna (A Change for the Better in the Country’s Finances) This will include proposals aimed at addressing the country’s major economic problems in a responsible way.

The Green Party’s spokesperson for tourism and finance reiterated AD’s willingness to work with the government and the opposition in a spirit of national consensus in order to address the country’s deficit.

“AD recognises the very fragile state of the country’s finances. In the light of the state of the economy all political parties should act responsibly . The fiscal imbalance should be tackled in a non-partisan way. We recognize the crucial importance of lowering and eventually eliminating the deficit if this country aspires to a more economically stable and prosperous future within the Euro-zone. Joining the Eurozone by 2008 should be one of this country’s major economic targets.

“On the other hand the government should also behave in a responsible way by sending the right message to the country. Unfortunately successive PN governments have been sending the wrong message for the past seven years through irresponsible decisions related to government expenditure, namely on Mater Die Hospital and on Dar Malta in Brussels. The taxpayer should have a guarantee that his/her money is not going down the never-ending pit. The government can only restore confidence in its role as tax collector by setting the right example. Financially irresponsible decisions undermine the whole notion of fiscal morality.

“As a responsible party AD cannot advocate significant tax reductions in the next budget as this would undermine the future of the welfare state. On the other hand, we expect a clear commitment from the government not to increase taxes during the next year as this would stifle economic growth and initiative. The deficit must be tackled by ensuring that tax revenue grows according to the growth rate of the economy. If tax revenue grows at a faster rate than the growth rate, the government would end up stifling the economy. The government is duty bound to embark on a serious cost control exercise This cost control exercise must never turn into a finger-pointing exercise or a PR exercise to make up for the government’s blunders.

“Fiscal morality should be at the core of the governments fiscal policies. Everyone must pay their fair share. AD will be making recommendations on combating Tax Evasion before the budget. In order to ensure fair and adequate tax collection the government must work to earn back its own fiscal morality by being more transparent in spending and by presenting regular reports on the country’s financial situation rather than doing this once-a-year in the budget. The process leading towards the presentation of the budget should be more transparent and discussions with stake holders on major policy decision should take place throughout the year to ensure the broadest consensus possible”