During the last few weeks, a closer examination of the discussion document presented by the MLP – with an introduction by the leader of the opposition – has portrayed how the next Labour government could tackle the deficit problem.

The deficit question hits top of the pops every time a survey is carried out regarding what items on the political agenda seem to be hitting home and worrying people most.

However the way things are being proposed by this Labour Party document seems to be a straight punch in the face at the present standard of living and it is not a question of who is to be hit worst but just of how much is Labour ready to take away in order to end up with zero deficit.

It all started off with the news that Labour is considering removing the quarterly bonuses for workers and pensioners alike. Deficit would decrease by Lm48 million per year.

The present Lm95 million figure for 2004 would be reduced substantially to Lm47 million.

Second item on the headlines is that Labour is considering changing stipends into loans for all tertiary education students. Prime Minister Alfred Sant would expose students to a hefty loan which would save the government’s coffers some Lm10 million plus.

All of a sudden what “students are bound to receive” would be converted to “what students are bound to borrow and repay with interests”.

However, besides the money factor, wouldn’t this work against the lower earning families’ chance of promoting their children to continue tertiary education?

Anyway – in the world of finance, this would further reduce the deficit by a further Lm10 million to Lm37 million.

And that is not all – what about national insurance contributions? According to this so called well-worded document, the +Lm6,500 earner with a new Labour government could very well be suddenly contributing substantially more by way of weekly NI contributions. Had this been pegged with a proposal of a sustainable pension scheme which would assure one and all the sustainability of our pensions system – then one could possibly consider taking the medicine.

However, simply increasing the NI contributions by hundreds of liri per annum for every middle-class wage earner it makes no sense. For those falling under an upper earning bracket it would mean a further decrease in the deficit of some Lm12 million and no light at the end of the tunnel. But the budgetary deficit would be down to some Lm25 million.

Now, to the latest bonanza – how about taxes on every additional property one owns save for one’s residence?

Would the scope of such a colossal windfall for the government mean that suddenly prices for property would wind down or cause a slump in the property market?

It would definitely be an additional headache for all those who have been careful during the past years and have managed to save up for that flat or boathouse by the sea. How would this tax affect those who, with their savings, purchase an apartment or second property with the intention of giving it to their offspring in the future when these reach the age of leaving the parents house? Inheriting property could suddenly become a liability! And wouldn’t this increase rents? But why worry, Prime Minister Sant would be happy.

To the national coffers, this would mean some extra Lm10 million or more depending on the size of the “ownership tax” to be imposed. All of a sudden last year’s deficit of Lm95 million would reduce to a mere Lm15 million.

Since projections for 2005 are to reduce the deficit to Lm76 million without all these austerity measures, then this would have meant that the government in 2005 would have finished with a Lm4 million surplus.

Labour has been at us for months claiming that we have hit the people by introducing financial measures in the last budget which should bring into the consolidated funds something like Lm8 million.

With Labour’s measures, at the stroke of a pen, this would have brought into the coffers something like Lm81 million – a tenfold increase in added tax collection when compared to what the Nationalist government is projecting the increase to be during this fiscal year.

With such measures – or is it tricks up Labour’s sleeve – are they electable? Sorry, but hopefully these are not to be pleasures still to come.

Tony Abela is Parliamentary Secretary within the Office of the Prime Minister