The budget speech delivered on Monday failed to come up with a strategy against inflation and confirms Prime Minister Lawrence Gonzi's miserable record as regards employment generation, said Opposition leader Alfred Sant.

Speaking on a television programme, the Malta Labour Party (MLP) leader said the budget measures were, "too little too late" and those announced are aimed at impressing voters.

He said the budget did not shed light on how to curb inflation, improve education and fight corruption and incompetence, adding that government copied a good number of measures from Labour's Plan for a Fresh Start (Pjan ghal Bidu Gdid).

Dr Sant stressed the need for a price-monitoring agency that investigates price movements and produces a biannual report for government and opposition to review. He asserted his belief in market forces; however, Dr Sant holds that both consumers and producers must benefit from these sources. According to the MLP leader, the present price-monitoring agency "does not bite".

He reaffirmed his belief that a new agency must investigate price shifts in food, education, medicines and take action when shifts are not justifiable.

He recounted how the EU Consumer Protection Commissioner after visiting Malta said the country lacks a lot in this field.

The opposition leader criticised the government for failing to publish its agreement with entrepreneurs regarding price freezes until March. He said the agreement details have not been published and there is a strong chance of a price hike in March.

Dr Sant criticised the budget for leaving the fuel surcharge as it is. He said the MLP in government will fulfil its promise of slashing the surcharge by half. The Opposition leader argued that at present, the inflation problem would not be as acute had the fuel surcharge been slashed by 50 per cent. He countered government's opinion that such a measure would not make government relinquish part of its revenue, as people spend much more if they have more disposable income. Such monies would be channelled back to government through indirect taxation, while an increase in consumption generates more employment, argued Dr Sant. He added that the surcharge slash would not favour those who consume more, as these are obliged to pay more as per current pricing mechanism.

The Labour leader said such a measure would have been felt by the low to middle income groups, even the 26,000 people whose main occupation is on a part-time basis and who will not benefit from the weekly cost of living adjustment of Lm1.50.

Dr Sant said the MLP believes that the economy needs a breath of fresh air after the tourism sector jobs decreased by 600 and the manufacturing-related jobs decreased by 2,000 under the Gonzi administration. He promised that a Labour government will drive the economy at a yearly growth rate of between four and six per cent.

The MLP does not want to increase taxation revenue by increasing taxation, but by creating new jobs that are not part-time as is currently the case.

Dr Sant said his party is aiming to attract 1.6million tourists a year within three to four years. This will be achieved also through the MLP regional generation plans for Grand Harbour, Gozo, the South of Malta and the Saint Paul's Bay area. On the other hand, said Dr Sant, the prime minister was not even capable of attracting 50,000 more tourists and the tourism interministerial committee came to nothing.

As regards education, Dr Sant said the country is time and time again lagging behind education surveys in the EU. He criticised Prime Minister Gonzi for not being aware of VAT paid in education and appealed for greater collaboration with teachers and experts in the field in order to improve education in Malta.

He promised that a Labour government will build a new Junior College, make sure that there are no more than 25 students per class, will seriously introduce scientific and technological subjects in primary and secondary education curricula and introduce a new schooling year between kindergarten and primary schooling in order to fight illiteracy.

The Labour leader promised to slash hospital waiting lists by 15 per cent a year if elected in government. "This target can only be reached if government effectively works hand in hand with the medical professionals, something which the Gonzi government is failing to do," he said. Dr Sant said the national breast screening campaign announced in the budget speech is a case in point. In fact, he said, those responsible for the field were left in the dark about government's intention to launch such a campaign.

Dr Sant said the Lm300million Mater Dei hospital, four months after it fell in government's hands still is not operational and government all of a sudden realised that there are not enough nurses to man it. He also called for a review of incentives in the medical sector in order to lure back those who left the island.

The Opposition leaders held that the 2008 budget failed to address corruption and incompetence and reaffirmed his party's intention of holding people personally responsible for such acts.