Opposition Leader Alfred Sant yesterday described Budget 2008 as a budget that was panic-driven, full of recycled projects that were never fulfilled, approved by rich bankers and promised the country a new breath of fresh air through proposals that will be implemented when the Malta Labour Party is elected in government.

Dr Sant was replying to Budget 2008, presented by Prime Minister Lawrence Gonzi last week.

Where social services are concerned, the government is giving back to the people only a little of wealth it collected in these years, he said.

Furthermore, said Dr Sant, it is too late as the government is doing so only because the general elections are coming up.

“The government believes that he will fool the people again,” he said.

Dr Sant said that the government has been out of touch with people’s daily lives and is giving the impression that it is panicking because the elections are coming up.

“The government is finally realizing how thirsty the Maltese and Gozitans are, for a change,” he said.

“We have a prime minister that enjoys life in the company of rich bankers, and who preens his feathers when these people praise him – there is nothing wrong with this,” said Dr Sant.

However, he added, as a prime minister, finance minister and government leader, Dr Gonzi should be close to the Maltese families - not only when an election is coming up.

“Budget 2008 is detached from reality - from what families really need - even though they claim that it is a budget for the family. But the general outcome is that it is too little, too late,” said Dr Sant.

Dr Sant referred to the slogan used two years ago by the PN – For You to Live Better (Biex Int Tghix Ahjar).

“The people believed this challenge – and we accepted it because it is an important challenge but they, including Dr Gonzi, forgot what they promised,” he said.

As more and more time goes by, more and more people are realizing that they are not living better than they were before, said Dr Sant.

However, he added, those who feel they are living a better life are those who are friends of friends, close to the government, who know which channels to go through to get what they want.

“We don’t care about these people, but about those who are doing well because they worked hard for it,” said Dr Sant.

These feel they are forgotten – the Maltese and Gozitans want a more responsible and efficient change, he said.

He went on to say that it is strange that Dr Gonzi, in last week’s budget, only touched upon the subject of the country’s economy.

“The economic growth that the government is boasting about is too little and arrived too late,” he said.

Dr Sant pointed out that the sectors that are experiencing economic growth – internet gambling and financial services – do not have a wider effect on the people’s living conditions.

“A Labour government will continue giving these sectors importance but it is well known that they do not create job opportunities,” he said.

The government knows that the economic growth it boasts about is not as solid as they want us to believe, he said.

Even though the government is very careful about how it believes the economy will grow in future, one can foresee what will happen in the final report of the International Monetary Fund, said Dr Sant.

“This report, also drawn up by bankers, is highly boasted about by the government, but they did not elaborate,” he said.

“According to the report, under this present governance, the economic rate will decrease by 13 per cent,” said Dr Sant.

One of the biggest defects of this year’s budget is that it is not putting forward any substantial proposals to improve the situation in the labour market, the Opposition Leader said.

He said that the economy needs to be boosted, with a plan that aims for a rate of growth between four to six per cent a year.

“Creation of jobs and the cost of living are the two main factors that people use to see if the economy is doing well,” explained Dr Sant.

He went on to say that the government seems to have given up on the industry and that last week the government did not speak much about manufacturing.

“Since Dr Gonzi is in government, there has been a decrease of 1,496 jobs in the manufacturing industry. I am making it very clear – we do not agree with the government’s pessimism about the manufacturing industry,” said Dr Sant.

A Labour government will set up a task force with the leaders of the industry to discuss and set up measures that will improve their working conditions so that in three to four years the jobs will increase by 2,000, he said.

Similarly, said Dr Sant, a Labour government will set up a task force with the stakeholders to encourage large investment in the manufacturing and technological industry, to create another 4,000 jobs in four to five years.

“My government will take care of ST Microelectronics and make sure that it can continue growing even after the euro is introduced and implement changes that will improve the situation of the Malta Shipyards,” added Dr Sant.

A Labour government will also give importance to Enemalta, upgrading electricity generation, while focusing on finding alternative sources of energy,” he said.

The Opposition Leader said that, the new Labour government, is looking forward to the growth of SmartCity, and pledged the full support of the public administration to ensure its completion – “unlike many others that were never completed by this government.”

He also pledged the Labour party’s total support to full training in Information and Communication Technology and Maltese and foreign businesses that are interested in investing in this sector.

Dr Sant then spoke about tourism.

“If there is one sector that has suffered from the government’s incompetence – this is the one,” he said.

Tourism is the strongest pillar of the Maltese economy, and the country’s best source of direct and indirect employment, he added.

“A good government will support tourism and not, as this one did, leave it to stagnate,” said Dr Sant.

He pointed out that the Malta Tourism Authority is still operating without a CEO, after the people holding the post were changed three or four times.

“There is still no clear plan for low-cost airlines, or as to whether Air Malta will be helped to get back on its feet. The number of jobs decreased by 600 since Dr Gonzi became prime minister and two large hotels closed this year, while another three are expected to close by the end of this year. “We will set a target of 1,600,000 tourists that has to be reached in three to four years, and our slogan will be “who dares wins,” said Dr Sant.

A Labour government aims to generate Lm620 million in revenue from the tourism sector, improve three-star hotels and implement concrete measures to promote tourism in the south of Malta, he added.

Furthermore, he said, a new Labour government will aim to increase the number of passengers from low-cost airlines, while creating a solid plan to help Air Malta to once again become a cornerstone of the country’s tourism.

A new government will also implement two golf courses and yacht marinas in Malta and Gozo, without any connection to luxury apartments.

Dr Sant said that the MLP will also focus on improving tourism within the regional plans for Gozo, Grand Harbour, Bugibba and St Paul’s Bay and the south of Malta.

The farming and fishing sector, along with the self-employed will also be given importance, he added.

“We will reduce bureaucracy and red tape – we will give the self-employed a breath of fresh air,” he said.

With reference to Gozo, Dr Sant said that money that was “supposedly” allocated to Gozo was not yet spent.

“Out of the Lm20.5million that the government promised to spend in the last three years, only Lm12.3 million was spent and this had a disastrous effect on the economy,” he said.

Furthermore, said Dr Sant, many of the projects that Dr Gonzi announced this year had already been announced year after year and nothing had been done.

“Gozo deserves more – we will give Gozitan farmers and fishermen new help, and directly encourage the trade and industry in Gozo,” he said.

He also promised to subsidize and reinstate the helicopter service to Gozo and set up a regional council.

Dr Sant said that Budget 2008 totally forgot about local councils – regardless of the excellent work these carry out in the community.

“We will invest and enter into a partnership with local councils to implement two projects in the locality that the local council could not afford,” he said.

The Opposition Leader went on to say that, three years ago, the government increased VAT from 15 per cent to 18 per cent – one of the highest in Europe, while increasing and creating all possible types of taxes and tariffs.

However, he added, the upcoming general elections panicked the government into introducing new measures that will finally help our heavily burdened society.

It is strange, he went on to say, how a number of proposals that were proudly announced last week by Dr Gonzi were taken “almost word by word” from the MLP’s vision statement.

Among these proposals are the 14-week maternity leave, VAT exemption for clubs, sports and cultural associations, financial support and tax exemption for companies that finance sports and cultural activities, and screening for women who have a high risk of breast cancer, he said.

Dr Sant said that it was a very good thing, but he had one reservation.

“Last week Dr Gonzi announced the implementation of a national breast screening plan, but the doctors’ association said that they know nothing of this project and that they do not have the human or financial resources to do so,” he said.

It is politically immoral to come before parliament and promise something as serious as this, giving hope to those who are sick, when there are no resources and when the people involved do not know about it, said the Opposition Leader.

He said that a Labour government will re-introduce children’s allowance as these were before 1995 and reintroduce compensation for public holidays that fall on weekends.

This budget’s largest defect is that Dr Gonzi has absolutely no strategy to meet the cost of living,” he said.

A Labour government will reduce the water and electricity surcharge by half, he added.

Furthermore, said Dr Sant, it will see how it can remove the burden of VAT on education, to conform with EU regulations.

He also mentioned a number of projects that were announced but were never started, and others that were started but never completed.

“As Dr Gonzi says ‘nothing happens by coincidence’ so this constant incompetence that cost the country millions over the previous years did not happen by coincidence,” said Dr Sant.

He also expressed his concern at a recent European report that gave Malta a very low ranking, saying that there was “a significant worsening in perceived levels of corruption in 2007.”

Dr Sant then mentioned a number of cases involving the government and its ministers, where a clear explanation was not yet given, adding that these cases are only “the tip of the iceberg.”

A Labour government will work hard to make the most of EU membership economically, to avoid a repeat of the millions that were lost this year, he said.

Dr Sant said that the MLP is tuned in to the people’s need for change, and will give the change they need – looking towards the future, fulfilling promises that were made, while keeping the values of work, protection and dignity at the forefront.