The discussion on the budget 2008 estimates came to a close yesterday with the debate on the estimates concerning the Office of the Prime Minister, which took two sessions, one in the morning and the other in the evening.

The first to speak in the morning session was Malta Labour Party deputy leader, Charles Mangion, who said the government, by branding the 2008 budget “a family budget”, was implying that its tax and spend policy in the last four years led to a marked decrease in the quality of life of the Maltese. He said the government decided to ease the burdens on families only now just before the general elections.

The opposition’s belief that the 2008 budget was “too little too late”, said Dr Mangion, stemmed out of its conviction that the government gained Lm198 million in additional tax since 2003, yet it only gave back Lm21 million to the people. “This means Lm10 back of every Lm100 taken as taxation”, said Dr Mangion.

He referred to EU statistics which state that Malta spends only 25 per cent of the EU average on families and placed Malta in the 21st position in this regard.

He agreed with helping people who work hard; however, he did not agree with the tax bands adjustments as they do not target the 140,000 people who earn less than Lm6,000 a year. He said that these will still face the inflation problem, and to this end, the MLP is proposing to reduce the surcharge by half as this tax is paid by one and all.

Malta is lagging behind in the competitiveness sector, said Dr Mangion, even after the government reduced the number of public holidays in order to strengthen it. The country, according to the World Economic Forum, went five places backwards in terms of competitiveness.

The opposition deputy leader said the education sector is falling behind in spite of an increased budget apportionment. He called for better value for money in return to expenditure in this sector, as education is a lifeline for a country dependent of human resources

He said the early school-leaving situation is worrying, in the light of the ever diminishing trade and basic technical skills the country has forgone since trade schools were closed. Dr Mangion praised the MCAST and called for the Employment and Training Corporation to increase its efforts in instructing youths with severe lack of education.

He defended his party’s proposal of lifting income tax from overtime work as the lower income brackets work more overtime. Dr Mangion said he could not understand why the government is against such a measure as it had always preached taxing consumption rather than work. After all, he said, increased disposable income means increased indirect taxation revenues.

He questioned the government over its privatisation revenues, especially the Lm13 million bagged by the Freeport which received a yearly Lm6 million in subsidies. He also enquired on the Tug Malta sale revenue.

Dr Mangion called for the reestablishment of the helicopter service between Malta and Gozo and pledged that his party will see to further improve sectors that are currently doing well, such as the financial services, the online gambling and the maritime sector.

He accused the PN of not being strong enough in controlling firms which enjoy financial clout, as was evident when the PM suggested that the banks will be the sole beneficiaries of the MLP’s first time buyers’ scheme.

Labour MP Helena Dalli said the government spent a lot of money on public relations endorsing its own budget through pre-budget documents and post-budget adverts. She criticised the prime minister for feeling the need to write to the press that the 2008 budget was a budget of opportunities rather than opportunism.

Ms Dalli also criticised the government for failing to consult the oncology department regarding the national breast screening campaign and telling the media that it does not discuss budget details with others. All this, she said, happened after a lengthy pre-budget consultation period.

She heavily criticised the political discrimination that she said existed among employees within public service and spoke about authorities and boards as breeding grounds for political patronage. Ms Dalli suggested that Malta should adopt certain measures taken by the UK, namely a code of ethics for board members and the publishing of personal interests.

She called for the urgent strengthening of the Public Policy Department at the University of Malta in order to boost the public service’s need for new competencies especially as regards the EU.

Ms Dalli criticised Minister Austin Gatt of failing to realise that his way of reforming the dockyards did not produce the expected projected profits. She complained that employees are regularly used as scapegoats for the management’s blunders.

The MLP spokesperson criticised the way PBS is being run and how current affairs programmes are not being produced by the newsroom.

Labour MP Silvio Parnis showed his solidarity with the Albert Town, Marsa residents in connection with the permission granted for a new incinerator at the abattoir. He praised the government for promising an afforestation project at Wied Blandun, Paola.

Nationalist MP Mario de Marco thanked the Armed Forces of Malta (AFM) for its sterling work. He gave a review of the Nautilus programme on patrolling the Mediterranean in connection with irregular migration. He said the programme was successful as a deterrent against such migration as well as the loss of life during trips against the Mediterranean. He commended the AFM for its participation in this programme, as well as for the Poseidon programme in the Aegean Sea.

He called for the AFM to be relieved of the responsibility of taking care of irregular migrants and spoke about the recruiting of new soldiers in order to supplant the loss of several soldiers who are to retire in the coming months.

Dr de Marco said government will fulfil its promises to the AFM as they will benefit from the pledged pay rises and career progression. He gave a review of agreements reached with friendly countries covering training and new equipment.

He also called for civilian recognition for former servicemen as they retire 10 years prior to the rest of the population. He suggested that the AFM should not be treated as a government department.

Dr de Marco called for a full-time parliament in the light of more specialised discussions and the need for better research facilities in order to be better prepared during discussions.

Nationalist backbencher Joe Falzon said MPs need to be better equipped in order to reconcile their jobs, parliamentary work and keeping up with constituencies.

He criticised the MLP which criticised the budget before hearing it and instilling in the public the belief that the budget is a gift showering exercise rather than a financial and economical one.

Mr Falzon accused the opposition of fishing for votes by proposing popular measures that cannot be materialised without increasing the country’s deficit and of dismantling all the good government made

Nationalist MP Franco Galea praised the PN government for seeking the advice of civil society and stated that families will greatly benefit from the 2008 budget through several measures. He called for greater discipline and spoke against loose regulations that leave space for interpretation. This, he said, may lead to abuse. He also called for greater regard for Comino as it is a popular spot that is not given due attention.

Parliamentary Secretary Tony Abela accused the opposition for not being accountable to the electorate as a good number of its deputies were missing in parliament. He lauded his prime minister’s attributes and thanked him for giving him the honour of working closely with him. He thanked all of Castille’s employees for their sterling work. He also praised the police, AFM, electoral department and parliament’s own staff. He also praised the Defence Directorate and its director and staff for upgrading its services.

Dr Abela said the AFM continued its work regarding irregular migration, and reminded the House that it is responsible for migrants from the moment it receives a report of a boat at sea until migrants leave the closed centres.

He said discussions were underway regarding the appointment of officers who will be part of a think tank headed by Brigadier Carmel Vassallo. He wished them the best of luck in their endeavour.

The parliamentary secretary gave a breakdown of the AFM’s commitments during the year. These included participation in the Poseidon Operation regarding irregular migration in the Aegean Sea, participation in Frontex operations that helped quell the same problem closer home, participation in Frontex operations in Spain, bilateral training with the Italian forces that attracted the praise of the Italian high commands, as well as shows by the military band in St Petersburg, Brussels and Paris.

He spoke about the AFM members who participated in international for a such as the European Security and Defence Policy, European Defence Agency and talks between the EU and NATO. He praised the AFM members who achieved excellent results in the studies in foreign institutions. He announced that the AFM will have its own architect next year as a member is currently attending university.

Dr Abela said the AFM would be strengthened by the by 81 members that were admitted on Thursday, as well as a new helicopter co-financed by the US, a new fast interception vessel, and ammunition donated by the Chinese government.

He promised a fair promotion exercise and announced pay rises, better working and retirement conditions for AFM members.