The Nationalist Party, helped by its supporters, was trying to discredit the Labour Party’s initiatives, primarily the halving of the surcharge, the removal of income tax from overtime, and assistance to first time buyers, MLP deputy leader Charles Mangion said in a statement.

These initiatives were all planned to help the family, he said. The last five years, apart from the loss of competitiveness, were characterised by the heavier burden in taxation and reduction of state aid to families, as confirmed by the EU.

The MLP’s proposals were prompted firstly by families’ real needs. All whom the party had spoken to had said that the utility bills, the cost of living and the drop in purchasing power had undermined their quality of life.

But these proposals, Dr Mangion added, also aimed at economic expansion which should at least be close to that of countries which were similar to us, such as Latvia, Lithuania and Slovenia. Labour, unlike the Nationalist government, would not be happy with an average rate of growth of 1.25 per cent in real terms. It aimed at a growth of four to six per cent in real terms.

By reducing the surcharge families would have more money, workers would work more if their overtime was not taxed, and businessmen would be competitive because they would have less pressure for wage rises.

The government’s calculations, and those of its supporters, about how much these measures would cost the country, were an economic frame up. They resembled the former prime minister’s lie that his son had been discriminated against by Alfred Sant, Dr Mangion said.

He said it was worth noting that the Nationalist government did not have confidence in its own economic policies. So much so that now, after having sold the country’s assets on the cheap, it was going to turn to the country’s reserves, built up by the people at sacrifice, to lessen the burden of the huge debts which Nationalist governments have amassed.