Parliamentary secretary in the Finance Ministry Tonio Fenech yesterday called on the Malta Labour Party (MLP) to stop making fun of people and clarify and go into detail about the four measures that it wants to implement.

The proposals, broadcast on Bondi+ on 5 November, include tax exemption on overtime, a subsidy on the surcharge, a subsidy on the interest on home loans and going back to the 2006 system of public holidays.

The Labour Party estimates that four electoral promises it made will cost the country Lm15 million (EUR34.94 million) a year.

Mr Fenech said that the video clip did not give a clear indication of where and how the MLP got these figures.

He went on to say that, even though the Bondi+ programme to discuss these proposals was postponed, he decided to go ahead with the press conference as the MLP is still insisting on quoting these figures.

The MLP’s first proposal – the tax exemption on overtime – states that it will cost the government less than Lm2 million (EUR4.66 million).

However, Mr Fenech explained that if this measure is introduced the country’s deficit will explode out of control and scare away potential foreign investment.

“Labour’s proposal is a complete invention based on incorrect information and an incorrect analysis of facts,” said Mr Fenech.

Furthermore, he added, this measure will act as an incentive for employees not to give their utmost during the 40-hour working week and refuse any extra work unless it is given during overtime.

The second measure put forward by the MLP to reintroduce compensation if a public holiday falls on a weekend will negatively affect the economy and might eventually lead to loss of jobs, said Mr Fenech.

“This measure will harm and hamper the economy which might lose up to an average of Lm9 million (EUR20.96 million) a year and cost up to Lm13 million (EUR30.28 million) in overtime,” he said.

The parliamentary secretary also called on the MLP to explain clearly how subsidising all interest on home loans that is over 4.5 per cent will only cost the government Lm1 million (EUR2.33 million).

Mr Fenech queried how this is possible when, on average, there are 2,500 first time buyers a year.

“The Labour vision document does not even mention housing. This measure is a knee-jerk reaction to the government’s budget proposals,” he said.

MLP’s fourth measure, reducing the surcharge by half, was described by Mr Fenech as the miracle of the loaves and the fish.

“Again, the Labour Party is not clear. What does it mean when it says it will reduce the surcharge by half? Half of when – today or a year ago?” queried Mr Fenech.

He pointed out that reducing the surcharge will have a boomerang effect.

“If the surcharge is reduced by half, for example, then energy consumption will increase and more oil will be needed and, as a result, more subsidies,” he said.

However, Mr Fenech said that it is difficult to get a full rounded figure of how much these measures will actually cost the government because the MLP was not clear on certain issues.