Last Monday we all waited with bated breath for Dr J. Muscat’s speech on the Budget in Parliament. Hot on the heels of Sunday’s “not so national ‘manifestation’”, many were promised a series of alternative measures and solutions to a number of problems currently besetting our economy.

As eminent economic forecasters around the world paint gloomy pictures of slowing global growth, Labour saw fit to declare that this financial crisis has little to do with the state of our finances present and future. By deciding to pander, Labour has chosen to go down the populist route. Two hours of continuous lambasting, contradictions and half-baked statistics did very little to hide the lack of preparation in a parliamentary speech that left many questions unanswered and unresolved.

Let us start with Labour’s promised set of alternative tariffs. In an article in The Times of 8th September, Dr Muscat unequivocally declared, “Labour is currently working on a set of proposals for new water and electricity tariffs… we aim at being positive and pro-active.” More than eight weeks later these alternative tariffs have yet to see the light of day! Nowhere in his Budget speech could any alternative tariff regime be seen. Rather Dr Muscat exhorts courage and reiterates that everything should keep to the status quo. As to how we shall balance any future deficits and imbalances, silence reigns supreme…

The Malta Labour Party saw fit to propose a series of measures, a 15-point plan, to ease the energy burden. I for one will support Dr Muscat’s recommendations regarding inefficiencies, waste, and intelligent use of our energy resources. I also whole-heartedly agree that energy theft is a drain and a crime. I completely concur with educational campaigns raising the awareness of energy consumption and its’ sometimes ugly side effects both economic and environmental.

However, I am still baffled as to the substance behind the many claims put forward in the speech. Beyond the obvious, no real, substantial and original ideas have been proposed. To add insult to injury, several claims have yet to be substantiated like for example that the surcharge has risen by 190 per cent. No basis to these calculations has been submitted. Another unresolved mystery is the claim that the number of government employees increased just before the election when employment statistics show a reduction of 600 State workers for the year. These calculations, like the proposed alternative tariffs, will surely form the main ingredients of Labour’s pie in the sky recipe!

Maybe more worrying is that during his speech Dr Muscat held steadfast to his energy bill mantra and almost nothing else. Education and environment issues that are the bedrock of fundamental Labour ideology were reduced to a paltry two minutes. The Leader of the Opposition failed to mention that the government will be investing a staggering €362 million on education in the coming year. The projects in hand will affect primary, secondary, tertiary levels and beyond. It is an ambitious signal and confirms this government’s firm belief in education as the key of the nation’s success for the future. The same applies to the environmental issue. As the government embarks on a project that should lead to a change in our mentality regarding energy consumption and a collective effort at reducing CO² emissions, Labour saw fit to remain silent on these issues.

Another important issue is the widening of the tax bands resulting in savings for families that will offset the higher energy bills to be paid in the coming months. Other incentives such as the Equity sharing scheme were not mentioned while fiscal incentives to women to encourage them back to the work force were glossed over.

Clearly this has not been an easy Budget. Events have been particularly special in the last six months and this has evidently weighed heavily on many of the government’s plans. I am confident that no politician takes pleasure in increasing taxes. Yet it appears that the Opposition with all its claims of new beginnings fails to be constructive and innovative. After all, this time it has failed to understand that particular national and international issues are to be addressed away from a partisan and opportunistic approach. Platitudes and false hopes lead to nothing in the end. Energy, resolve and optimism are the keys to success.

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