Opposition leader Joseph Muscat branded the government’s economic credentials as amateurish, citing various instances including the country’s deficit, the power station extension and the fuel prices as a clear example.
Addressing a political activity in Gћaxaq, Dr Muscat remarked that the government’s performance so far was not even fit to run a small company. He claimed that during the first half of the year the deficit increased by €83 million, prompting several spending cuts including in infrastructural projects. He emphasised his point by repeatedly referring to Finance Minister Tonio Fenech as “amateur”.
Regarding the national debt, he claimed that it has rocketed to over €140 million even though the initial projection for the first six months was €40 million less. “As a result the taxpayers have to deal with €92 million in interests, which is 30% more than the education budget” remarked Dr Muscat.
In his address he also referred to a recent Eurostat release which indicated a decrease of 7% in retail sales in May in Malta. He said that in such cases the government is resorting to the ridiculous claim that these statistics do not reflect reality. “This is absurd as the government is stating that it is not trusting its own data” said Dr Muscat.
The Opposition leader referred also to the fuel prices, claiming that these should have been lowered much more at the end of June. He added that Enemalta’s explanation was far from convincing and suggested that the person behind the explanations given is either incompetent or trying to take the people for a ride.
Muscat lashed out at Enemalta’s reply that fuel in Malta was among the cheapest in the EU remarking that even a Form 3 student in economics would be expected to do better. In this regard he accused the Malta Resources Authority (MRA) as being lethargic while claiming that it is just rubber stamping the government’s decisions. Upping the tempo, Dr Muscat accused the corporation of trying to deceive the consumers and urged the MRA to investigate.
Touching on the power station extension, he recalled how the Opposition had originally urged the government to opt for a gas powered plant. “At the time the reply we got was that such a proposal did not make economic sense. However we have been vindicated as a tender was published on the Government Gazette for a study about the conversion of the Dellimara extension to gas.” He added that this will result in further expenses on the tax payers.
He added that recent initiatives to try and secure an advantageous deal with Gulf States for the provision of gas, should have been taken much earlier. Dr Muscat said that this is another incident which highlights the government’s mediocrity and short sightedness. He also hinted that a reduction in the utility bills is in the pipeline and will be announced on the eve of the general election, despite earlier claims that such a decision was not possible.
Regarding the public transport reform, he said that a year after its launch the service was still beleaguered by problems especially in punctuality. While acknowledging that some improvements were registered, the government had not kept its word with the bus owners as it had promised them that their jobs were guaranteed for at least ten years. This broken promise resulted in a €50 million compensation package. He added that the €8 million annual subsidy to Arriva is another broken promise. “This is Austin Gatt’s legacy” remarked the Labour leader.
Dr Muscat referred to last week’s court decision which upheld Garden of Eden’s claim regarding double decker buses and ordered the government to pay €50,000 in damages. He added that somebody has to shoulder responsibility. The Opposition also referred to similar cases involving the port foreman, Prof Jaccarini who was overlooked from a prestigious post in the Health Sector, and the compensation in Karin Grech’s case “where the government had the temerity to appeal”.
Dr Muscat remarked that lack of planning is also evident in the health sector with some patients being given an appointment for February 2014. He also referred to MUMN’s recent claim – which was categorically denied by the Gozo Ministry – that the General Hospital was infested with rats. Regarding the oncology hospital, he stated that no measures are being envisaged to provide adequate parking facilities.
The Opposition leader discussed the Air Malta restructuring, pouring cold water on claims that the agreement reached was a masterstroke from the outgoing EU ambassador Richard Cachia Caruana. He said that once Malta was contributing to Greece’s financial woes, the least to be expected was for the EU to show some compassion for Malta’s request. Dr Muscat said that contrary to what had been claimed all along, Cachia Caruana’s financial package was much more generous than that offered to other ambassadors with a €150,000 salary and an extra €170,000 for accommodation. He added that in 2009 the outgoing ambassador had also benefited from a weekly increase of €500. In addition he will also be eligible for financial compensation for his premature dismissal.
On the issues of the retirement age and the Cost of Living Adjustment (COLA), Dr Muscat stated that the government’s position is now compromised as it had initially agreed to the EU’s proposals. Despite repeated denials from the government, he claimed that if elected again to power, the Prime Minister will raise the retirement age, contrary to a Labour government.
Muscat rubbished rumours of political discrimination by a new Labour government which are being spread in the Kunsill Malti gћall-Isport and other government entities. He remarked that a new Labour government will have a tough road ahead, while accusing the current administration of trying to remain clinched to power. He said the PL has a duty to sustain its efforts till the very end while welcoming those who joined the party only recently. The Labour leader said that the party’s movement is the new home for the middle class, in sharp contrast with the government’s attitude which is failing to understand the pains of the electorate.
In his opening remarks Joseph Muscat congratulated the Libyan people, for staging the first democratic elections in more than half a century while pledging Malta’s support.
Professor Edward Scicluna claimed that the government last year had agreed to revise the COLA and the retirement age, despite calls from the Opposition that there was no such need. He added that even though the government eventually backtracked on his decision, it may be too late as the situation might have already been compromised. Regarding the restructuring process of the national airline, the Labour MEP challenged the government to reveal what had been ceded to the commission. He claimed that a week before, European Commissioner Almunia had told him that the agreement was taking longer to be sanctioned, as the Maltese government was dragging its feet to provide the necessary information. “However a week later an agreement was unexpectedly announced, prompting questions whether the Maltese government might have budged on important issues as panic was taking over”.
Labour MP Marie Louise Coleiro Preca and candidate Carmel Hili addressed the crowd.
Muscat was the one giving the wrong advice - PN
In statement the PN refuted claims that government was being run in an amateurish manner. On the contrary it stated that the Opposition leader had advised Malta to stay out of the EU, not to adopt the single European currency and to follow the Cypriot economic model. The PN accused Dr Muscat of being populist including sympathising with racist views over illegal migration. In its statement the PN denied claims regarding the retirement age while describing Dr Muscat’s remarks on Cachia Caruana as further evidence of the vindictive mentality of the PL.
In another statement the Health Ministry accused the PL of trying to dismantle this sector thus undermining the work carried out by hundreds of professionals committed to give the best possible service. The Ministry stated that the new oncology hospital represents a major breakthrough in cancer treatment, while accusing Dr Muscat of being more interested in the parking facilities.