PN leader Bernard Grech spoke of how the Labour government was not “prudent” in its spending before the pandemic, as the government tabled a motion in parliament to increase how much funding it can borrow from the European Union.

The government tabled a motion in Parliament in Monday for an increase in the sum that the Government can borrow through bilateral loan arrangements agreed with foreign Governments and local and foreign institutions.

In his introductory speech, Finance Minister Clyde Caruana, who tabled the motion on the government’s behalf, claimed that the impact of the pandemic was much greater than that of the 2008-09 financial crisis.

Nevertheless, the positive impact of the Labour Government and its measures are clear for all to see, he said.

“If we look at unemployment, in 2008 there were 6,000 people registering for work. In 1 year, it spiked to 7,500; the economy contracted by 1%. Last year, after a 7% contraction, unemployment rose from 1,660 to 2,400. So, the increase, when the economic hit was much bigger, was only 700 people,” the minister said. 

In his response, Grech said that the PN agrees with any motion “which provides help for people” and that such motions “will always find support from the PN.” 

The PN leader remarked that the fact that Malta is seeking EU funds proves that the Nationalist Party was right in successfully campaigning for Malta to become part of the EU back in 2004.

Grech said that PN administrations had used such funds to improve various sectors. More importantly, he said, such funds helped us during the pandemic, as is also being demonstrated by this motion.

“This is good, this is what we wanted; for our country to come out of this crisis. This is what the EU meant for us, and the PN is proud of this.”

However, Grech was critical of the Government for its spending prior to the pandemic, saying that it spent money on questionable deals, such as that of St Vincent de Paul, yet had “only €20 million” to give to the people. 

“That is all that the government has for businesses and workers; €20 million. This is 12 times less than the contracts signed for St Vincent de Paul,” he said.

Grech was referring to the negotiated procedures struck between the government and James Caterers for the building and operation of new blocks at the elderly home – a deal worth €274 million, which was recently blasted by the National Audit Office over procurement procedure shortcomings.

“It is clear that the surplus went to finance the government expenditure without precedence, through direct orders, ceremonies to inaugurate the same project, and so forth. This is because our country was being led without prudence,” Grech said.

The Opposition leader said that the Prime Minister was “naïve” when he made certain statements which gave the impression that the pandemic is over, with the ultimate ending being more restrictions and closing of businesses, Grech said.

The Opposition leader also accused the government of having “no holistic plan” for the future, claiming that the PN has already been introducing proposals which take into account issues in the long-term.