Monday, 3rd November 2008 - 22:01CET
An irresponsible budget - Joseph Muscat
The budget presented this evening proved that the government had not achieved its economic targets because of the bad decisions it had taken, Opposition leader Joseph Muscat said.
Addressing a news conference he said that there was no mention of the new water and electricity rates, showing that the government was either ashamed of the tariffs it had introduced or wanted the people to forget.
Dr Muscat said the budget included some positive measures such as the long overdue environmental measures, measures to encourage women to return to work, and the removal of the succession tax for the disabled .
The measures promoting alternative energy were positive but only a few would be benefiting from them although everyone would have to pay the new bills.
While all EU governments were talking about the importance of reducing fuel costs, this government had introduced a new tax on fuel.
The government would be making €15.5 million out of the new registration tax on cars, double what it was removing. It was using the implementation of an EU directive as an excuse to make more money.
The government had failed its economic targets for the wrong reasons and not because of the international crisis. It had spent €70 million and handed out 600 jobs before the election. This had led to a deficit that was triple what had been estimated.
Dr Muscat said that the country’s debts have doubled to €0.5 billion showing that the government had either been lying last year or it did not know how to govern.
The revisions of the income tax bands were cosmetic and too little to have an effect on economy. They were a far cry from what the Prime Minister promised seven months ago.
The same could be said for the cost of living increase.
He said that the government had ignored the unions’ calls and was not compensating the people for the water and electricity increases.
The government, Dr Muscat said, had wasted money when the economy was in a better situation and now that it needed to be sustained, the people were being taxed more. A Labour government would not have introduced the new water and electricity tariffs in such circumstances - it would have primed the economy, promoted investment and reduced taxes courageously.
Labour would have seen that those who had the courage to invest were sustained and not thrown into the deep end.
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Comments
Just an example:
The licence of my car which is a diesel and 10years old and i cant afford to buy a new one to make it a point, will rise from 175E to 306E. The W&E bills will be higher though i am trying to rationalising as much as possible, I have to pay more in fuel, I have to pay more for everything because the rise in W&E & fuel alone bring about a natural price hike. So you think thats fair? I am sure my salary remained the same. Conclusion: I have to lower my standard of living and like me the majority. Thank you GonziPN for the regression and for the pains u r putting us through.
Ok everybody knows your style of twisting your comments and say NO to evrey thing !!
But you do seem to AGREE with the Gov't, With the community work for those registraing for work, now the Budget fever has passed and, You did not Comment on it why ?
is it because you might be seem unpopular with nearl Half of these People that are Laburisti?
Dont stay Gallerija on this one too, and say if you agree or not pls. there are approx 6,000 waiting for your Opinion, in the next election, Comes when comes, 6,000 can make you the new P.M no ? They are Tax Payers too no ?
@ all who think that with Community work, the Gov't is Punishing the unemployed, They are Wrong ! 30 Hour's of work with an increase in payment to what they get now, will make life more Comfortable to 50 % of them.
The Times of Malta report as follows:
"SAS will be embarking on flights between Malta and Stockholm as from the end of March, Tourism Parliamentary Secretary Mario de Marco announced...................
He said that by the end of this year, the private sector would have added 600 beds and another 600 were planned for 2009."
The parliamentary secretary said that eight per cent of the Maltese earned their living from tourism and tourist expenditure was estimated to be close to 855 million euro. This compared well with the record results of 2007.
The Government was elected for a five years mandate. It cannot be expected to carry it electoral manifesto in the first year of its' mandate.
A healthy opposition duty is not only to offer constructive criticism, but also is duty bound to offer alternatives and demonstre that it is a Government in waiting. But this is to much for the MLP to understand and wonder why it is condemmed to the Opposition benches.
To state the following you really have no shame; "You haven't even the free will to think. You're all indoctrinated and brainwashed."
My friend there is no price hanging over PN MEP or Local Councillors to insure to toe the Party line. None have been kicked out of the PN for speaking out against the Part. The PN encourage debate, and where there is debate ought to be clashes of opinion. The PN looks at this as a positive attribute of free thinking and expressing of ideas and encourage it at he same time.
The year ending June 2008, in which the election fell almost halfway the year, there were 500 less workers on the Government payroll. That is a fact which anyone can varify.
First let me reiterate what I wrote earlier in a previous e-mail - I am a neutral observer with no political partisan ties or loyalty. Therefore I comment without passion or favour.
Two points drew my attention in your latest post.
1. You wrote, “I don't know if there is a Maltese equivalent to this saying”, which you then followed by a Maltese saying. Somewhat befuddled aren't you?
2. You addressed “all PN sympathisers” (I am not one of them) writing, "You're all indoctrinated and brainwashed." Now that takes the cake! That takes some cheek. You have been parroting the party line in every posting that you made. Now that is what one can truly call being indoctrinated and brainwashed. Don't forget - People in glass houses ... or ... The pot calling the kettle black; or in Maltese “L-ispiżjar (changed from the original for the sake of decorum) milli jkollu jgħatik.”
Part 3
In short the Maltese economy under Mintoff and KMB stagnated and basically came to a total halt.
The only think that thrived under Mintoff was the building boom of the construction of the now FAMOUS BOAT HOUSEE OF ARMIER, LITTLE ARMIER AND THE ONES AT MELLIEHA BAY
AMONG OTHERS.
Part 2
In additon a number of hotels were also build in and around Sliema and St. Julian's. In 1971 Mintoff not only found a Tourism industry that was well established, but also found an economic base that was fast growing and a building boom. Also. in an advance stage of planning Mintoff found the planning of a Reverse Osmasis. The first thing that Mintoff did was to Shelf the project. We all now what the consequences were - the rationing of water.
The first 5 years Mintoff did well in redistributing the wealth that was the created by the previous administratio. The downfall of Mintoff was that his Administration didn't know how to enlarge the economic pie. Consequently resulting in massive unemploymnt, bulk buying and a centrally controlled economy to the detriment of all. The creationof the Korpi Statali which did not contribute anything to the Gross Domestic Product and became an albatross around the neck of Maltese Economy. During the Mintoff and KMB adminstrations the only deficit one can speak of is the infrastructure deficit that they left behind, which we are still paying a the price for it today.
Part 1
If you do not want to pay the tax on bulbs and neon light, simply buy energy efficent ones and you want pay the tax. In doong so you will not only pay the tax but will be saving energy and saving a few euros also on your energy bill.
It is stange to mention as far back to 1971, but why not go back more 9 years to 1962. In 1971 Mintoff found a Nation that it was Independent and had its' destinity in its' own hand unlike 1962. Thanks to Mr. Mintoff, GBO in 1962 took over the Country from a Colonial Government and achived Independence in short 2 years.
Now lets address the economic situation.
In 1962 the economic activity in Malta was almost non existing. Totally depending on the British Bases. 1971 Mintoff found an economy that was growing, a building boom and a thriving Tourist industry. In short 9 years there were a number of Hotels that were build. The Mellieha Bay Hotel, Paradise Bay Hotel, Ramla Bay Hotel, Dolmen Hotel, The Hyperion Hotel and the Salina Bay Hotel were builld in around Mellieha and S. Pauls Bay alone.
You have it wrong. The nomenclature “party in opposition” derives from the fact that its members traditionally sit opposite to the party forming the government. It has nothing to do with the meaning that you are stating. It is the sacred duty of the party in opposition to provide constructive criticism to government policy, and to make proposals for the good of the nation. If any member of the Opposition believes otherwise, then he/she should remove himself/herself from parliament for being in violation of his/her oath of office.
This is the problem with politics in Malta. It is so deeply entrenched in partisanship, that partisanship and party loyalty take precedence over loyalty to the nation to the detriment of the nation.
It is frustrating for reasonable people to carry on a rational discussion with people such as you who are blinded by partisanship. It reminds me of the old Maltese saying, “Qal il-Baruni, - ‘Mal-ħmar ma hemmx raġuni.’”
IKOLLKOM TBUSU L-ID LI TIXTIEQU MAQTUGHA.
That's what you PN supporters are doing. You haven't even the free will to think. You're all indoctrinated and brainwashed.
Let's examine this approach. Where will the "compensation" funds come from? All governments have limited sources of revenue, the main one being taxes. Therefore the government would have to raise taxes to balance the amount "compensated". What Dr. Muscat suggests is for the government put a Euro in my right pocket as "compensation" while taking the same Euro out of my left pocket in taxes to make up for it.. Later, Dr. Muscat can claim "Il-gvern raħħsilna l-ilma u l-elettriku, imma għollielna t-taxxi." Where did Dr. Muscat learn these management principles? Was it at the University of Malta, the University of Bristol, or has he been studying Robert Mugabe’s “management principles”?
There is no seismometer in the world sensitive enough to detect the terremot promised by Dr. Muscat. A burp could be more readily detected than his terremot. Dr. Muscat - say and do something sensible.
That's the shame. Boat owners using as much electricity as they want and even wash their boats with fresh water and pay nothing and we pay for every unit and every drop through our noses. CHARGE THEM FOR WHAT THEY CONSUME AT COMMERCIAL RATES.
Oliver Cini
It is your MINORITY Gonzipn Government that has to find the solutions because that is what it was elected for, not the Opposition.
joe vella
The sewage tax was a condition of the loan which your Nationalist Government had contracted to get a loan because it is the trademark of Nationalist Government to leave Malta in tatters and debt.
As it was said, and not by the Labour Party, the Nationalist Party is the CURSE of Malta.
Are you referring to the MINORITY Gonzipn Government elves Mr Micallef?
The Opposition is there to oppose and criticize your MINORITY Gonzipn Government not to make proposals.
joe vella
the tax on bulbs and neon tubes is there simply to generate income to your MINORITY Gonzipn Government not to protect the environment. The cola increase is not only not enough, but last year's increase had been eroded a long time ago.
When Labour was elected in 1971 your previous Nationalist Government had not even left anything in Malta's coffer, so much so that there was not even money to pay the Government workers. Are you still denying history that it was the Labour Government that built Malta's industrial backbone which your Nationalist and now MINORITY Gonzipn Government has destroyed? And you have the gall to say Labour destroyed our foreign reserves and everything!
Today Malta's eroded foreign reserves are no longer ours but are deposited at the eu central bank for the eu to earn whatever income from them instead of Malta.
Ken Mercieca
Why did Gonzipn make all those promises before the election? You are confirming that those were barefaced lies.
and if gonzipn/gattpn is so good pls explain why more people voted against than in favour in the last elections!!
You know why they are sitting on the opposite side?
Simple becaue they do not have the national funds to win an election like the PN do.
600 jobs before the election. How bout that. Your party strategy will let you down someday and it will be a win for all the Maltese.
Moreover, can we not call each other names? Can we treat each other with dignity?
Besides that, no one has mentioned the hefty electricity tariffs that this Government arrogantly is going to impose over the Maltese citizens. What about the fuel prices? Why prices were put up again when the oil price fell well below $66 per barrel? Surely by this measure, it is showing us the inefficiencies of the poor administration of Enemalta. Ultimatley who is going to pay for such inefficiences?
What about, the car licences and cars older than 5 years? Are the Car dealers and low income earner families happy with such measure?
Well but on the other hand, on a positive note I welcome the measure taken over those "unemployed" who are receiving a social benefit where in return they should give something back to the local community.
One can understand the frustration by these elves…they just can’t digest the fact to be on the Opposition benches once again. Enjoy Sunday with Jason Micallef and co. making fun of you in Valletta.
Not a single concrete proposal by MLP in 7 months! What a new beginning! What an earthquake!
If the first budget included tax cuts, and such investment related incentives, and environment friendly measures, what will the coming ones be like? The only way is up! Well done to all Cabinet.
However I disagree with him on the assessment of this budget. I am of the opinion that given the circumstances this is one of the best budgets presented by PN administrations.
It shows a good element of vision and had the courage to tackle issues especially the environment which have been long neglected or just not actioned.
Of course we will be eagerly waiting to see how Dr Muscat will reply to the budget speech hopefully showing that he has the ability to present an even better vision.
For one to accept that a Government elect is to deliver on all its' promises in the first budget or in the first year is unreasonable.
I was proved wrong.
The MLP failed in stating their recomendations in how to face the deficit and how to make good for the cost of energy and fuel.
Dr. Muscat is just saying it not the right time to increase such energy tariffs.
Dear Dr. Muscat is that the way how you solve your problems at home, by shelving bills for your daily consumption?!
Perhaps you can tell us all what taxes, taxes and taxes you are refering to. The only taxes raised are what are called sin taxes, mainly cigarettes and alcopops; tax on traditional bulbs and neon lights and th 0.05cents and 0.02cents increase on petrol and diesel respectively.
The tax on traditional bulbs and neon lights one can easily avoid by buying energy savings ones. At the same time you would not only be consuming less energy but also will be cutting your energy cost. The revenues generated by the minimal increse in petrol and diesel are not going to the Government consolidated fund, but rather ot the eco -environment fund stirctly to be spend on environment.
Some one mentioned the increase of COLA of only 4 Euro. In real terms the increse in COLA was in the excess of 6Euros when one take into consideration the 2 Euros that was given in advance for this year in last year's budget.
Putting your hand on your heart, do you still recognise the PN from the promises poured out during the weekly political meetings of March 2008 with the measures announced in the Budget? Are these U turns? Lies? Hypocrisy?
Perhaps Joseph Muscat would like to tell us all what more he would have done, and at the same time tell us what taxes he would have rise or programms cuts he would have implemented so at the same time he could the budget deficit down.
Wage freeze in 1982? What about the proposed Sewerage Tax proposal of Leo Brincats' 1987 budget. The labour Government was also prepared to tax us for relieving onself and flush.
Labour reallly have no SHAME.
Anyone who argues that the Government should have forcasted what the price of Oil was going to be some months down in the year is not being honest with oneself and with others for that matter. I challenge anyone that profess that the Government should have known what the price of oil was going to be months down the road to tell me what theopening price of oil is going to be on the NYMEX this coming Monday.
I am not saying that everthing is rost, but for Labour to start gainig credibility it must call a spade a spade.
Is Joseph Muscat serious? Does he knows what he is talking about? Or he takes Us, Joe the Citiezen, for real fools?
Here what he had to say aboutthe deficit; " It had spent €70 million and handed out 600 jobs before the election. This had led to a deficit that was triple what had been estimated."
First in regards to handing out 600 jobs, it is a fact that year over year this last year there are 500 less employees on the Government payroll. In regards to the defecit it is over projected for two main reasons; 1) Is the 55 million euros the Government had to folkout to Enemalta because of the rise of Oil over the summer months to $147.00 per barrel; 2) Is because the hit that the Government hit of some 50 million euros inregards to the Malta shipyards scheme. These are a onetime charges and Even the EU acknowledge so.
You are like the Statue's Angel with the nail in your lower back and still smiling.
Eagerly looking forward to next Sunday's manifestation.
John Zammit
Do you remember the introduction of the minimum wage, equal wages for women, the increases in wages of several Malta Liri when cost of living was much cheaper than it is now?
Gonzipn pre-election advertising
The Maltese people died and their soul went to the pearly gates where they were met by St Peter. He told them that first they must visit hell for a day, then heaven and then decide where they want to stay. So Satan took them to hell and they found that it looked like the garden of Eden with music, lots of nice girls/gals, fantastic food etc.
Then they went to heaven and found the place drab and uninspiring. When asked they said they want to go to hell. Down with Satan they went, but as soon as they entered they found it like a desert, people in chains, fire etc. When they complained Satan told them that yesterday he was only advertising the place.
Gonzipn did the same.
First of all we had the BOMB of the utility tarifs.
Now the budget which was expected to cushion these tariffs was presented.
The income tax bends were only a cosmetic. The figures are ridiculous and FAR FAR away from what the PN pledged to do before last March election. So this shows the two faces GONZI / GATT PN. He didn't even have the guts of mentioning the utility tariffs in the budget speech.
Thank you dr Gonzi for the 5 energy saving bulbs. May I ask if the government is planning to change all the bulbs to energy saving in government departments and offices ? and why not all the street lighting? and can he tell us how much is it going to cost ?
One has to keep in mind as well that PAR IDEJN SODI GONZI was the minister of finance for these last legislatures to keep his par idejn sodi on the debt that is now 200 milion more than it was expected to be this is truly par idejn sodi !!!!!!!!!!!!!!
I am glad that we have more taxes because that's what people deserves in this island!!
Believe me I understand your feeling because me parents too passed through hard times as nationalists during the labour government, but i think it s never wise to let fears of the past interfere with our present and future. like that we will create a monopoly of a government. Weather we like it or not a change is always a change, and some 10,000 cried for a change in the last election.
Shame on you V. Fenech and not on Ms. Gatt!!!!
Perhaps, it is you that need to take of your red spectacles before leaving any comments.
"Labour has built up the basics for the Maltese economy." You certainly have no shame to say so. How did labour build the basics for the Maltese economy? With bulk buying, with thousands of hidden unemployment among other things.
What you are referring to as "inherited in the National coffers" amounts to foreign reserves, todays Malta's foriegn reservs are in the Billions of Euros and not the mere 450 million Liri that were there in 1987. What Labour left is the biggest Infrastructure deficit that one could imagine.
You talk a fit to someone referring back to history, and yet you are the first one to recite history and go one step forward by trying to rewrite it . Really and truly you have no shame.
Plastic bags for example use paper bags it's cheaper now.
The Bulbs ? He was right with 70% less consumption make your calculations.
Yachts? i wish any one of you had one.
Fuel ? that yes
what else ????? ahh Pools just a small increase for the same people that have a loads of money to afford it.
Before you speak of some think think people and you Anna maria Gatt Please understand that we have to think with to days means of measure.
I really hope that next Monday Joseph get's out with some solutions not just foolish talk that will solve nothing at least we would know what he things and his counter proposals if not his just talking and thinking that we are idiots.
1) If you have a car more then five years old you have to pay an additional tax apart from the license.
2)For Commercial vehicles an increase in the license from Eur63 to Eur158
3)An Increase in the price of Petrol and Diesel.
4)An increase in tobacco.
5)An increase in the license for boats etc
6)Apart from the 95% surcharge we have to pay other drastic tariffs tat is approximately 200%Surcharge.
Dawn huma il vera par idejn sodi li kien jghajjat bihom Gonzi
You want environmental friendly measures? Stop rampant contractors and smoke emitting buses. Plastic bags are a small part of our environmental problems. The government just wants another excuse to tax us.
Furthermore, did the readjustment of the registration tax consider hybrid cars? Some of them are large cars and hence would not have that much of an impact of the environment. Also, does the government really think a family of 4 or more can fit in a smart car?
At least I can take comfort from this depressing budget by drinking my head off (now that the alcohol is cheaper!)
Come on, stop the political partigianism. We all know that whichever party is currently governing, the budget will always serve to relocate funds, balance out the tax load (ideally), but quite rarely giving out sacks of money.
So if people are to comment, I think it should be constructive opinions which are not based on silly comments such as "I don't trust Dr.Gonzi" or "The government is trying to play us for fools". That is the reason why we never make any progress in this country...we never stop pointing blue or red fingers at eachother.
Wake up Madam. Life is now. What happened in the 70s and the 80s is irrelevant. We have a government which fell very short of its pre-election promises, it is eroding our purchasing power and pushing more families below the bread line. It is sheer arrogance and dishonest not to address the plight of the many families who are facing a very bleak winter with the water and electricity rates introduced just to make up for a profilgate government whose only interest is to consolidate its own egoistic political aims; i.e. to stay in power and continue fattening its own sacred cows. Just tell me where do you find Gonzi's social conscience in this budget if you can.
I just heard Joseph Muscat's brilliant press conference and I can only conclude that the sooner this brilliant young politician takes over the governance of this Island the better it will be for all Maltese. Wake up Malta and join next Sunday's manifestation to show the Gonzi government that it can fool some of the people all of the time and all of the time, but it cannot fool all of the people all of the time
ahhhh at least we did not receive 5 mills discount on ton taz zejt and another 2 mills on lunchenmeat. What a moaner!!!! all budgets are hard, but at least this one is as dignified as can be. just think of budget 1982!!!!! wage freeeeeeeeeze brrrrrr i am still feeling that freeze!!
Is he pro environment or not? If in the affirmative why is he campaigning in favour of 'no pay' for energy and water wastage? Why is he against the introduction of the tax on littering? Is there anything unjust in taxing pools? Or does Dr.Joe Muscat prefer having pool and yacht owners capped? But he has not yet uttered one single word in favour of having 30,000 families subsidised. Yet he said a lot against the government for justly putting the burden on those who can bear the brunt. It is becoming more evident that having a new leader is not enough for the MLP to find its social conscience which it had lost since 1998. It is also becoming evident that the new leader is no different from his predecessor. Like him he promises one thing only to do the opposite the next day. So did Dr. Muscat when on his election as the MLP leader, he promised steadfastness and courage and today he is insisting on the government to postpone its courageous actions aimed at overcoming in time the challenges ahead!!!
What do you mean when you say people who vote PN will never have second thoughts?? Then how would you explain that in 2003 PN got a 12,000 vote majority and in 2008 a 1580 vote majority? I think people do change their mind over 5 years. God forbid if that wasn't case cause the government will become too powerful if it never changes. If the PN continue to take people for a ride the electorate will show their disappointment by not voting for them. This 70s and 80s criticism of labour is getting old and old and is becoming counterproductive. PN has its own past too...
Labour has built up the basics for the Maltese economy. There had to be Nationalists' governments to destroy what was inherited in the National coffers. It was meant to be for Nationalists' governments for injustices to explode and political arrogance and opportunism to expand.
Nowadays it is useless to refer to history, or more seriously think that you can change history, to suit your party. Especially in these times when PN continuously refuses to express a public apology regarding the numerous negative aspects of its times!
Funnily enough you forgot to mention the new water and electricity tariffs which Dr.Gonzi has promised that will be commenced from the beginning of October. In two weeks time, he's already done a U-turn turn on the same issue while also let down by his advisors who denied the Government claims. Ms.Gatt, if you're so happy with this type of slang from your party, could you please include my bills in your expenditure accounts????
Before leaving any comments, try to take off your blue spectacles. At least respect your integrity.
How come oil prices went down from 140$ to 65$ a barrel, and the Maltese government is raising not only electricity and water but now even petrol and diesel!!!!
Does the population understand that a small increase in Petrol and fuel will leave a very very bad effect on the families - especially those who rely on travelling to earn a living!!!
w & e tariffs and heard nothing.
The government must think we`r idiots.
You can rest assured you're not alone in feeling the way you're feeling. Many more people who voted PN in good faith are having second thoughts on their political choice.
Balancing out the taxes like those on light bulbs, tourist nights, eco-contributions and registration tax with the incentives for women to be re integrated in the work market, energy saving, investment in educative infrastructure and further widening of the tax bands, meant a couragious budget.... just what Joseph asked from Lawrence...!!!
The first thing that Gonzi has to fix in mind is that he need to fix the way his party is turning local politics into!
Hija tal misthija kif dal gvern lanqas kellu il guts li jsemmi it tariffi il godda . Din ta tax bands hija redikola u nixtieq li nara min issugerielu din tar roti .
Gvern li jidhak bihna