Sunday, 25th October 2009 - 17:10CET
Updated: Muscat lists his proposals for the Budget
Updated:
Labour leader Joseph Muscat today warned the government not to make the same mistake twice by raising the water and electricity tariffs again this year.
“Those who are advising you have driven you into the wall, do not let them drive the economy into the wall,” he warned Lawrence Gonzi while calling for a maximum ceiling on all government tariffs and licences.
Speaking during a mass meeting at Zabbar, Dr Muscat said he expected a responsible budget that tackled the high cost of living, job creation and corruption.
Listing proposals for economic revival, the Labour leader said high inflation and corruption, which he described as a tax on everyone, were threatening jobs.
He said the shipyards' Fairmount contract on its own cost the country a loss of €40 million.
Dr Muscat said the Prime Minister could not be trusted since there was no visible and plausible explanation for the ballooning deficit which reached €345 million in August.
“The government spent less money in capital projects this year and it cannot claim to have spent the money on subsidies for water, electricity and gas because these were removed,” Dr Muscat said.
He reiterated that government was unstable and Dr Gonzi was more concerned with his party's internal problems than the problems faced by ordinary people. “The Prime Minister does not know when the budget day is, let alone what measures it will take to help people in these difficult times,” Dr Muscat said.
Proposals for budget:
Dr Muscat said that he had proposed to the government that it should:
* Declare the maximum rate for water and electricity tariffs for next year.
* Freeze all government tariffs and licences.
* Set up an agency for consumer protection with its first remit being to investigate the prices of medicines.
* Take action on food prices, particularly fruit and vegetables.
* Help tourism by withdrawing the accommodation tax announced last year and which is due to come into force next year.
* Reduce the VAT rate on tourism-related services and restaurants.
* Revise the eco-tax system so that it would not weigh down businesses and truly serve as an environmental incentive.
* Hold talks with the banks on their exorbitant tariffs. Banks, Dr Muscat said, should also do their part for the economy.
* Introduce the right for employees to be given a moratorium on home loan repayments if they end up unemployed.
* Review the 12 per cent tax on property sales to make it easier for young couples to purchase their first home.
Earlier thousands of people took part in a demonstration, organised by the Labour Party. The demonstration ended in Sanctuary Street where the mass meeting was first addressed by PL party deputy leaders Anglu Farrugia and Toni Abela.
Dr Farrugia said the government was spineless and tired in addressing the issues that negatively affected ordinary people. He asked whether the Prime Minister should apologise for the injustices perpetrated against Labourites and for allowing corruption to take root. He also accused the government of employing a number of people irregularly with Air Malta after the election when, he said, records at the Employment and Training Corporation were manipulated.
Dr Abela accused the Prime Minister of not wanting to face reality, using the global recession as an excuse for bad governance. Dr Abela spoke of workers who have not been receiving their wages for months and called on the government to take action. People do not have peace of mind, he added, insisting the Labour Party would continue to work for social justice to be achieved.
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Comments
J.M'.proposals, in a few words are pure nonsense, Most of them are already in Practice
now. I ask ... with this recession Hitting hard all over the World ( including us Malta ) j.m
should have made, Solutions and I mean Real ones!! and not playing with word's. yes your answer is gonna be , that's Gonzi's work and not j.m no ? as usual.
Thanks for agreeing with the factual points I raised in my posts in responding to the nonfactual claims raised by Pat Muscat.
Regarding the recession; whilst one acknowledges the fact that the Eurozone helps, I'm very sceptic about whether or not it's the Holy Grail just like you and your blue-nosed friends are suggesting. In order for a country to step out of the recession it needs a sound combination of monetary and fiscal policy; something which in our case is not determined by the CBM any more, but by the ECB. Such decisions can make or break an economy, but in the Eurozone no country is allowed to make its own policy, but stick to a common one with a few percentage points fluctuations; meaning that Malta won't be out of the recession anytime soon...
There are 3 levels of lies:
1. White lies
2. Statistics
3. GonziPN's promises
Think about it...
"The truth is that this Government is not helping Malta out of the recession but pushing it deeper in the bottom-less pit. PN's governments thirst for funds is crowding out private investment and reducing economic growth."
May I ask once again where do you get your information from. Cause last time I checked, every public offer by the private sector was not only taken up, but over subscribed.
Simple answer to your question. The countries that you have mentioned ore not in the Euro Zone.
Please do not confuse England with Britain. Statistics that were just published last week still shows that England is still in a recession. For your information the countries that have emerged out from the recession are the ones in the Euro Zone. It is also forecasted that that England in the not to distant future will have over three million household where there is no bread winner. Simply put over three million households all adults in the family will be unemployed.
One just wonder where you get your statistics from!! Could it be from the Sunday afternoon listening to the Sermons of Joseph Muscat?
Iceland melted because of it huge banking sector. They wanted to grow so they used the internet and were great for banking on line. However, they put on a trouser which was too big for them. Nothing to do with being out of the EU, because otherwise how could one explain the melt down in Latvia, Lithuania, Estonia, Hungry Rumania and Bulgaria, even thou these are members of the EU? The melt down was due to greedy bankers in America where the problems started, infecting Belguim, Holland Denmark and even Germany! Yes,the credit crunch was not the result of being left out of the EU, but the result of new paradigms in risk and bonuses. Otherwise how come America got infected first-followed by the EU countries- including Britain, and got out of the recession quicker ( even thou it is out of the EU and Euro) whilst EU is still languishing? China is not in the EU and has no Euro and it was hardly touched! Japan is out of the EU and was amongst the first to suffer and amongst the first to get out. No spin please!
Unfortunately, the ecomomic fix is not that simple as we all well know. Muscat does not explain how his "extreme generosity" to the people would be funded....other than in very broad and meaningless terms. That is not to say that the Gonzi Government has done a great job in managing our ecomomy... the initiatives to-date have been average at best.
Nonetheless, the reality is that when we elect a Government we don't really elect the best party...merely the least incompetent.
The other reality however is that Malta has faired reasonably well during this period of unprecedented global economic turmoil in the last 50 or so years. Yes the Gonzi Government could and should do more to clean up its own house and eliminate waste, corruption and inefficiency. However, the real fix for our ecomony will only materialize when there is a substantial rebound in the global economy generally, and the European economy specifically. And that is not in the control of either Gonzi or Muscat...obviously.
The proposals that Joseph came up with are all aimed at leaving more money in the people's pockets; something which will generate more spending and thus start the economic wheel turning again. If all the money goes into the government's coffers, then we won't be seeing much good done with it, except paying for the past 20 odd years' mismanagement of funds... Try coming up with a solution for that one...
Once upon a time, EFA was at a mass meeting on the granaries and told us: Money No Problem. Today Gonzi is telling us: Problem No Money, and so he wants us to delve deep into our pockets to sustain his expensive super-cabinet. Now he's hinting at raising the electricity tariffs again. Where's the Par Idejn Sodi?? What happened to Malta's monetary policy? Oh-Yeah, I know; gobbled up by the ECB. Think about it...
Chistmas will be celabrated in just less than 2 months ... and (after reading this list) Santa has already started distributing presents ...
Then the then minister said let our children pay for the debts we are making.
Then there was another statement IL-Hrafa tal-Hofra ta Alfred Sant.
Then there was the slogan Finanzi fis-Sod.
Then we are riding the waves of the International Financial Crises.
Last Sunday the PM said our finances are on a Blata Soda.
So how come that now we are questioning Joseph Muscat from where will the money come?
Hawwadni ha nifhmek.
Strange speakeing about a hofra...Wasn't it EFA who so blatantly passed Alfred Sant as manic when he coined the term 'hofra hrafa.' And you can't blame anyone but the last 3 administrations for this very well know 'hofra'
Very well you can answer me by the usual rhetoric that Gonzi used the public finaces to safeguard jobs...however can he at least be accountable and gives us the exact details on how money he spend to safeguard jobs and by how much the deficit increase the last let say 1 1/2 years. Or accountability wasn't on the PN's agenda before election?
I aggree on the banks situation. The situation in Malta is dreadful. I am still a youth, and personally (I know blin PNers will say I am wrong), the loan tariffs are one of my greatest worries and burdens.
Yes, the government should make an announcement and set the price of fuel to a fixed one. It would be really healthy for businesses to have a peacful mind, and can thus assess their needs. If the price of fuel is indefinite furthur investment would be discouraged.
On the other hand I really would have been content if Labour Leader mentioned the huge problem of illegal immigration in Malta. This is a burden that is costing us Maltese too dearly. Generosity is good, but overdoing it will result in doom. Since the government is totally lost on this issue, it would have been illuminating if the PL could put in some insights for this problem. Noideas on the issue?
Excellent speech by Joseph Muscat ... that is what opposition is for (good at opposing, useless at governing - remember CET?). PL has managed to do a great job in opposition ... that is why, for the good of the country, PL must remain in opposition.
For the other PN apologists who mentioned partnership/EU flags etc.. those times are past..the leader has changed/policies changes and yes ... there are 4 PL MEP's. So yes PL has the right (I say more than the PN) to wave that EU flag. PL beat hands down in 2 consecutive elections the PN in their 'home' ground. EU was PN's baby and now it is not so. So bear that in mind.
From where did you get this sensitive information? You are very bright! Hallina man. We are proud to be Labour especially after all misfortunes your party is going through. Why don't you discuss the proposals? Truth is with Joseph you and your party feel very insecure.
Your Olympic class linguistic acrobatics to shy away from what is stark common knowledge would be commendable if it wasn't sorry. If I was you I would start questioning my sources of information and monitor what other governments across the world are facing. After all they are navigating in the same storm we are, that is, we less yourself and PL
For that person who asked me where do I but my vegies and fruits, I buy them from the same shop where I have been buying them for the last 21 years close to where I live. The reason, roughly they are the same price no matter which shop you purchase them. There might be a slight difference from local or imported, due to the fluctuation in the exchange rate.
Bear in mind that in Malta we import outside Inflation from other countries, from wherever the produce come from.
@all pn in here since only critiising pl why dont you ask your dear gonzipn what he will be doing to save us from drowing more and more?abt the immigration joseph muscat said and acted in eu differently from what gonzi done.he bowed his head and nothing else and recently simon busutill mentioned excalty joseph muscat propsal abt this issue.since all of you think that gonzipn is obama why he is postponing the budget?as far as i know the minister held alot of meetings but now another u turn from this gov.by the way have you all forgotten when the pn called for his followers when alfred sant was the gov.
Regarding the electricity tariffs: the goverment should agree forward contracts regarding the oil supply. This means that the government agrees to buy oil in the future at today's relatively cheap price. Or rather, the government should have already reached such agreements when the price of oil was even cheaper. But most probably the government was more interested in solving its internal problems...
Regarding the VAT on tourism: this extra tax is being seen as an added burden on hoteliers resulting in a decrease in their revenue. The government is getting blasted because of all the promises about debt reduction which never materialised. This is proving to be a spineless government - increasing both the taxes as well as the deficit...
Finally, what would you prefer? Paying 50c tax and getting all the medicines you need? Or having to pay the full amount of medicines as the government doesn't supply them...??
Actually I have lived some time in Italy,although quite a few years ago.. I remember that medicines were subsidised for everyone as long as you had a medical prescription and you paid only for that. I also had free family doctor and a free pediatrician both of my choice and they used to do home visits for free. I also remember all the free medical tests that I had to do.. I just paid for the prescription..which was around 5 euros. Medical tests that we only dream about and I tell you from experience.. You think that Malta is the only country that we have free health care..please look around.
'Freeze all government tariffs and licences' The last epesodes of Labour's 'freeze' were the freezing of wages under Mintoff and the freezing of Malta's application to join the EU, of which Joseph was part and parcel of it all with his 'Made in Brussels' features on Super 1.
'Declare the maximum rate for water and electricity tariffs for next year' Fine, let's say the government heeds Joseph's advise and the price of oil shoots up again during the coming year. What would happen then the year after? A real case of sheer stupidity because neither Gonzi and much less Joseph have any say on the price of oil in the next few months, let alone in the next full year and the years later. Who is he trying to kid?
'Reduce the VAT rate on tourism-related services and restaurants' And at the same time he blasts the government for the rising deficit. Has he got a plan how to replace such revenue? He says the government should cut on unnecessary spending. Perhaps he's referring the the brand new hospital, the free medicines etc? Or perhaps he'll re-introduce a fee on medicines like his predecessor?
"This agengy, just in case one has already forgotten, was a solemn promise by GonziPN before the last election when the...."
I think you have a short memory, as this proposal was put forward by the PL before the election and the PN came out against this proposal. Then they had a change of heart and included it in the electoral program.
But then it's useless to say that all proposals make sense, because the PN will turned them down.
Also, we ar4e always asking the PL to come up with solutions. I disagree with this as it is the PN who is in government and it is their duty to get us out of this mess. If they think they cannot do more, Gonzi has only one option to call an election.
U araw dawk it 32,000 jizdiedu u jizdiedu ghax qed jifhmu u jittamaw li ghada jisbah jum gdid.
Qiskom gamiem dejjem tgorru.
The Times may run a poll on this - it will give a valuable insight on our preparedness to ride the 3 to 4 (optimistic forecast) rough years ahead.
It takes a tongue in cheek to question Dr Joseph's Muscat proposals considering that GonziPN proposals so far were: a 40 million Euro Fairmont mistake, the rape of Bahrija ( and its defence) by the PN president, a colossal Vat fraud of millions of Euros, increasing ( again) the water and electricity tariffs, the construction of a Power utility whose tender's process reads like Castaneda's novel,( ask Franco Debono) and last but not least, the illegality and shameful Vat collection on car registrations! More doom and gloom ? Hardly! How low can we go? Those that are passengers on the governments gravy train cannot understand the sufferings and predicament that self employed, pensioners and other econmic operators are going through. Gonzi is resembling more and more Gordon Brown ; he has lost touch with reality.
Have you ever heard about hedging? That's what the Goverment should have done when the price of oil dipped the $40 mark. This is of course if there was enough the money to forward buy the oil.
Otherwise a well presented speek by Dr Muscat and well received mby many.
An excellant speech by Dr. Joseph Muscat, to the point, brimming with assertion and a clear vision of how we can together tackle the challenges shackling Malta's progress.
One year moratorium on income tax and social security contribution;
VAT exemption on fuel;
Refund of tax paid for driving and car licenses;
Elimination of tax on sales of property.
How good, how progressive would be Gonzi's government were he to implement both Joseph Muscat's proposals and mine as well!!!
But why doesn't Gonzi give heed to such proposals? We would have much more money in our pockets to spend. Who cares then if the government would have much less money to invest on health, on education, on the environment, on the infrastructure? Money to pay Government workers monthly wages, pensions and social security - it's Gonzi's problem - borrow from the banks as the Socialists governments used to do to pay the Drydocks workers!!!
Is this the situation I and Joseph Muscat would want to have in our country?
Is there anything progressive in these proposals? Yes of course there is but only madness. These are POLITICS TAL-PARTIT TAL-FARFETT
I certainly don;t agree with a VAT rate cut on restaurants. Can somebody here give me one example where a restaurant cut the wine list price after the tariffs were removed? It will be the same with VAT, they will pocket all the difference. If restaurants want to stay afloat they ought to pull their socks up. Where will it end anyway? do we also cut VAT on souvenir shops? on car rentals? on tourist guide fees?
I read all comments and there is a pattern. Many PN apologists are resorting to the past (referendum, eu flags, patnership and so on) .... many of them did not even mention a thing about Muscat's proposals to be included in the next budget (and this is the reason why the demostration was held before the budget.
Clarification: 4th proposal. The farmer is not charging extra fees for his product but the custmer is paying high prices, what's happening, why? Dr Muscat asked the government to investigate this and to take action. It's not market control as the apologists are trying to say!
You are right. PN apologists will do or say anything to excuse their darling Gonzi who has failed miserably.
As for the present mess we're in, the only way out is OUT OF THE EU to do whatever is necessary for us without its foreign interference and without foreigners working while Maltese citizens are unemployed and without being lumped with thousands upon thousands of illegal immigrats due to eu regulations.
THE ONLY WAY IS OUT OF THE EU
I'm against the lowering of the 12% tax on property purchases for first time buyers , in no time it will be absorbed by the speculators , we all no how it goes. The prices of buildings will keep going down , let the supply and demand rule work.
Under Dom Mintoff we paid from our nose for such luxuries as a colour TV costing Lm 400 + another Lm50 or 100 to jump the queue . Bananas and apples (and what apples!)were not imported in summer so that local fruit could be sold. An expired choclate bar was bought from under the counter for Lm0.25 and you had to go to Saint Paul's Bay for it ! Vegetable prices were advertised on TV , that didn't mean you bought what you needed at those prices! Btw when onions were expensive the price was not shown on TV.
Spontaneaty was dead in Joseph's show of force , uniform plackards and 'Maltese flags with a big GC in the middle of the white. Reminds me of Ceacescu's meetings.
Sour grapes come to mind. Keep using the referendum to defend this excuse for a Government and you'll never know what hit you come next General Election! Oh come on! Criticism is always welcome, as long as it is constructive.
@ all those who commented on the Moratorium. Just in case Joseph's proposal went slightly over your head, he is suggesting that Govt should introduce it officially and bind all banks by it.
That was always the case. There were times that one would not find things that even wallet afforded. Are you sugesting that we should go back?
" Can u please explain what are in your opinion the benefits of the free market we are currently enjoying in this countrry?"
Very interesting question indeed.
Perhaps you have never experienced empty store shelves. Or perhaps you are living in isolation and that does not occur to you that what ever the month of the year you find everything that the heart might desire. And yes, for those conveniences and choices there is a price to pay as well. You also have the choice to choose not to pay the price; but do not take that choice away from those who wont to pay the price.
The '70's and the early '80's are years gone by, let's not go to the dark ages.