Editorial • 11 May 2003

This country is sick

So now we know that the country’s fiscal deficit is almost Lm10 million off the mark of that promised in November’s budget speech.

The tax relief given in the same budget only served to worsen government’s fiscal performance, which only shows that not all was well last year.

This country is sick and it needs urgent medical attention. Hopefully, with the election out of the way the Nationalist administration gets down to tackling the country’s economic ills with resolve.

The very short post election mini-boom over, post election depression is expected to start settling in.

Common sense dictates that to reduce the fiscal deficit government requires two roads of action: increasing its income and reducing its expenditure.

The fiscal deficit was steadily brought down over the past five years. But the exercise was successful because government raked in more of its tax revenue. That mode of action may now have been exhausted. Putting increased pressure on taxpayers by milking them for more money will only help to stifle the economy.

The next long overdue step is to tackle the expenditure side of the equation. Our overstaffed civil service needs a good sahke up. EU membership will mean hundreds of people will get new jobs to ensure that Malta can stick to EU directives and laws. Government must ensure that it chooses the right people and stick to lean and efficient management practices.

The public private partnership initiatives have shown that people in government employment can deliver, and government must look to start new and similar initiatives without falling foul to the temptation of choosing blue eyed boys and creating fiefdoms.

We need to ensure stricter fiscal controls on the various authorities and government entities. Government needs to stamp out abuse of the social services and urgently needs to reform the pensions system.

The Nationalist government had better get the euphoria over EU membership out of the way and take the bull by the horns. Getting the country ready for the euro will be a hard nut to crack in two year’s time with all the criteria linked to the changeover.

And the nutcracker has to have the resolve and the right backing from all government structures. Forget the champagne for now.

On the winning side

In Malta we have the tendency to keep private much of what is important. Often in the homes and cafes, at the polite cocktail parties and in the run-down men’s bars all of Malta speaks about issues that fail to make the media. No political party likes its dirty linen hanging out in public, and the PN and MLP are no exception.

While there may well be party struggles going on with the PN, the MLP leadership race is seen as more crucial and the tongues are wagging and it is Labour on people’s minds.

Labour is the focus of attention because whatever happens within the PN the general direction of the party will remain unchanged. Not so for the Labour party where a new leader could mean a completely new start.

While those clinging to Alfred Sant’s shirt are hoping for business as usual, many others within the party are fighting for change. While the fight might not be apparent to the casual observer, those in the inner circles know what they are up against.

Alfred Sant’s interview yesterday on PBS showed a man who despite two successive electoral defeats is not prepared to change one iota. He is not alone in this wish, but the daggers are out and the piranhas are on the prowl.

Manuel Cuschieri’s decision to stop his radio programme did not come without a struggle and those that wanted to stop Cuschieri’s gob won.

While Alfred Sant said many asked him to stay – a normal experience for every Maltese political leader that steps down – many within the party have done nothing of the sort.

Too many Labour politicians have remained eerily quiet both in the election run-up and since the result to indicate a sign of normality.

Alfred Sant, despite all the help he enjoys from Labour media and his control over Labour employees, has felt the need to canvass among the delegates.

He may soon find himself running into a brick wall.

The campaigns of those wanting Sant out are gaining ground, and so they should because everybody likes to be on the winning side.