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One need hardly have waited for the publication of a Sunday Times survey to conclude that this government is not popular. The shocking news is the magnitude of its unpopularity. Party functionaries may be prone to cite statistics in defence of government achievements. A run away deficit has been controlled, the biggest foreign investment has been attracted to our shores, and the greatest euro aid agreement has been reached. Are these not remarkable achievements? How come we are so unpopular, ministers may rightfully ask around the cabinet table.
Cabinet ministers and party strategists may decide to brush off this poll as simply mid-term blues. They should stop deluding themselves. The government and most especially the Nationalist party need to take stock and carry out a soul-searching exercise.
The party should not talk to itself but must start listening to the opinion of level-headed experts and ordinary voters. The sense of disappointment among its core voters runs deep and is far more damaging than the small core of PN party strategists admit. This government is unpopular for many self-inflicted reasons and a number of events beyond its control, principally the oil price hike. The truth remains that perceptions of government’s performance are low and in the political world perceptions are reality.
This newspaper believes that a perception has built up around this government that it is disengaged from the people. The introduction of new taxes including the eco tax, increases in Gozo ferry services and the airport departure tax, the tax on mobile telephony, increased court fees and most especially the surcharge on water and electricity has left less disposable income in people’s pockets. The situation has been made worse with the recent increase in the borrowing rate of interest.
The uncertainty created by the fluctuating surcharge tax is reminiscent of the disastrous CET tax regime introduced by the last Labour government. As people await with fear the arrival every two months of their bill, they put a lid on their spending. This hefty charge has simply devastated the life style of pensioners and families earning less than Lm6,000 yearly. This has had disastrous effects on businesses and growth generally.
The surcharge has become the Achilles heal of government. It has simply reignited a sense of stress, unease and frustration among the small businessman and SME’s, which traditionally were the core Nationalist voter. This time, as in 1996 this significant electorate could vote on its perception of this government as the catalyst of its falling standard of living. Government is well advised to reach out to the small business community who traditionally has employed singularly few yet collectively a chunk of the work force. The surcharge has simply ripped their businesses apart.
Surprisingly little is known that government absorbed 40 million pounds of the burdens in the last two years. Inspite of the global hyke, an event beyond government’s control, the popular feeling is that government has put up the price. It’s all about perceptions.
People are also confused. They fail to reconcile the recent extension of development boundaries with the popular mood crying out for less building sites, less development and more preservation of the environment. Government justifies by claiming rationalisation, perceptions sniff electoral considerations.
The European commission decrees that our public transport system is liberalised immediately and the local transport minister Jesmond Mugliett dilly-dallies while defending protectionism. This strategy of delaying the modernisation of our country is costing the government dearly. Surely the ministers need little reminding that they were elected on a liberalisation ticket apart from the fact that there are more commuters than bus owners and taxi operators. Why this fear to bite the bullet?
In our view this paralysis stems from the deep-rooted mintoffian infrastructure, expand and protect the public sector, create and protect closed shops is still engrained in our society and most especially in the psyche of a number of ministers. Europe, thanks to mismanagement of the project, risks being perceived as simply an intruder and a tax imposer.
Government’s procrastinations are much to blame. This newspaper is passionately committed to the European ideal; it would appear that certain government ministers are having second thoughts. This offends both us and other local European enthusiasts already disillusioned with the lack of a European commitment to help ease the immigration inflow into our small and overpopulated island. Euro scepticism regretfully is on the increase.
The warden system, originally marketed as a protector and guarantee of disciplined safer driving has ruthlessly been converted, thanks to a hand full of greedy mayors into a money generator for local councils. Wardens hide and sneak behind bushes, ever ready, to fine motorists. The system stinks. It is in dire need of an overhaul. The blame is clearly put on government’s doorstep. Yet again perceptions reign.
The euro change over, if mismanaged, risks turning into a re-enactment of the VAT electoral debate of 1996. The benefits of its introduction are self-evident yet government’s burdening taxpayers with added taxes in order to conform to the guidelines and deadlines carries social consequences. People expect government to carry on trimming its expenditure, equally ruthlessly and efficiently, as it is collecting taxes. The burden can no longer be placed at the door of the taxpayer; government too must lead by example. Its commitment and achievement of controlling the deficit is praiseworthy but government must equally appreciate the social costs. This government can carry on cutting the deficit and introduce tax cuts in the next budget but neither of these two laudable achievements will let government off the electoral hook.
Only growth can re-elect this government. Its present level of unpopularity will only be overturned if the economy grows and the positive effects trickle down to all levels of society enabling disposable income to increase. There is certainly no magic wand to growth but certainly liberalisation, removal of monopolies, deregulation and opening up of markets, reducing government-induced costs, attracting further foreign investment and trimming bureaucracy should all go a long way towards starting to achieve growth. To date government has over-relied on people carrying the burden and breaking point is fast being reached. It’s time that government itself set the example by running a leaner and tighter operation. Only then will perceptions start to change.
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