Busuttil slams government's 'short-term' economic vision, 'inaction on traffic problems'

Simon Busuttil tells Parliament that, if elected Prime Minister, he would not honour an 18-year agreement with Electrogas if electricity is cheaper through interconnector

Opposition leader Simon Busuttil addressing a press conference following his budgetary reply (Photo: Ray Attard)
Opposition leader Simon Busuttil addressing a press conference following his budgetary reply (Photo: Ray Attard)
Opposition leader Simon Busuttil (Photo: Ray Attard)
Opposition leader Simon Busuttil (Photo: Ray Attard)
Opposition leader insists fuel and electricity prices have not been decreased enough

Opposition leader Simon Busuttil issued a scathing account of the Budget for 2016, describing it as one that “reveals the government’s alck of a long-term economic plan”.

Addressing a press conference outside Parliament after a detailed criticism of the Budget in the House, Busuttil warned that Malta’s rate of inflation is higher than in any other European countries, that exports have slumped by €700 million and that unemployment has only gone down “artificially” thanks to the government increasing the public sector wage bill.

He insisted that fuel and electricity prices have not been decreased enough, particularly since the market price of oil is so low, the BWSC power station is now more efficient, and the interconnector has given the government the possibility to purchase energy at a much cheaper rate.

When asked by MaltaToday whether he has any financial estimates as to how much a potential fresh 30% reduction in electricity tariffs would cost the Treasury, Busuttil said that he didn’t have the means to conduct a detailed study as Enemalta does.

“However, the numbers speak for themselves and you don’t need to be an economics professor to know that electricity should be much cheaper than it is,” he said. “The market price of oil has gone down by half since Muscat pledged to reduce electricity tariffs as Opposition leader. We can buy energy through the interconnector at a rate of 6c3 per unit, that is 66% cheaper than the 9c6 that energy from the new LNG power station would cost.

Busuttil pledged that a future Nationalist government wouldn’t honour an 18-year-agreement to purchase electricity from Electrogas – the private consortium behind the new power station – if energy generated from the interconnector can be purchased at a cheaper rate.

21:15 In a brief reaction outside parliament, Prime Minister Joseph Muscat described Busuttil’s speech as being “destructive”, “focusing on personal attacks” and “full of mistakes”.

“I will have enough time tomorrow to focus on this and more, but mostly I will focus on what really interests the people,” Muscat said, referring to his speech tomorrow evening.

“I will point out his economic mistakes,” he added.

Miriam Dalli
20:39 Busuttil says he had a European standard and it was the philosophy he practiced: "Environment, culture, respect and decency are more important than money."

Turning to PL supporters, Busuttil said the PN could give people more. Miriam Dalli

20:37 Bringing his speech to a close, Busutti said the difference between himself and Muscat was huge.

Miriam Dalli
20:31 Speaking of “corruption”, Busuttil spoke of the Manuel Mallia saga involving his driver and referred to Chris Cardona’s Portomaso – which according to Busuttil even living at Portomaso was not accepted – story as the minister told Busuttil to repeat the allegation outside parliament.

Busuttil also alleged that Cardona was in business with his chief of staff, something which Cardona also denied.” He went on to accuse Ian Borg “of taking advantage of an elderly man when buying a property”.

He referred to the Café Premier saga, insisting that Muscat facilitated the €4.2 million bailout without knowing what he was going to do with the property; Busuttil said that despite the Gaffarena scandal, junior minister Michael Falzon had refused to resign.

“Truth is that these people were corrupted from the opposition.”

Miriam Dalli
20:21 Listing examples of ‘nepotism’, Busuttil said that Konrad Mizzi’s father was now appointed as IPSL chairman while Chris Fearne’s mother was chairperson of the Children & Young Person’s Advisory Board.

“What a rude man,” Fearne was heard shouting as Busuttil said that “truth hurts”.

Busuttil said Luciano Busuttil’s wife had been employed with the Gaming Authority while Silvio Schembri’s wife was working full-time with the MFSA. Stefan Buontempo’s brother was a member of the Housing Authority’s board – as Buontempo shouted ‘not true’ – while Caruana’s husband was a member of the board of governors of the Financial Intelligence Unit. Toni Abela was a consultant on various matters.

Miriam Dalli
20:14 Busuttil says Muscat "has forgotten all about the genuine Labour supporters". Miriam Dalli
20:13

He says that “Muscat’s friends at Super One” where all employed with the government, including Norman Hamilton who was now Malta’s High Commissioner and Ray Azzopardi as permanent representative to the EU.

Miriam Dalli
20:05 On health, Busuttil said the government had lost its roadmap, ignoring the people’s dignity while at least seven patients died in the hospital’s corridors since January.

Welcoming the home delivery of medicines, Busuttil said he hoped they won’t get stuck in traffic.

Quoting a MaltaToday story, Busuttil said a breast cancer sufferer required a medicine – LAPATINIB – that cost €3,000 a month. “There are 28 countries in Europe that offer this medicine free. Why not in Malta if the economy is doing so well? Cancer treatment should be given free to all.”

Busuttil said the Opposition was against “what was going on” at the Gozo General Hospital while questioned while only donations to the MCCF would be tax exempted whilst ignoring all other charities.

Miriam Dalli
19:59 Busuttil says taxes increased again and echoed the GRTU’s complaints on eco-contribution. The GRTU was against the eco-contribution, while the Labour administration has changed it to a new excise duty.

Even tourism was being taxed, he adds – referring to the €0.50c environmental contribution to be paid per bed night, capped at €5.

Miriam Dalli
19:56 Busuttil says three of four families studied by a local newspaper fared worse following the budget.

He reiterates that the fuel burden was one of the issues negatively affecting families.

Under the PN administration, the mean wage used to increase by an average of €500. It was now increasing by €200. “Real wages after inflation are less than those registered during the last year of a PN administration.”

On pensions, he says that the government was “increasing the retirement age” while insisting that pensions had increased along the years. “I will be retiring at 66 not 65 thanks to this government!”

He says little was done to address the 100,000 people in poverty or at risk of poverty or social exclusion.

Miriam Dalli
19:45 Busuttil says the people should give up on Joseph Muscat and Joe Mizzi and trust the PN in improving the country’s infrastructure. Miriam Dalli
19:44 Busuttil says what once was “it pays to go by bus” it has now become “it pays to go by bicycle”. He speaks of the personal experience of woman who tried different modes of transport, with the bicycle turning out to be the best option whilst even going by bus proved to be inefficient.

He reminds a proposal he floated during last year’s budget when he proposed that all school children should be given free access to public transport.

He expresses disappointment at government delay with the Malta-Gozo tunnel. “This government had a feasibility study, done by the previous administration. But Muscat wanted to waste three years in studying a bridge, only to come back proposing the tunnel again … doing the same thing we wanted to do. This is hard-headedness that made us lose three years. We’re now back to square one. It is clear that this government has no plan for traffic.”

Busuttil says shadow transport minister Marthese Portelli will be working on short-term proposals on traffic while PN spokesperson Tonio Fenech is being tasked with a long-term strategy for alternative means of transport.

Miriam Dalli
19:32 Arguing that higher fuel prices affected both businesses and families, as if it were “an extra tax”. Hitting out at government’s ‘fuel stability policy’, Busuttil asked whether consumers “should be thanking the government for keeping prices high”.

He said that, for every weekly €30 spent on petrol, “consumers were robbed €8.50”. “The PN believes that consumers should not benefit from cheaper prices when oil prices fall.”

The traffic problem, he says, had worsened: “Indeed it’s not a perception but a procession. Traffic is costing the economy €300 million. Where is your roadmap? Was it lost in traffic?”

Busuttil says the traffic woes were a result of those handling Transport Malta, that include former Labour CEO James Piscopo and deputy leader Toni Abela as consultant.

“You broke Arriva and a public transport service just for pique. You damaged the people’s trust in the public transport service. How can you expect people to trust it? You introduced a new company, just to increase its subsidies to €30 million.”

Miriam Dalli
19:19 He says, that Malta’s competitiveness was being hit by ‘higher electricity and fuel prices’. “The government can, but it won’t reduce prices because it pushed itself to a corner. In August, the interconnector was working at a 97% capacity. The government was buying 62% of electricity consumed from the interconnector. It is buying it at 6c3 per unit while it is charging consumers 10c5 per unit.”

Busuttil insists that the government could not reduce tariffs because it had bound itself to buy electricity from Electrogas at 9c6 per unit for 18 years.

“Why do we even need a new power station? Because it is an irresponsible government that has also agreed to a take-or-pay policy.

“There’s only one reason: without the power station, Muscat will have to resign.”

The Opposition leader announced that, if elected prime minister, he would buy electricity from the cheapest source – that is, he would not honour the 18-year-contract the Labour administration has bound itself to.

Miriam Dalli
19:10 Busuttil took the government to task over its environmental credentials, saying that it had placed construction as its easy target for economic growth while MEPA was issuing permits without any environmental considerations.

“He is risking a property bubble,” he warns, adding that even ODZ was no longer ODZ. “We are not against development but we want sustainable development.”

The PN has suggested that ODZ land should have an equal value to developed land.

Miriam Dalli
19:07 The Prime Minister, who is following Busuttil’s attentively, is meanwhile taking down notes on his MacBook and, occasionally, shaking his head. Miriam Dalli
19:04 Busuttil announces that shadow economy minister Claudio Grech will soon present a document expressing the PN’s economic vision for the coming years. The document will be titled ‘Economy for the People’.

Miriam Dalli
19:02 The unemployment rate was “manipulated”, Busuttil says, because the increase was due to more jobs with the public sector.

“Is this the government’s solution? Is this its economic vision? It is short-sighted.”

Busuttil says the manufacturing industry was suffering and it was not true that it was improving. “There is no economic vision to create new economic niches. We diversified the economy and one would have expected the Labour government to do the same.”

“Not one sector was created … with the exception of the sale of passports.”

Busuttil says “it was big” that the government was taking credit for positive tourism results. “This is also the result of a PN administration’s decision to introduce low-cost airlines. We need to have a long-term vision, including what’s going to happen when EU funds stop in 2020.”

Miriam Dalli
18:53 The question that needs to be answered is whether the decisions being taken by the Prime Minister were truly strengthening the economy. “We don’t think so, because he is depending heavily on government expenditure, spending a lot on salaries rather than in investment.”

“Where are the capital projects of this government? Renzo Piano? Interconnector? Oncology centre? Coast Road? Flood-relief project? No, because these are all projects of the PN administration.”

According to Busuttil, expenditure is being diverted to wages, salaries, allowances, consultancies and in no small amounts. Since 2013, 5,500 workers were employed with the civil service, he added.

Miriam Dalli
18:48 He says the PN wanted sustainable growth that gave dignity to all, but this was not the reality. “Listening to the government’s propaganda, one would think that the economy started growing thanks to Joseph Muscat. The truth is that it was thanks to Malta joining the European Union … but then again I don’t expect him to say so because [Muscat] was against it.”

Busuttil says that, thanks to the EU package negotiated by the PN, a total of €900 million would be spent between 2014 and 2018.

Miriam Dalli
18:43 Busuttil reminds that his Opposition was the first in history to present its own pre-budget document.

Reiterating the mistake taken by the Finance Ministry in uploading the wrong document, Busuttil said there was a difference of 50 measures between the two documents.

“This shows this was no mistake at all,” he says, criticising the government of having been “a miser” with persons with disability and the government’s choice of giving Gozitan students €300, instead of €800.

He points out the working document suggested an increase in police presence in tourist areas, including Paceville, but this did not make it to the final budget: “The Prime Minister had a choice, and he chose the few.”

Miriam Dalli
18:39 Busuttil takes the floor, with an opening comment taking a jibe at a document that was mistakenly uploaded by the Finance Ministry: “This budget will be remembered for having two budgets … what do you expect more from the best Cabinet in History.” Miriam Dalli
18:35 Good evening and welcome to our live-blog. We will be following the Opposition leader live as he delivers his reactions to the budget presented last week.

Simon Busuttil will then join Saviour Balzan on Reporter, live from Parliament.

Miriam Dalli