Gonzi claim: ‘Half-baked’ gas proposal created doubts for S&P

Prime Minister insists Standard & Poor’s downgrade tied to Labour’s gas power station proposal.

18 January 2013, 12:00am
by Matthew Vella

2 min read

Malta's credit rating downgrade by Standard & Poor's is taking a surreal turn as both parties blame each other for the BBB+ rating: on the same day that Labour leader Joseph Muscat presented free childcare plans to address one of the shortcomings pointed out by S&P, Prime Minister Lawrence Gonzi has insisted the downgrade is the result of the Opposition's decision not to approve his budget.

"Instead of taking the example of other countries like the United States and Italy, Muscat voted against a budget he says he will implement in full anyway. It does not make sense."

Gonzi also claimed there were "doubts" from Standard & Poor's over Labour's proposed LNG power station and gas terminal, which he said had generated "fear because of this strange... half-baked proposal".

"It has sown new doubts and that's why the credit rating agency reacted this way..."

The prime minister said his economic record in the past five years had guaranteed sound finances that had allowed healthcare to remain free, and also to create some 20,000 jobs.

"The European Commission removed us from the excessive deficit procedure and Malta is one of the best countries in Europe... in some matters we are compared to Germany...

"Muscat has accused me of being incompetent when he urged me to copy Cyprus on finances... everybody knows that Cyprus today has to contend with a massive hole in its finances, and it is knocking on the IMF's door for credit. But it can only take that credit if it cuts the public workforce, pensions, and spending on education and health - they must pass through this martyrdom but we don't have to endure this austerity because of our sound financial policy.

"Our budget raised childcare allowances, sent people for free healthcare abroad, saved jobs, and introduced investment schemes for businesses like MicroInvest and MicroCredit, not because we had a money-printing machine... but because of good decisions."

Gonzi also said Labour's €360 million proposal included hidden costs in the form of €100 million for the purchase of tankers to transport LNG, €50 million for the construction of a jetty for tankers to berth, €40 million to build foundations for gas tanks, and €74 million to lower the cost of a new 200MW LNG power station.

Matthew Vella, a freelance journalist at MaltaToday, was formerly executive editor at Malt...

•

U jiena hsibt li ta S & P semghu lil Gatt jghid li ghandhom 20 sena ohra fil-gvern.

•

Dr.Gonzi , if Labour " Half Baked " ( as you have described them ) gas proposals created doubts to Standard & Poor , can you tell us what your burnt or to be more percise no proposals had created to standard & Poor ? Can you tell us , what the deficit had created to Standard & Poor ? Can you tell us why Standard & Poor downgraded Malta if you are saying that we have solid state financial situation . But please , don't blame Dr.Muscat for this because you know deep down that you'r lying .

•

Labour need not worry about the PN's rubbish claims that the S&P report was influenced by its energy proposal. Any level-headed person would know that this report would have been carried out over a much longer period than the last 15 days, unlike KPMG's study that was made in 5 hours. It's the same old, nauseating story that anything that goes wrong is the PL's fault - GonziPN is faultless, infallible, and Gonzi himself claims that if he were to start all over again, he would do exactly the same things. Well done!

•

Dr G is hopeless, he is repeating the same mistakes and lies. This is becoming pathetic. Pity many will believe him.

•

S&P would not have hesitated to mention their doubts about gas-powered electricity generation, had they had any. It is not true that the Opposition in Italy voted in favour of Monti's Budget (both Lega Nord and Italia dei Valori voted against). Neither is it true that this also happened in the USA. The fiscal cliff agreement was not a Budget but a control mechanism on the Budget and it was the result of negotiation between the Democrats and the Republicans, not something imposed by the Government. Mr Gonzi, please do not treat us as idiots!

•

"It's Joseph's fault, mummyyyyyy!!" Sniff, sniff! Come on now, and own up. Who would not believe that il-Gonz has completely lost it??

•

If the downgarade does not specifically mention the Labour energy policy then I am sorry to say someone must be delusional or lying. And shouldresign from their post.

•

"in some matters we are compared to Germany..."

Quite so. They too once had a fascist dictator running the country.

•

"Muscat could have approved the budget before the elections, because he knew that we were hearing into elections: he could have easily voted down every ministerial vote so that no ministry gets one single cent," With election date unknown, for how long could ministries operate without a vote? And Dr. Gonzi, in the S&P report where can one find the reference to the doubts expressed on the PL proposal for energy?

•

My dear double faced clown , if as you are saying that the half baked Labour proposals had created doubts to Standard & Poor , can you please tell us what your burnt ideas had created to Standard & Poor ?

Joseph MELI •

It is written that a drowning man will clutch at a serpent swimming by -never more eveident than in the case of Gonzi!Also his reference to the USA as an example of how to approve a budget is once more as misguided as it is inaccurate -as the US Senate has merely stepped back from this cliffhanger issue for the time being -as we will all soon ascertain and as for Italy well......more words would be superfluous.

•

Dan hu l-iktar PM giddieb fl-istorja ta pajjizna !!

•

Gonzipn, pls make up your mind. Did S&P downgrade Malta because the Budget was not approved or because of the PL's energy proposal? Confused statements from a disoriented PM.

Joseph Pellicano •

gonzi mintix credibli, ghajar tibda tahseb biex biex issib job, ghalkem xi mignun irrid ikun biex jimpjegag.