‘We are at war’: PN lambasts government budget on coronavirus

Without government intervention, many jobs in Malta will cease to exist in six to eight weeks’ time, said newly elected PN MP Ivan Bartolo, speaking at a PN press conference on the budgetary measures announced by the government in reaction to the COVID-19 outbreak.

Bartolo called on the government to pay up to 50% of workers’ salaries. “When I saw the first slide of the government announcement I was heartened. €1.8 billion is great,” Bartolo said.

But when he heard the specifics, his relief turned to concern, he said. "88% of what is promised is deferred tax. This means you don’t have to pay tax this year but you will have to pay it at a later date… Are they understanding business? If sales are not coming in, how can you pay salaries, NI and VAT? You are asking me to postpone a tax payment on nothing.

“The government is saying it is making a 20% guarantee, but who is going to guarantee the 80% - the bank or me? Either way, a cashflow forecast and a list of privileged creditors is needed. How much is this documentation going to cost, how long will it take the bank to process them? Because in between six to eight weeks’ time, these jobs will no longer exist.”

Bartolo described the current situation as far worse than the 2009 financial crisis.

“In 2009 the problem was a financial one, today it is worse because it is coming from a healthcare perspective and nobody in the world knows when it will be defeated.”

Behind every job is a person and behind every small business is a family, he said. “I am seeing people crying, asking how they are going to pay people who have been working with them for 20 years.”

He said he spoke from experience having seen, in 2009 and 2010, businesses close one after the other in UK during the financial crisis there.

PN MP Edwin Vassallo said that the market was “currently restricted to food and little else.”

“We are at war,” he said. “My friends I am saddened to note that during his presentation, despite the government boasts of a €1.2 billion fund, we are still encountering businesses who are unable to tell whether they are eligible. According to the government, help is going to 40,000 workers who work in various sectors. The answers will come on Monday when they go to Malta Enterprise to find out.”

Vassallo said that government assistance to retail and transport were still in doubt and the fear was that if everyone was eligible the money allocated would be far too little. “When I look at the proposals made by the government, I see postponements of payments but they are not helping businesses who are having zero income. Businesses are out of action, not on a holiday break.”

PN deputy leader David Agius thanked all workers who were doing their bit in these times, lashing out at what he called the “government of PR” for its derisory packet of measures. “It is not enough and is far from enough,” Agius said. “On one side we have the PL announcing billions and on the other hand we have small businesses asking for basics, small assistance.”

The government didn’t have any problems with giving €70 million to Steward Healthcare which we will be getting nothing back from, he said while pointing out that the direct spend in the health sector is just €35 million.

“We have workers and employers ready to take part of the burden but they want the government to take a substantial part of the burden too,” he said.

“Much of the billions are bank guarantees and postponements of tax payments which will have to be given back later. Only 10% of the packet will reach the worker. We need more ambitious measures and more long term thinking for a stimulus package that will actually help.”

Noting that the oil prices have gone down significantly, the PN urged the government to reduce fuel prices and slash electricity and water prices by 50%, noting that people are spending more time at home and less at work.

Coronavirus is threatening the livelihoods of thousands of business men and politicians have a responsibility to tackle this, said Agius. The government wasn’t listening to these people, he said, and neither was it listening to the bodies such as the GWU which also said that the measures are insufficient to prevent job losses.

“Listen to them and understand that, for example, quarantine leave should be paid for by government, which should also intervene to pay 50% of salaries to avoid unnecessary job losses.”