Gonzi dismisses reports warning of precarious government finances as ‘speculation’

Prime Minister Lawrence Gonzi dismisses an Illum story revealing warnings by Finance Ministry permanent secretary that postponing decisions on government finances would only 'make matters worse'.

25 July 2011, 12:00am

2 min read

Gonzi was speaking in parliament during a ministerial address following the final vote on the divorce bill during its third reading.

Gonzi referred to a story carried by sister newspaper Illum last Sunday, which revealed that during a closed meeting between the highest officials in the public service, Finance Ministry permanent secretary Alfred Camilleri delivered warnings about government’s finances.

Illum also reported how Camilleri advised those present not to listen to what was being said outside, with clear reference to Finance Minister Tonio Fenech.

Gonzi dismissed the report as speculation, comparing it to a recent article that appeared in the Torca which reported that the boom heard over the Maltese islands a few weeks back was a missile fired by Libya targeting Rome.

Gonzi said that “there was no meeting of this type,” however adding that many meetings take place within Castille, many of which involving permanent secretaries and even the Finance Ministry’s permanent secretary.

Gonzi went on to say that Camilleri enjoys his full trust, and how he professionally guides the government on financial matters and related political decisions.

“I would be surprised if Alfred Camilleri, or anyone else for that matter, were to come and tell me that we are financially strong,” Gonzi exclaimed. “God forbid he'd tell me that. If he did, I’d have asked him to get out.”

He added that he is the first to admit that Malta’s financial position is not strong. “Why would we be carrying out these reforms if everything is fine?”

He said that both Camilleri’s and Finance Minister Tonio Fenech’s arguments always were that the necessary decisions should be taken so that the economy can strengthen.

“If we have subsidies that we can do without, these should be removed and tuned into something that helps the country advance,” he said.

He slammed the article as speculation, adding that it “sows the seeds of doubt on the financial situation” in accordance with a “hidden agenda”.

Gonzi added that while government is duty-bound to answer questions about its administration, he would never accept “these speculative initiatives that take place with the sole intent to sow doubt.”