Fenech accuses Labour of ‘crocodile tears’ over €40 million budget cuts

Finance Minister Tonio Fenech left no stone unturned in his criticism of the Opposition and its leader Joseph Muscat, who will this evening vote against the Budget Measures Appropriation Bill.

Speaking in parliament, Fenech questioned how the Opposition could be viewed as credible if this evening it planned to vote against the budget bill.

"In other words, Muscat and his party will be voting against increasing pensions, the tax reductions for SMEs and for parents whose children are in private schools, the incentives for the property sector and the investment we're carrying out in the economy," Fenech said. "All this and more is why our side of the House will be voting 'yes' this evening."

Hitting out at Muscat and "his three alter-boys" - shadow finance and economy ministers Charles Mangion and Karmenu Vella, and Labour MEP Edward Scicluna - Fenech said they were nowhere to be seen when the International Monetary Fund's report described the country's economic growth as "impressive".

"They spent three months holding press conferences at every opportunity they could, latching on to petty things to hit out at us. But this time they kept silent in front of this positive report," he said.

Referring to the criticism raised by Labour over the €40 million budgetary cuts announced in January, Fenech said it was all "crocodile tears".

"The Labour party talks about the middle-class... but have they seen what incentives we gave to parents sending children to private schools and for pensioners in homes for the elderly? Have they seen the incentives we provided for middle-class families? Will they be voting for this budget? The answer is simply no," he said.

According to Fenech, it's all "a gamble" with Joseph Muscat. "He [Muscat] knows businesses feel that Labour is risky. With its past, it's obvious that they feel insecure with Labour. If it were not so, why does Muscat insist that business 'will be safe with Labour'? He wouldn't come out with such statements if there were no fears," the finance minister said.

Adding that historically Labour was against market liberalisation and in favour of bulk-buying, he said that the PL had no economic policy and that it will wait until the very last day to reveal its policies, if it had any, Fenech added.

Countering Labour's claims of 'hidden debt' inside Enemalta and other public entities in the form of government guarantees and letters of comforts, Fenech said all this information was regularly published by the government, and defended his efforts at securing a sustainable model of refinancing the national energy corporation.

"The Opposition, on the other hand, must show some consistency. Labour says it will reduce utility rates, but we know they will tell us, if elected, that they have found a mountain of debt at Enemalta and cannot reduce utility rates. A Labour government will be an austerity government... we saw it in 1996, when Labour used the deficit to cut down university stipends," he said.