Muscat - Government patching up deficit through Enemalta loan

Labour Leader Joseph Muscat has accused government of trying to shore up its spiralling deficit figures by attempting to push Enemalta to take out a loan of between €40 and €50 million.

The debt, Muscat said, would appear on Enemalta's books, alongside its existing €700 million debt, while the funds themselves would be transferred over to the government's books.

In so doing, Muscat said, the government would be able to make good for its spiralling deficit. He accused Finance Minister Tonio Fenech of being on the forefront of the efforts to push through such a deal.

"This is because he was incompetent in his financial management. So instead he is trying to burden Enemalta with his incompetence, with the risk that he destabilises the stability of the company, the jobs of its employees, and the stability of the country's power generation infrastructure," Muscat said.

"A future Labour government would be committed to holding anyone taking part in such irresponsibility accountable for their actions," Muscat pledged.

Muscat was speaking during a political event held in Imqabba. Throughout his address, Muscat hit out at the government's performance on deficit targets. He said that only last Saturday, Prime Minister Lawrence Gonzi had solemnly expressed assurances that the deficit targets would be met.

"Five days later, his own Finance Minister announced that the deficit targets would be met, but they would still be on targets," Muscat said.

"I wouldn't blame the Prime Minister for being muddled on the economy when he is burdened by an incompetent Finance Minister who is unable to deliver a consistent appraisal of the country's economic performance." He reiterated that were he to work within the private sector, Tonio Fenech would have been fired years ago.

Muscat reiterated past criticism that that both Gonzi and Fenech have consistently failed to meet their own financial and economic performance targets. He added that more than half of the country's debt was incurred in the last eight years of Gonzi's administration.

"Nobody comes close to Gonzi's record in debt-creation," he said, adding that Gonzi created more debt than all Malta's other Prime Ministers put together. He said that this has gotten so out of hand that Malta currently spends more on debt-interest than it spends on education, Muscat said.

Muscat noted government's justification that the additional expenditure increased due to additional expenditure in the health sector. "But hadn't the Health Minister himself state earlier this year that he had an excess budget and was returning funds to the Finance Ministry?" Muscat said. "Isn't there even the most basic consistency?"

Muscat also reiterated past criticism that the government had subsumed the totality of the €40 million lotto concession into this year's revenue, despite how these are going to be paid to government over the full 10 year period, depriving future administrations of that revenue.

"This government is failing its targets even despite how it is playing the game to maximise its revenue," Muscat insisted.

Muscat also referred to Gonzi's "absolutist" and "confessional" statement delivered during the EPP conference earlier this week. He said that values do not necessarily mean those values derived from ecclesiastic values.

 "It does not mean prying into their private lives. It does not mean pontificating from a podium about how people should love their lives. It does not mean creating a demarcation between first class families and second class families," Muscat said. "It does not mean prohibiting two men or two women from loving one another."

Muscat however insisted that he believes that a politician with values means is not burdening the country with expenses while pocketing an additional €500 behind their backs.

Speaking during the same address, labour Deputy Leader for Party Affairs Toni Abela criticised government for being dishonest with the electorate and said that the public would not forget its underhandedness. He said that this had emerged in how the government had attempted to impose austerity measures on the country while also dismissing its own financial mismanagement, such as the new Parliament project.

Abela also said that during the EPP meeting held in Firenze earlier this week, the Prime Minister Lawrence Gonzi affirmed that values come before votes. Abela said that Gonzi should speak about how vales come before votes to ministers like Austin Gatt, who botched the Arriva reform, or to David Agius, who was caught copying in exams while serving as a parliamentary MP.

Party President Stefan Zrinzo Azzopardi also spoke at length about the upcoming consultative Labour congress, detailing how discussions will take place across all sectors of society to allow party members to have a direct hand in shaping party policy.