Three weeks ago the Labour Party lost the election. We did not lose by a few votes but by a margin of more than 12,000 votes. This means that up to the next election in 2008 Labour would have spent almost 20 years in Opposition. Losing the election was a negative experience. However, what I said soon after the election was perceived as even worse.

From the various interviews I gave it transpires that I mentioned three things. First, that I respect the Labour leadership and I consider the three leaders as gentlemen.

Secondly, I said that one cannot blame one individual for our electoral defeat but our political policies were not acceptable to the majority of the people. I think that everyone agrees on this point. After two electoral defeats, it is usual for the party leaders to offer their resignation. For example, this happened in the UK; when Neil Kinnock lost the election in 1992, although the party was grateful to him for the way in which he updated its policies and modernised its image.

Finally, I offered my services for the party leadership. I did not say this for my personal ambition but because I love the party. Perhaps, this comment raised a few eyebrows. However, even my friend Alfred Sant agreed. In an interview with Manwel Cuschieri soon after the election result, he made it clear that he should make way for new faces.

Of course, everybody has his own style of expressing himself, however, I am sure that in the long run one is respected for what one says and not for censoring one's beliefs. Most people are aware that I am a moderate politician, that I mark my words and that in a parliamentary career of more than 15 years, my policy has always been to debate the issue and never to attack the person. I reiterate that what I said was in no way directed at the leadership personally. In fact, my greatest regret is that I may have lost the friendship of Dr Sant, Dr George Vella and Dr Joe Brincat.

The Malta Labour Party is a strong party having a wide following and is adequately organised. On the other hand, there is a need for some changes. I believe that the need for change is reflected also in our successes as an Opposition between 1998 and 2003.

Government was not running the country properly. Many opportunities were lost. Many projects are still in their initial stages, when they should have been completed. Three hundred taxes and charges have unduly reduced our spending power; Malta remains burdened by a huge deficit. Unemployment reached the 10,000 mark, including 4,000 youths under 24 years. More than 60 factories have shut down. Both exports and tourism are faring badly. The hospitals are untidy, to say the least. Illiteracy is increasing.

This was evident before the election. The government was inefficient and there was a need for change. I believe that we succeeded in persuading the majority of Maltese on this issue. But what happened? There was also the big question regarding the European Union. This issue obviously influenced the electorate in voting for the Nationalist Party. The majority did not feel comfortable with the Labour alternative.

This did not happen in 1996. In that election the voters perceived the Labour Party as the workers' guardian, a friend for the middle class and as a partner for those who wanted to invest their capital in new projects to create more wealth.

Alfred Sant, George Vella and George Abela were instrumental in achieving this goal. May I remind you that they were then a new and fresh team. In 1996 things went well but in 1998 and this year they didn't. So what should Labour do?

The Labour Party must present itself in such a way that it attracts the various segments of society. Its image should reflect its progressive beliefs - an image of a party which is ready to accept the aspirations of all men, women and families within Maltese society as part of its new policies. It has to be also an image of a party which is ready to lead this country and help these people reach their goals in a just society.

The basic principle should be that of solidarity with those who are disadvantaged. However, the Labour Party should also be perceived in such a way that everybody is at ease to vote Labour, not only the workers, but also employees, the self-employed and the other social sectors which make up the middle class. The Labour Party has accepted that the electorate has voted for Malta to join the EU. The people's will is apparent. Now the party must look forward, and in Malta's best interests, it must do its utmost to realise the opportunities offered by the EU and to minimise the disadvantages of membership.

The MLP is more capable to administer the country than the PN. We are lucky that within our ranks we have people who are respected and proved themselves in their political and professional fields. I also offered my services. There were some who completely misunderstood my intentions accusing me of personal ambition. I can assure them that the last thing I wish is to become Leader of the Opposition and perhaps Prime Minister. My only intention was to show the electorate that notwithstanding our defeat there were others who were prepared to stand up to our political adversaries in the forthcoming elections.

I have been criticised for speaking too early in the day and accused of being politically insensitive. Others have admired me for saying what needed to be said. Reality probably lies somewhere in the middle.

The MLP has scheduled May 15 for the election of its leader with a week's interval for the election of its deputy leaders. Immediately Evarist Bartolo and Anglu Farrugia started doing the rounds of party clubs in Malta expressing their intention to stand for leader. In their wake many others started eying deputy leaderships.

During my various media interventions I had the opportunity to state that the political direction was more important than the choice of leaders. On May Day I wrote to the secretaries of the National Executive and the Parliamentary Group. I personally handed the letter to them on May Day at Castille Square before the start of the parade. I proposed a stay in the extraordinary general meetings for the choice of the leadership. Two hours later, on Freedom Square Dr Sant stated his intention to stand for the party leadership.

I advocated in my letter that the party should first of all discuss its future policies in the light of the new political scenario regarding the EU, while keeping in mind our principles and constitutional obligations. Following in-depth and articulate discussion on the future policies and structures of the Labour Party, the General Conference should then select those candidates which it considers the most appropriate to implement the said policies.

This is why I categorically stated that at this stage it is not important who the leaders are. On the other hand it is essential to formulate the right policies which will serve as the basis of success in the next general election.

Dr Attard Montalto, who has just been re-elected Labour MP from the sixth district, was Minister of Industry in the 1996-98 Labour government