Gonzi challenges Sant over claims on prices, taxes

Prime Minister Lawrence Gonzi yesterday challenged Labour leader Alfred Sant to back up claims that prices and taxes would increase after the European parliament elections.

Dr Sant had embarked on one of his typical scare-mongering campaigns aimed at fomenting uncertainty and creating a sense of gloom, Dr Gonzi told The Times.

Dr Sant and the Labour Party's spokesman for the EU, Evarist Bartolo, have said the government was postponing a series of tough measures until after the June 12 EP elections.

Consumer prices feature high on the country's agenda at the moment as a result of the removal of levies on foreign products led to a drop in prices.

When contacted, Dr Gonzi said Dr Sant's statements were based on conjectures of his own and not on any facts or figures. Such comments were "irresponsible" since they destroyed business and consumer optimism which were necessary for investment and consumer demand, he added.

This attitude, he said, demonstrated in the clearest manner that Dr Sant put the interests of his party before interests of the country.

Dr Gonzi insisted that the government had not shied away from taking the decisions that needed to be taken. The current restructuring exercise in the government's public sector entities was ample proof that decisions were being made with determination in the best interests of the economy and society. This was in stark contrast to the political expediency being demonstrated by Dr Sant, he said.

Speaking earlier, Dr Sant said there were contrasting pressures on the cost of living. Prices of certain products such as foreign wine, pasta and milk were down and for this workers would be paying with their jobs. On the other hand, medicines and certain food products, such as lamb, would be subjected to levies - but the government was postponing such measures till after the June elections, he said.

Asked whether he had proof of this, Dr Sant replied: "Certain stocks are being kept at a low price".

He said the government was postponing tough measures related to pensions even if it had been in possession of a report since January recommending raising the retirement age and increasing social security contributions.

This report had been put on the backburner and would be considered after the European elections, Dr Sant said.