Utter capitulation
Just what sort of government do we have? On two separate and consecutive occasions, within days of each other, the Prime Minister first decides to act unilaterally only to withdraw and capitulate upon the first protestations. Barely a fortnight ago,...
Just what sort of government do we have? On two separate and consecutive occasions, within days of each other, the Prime Minister first decides to act unilaterally only to withdraw and capitulate upon the first protestations.
Barely a fortnight ago, upon an urgent request by the General Workers' Union, the Prime Minister had to meekly return to the MCESD to disclose his plan on how he intends to curb the deficit, a plan he had previously discussed with the European Union without the decency of involving the social partners in drawing it up.
And while the dust was still settling, Dr Gonzi suddenly catapults to Parliament his Environment Minister to deliver a deficient and poor reproduction of the eco-tax while gruffly insisting that it should come into force by not later than August 1. By the time the draft became law Dr Gonzi was already scurried to the MCESD for a second time by a livid press release of the social partners and forced to hijack his own plans by postponing indefinitely imposition of the tax.
Frankly, on account of the media's everlasting appetite to nourish on Alfred Sant's perceived U-turns, I was wondering why this time round no government sponsored apologist has raised eyebrows and rushed to scribble a contribution on this unique double volte face by Dr Gonzi. But, you know, maybe it's too hot to bother this time of the year.
The question is: While the social partners have been temporarily vindicated by Dr Gonzi's patent indecisiveness, where does this latest reversal leave the Prime Minister's plans for the deficit? The general perception is that this tax had the minimal target of introducing a novel form of protection to the environment and the maximal objective of raising revenue. Indeed, it has been generally criticised as being a pure and simple tax. And coming shortly after Dr Gonzi's much publicised agreement with Ecofin, the eco-tax has also been perceived as being part of the strategy to curb the deficit.
Rightly or wrongly, by postponing its imposition Dr Gonzi may very well be endangering the deadlines he has set for himself and for the country. Doubtlessly, he is exposing a vulnerability that was not so evident at the time when he could still rely on his predecessor's authority and protection. But, above all, he is vindicating the Dalli camp that had campaigned strongly on resolute and decisive leadership.
When the conservative leader John Howard declared he would not have been in favour of the war in Iraq had he known of the unreliability of intelligence on weapons of mass destruction, he plummeted in the polls. And notwithstanding Tony Blair's politically precarious moment he could still be admired for defending the position he took for the war in as much the same way as the liberal democrats won support for being consistently against the war.
Thank God the eco-tax is not comparable to weapons of mass destruction (or is it?). But in resolutely pushing for the introduction of the tax, then hinting at its postponement for a couple of weeks to then finally declaring a total and indefinite suspension of its imposition is far too much. If Dr Gonzi is really confident it is a socially just tax meant solely to protect the environment and not exactly a revenue generator he should have had no qualms to proceed.
He could have, of course, anticipated the uproar and discussed with the social partners its modus operandi before the tax went to Parliament or, at least, while the debate was ongoing. But to go the whole hog and then to stammer is clearly reflective of bad and ill-timed judgment. You can afford to have a Finance Minister doing that not without flak, of course. But you can't have a Prime Minister doing it all the time.
Which brings me to my final comment. Dr Gonzi's first controversial decision was his own appointment as Finance Minister. He may have then brushed off criticism by assuring us that he offered himself the post and he happily accepted it. But no one believed him. And the perception that he had no alternative but to take the job has now been reinforced by John Dalli's departure from Cabinet. I wonder whether Dr Gonzi is still happy with his finances.
And while the deficit continues to weigh heavily on the country's finances, the Finance Ministry continues to burden heavily on the Prime Minister's mind, abilities and good judgment.
Dr Gulia is opposition main spokesman on home affairs.