'Spell it out'

Education and Employment Minister Louis Galea insisted yesterday that the opposition should spell out its economic policies in detail, rather than just making vague statements.

Dr Galea was speaking during a parliamentary debate on the economy requested by the opposition.

He said the holding of the debate now did not make sense, as it was coming before weeks of debate on the Budget and the various authorities and corporations.

Opposition deputy leader Charles Mangion had done well at the opening of the debate to focus on the EU's Lisbon Agenda for economic growth. He had said Malta now no longer had the controversy over whether it would join the EU.

But he should also have pointed out the opposition's then opposition to accession, a situation which had caused Malta to lose ground.

It was nice to talk about consensus in the national interest, but it did not make sense to then build a wall between the two sides. The development that Malta needed could not be achieved by the government alone, but needed the active participation of the whole political spectrum and the social partners.

Contrary to what the opposition maintained, the government was not labouring under any illusion that everything was going well.

But the facts proved that unemployment had been stable over the years. The Labour Force Survey had shown 13,000 unemployed for only a month and that figure was now lower.

At 53,312 the number of employees in the service sector was the biggest it had been for years, just like the total of 19,000 self-employed.

The economy was not galloping ahead, but it was resisting the problems and registering success. The NSO showed that the economy was resilient and becoming more productive.

Direct investment could be greater, but the Lm35.4 million in the first six months of 2004 were more than the total investment last year and the Labour government's best showing for a full year at Lm31 million. At 2.7 per cent inflation was at the fourth lowest level for the past 10 years.

The opposition should spell out what it was telling constituted bodies in its meetings with them, and how it was looking at various important factors in the national economy. This was the only way there could be a meaningful dialogue.

The opposition should not only attack. It should spell out its proposals and contribute with concrete proposals, not just vague statements. Although difficult, the current development phase was leading to the right results, he concluded.

Parliamentary Secretary Edwin Vassallo questioned the opposition's motive for holding the debate at this time. Did it want to instill uncertainty, play for the gallery and manipulate certain facts?

The government accepted there were economic problems due to continuous restructuring of the world economy. But contrary to what the opposition claimed, the government was working to improve the situation and achieving results.

The opposition wanted an economy more dependent on the government. Would it turn the clock back? The opposition should say whether it truly believed in economic restructuring. It should also say whether it agreed with the government's policies to give greater opportunities to SMEs.

Nationalist MP Michael Gonzi focused on the restructuring of the economy and of the public sector.

He said the government had acted at Malta Drydocks and PBS among others, to turn around loss-making enterprises, reducing its subsidies. Those funds could now be channelled to more productive activities.

The government was also tackling the deficit, reducing public spending and raising its revenue. Taxation was imposed in a more just manner, the focus being on consumption patterns.

Statistics showed that the economy was stable and improving. Unemployment stood at 5.6 per cent, more or less constant since 1997 and lower than in 2003 despite the restructuring now under way. The public sector had shrunk by well over 3,000, foreign direct investment had grown to Lm35.4 million and inflation stood at 2.57 per cent, despite VAT and fuel price rises. In the social sector, those really in need were getting more help.

At the same time, bank deposits in September grew to Lm2.8 billion, tourist arrivals were rising as had the number of new cars and cable TV clients.

The government was showing it was bringing about change without undue shocks.

Home Affairs Minister Tonio Borg pointed out that the government had also contributed to the economy through improved legislation. Particularly important was the Employment and Industrial Relations Act, enacted a few months ago.

The opposition said that the number of registered unemployed had consistently increased and surpassed the 8,000 figure but at the end of September there were 7,382 unemployed, 700 fewer than at the beginning of the year and less than at the end of 1998.

This meant that the employment market was absorbing new people.

The minister said that between last year and this year there had been 2,590 redundancies and 3,330 placements.

Infrastructure Minister Ninu Zammit said the opposition's motion failed to make any alternative, concrete proposals.

Mr Zammit listed infrastructural projects by his ministry and said the work done by the government's own employees showed that the government was indeed making the best use of its own human resources. This was another way of strengthening the economy through the necessary restructuring, and the results of the work undertaken spoke for themselves.

Political bickering should be avoided because it was only undermining the country's efforts towards better things, he concluded.

MLP speakers are being reported separately. The rest of the debate will be reported tomorrow.