Gonzi misled public over surcharge - Sant

Labour leader Alfred Sant yesterday claimed the government purposely misled public opinion to justify the need for the 17 per cent surcharge on electricity bills.

Speaking at the Labour Party club in Rabat in the morning, Dr Sant said that in the run-up to the budget, the government had linked the soaring prices of crude oil with the need to introduce a surcharge on bills which, the government insisted, was essential to make up for an increase in the international prices of oil in the latter half of this year.

"It has lately emerged that the government's campaign deliberately confused prices of crude oil, which had soared above US$50 a barrel, with the prices of fuel oil, the kind which is burnt by Enemalta," Dr Sant said.

The Labour leader said figures showed that the price of "refined" fuel oil had remained constant, arguing that there was enough evidence to say the government had misled public opinion to cover up for the losses which Enemalta Corporation has made since 1999, mainly due to inefficiencies.

"The people have a right to know how the 17 per cent has been worked out, because the figures provided by the government do not tally," Dr Sant said.

While continuing to lay the burden on workers and pensioners, and especially on families coming from lower and middle strata and calling on these people to "make sacrifices", the Nationalists had failed to reduce government expenditure, Dr Sant said.

"One of the main problems for the economy is the government itself. With regard to recurrent expenditure, the government will in 2005 spend Lm109 for every Lm100 spent this year," Dr Sant said.

Any economic growth brought about by an increase in taxes would be diluted because of wastage, which was typical of the Nationalists' "money no problem" policy.

Not only had this year's budget not brought about positive change, it was simply "more of the same". Dr Sant said Dr Gonzi was not different from his predecessor and that was why many Nationalists were losing faith in the government they had voted for.

"These were the people who had fallen for the PN's refined propaganda and public relations machine used by both the Fenech Adami and Gonzi administrations," he said.

According to Dr Sant, farmers and fishermen, most of whom are Nationalists, were both disillusioned and furious as their income was being eaten away and opportunities for them were waning.

Employment opportunities are decreasing, both in the financial services sector and in tourism, the Labour leader said. "Income from tourism decreased even though we had a two per cent increase in the number of tourists who visited Malta. We had 30 per cent fewer cruise liners visiting Malta this year," Dr Sant said.

When the opposition criticised the budget, the Prime Minister replied that employers' associations had positive remarks about the new measures. "We do not represent the interests of employers. We speak for workers and their families, for pensioners and for all Maltese and Gozitans," Dr Sant said.

The opposition leader said the Commonwealth summit, to be hosted in Malta next year, was expected to cost the country around Lm1.5 million. Though hosting a meeting of country leaders was positive for Malta, the costs needed to be seen in the light of Dr Gonzi's call on the population to make sacrifices.

Dr Sant said that in 1997, a Euro-Med summit hosted by his government had cost just Lm10,000 as the cost had been absorbed by participating countries.

The government, from Dr Gonzi downwards, was not credible, Dr Sant said.

Sustaining his "friends of friends" theory, Dr Sant said Education Minister Louis Galea had lied when defending the appointment of his relative, engineer Emmanuel Farrugia, on the Foundation for Tomorrow's Schools.

Mr Farrugia had been engaged and given a contract of Lm36,000 a year by Dr Galea without the necessary permission from the Finance Ministry.

A letter sent to the Finance Ministry in June showed the FTS only sought permission for Mr Farrugia's engagement months after giving him a direct order.