A Christmas gift for the PN

In spite of a terrible budget, the Nationalist Party has managed to turn its guns on the Labour Party, thanks to the suggestion to depreciate the lira, made by Opposition Leader Alfred Sant.

I don't intend entering into the merits of the decision itself, whether this is good or bad, or, if introduced, whether it would have achieved its objective, whether depreciation is another word for devaluation, whether it is better to be introduced at one go or in phases, or whether it would stimulate the economy and improve exports and job opportunities.

My point is its timing. Who took the terrible decision to make the suggestion close to the budget. Why?

Was it Dr Sant, as he reportedly did when in 1996 he announced that, if elected, a Labour government would remove VAT? If the decision was taken by Dr Sant, then his two deputies are not doing a better job than their predecessors. If it was a collective decision, it was likewise a bad mistake because such an important measure should have been decided by a general conference and not during a Sunday meeting of little importance with a few party followers in attendance.

It looks strange too that the suggestion to depreciate the Maltese lira was not even mentioned in the document laying out the party's plans for Malta's social and economic future, a document approved by the MLP conference.

What appears certain is that whoever took the decision made a mess in terms of its timing. It could not have come at a worse time.

If the party believes that such a measure could stimulate the economy did it have to make it public before it is in government? Indeed, some may argue it is only fair to be honest with the electorate. In a way this is true but does the party have to be a martyr? With that kind of mentality it is difficult to win office. The Nationalist Party does not play this game and it has been in power for 17 years, except for a brief spell between 1996-98!

Actually the PN did not say before the election that if returned to power it would increase VAT by 20 per cent or that it was going to introduce the eco tax, or that it would raise the price of kerosene to that of the diesel, or even hint that it would raise power and water rates by 17 per cent. What it said before the election was that the country's finances were sound! That is the way the PN functions.

Yet, rather than taking advantage of one of the worst budgets in history, Dr Sant shot himself in the foot. Instead of pointing the gun at his opponents he gave the Nationalists an opportunity to turn the guns on him and his party.

Many believe that the Nationalists have been in power for far too long and that Labour should walk the next election. But only if it does not make some stupid mistake or score a massive own goal.

I hope this piece does not send out the wrong message. Indeed my greatest wish is to see the MLP back in power. Its leader, Dr Sant, is highly intelligent, dynamic, honest and sincere and I feel certain that come the next election he would be Prime Minister, and a good one too.

The issue concerning the depreciation of the lira may not cause Labour to lose the next election - although the PN will go on about it up till then - but the decision was undoubtedly the best Christmas gift Dr Sant could give to the Nationalist Party.

Mr Vella is a former newspaper editor.