PM sounds warning on public holidays

The government is prepared to reduce the number of public holidays if the General Workers Union goes ahead with plans to force a referendum on the issue of feasts falling on a weekend.

"The government has a responsibility to consolidate work and raise competitiveness... If the GWU forces a referendum and the majority want to reverse the measure, we will be prepared to reduce the number of public holidays in a categoric manner," Prime Minister Lawrence Gonzi warned.

Last February, the government changed the National Holidays Act so that public holidays falling on weekends would not to be compensated with other days added to vacation leave. This measure was taken after a long series of talks between social partners, aimed at reaching a social pact, had failed. The GWU has said it may seek a referendum to reverse the decision.

Over a dozen topics, ranging from the economy to private beaches, were discussed as the Prime Minister fielded questions from reporters during his monthly press conference at Castille.

But Dr Gonzi kept people guessing over a possible Cabinet reshuffle, as rumours of changes in ministerial posts were rife this week.

"It's a decision that will be taken by the Prime Minister according to the circumstances developing at the time. It's the Prime Minister's only privilege," he replied when asked whether he is prepared to change his team.

Is he thinking about it?

"I spend my day thinking about a lot of things and I don't discount anything," he answered.

Asked whether following his party's defeat in the March local elections, he echoed the views of British Prime Minister Tony Blair who said he had "listened and learned" from Britons who handed him a reduced majority, Dr Gonzi replied: "In politics I have learnt that I have to listen and learn every day," he said.

He admitted that his administration had made mistakes, citing in particular the way the eco-contribution system had been introduced. But he added that ultimately, only those who did nothing committed no mistakes.

Dr Gonzi said the meetings he will regularly be holding with citizens were no cosmetic exercise, and assured journalists that he had taken note of concerns and opinions of the man in the street.

Referring to the acts of vandalism of the past days, Dr Gonzi said he had an "interpretation" to the attacks, though he could not establish a motive.

The term "new taxes" was daubed on a billboard advertising new roads financed by the EU on the same day that burnt oil was thrown on Portes des Bombes and the Catholic Institute and a few days after paint was splashed at the PN club in St Paul's Bay.

"I tie everything together. I'm not naïve. You don't need to be a professor - but it's evident that whoever's carrying out these attacks wants to take some form of revenge," Dr Gonzi said.

The Prime Minister said he appreciated that the Labour Party and all civil society had condemned the attacks and urged everybody to react against such vandals.

Promising that the police were doing their utmost to arraign the culprits, he said that those responsible should be ashamed of ruining a programme of restoration, especially as the tourism season gets into full swing.

Turning to the economy, Dr Gonzi said the government had managed to reduce its wage bill by Lm1.4 million in a year, while the contributions to state entities were also down by Lm1.1 million.

Revenue from VAT this year was even better than projected, which showed that consumption was up.

He dismissed claims made in The Guardian that the government was planning to increase taxes to meet the objectives of the Exchange Rate Mechanism.

It was important to note that contrary to the perception of many, Malta did not have among the highest taxes in Europe, he said.

"Still, I don't want to give the impression that we intend to increase taxes," he assured everybody.

Dr Gonzi hailed the "smooth" transition into the ERM II, adding that his government wanted to give investors a clear signal that it had a clear economic and monetary roadmap by joining the mechanism leading to the adoption of the euro.

Dr Gonzi vowed that his government intended to carry out the necessary reforms at the ports to make them more competitive but he shot down comments that the changes were being made to eliminate Cargo Handling Co Ltd, widely known as the GWU's main financial lifeline.

Asked why the government felt the need to propose that the anti-abortion law be entrenched in the Constitution, Dr Gonzi said the cue was taken from the pro-life group The Gift of Life. It was important for the country to make a concerted pro-life effort, he said.

The General Workers Union in a reaction said Dr Gonzi's remark that he would reduce public holidays if the unions forced a referendum on the issue of holidays falling on weekends amounted to blackmail and reflected arrogance.

The union said Dr Gonzi knew well enough that talks between the trade unions on forcing a referendum under the Abrogative Referendum Act had been going on for some time and the unions were doing so because they had a duty to use all means to protect the workers' interests. Dr Gonzi was wrong to imply that it was only the GWU that was moving this idea.