Malta facing economic and social crisis, Sant says

Opposition Leader Alfred Sant yesterday accused Prime Minister Lawrence Gonzi of fabrications to cover up the country's problems, as he whipped up further criticism of the recently announced budget measures.

The Labour Party leader accused the Prime Minister of manipulating figures and deceiving the people rather than providing the much-needed direction to the country.

Speaking at a political conference in Hamrun, Dr Sant said the country was facing an economic and social crisis.

The MLP would hold a news conference later this week to show the discrepancies between the various statements made by the government to justify its oil price hikes.

According to Dr Sant, statements by Investments Minister Austin Gatt in media advertisements and in his parliamentary speeches unmasked further inconsistencies.

Another discrepancy, Dr Sant held, was the way the government decided to give 50c a week compensation to make up for the electricity surcharge. Using the same retail price index formula, the increase should have been 70c a week, at least, he said. Dr Sant shot down claims that the new electricity tariffs were cheaper to the consumer than the ones his government had planned to introduce in 1998. The tariffs then would have been between 20 per cent and 90 per cent cheaper than the ones just announced.

Though the oil price problem was an international one, Dr Gonzi's government should assume a good portion of the blame, Dr Sant said, questioning why the government had not taken the cue from airlines like British Airways and Ryanair, which saved millions of euros by signing a hedging agreement.

Turning to the economy, Dr Sant asked why the government was so resolute in introducing the euro even though the economy was not on a sound footing.

The government had no sense of urgency to boost the economy, Dr Sant said, as evidenced by the Prime Minister's failure to stick to his promise and create the Lm900,000 fund to aid the manufacturing industry.

Speaking earlier, MLP deputy leader Charles Mangion called on the government to explain how it intended to collect Lm136 million from privatisation next year.

Reiterating his party's stance that strategic entities should remain under state control, Dr Mangion said the government had a duty to provide all the details of the sale of Air Malta property.