Government inefficiency blamed for inflation

Labour Party deputy leader Charles Mangion claimed yesterday that the rise in the cost of living could be pinned on the government's own inefficiency.

Speaking on Super One radio, Dr Mangion said inflation in the EU was 60 per cent of what it is here, explaining that the rise, which could ruin the government's plans to adopt the euro currency, was a result of fiscal measures such as the water and electricity surcharge.

The government's expenditure had been cut by Lm10 million not because of effective cost cutting but because payments were being postponed, he claimed.

Alternatively, most of the revenue being netted by the government came from the payment of arrears of national insurance contributions.

In the first six months of this year, the government had received Lm74 million by selling its Maltacom shares, revenue which was supposed to help reduce the public debt. In spite of this, Dr Mangion said, the national debt had only been cut by Lm14 million.

A sense of accountability had to be instilled in the country's leadership, from the Cabinet down and not the other way round.

Dr Mangion promised that a Labour government would take the necessary steps to put the country back on the path of economic growth.