Sant's surcharge cut 'based on a false premise'

The Prime Minister last night said Alfred Sant could get away with murder as he was constantly contradicting himself yet managing to keep a straight face.

Speaking shortly after Dr Sant's reaction to the budget in Parliament, Dr Gonzi said he was mystified that in a two-hour speech, which was more characteristic of a mass meeting, there was very little about the budget while his much-awaited solution to the surcharge was based on a false premise.

Dr Sant's solution to the surcharge was based on the premise that domestic consumers paid VAT on the surcharge, which they did not, while businesses who paid VAT on the surcharge could claim it back.

Dr Gonzi said he welcomed Dr Sant's U-turn on the introduction of the euro, saying it was important there was national consensus on the issue.

This also meant that Dr Sant was acknowledging that the government had made progress on the economic front as the introduction of the euro meant controlling the deficit and national debt, having a stable currency and keeping inflation down. The latter would be the government's challenge, but the government was optimistic it can keep that in check too, he said.

The Prime Minister said it was typical for Dr Sant to make U-turns and then pretend it had always been that way. In March 2004 he had spoken against allowing low cost airlines to operate from Malta while he was now in their favour.

Dr Gonzi said Dr Sant was alone in criticising the budget as all the other organisations were looking at it in a positive light. It was scandalous of him to say that all those who spoke positively about the budget were doing so because they had been bribed, just as it was scandalous of him to utter vulgarities in Parliament.

The measures Dr Sant promised in the first six months were simply not credible as he had managed to make a mess in the 22 months he was in government.

The way Dr Sant spoke and behaved did not augur that he would do any better if re-elected.

He highlighted the fact that Dr Sant was always negative in his approach. "If there is the disaster Dr Sant is always claiming we have, there would not be the job opportunities and investment we are getting."

Dr Gonzi said it was scandalous of the opposition to be undermining the SmartCity project, which was the biggest investment Malta had ever had. It was equally scandalous for the leader of the opposition to take selected contractors with him on a visit to Dubai.

The people deserved an explanation about why he did it and how he chose them and kept it all hushed up.

"Dr Sant gave us a clear example of what he means by friends of friends and we should hear more about this later," he said.

Dr Gonzi will be replying to Dr Sant's speech in Parliament tomorrow.