U-turns, cartwheels and somersaults

On October 22, 1998 I had congratulated the Labour Party for its 360 degree U-turn on its policy versus local councils. Since then I confess that I have ignored its full-blown cartwheels, which have happily landed it on the Nationalist Party's territory.

Apart from the beautifully-executed CET/VAT somersault, the Labour Party now agrees with Malta's full EU membership (as if a half-member's option ever existed!) although it is still alleging that the partnership option won hands down! It has also reversed its position on levies, open markets, privatisation as opposed to monopolies and on the Mater Dei Hospital which, not only did it not shut down, but doubled its size when in government!

Although, repeatedly described by its leader as a short-sighted measure, Labour has at long last agreed with the introduction of low-cost airlines.

The party is also now in favour of joining the eurozone and is guaranteeing that a Labour government would adhere to the target date set by the Nationalist government of January 2008. Bearing in mind that Labour had, until recently, refused to even consider adopting the euro unless Malta's economy was on sounder footing, it is a pleasure to hear that Labour also admits that this administration is moving in the right direction and that Malta's economy, if not healthy and kicking, is already flexing its muscles.

Diligently, this administration has managed to achieve what no other government has ever accomplished so far, without resorting to outrageous measures suggested by Labour to devaluate the Maltese lira by 10 per cent and slashing the government's output across the board by some five per cent. How the latter can ever be put to practice without risking regress is another story.

We also tasted a slither of Labour consensus over the surcharge introduced by the government to compensate for the oil price hike when it hit $70 a barrel.

This is not so surprising seeing that when the price of oil dropped to $12 a barrel the "temporary" Labour government had doubled our utilities bills. In spite of all the hullabaloo over its introduction now we learn that a future Labour government will not be eliminating it. Instead it alleges it will be decreasing it.

Happily for Malta, albeit late in the day perhaps, the Labour Party has in fits and starts converted its policies and adopted the PN's way, but, and there is always a but...

The Labour Party takes three courageous steps forward and, then, infallibly, it lamely slips back one or two. We hear that a Labour government would drastically reduce the surcharge by removing VAT imposed on it. I immediately looked up my water and electricity bill to see what VAT rate I'm paying and, surprise, surprise, I found no VAT is being charged.

This indisputable fact was confirmed by the Prime Minister himself. Once and for all there is no VAT on domestic consumption and the five per cent VAT charged in industry is refundable.

Gimmicks are Labour's best pastime but this time it has certainly overstepped the limit and this outright fabrication is absolutely unacceptable.

"Labour is therefore proposing that the tax take on fuels should be capped and that the revenue 'foregone' is used by the government to reduce the surcharge on water and electricity by between 40 and 50 per cent" (Alfred Sant, The Times, November 1).

How can the author totally ignore the fact that most businesses are not paying the full surcharge on consumption as it is already being capped!?

The author alleges that "some 20 to 25 per cent of the surcharge is attributable to technical and administrative inefficiencies in the running of the energy delivery system". This claim has been refuted in an independent report drawn up by an international firm of worldwide repute duly laid on the Table of the House. The report confirms that the surcharge rate simply reflects the prevailing international oil prices.

It is ridiculous that Labour members of Parliament are unaware that there is no VAT on the surcharge and/or is refundable. Look at your bills for crying out loud! It is also incredible that they are also ignorant of the findings of the experts' report laid on the Table of the House. Do your homework and stop toying with our lives...

And then... who knows, perhaps, in due time, together with the other unenlightened Labour officials, in perfect synchronisation, you might perform another basic forward-roll and join the rest of us on this planet!