No intention of handing over power

Time is running out for Prime Minister Lawrence Gonzi to call an election this year, but he still refuses to rule out the possibility in an interview with Herman Grech.

Dr Gonzi is sitting at his desk leafing through dozens of documents on a grey, wet morning. "Could you give me a minute?" he says in a chirpy tone, as he inspects the computer screen illuminating his desk. The previous evening he had spent two hours tapping his way through an Internet forum on the Budget - a first for a Maltese Prime Minister.

"Last night's feedback was incredible," he says as he sinks into his office sofa, with a signed photo of his meeting with US President George Bush coming into view over his shoulder. The 54-year-old Prime Minister is fully aware that the Internet is the best key to access politically reluctant youngsters.

He is even more aware, however, that the recently tabled Budget prompted reluctant Nationalists to seriously consider going out to vote at the coming election.

"Maybe the Budget has encouraged some people to decide (to vote). From the first day, I said that we should not be judged by what we say, but by what we do. These are our achievements. And when the time comes we will go to the people for their verdict. We have not been perfect, but we've tried our best.

"The reaction (to the Budget) has been good - I've even had e-mails from Opposition members saying it was a good Budget and that it had addressed the country's major needs."

The Prime Minister does not, however, feel comfortable when it comes to speculating whether the lost sheep are returning safely to the Nationalist Party fold that he has shepherded for over three years and, unlike many in the country, he refuses to accept that Malta is in election mode.

Yet he does not rule out holding a snap election this year, even if in reality it now cannot be held before the first week of December: "I need to make a consistent assessment. We have to be responsible. We have to factor in the Budget process, the euro preparations, the international market, the price of oil... It's not going to be an easy decision and timing is going to be fundamental - I need to ensure a balance in the best interest of the country. So I don't rule out any option whatsoever.

"The election date is something I consider practically every day, depending on circumstances. I have to be extremely careful. I am not ruling anything out, whether it's December, January, February... April. If I believe that the circumstances are OK, I will go for it. But I believe it's a bad time for the country, I will postpone it."

Is he willing to take the risk of missing out on overseeing the introduction of the euro on January 1?

"That's not the point. We need to go through this change in as stable a manner as possible, with the least possible shocks."

What if there's a change in government?

"I'm hoping there won't be," is his instant reply. "Of course it's a major consideration, not because I worked so hard for the introduction of the euro, but because the country cannot risk making any mistakes. It has to be a smooth changeover and that weighs very heavily on my decision.

"Still, I do not rule out a December election. I somehow have to foresee what the state of the country will be five weeks after I announce the date. It's a difficult call, especially with Christmas around the corner, but the option is there."

He says one of the biggest lessons he has learnt since entering the political arena that a week in politics is, truly, a long time. He refuses to state whether his party is doing well in the opinion polls, saying it is impossible to gauge when a large number of people still claim to be undecided.

Dr Gonzi evidently feels more comfortable talking about the Budget, which he insists has addressed people's needs. He says his government studied the financial repercussions in detail before extending the entitlement to children's allowance and revising the income tax bands for the second year in succession.

However, he stresses that the Government is in the meantime tightening its purse strings in other sectors - the freeze on employment in the public sector remains - and a six-year collective agreement has reaped benefits.

The Prime Minister says it is illogical for people to take the cynical view that the benefits brought in this Budget will be reined back next year if the PN returns to power. He resorts to statistics to prove his point. It is the first time that the government is targetting a deficit below two per cent and the country has one of the highest growth rates in recent years. Unemployment is down to 2.9 per cent, one of the lowest in the past 15 years, and the country has the highest gainfully occupied figure since Independence.

"I've always said that our successes will be translated into people's pockets - it's got nothing to do with the election. We've been told by the EU that we have a credible and sustainable economic policy. So why the scepticism?"

Spring hunting might be a hot potato but the Prime Minister refuses to say whether his Government will take immediate action, despite a second European Commission warning stating Malta is in breach of the Birds Directive.

"I haven't received the reasoned opinion yet... but we made it clear that we will definitely respect the decision.

"All these claims about incurring fines are being bandied about by people who want to mislead the country. This country will not pay a single cent because of the hunting issue. I will not allow it. But this country has also negotiated specific conditions and we need to see to that."

To what extent does the Prime Minister fear the fact that many remain hesitant to vote for his party simply because it has been in government for too long?

"It's something the Labour Party continues to drum-up while it conveniently ignores the fact that it has a leader who has held his post for 15 years, that their MPs have been there for quite some time, and that they made a mess of this country.

"At the end of the day I always respect the decision of the electorate. It was the electorate that chose the PN's policies, time after time. We might have been in power for quite some time, but that's because people wanted us to be there. In 1998 they chose us because Alfred Sant's policies made a mess of the country - in 2003 the people chose us because we opted for EU membership."

Dr Gonzi believes the content of Dr Sant's Budget reaction speech was also worrying.

"It was superficial, even dangerous," he says, referring to Dr Sant's overtime proposals, which he says would eat away at pensions and threaten to create a gaping hole of between Lm12 million and Lm30 million in government finances.

"Dr Sant is either saying this because he is trying to win votes, or simply because he is irresponsible."

However, he dismisses suggestions that his own party has embarked on a campaign to pit the charm and optimism of its leader to the doom and gloom of Dr Sant.

"We're on a campaign to tell people that our policies are credible and sustainable. It's not Lawrence Gonzi vs Alfred Sant. People will make a big mistake if they decide to vote for the PN because of Gonzi's tie.

"Just look at Alfred Sant's policies in the past three years - he said no to Europe. He was wrong. He said not to the euro. He was wrong. He said no to the pension reform. He was wrong. He suggested devaluing the lira by 10 per cent. He was wrong.

"We said let's go for EU membership, let's go for the euro, let's reform pensions and the dockyards. Had Alfred Sant been Prime Minister, the Smart City project would not have come to Malta. Our lira would have been devalued. (Dr) Sant is an intelligent person, he has my full respect, but for the past three years he has consistently failed to choose the right policies.

"This man has been consistently taking the wrong decisions and people should ask themselves what would have happened if he were Prime Minister in the past three years. It's a disastrous scenario."

Nevertheless, Dr Gonzi says he disapproves of campaigns to demonise the Labour leader.

Investments Minister Austin Gatt recently hit the headlines, and landed a defamation suit, after he linked Dr Sant to Altered Statesman - a documentary series on the Discovery Channel which investigates political leaders who have had bouts of alcoholism or substance abuse.

Dr Gonzi says he disapproves of Dr Gatt's statement and confirms that he has spoken to the minister about the matter.

"I've highlighted to ministers, parliamentary secretaries and MPs that we don't need to deviate from our issues - good policies speak for themselves.

"I personally never agreed with that type of approach and it doesn't get us anywhere. Politics is in itself a powerful tool to work for the common good."

Asked whether he feels that he was constantly being prompted to cover up for his Cabinet's gaffes, Dr Gonzi replies: "We're not perfect - we all make mistakes. But I must say, however, that in the past three years, we've been insulted a hundred times and nobody has withdrawn the insults.

"I have been personally insulted by Alfred Sant, and on both occasions he has not withdrawn his comments. This doesn't mean it's a tit-for-tat situation. We've got the courage to say we have made mistakes and we try not to repeat them. I'd expect the same thing from the Labour Party... but they are always let off the hook."

Dr Gonzi clearly has no regrets over showcasing his backbenchers and young candidates in recent public meetings in a clear show that he intends to reshuffle his Cabinet - after the next election.

But didn't such a strategy create tension among the more established ministers?

"No, I wouldn't say it did. This is a change that every political party goes through. Since 1987, the PN has been through two generation turnovers, and it's time for another one. After the next election I have no doubt that there will be substantial changes in the make-up and set-up of those elected on behalf of the Nationalist Party. That's politics. I want to drive the message home that the PN has good individuals who are new to the scene and we need to expose them. Of course, it's the electorate which will have to choose."

But how did long-standing Cabinet ministers feel after a number of backbenchers accompanied the Prime Minister - and they were left out - to a meeting, for example, with representatives from the tourism industry?

"Nobody can take anything for granted. Every minister and parliamentary secretary knows he has been given a temporary role and he has no guarantee for the future. That's political reality, whether anybody likes it or not. Every party leader has the right to make the changes he deems fit. The process of change is important. All our ministers and parliamentary secretaries are on notice. Things will change.

"In the past three years the country has undergone some very delicate changes and it needed stability to achieve its targets. Even those ministers who are very popular with the electorate have no guarantee.

"I spent the first part of my career focusing on social policy and then I moved on to finances. Certain ministers will be changed. We need new ideas - we can't run the risk of stagnation."