These are taxing times, not that the election campaign, early days as they are, is not taxing our energy and our minds, but because tax promises are the order of the day. And, indeed, they are very promising. In fact, they are attracting me more and more towards an MNLP national government; no way the small parties' participation, meaning a hung government. But before I proceed I must adopt Tony Zarb's (with whom I am rarely in agreement) warning to the parties: "Do not promise what you cannot or will not deliver"; a timely comment indeed.

Let's take the major (and very workable) tax promise presented to us by Lawrence Gonzi. Tax bands will be reduced considerably, such that the highest band of 35 per cent will only start to be effective at €60,000 (Lm25,758). It is aimed at the small businesses and self-employed. This is great. Dr Gonzi quite rightly asserts that such a measure will leave a sizeable surplus in our pockets (I am basically self-employed myself). It will encourage us to think less of tax avoidance (not evasion) and give a tremendous stimulus to work harder and earn more while, at the same time, contributing more to the economy in the crucial, modern sectors of financial services, inward investment, IT, tourism and so much more. This is certainly, and by far, the most remarkable measure proposed in this young election campaign.

The interests of small businesses and the self employed have never been addressed seriously by any government. Their contribution to the economy has never been sufficiently appreciated and has, in fact, been underestimated. This is the way forward. Well done Dr Gonzi and the PN! This sector is a very important component of the engine which has driven our economy to such great heights. It has been calculated that the loss in tax revenue of some €46,588,000 (Lm20 million) will be made up by an increase in economic activity within two years - 2010, when we are expected to register a budget surplus (an all-time record in our history).

Then, there is the VAT issue. Forgetting about the abortive CET, which was a hard-headed move by the 1996 Labour government to go one better, Alfred Sant has now announced that VAT on education-related products, such as uniforms and books, will be refunded, while investments into the educational infrastructure effected by Church and private schools will also be waived through income tax concessions.

That's nice! I do not have many more uniforms to finance at my age but I will benefit too for a short while. This, coupled with the Prime Minister's announcement that childcare centre services will also be VAT free puts the cherry on the proverbial cake.

Above all this, at a higher level, what is the overview of the situation in early campaign days? What are the main issues and the winners, as I perceive them?

Credibility/track record: PN winners.

Leaders' personality/trust/credibility: PN winners.

Cabinet material: draw.

Parochial considerations (petty matters such as pavements and one-way streets); a negative consideration: PN losers.

There is no doubt that in, at least, the last three general elections the increasing number of floating voters has decided the issue. We were dealing with some 20,000 every time. That number must have now increased to 30,000. The floating vote is a healthy element of a truly democratic election. Much of this is made up of new voters, whose memory only clearly goes back to 10` years. I believe (and I think that experience will prove me right) that the most important considerations in this election are:

Ninety per cent of the undecided voters in the polls presented to us are traditionally PN and hail from the middle class - small businesses and self-employed in largely traditional PN strongholds.

Accordingly, the question of whether the PN will win or not depends on how successful it is in getting out its traditional voters.

Young voters cannot gauge Labour's past. They cannot go back 20 years and are unbelieving of what we tell them went on during those dark ages.

The way forward:

Give the small businesses and self-employed their due - done through proposed tax measures.

Visit them at home with care and sincere and genuine proposals - being done.

Inform new voters as to what Labour really is and expose its poor track record - still to be done.

If what I am proposing is implemented effectively, then we will have another Nationalist government.