Muscat insists government must keep its tax promises

New Labour leader Joseph Muscat insisted this afternoon that the government needed to keep its election promise of widening the tax bands, more so since galloping inflation meant that the people needed more money in their pockets.

Speaking during a meeting with the council of the GWU, Dr Muscat said that last February 10 Dr Gonzi had promised to revise the tax bands this year, but after the elections the government had appeared to back-pedal in view of the international economic situation. Since Dr Gonzi already knew what was on the economic horizon on February 10, there was no justification for his promise not to be kept, Dr Muscat said.

Indeed, the tax revision was needed even more now, with prices rising fast.

Dr Muscat expressed concern over rising fuel prices which could have an impact across the economy, and food prices which are rising faster than in the EU. Also of concern, he said, was the fact that vegetable prices were rising in Malta and falling in the EU. This, therefore, was not an issue of imported inflation.

Dr Muscat against criticised the government for having decided alone on the privatisation of Malta Shipyards. He said the MLP was still prepared to listen and make its own suggestions and was not closing any door to any model for the future of the shipyard.

Referring to the early retirement scheme which the government is to propose for shipyard workers, Dr Muscat said it would not be fair for the workers to be made to choose before knowing what employment conditions in the dockyard would be in the future.

He also warned the government not to underestimate the value of the shipyard.