Editorial

As the Labour Party struggles to find its feet in the political storm whipped up by the puzzling choices made by party delegates in the election to important administrative posts, the government is not exactly having a ball this summer.

The very challenging tone used in speeches at the General Workers' Union's meeting in Paola on Wednesday does not promise a smooth process in the privatisation of the shipyards. It also takes the union to past times when excessive militancy earned it and the party that supported it widespread distrust. The Labour Party, whose leader was among past party leaders who attended the meeting, did well to make it clear that "the only way forward is through discussion and peaceful initiatives". However, if it wants to be credible it should also rap the GWU for using inflammatory and threatening language.

Meanwhile, despite foreseen and unforeseen setbacks, the government remains generally confident about the performance of the economy.

A bright spot is the generally downward movement in the price of crude, but it is far too early to say if the trend will be maintained, and if so, for how long. The government has set an important target, that of balancing the budget by 2010, and all its actions are directed towards this end. Labour has been pinpricking the government over its finances, arguing the latest figures showed it was not meeting its targets. However, the Finance Minister, Tonio Fenech, did not take long to correct the bad impression Labour attempted to create. He admitted the country may not be able to reach the targets set, but felt they would not be wide of the mark. In fact, he said the government would remain well on track to achieve the 2010 target of having a balanced budget.

It may be somewhat difficult for many to share the minister's optimism at this point in time, even though, as the government itself has said in the pre-budget document, it has taken a number of decisions over the past months "to ensure that we can continue operating in a sound and sustainable manner, and thereby keep to our targets". It mentions three in particular: the phasing out of the subsidy on the making of Maltese bread, the upward adjustment in utility prices (that is, the water and electricity surcharge), and the launch of the privatisation of the shipyards. In its latest report, the International Monetary Fund has welcomed the government's measures to contain public spending.

There was not much of a furore over the removal of the subsidy on Maltese bread, but the sharp rise in the water and electricity surcharge will be biting hard, reducing disposable income. A positive side-effect has been a general increased awareness by householders to economise in the use of power in the home by, for example, switching off the light, or air-conditioners, when leaving rooms. Also, more and more people are installing solar water heaters.

As expected, the process for the privatisation of the shipyards is meeting difficulties, mainly over the downsizing of the workforce before the sale. When there is general agreement that privatisation is the best way forward, it will be a pity if workers are led into a blind alley. Malta cannot afford to allow the yards' privatisation plans to founder on the modality of the process. Rather than a source of confrontation, the process ought to mark the beginning of the rebirth of the shipyards. The situation calls for cool minds, not for the kind of highly inflammatory language used at the GWU meeting in Paola.