Government accused of financial incompetence

The Labour Party's spokesman on finance, Charles Mangion accused the government of using "fake excuses", such as the increase in international fuel prices and the international financial situation, to cover up for its inefficient handling of the country's financial situation.

In the first eight months of the year the government deficit increased to €260 million, on similar lines to that registered in 2004 when Prime Minister Lawrence Gonzi took the country's finances into his hands, Dr Mangion said.

Quoting government statistics, he explained that the national debt in the period indicated "exploded" to €231 million when the government had calculated that the annual debt would reach €110 million. This miscalculation meant that the interest on debt was exceeded by at least €7 million by August this year when compared to the previous year, he said.

Dr Mangion said the government was trying to cover up its incompetence by blaming the global financial situation. The government's income from direct taxation rose by over €74 million over a year, which meant that the global financial situation did not impact government revenue, Dr Mangion said, adding that the shipyards' privatisation expenses were not even included in the government accounts.

Another excuse conjured up by the government was the rising fuel prices, he said, outlining various "conflicting versions" given by the government to justify the increase in expenditure. These reasons included the payment of Enemalta subsidies to maintain the surcharge and the payment of children's allowance owed to families for January this year, Dr Mangion added.

As a result of the present financial situation the government was forced to deprive families of helpful schemes such as the subsidy on domestic appliances that was also an environmentally friendly measure, he said.