Government revise!

The government must revise its water and electricity tariffs. It must increase its deficit more than it has already done. It must insist that our banks cut down their interest rates in accordance with those of the Central Bank which, in turn is following the European Central Bank, which is cutting down even further. And while it is at it, it should ensure that the exorbitant bank charges which are fleecing borrowers should be removed. Unfortunately, banks are charging more for a poorer service. But this is another matter.

The government must have no option, and this for a number of reasons. Foremost among them is that the Maltese people are scared, and I mean scared. Anybody with his feet on the ground, who actually meets people - and not only smiles when shaking a person's hand and looks the other way to see where to deliver the next smile, not knowing what the first person told him/her (politicians, of course) - will attest to this. People are scared as to whether they can afford to pay their bills, what will become of their quality of life, will they fall below the poverty line, can they buy presents for Christmas, what will become of their business or job next year? They are not only scared; they are terrified.

Probably, the worst thing after a war is a depression. How to counteract a depression? Stimulate the economy. How to stimulate the economy? Leave more money in people's pockets. This means that more money will circulate, and consumer confidence will increase and business will grow. It is no use playing the hero, as the government is doing, by balancing the budget at the expense of this economic stimulus. The government must stop playing the hero and increase the deficit if necessary. That is what the country requires. Balance your budget by all means (indeed there is no getting away from this eventually in order to meet EU criteria), but not now. And putting it off for just a year will do no good.

As for the banks, it must be said at the outset that it is thanks to their prudent and conservative policies that they have survived - because they are liquid - and have not gone the way of other banks (even though BOV received a severe blow from the collapse of Lehman Brothers). However, they must not clamp up or tighten up. By squeezing their customers and not reducing their interest rates, they will be doing a disservice to the nation at a time when their support is required.

It was very significant that no less than 20 trade unions united in calling on the government to revise the water and electricity tariffs. It is also significant that all the other social partners, notably in the employment and business sector, have done the same. It is further significant, albeit worrying, that all have claimed that the government rode roughshod over the MCESD; that no dialogue was undertaken with the social partners, meaning that the government was unilateral in its unpopular decision. Furthermore, there is still much uncertainty about what is actually going to happen. This leads to instability, which leads to fear, which leads to a freeze on business development and personal consumption. First you have "Aggressive Austin" stating that the matter is closed (typically abrasive), then you have the parliamentary secretary to "Lost Lawrence" (meaning he seems to be away from it all, both consciously and physically) contradicting Austin Gatt, and finally you have "Timid Tonio" inviting the unions to make proposals and discuss. Someone must decide.

There are three points which come out of all this. Firstly, that the government is either out of touch with its own people or otherwise lacks a so-much-bandied-about social conscience. Secondly that the trade unions have made a giant step forward in their common front against the government measures, and this is the appropriate moment to develop a Trade Unions Council; an opportunity which must not be lost. And, thirdly, that the whole exercise was totally mismanaged in the PR sense, equalling the mismanagement shown by Alfred Sant in 1997 with his water and electricity tariffs! What a pity. Thank God an election is not round the corner.