Updated: Finance Ministry says Opposition not backing its claims on the economy
The Finance Ministry said today that Opposition Leader Joseph Muscat had not produced any facts to back the claim he made yesterday that the economy shrank by nearly 5% in the first quarter.
The NSO said last week that the economy shrank by 3.3% in the first quarter.
The ministry said the global economic crisis was affecting all countries, but the government's decisions, including euro adoption, were shielding the country from the worst consequences.
It accused Dr Muscat of exaggerating matters for political gain and said this was a dangerous tactic which could sow uncertainty among investors, more so as Dr Muscat had not backed his claims.
The ministry said the country should be uniting to face these difficult times, but the Opposition had opted to play the partisan game.
PL EXPLAINS
The PL in a reaction said GDP was during the first quiarter favourably affected by the 18 million euros spent on the dockyard early retirement schemes. This was calculated as being a boost for the economy, when, in truth, this had not served for the economy to grow.
When the schemes were taken out of the equation, it was clear that GDP fell by 4.6 percent between January and March.
The PL said the government needed to admit such problems and then say how it would tackle them, rather than try to hide them.
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joanna farrugia
Jun 16th 2009, 10:24
i cant really understand why gonzipn failures have to faced them the opposition or blame the oppostion for not backing.when the oppostion placed some tactics this arrogant gov put them away and i may remind all the pn bloggers your dear gonzi said i am the gov and i am in the power so why mentioning the oppostion?by the way he never learned not even the pn bloggers cos they only see power and nothing else.
lgalea
Jun 16th 2009, 10:02
Joe Micallef
You surely are referring to Gonzi.
lgalea
Jun 16th 2009, 10:01
J. Martinelli
Being only a Rhodes Scholar Mintoff succeeded in kicking the British Government out of Malta, made Malta a Republic and removed a foreign queen for the Head of State.
Eddie Fenech Adami made Malta again a colony of the much despised european union while Gonzi is following in his steps in obeying everything he is ordered to do by the eu petty dictators.
victor caruana
Jun 16th 2009, 09:25
Quote: ' the government's decisions, including euro adoption, were shielding the country from the worst consequences.'
Only fools and horses believe such stupidies. Ask Ireland, Spain and Greece - countries with even the risk of default in paying their debt!!!!!!
Joe Micallef
Jun 16th 2009, 07:58
Paul Stivala - I acknowledge problems but I want answers not some one pitying me, promising nirvana and then backtracking soon after. This view of politics helped me get to the point where I neither need PN nor MLP for a living! Now maybe you can I answer my previously posted question! Well never mind you already did.
Joe Galea
Jun 16th 2009, 07:18
@P Zammit: Yes yes keep on fantasising about a good governance by the PN!! But that will remain a dream I assure you as the GonziPN has lost control of his party let alone the country. JM is just speaking the truth and uncovering all the blunders and economic disasters this government is inflicting to our country. GonziPN is incapable of governing and should resign...he won't do that as he is attached to power "I am in office, I am in power".
@Joe Micallef: Muscat has never lied on anything. He never promised anything to anyone. Puting Jason Micallef in the picture is of no use. Jason Micallef spoke for himself and did not reflect the party's line of thought as he is an idiot. Gonzi is the chronic liar, he lies and lies until he himself believes his own lies. You are one gullible elf. Regarding One News, I assure you that you are parroting the NET NEWS who turn real facts to fiction, that is called NET TV..the station of spinning and weaving.
C Cilia
Jun 16th 2009, 02:31
@ PN bloggers here under
Tliftu bi 35,500 vot, u ghadkom ma taghlimtux hux? Tkomplu bl-arroganza taghkom u tinsultaw il-kull min ma jaqbilx maghkom.
Ma jimpurtax, ibqghu sejrin hekk, ghalina ahjar ghax qeghdin ixebbew in-nies izjed b'din l-arroganza. Qas tafu tisthu
Alfred Farrugia
Jun 16th 2009, 00:05
I have no doubt in my mind that the present government has committed a number of blunders during the past year and a quarter. What I do not know is in which condition our economy would have been had the Labour Party won the last general elections.
Considering Labour’s success (!) between 1996 and 1998, when there were no recessions, I am not certain that we would be doing any better. Perhaps this is something that the Finance Minister might wish to explain to some of his critics and to the general public.
J Martinelli
Jun 15th 2009, 22:19
The LP has a history of defective economists who still have to get one calculation right. They now added another in the form of an MEP who also advised Dr, Sant that eroding the lira before conversion to euro was a good idea!
Joseph Muscat plays a dangerous game completely disregarding the oft quoted 'what goes around comes around' and I cannot wait the hour that he will have to face the music and watch his reaction when he cannot but face the truth. However, his fate may be similar to his teacher who had a little taste of what it is to be prime minister but could not finish one complete term.
All is not lost however since I have now experienced a Damascene conversion and started to believe in Mintoff's quote that "Diplomas and Degrees are but pieces of paper good for wrapping anchovies in".
The above was quoted by good old Dom when he also said that 'computers make the minds lazy' and imposed an import licence in order to obtain one!
See what I mean - and Mintoff had no Degree in Economics he was (is) a Rhodes Scholar!!!
Galea. L
Jun 15th 2009, 21:11
Joseph E Briffa
You referred to the Shipyard workers and the 18 million euros they were given.
Basic economics tells you that the marginal propensity to consume of such persons will be very much less than if they had been kept in employment because they may be getting a lump sum, but they know that it will have to make ends meet until either they get their pension if they are near pensionable age of until they get another job if they are still young. The older you get the harder it will be to find a job, especially in these troubled times. So no, they will not be spending that money but keeping it and making it last as long as possible. This is apart from the government losing money they would have paid in income tax and NI contributions through being employed, apart from consuming more because they would have had more income. Less consumption also means less VAT for the government. What Gonzi did was contrary to what all the other governments around the world were doing, namely putting money in consumers hands not taxing them more. So your reasoning does not hold water Briffa.
Melanie Hili
Jun 15th 2009, 21:03
@ P. Zammit
Some people live in a real world and others choose to live in a dream world of their own. Your choice, but please stop telling us your dream world is the real thing. It's not.
Paul Stivala
Jun 15th 2009, 20:59
@ Joe Micallef Clutching at straws. Try getting hold of something solid as otherwise you'll just go under.
Joseph E Briffa
Jun 15th 2009, 20:34
The golden handshake of 18 million euros to dockyard workers is money earned by these people and is obviously part of the GDP like salaries, wages, bonuses etc. This money will flow into the economy again like salaries, wages and bonuses. Joseph Muscat is again making a fool of himself..he should have consulted Edward Scicluna before opening his big mouth..no wonder he defended that other loud mouth of Jason Micallef.: they are two of a kind. Muscat should learn that it is foolish to lecture to people on their own territory; but then his words are meant for the consumption of those who watch One News and repeat all the stupid things relayed there like parrots
Joe Micallef
Jun 15th 2009, 20:03
D.Cassar "This is another case. Muscat reveals the truth". Do you seriously believe what you write. If yes can you tell me who is telling the truth between Jason and Joseph on W&E. Let us see, about what is Gonzi not listening to you? don' t tell me its' the W&E bills. On this amongst others Muscat is lying from the opposition - something no half clever politician would or needs to do.
D Cassar
Jun 15th 2009, 19:43
@P Zammit Are you joking? It seems Lawrence Gonzi learnt no lessons from the EP elections defeat and is happy with the current economic scenario. Joseph Muscat won the elections because he was being honest with the people whilst government was simply trying to hide the reality. This is another case. Muscat reveals the truth, Gonzi lambasts opposition because it is showing the true picture. This is the proof that LG does not listen to the people.
P.Zammit
Jun 15th 2009, 19:21
Isn't it obvious what the opposition is doing. Sabotaging the government, thinking that it can manage an off schedule election. Just call Joe Muscat's bluff and let him make up (Sant style) some economic spreadsheets to prove his point (like he did about us being net payers to the EU - didn't we all laugh at that kind of intelligence?) He said it himself, didn't he ? Happy to be prime minister at 39. It's up to the PN to work their butt out to make it closer to 93 than 39.