Economy was like a car with two punctures - Fenech

Antoine Grima

Jul 3rd 2009, 19:34

Dear Minister. My car feels like it's got no wheels at all thanks to and your government and i am not blaming the holes in the roads .You make it sound as if the worse is over .I hope you are right but my little bit of common sense tells me that this is just the begining.We are facing a world crises with empty bank accounts and that is why the government cannot help the situation but only make it worse by increasing the cost of living .The government itself is struggling to keep it's head above the water because the world crisis found us already in a crisis .IS MONEY STILL NOT A PROBLEM ???????

John Spiteri

Jul 3rd 2009, 18:39

@Michelle Debono "Average EU downturn 4% Malta downturn 0.9%" a 4% drop for a millionaire is something that he can handle. a 1% drop for someone living on the poverty line is another thing altogether.... you can't compare the economies of Malta and say Germany. for a small country like ours even an conomic growth of 2-3% is underperforming, let alone a negative growth. I do not share the Minister's optimism - for one thing he's been constant in only one thing: getting predictions wrong. His government's reckless public spending, a soaring deficit and a national debt that we have begun to lose count of can only spell one thing - we very close to hitting the wall. the thing no one mentioned about the eurozone, is that this government has his hands tied because of it. he cannot raise or lower interest - he cannot devalue - he cannot print money, in a nutshell he has very limited room for manouvre, that's what happens when you lose your sovereignty..

P.Cassar

Jul 3rd 2009, 18:09

@C Gatt Germany is in the Euro zone and recession there is rife Spain is in the eurozone and its economy is in shambles and unemployment 15%!!!! It's not about being in the eurozone but about how smart a govt is . Ours is hopeless @M Zerafa Generally govts prefer to be genuine with their people so that if an effort is needed, they all make it, but if a large chunk of the trouble is caused by the same govt (as the case in Malta) it tries to hide it in the hope that it goes away = amature politics. Remember Mintoff irridu nissikkaw ic-cunturin stated as a fact

steve elliott,uk

Jul 3rd 2009, 18:01

Is that car an average Maltese car or a finance ministers car

m zerafa

Jul 3rd 2009, 16:48

@P Cassar had tonio fenech rushed and said "we're going into a recession...we have a recession"...kieku flok 1% downturn..kieku 5-6% bhalissa.. dak kien l-izball li ghamlu hafna pajjizi li tant qatghu qalb il-konsumatur / negozju li l-krizi giet aghar

mario gellel

Jul 3rd 2009, 16:04

@Michelle Debono YOu know well that your PN Goverment is a first class Gambler when it comes for Figures and the EU has proven him so. Oh by the way, we are just entering the recession,not exiting.

Anthony Scerri

Jul 3rd 2009, 15:26

I am sorry to say that we have not seen anything yet. Tourism accounts to 35% GDP and we are experiencing and yet to experience of drop of 13% in this sector.. fifty percent of these tourists arrive in the next few months and also consumersim is at is best during the summer.

Michelle DeBono

Jul 3rd 2009, 14:56

@Mario Gellel

If our engine, (that has still managed to create 1.8% new jobs, and our downturn is just 0.9%). has ceased, what has happened to other economies that lost 5% jobs and have a 5-6-7% economic downturn?

1 key figure
Average EU downturn 4%
Malta downturn 0.9%

c gatt

Jul 3rd 2009, 14:27

Hahaha. I love the economic pundits on the timesofmalta webpage. Take Mr Martinelli, who longs for the come back of the Maltese Lira because, as he puts it: 'Malta broke with sterling and did not fair too badly.' One does not not run an economy in the hope that it does not do too badly. How about saying that Malta is not doing too badly in this recession BECAUSE it has the Euro.
The Euro is perceived as a safe currency, therefore it cushions jolts to the economy brought about by recession. That is why 'mighty ' Britain is actually thinking of joining: http://www.telegraph.co.uk/news/worldnews/europe/eu/5506385/Britain-will-obviously-join-euro-says-Mandelson.html. But then what does Mandelson know about these things.

P.Cassar

Jul 3rd 2009, 14:23

Dear Minister
The car has been running on two punctures for years now. Most on board know and in fact that's what they were shouting out at you with the resultS of the last electionS.
Our trouble is that the drivers did not believe the passengers and have kept on going and doing further damage. You yourself said a few months ago that all was well. You are even saying now that we were hardly hit by the recession when this is not yet over.. We are getting tired of hearing you admit mistakes all Maltese have been telling you about for years. I'm afraid you have gone past your use -by date. Please resign for fresh approaches to materialise.

mario gellel

Jul 3rd 2009, 14:09

The (I know it all) Goverment is saying that the Economy is like a car with two punctures. For him to be honest with us, he rather say that even the engine has ceased.

Lawrence Martinelli

Jul 3rd 2009, 14:03

EU. here EU. there.....what's all this about ?!
Give back Malta's Central Bank the Malta Lira.
Malta broke with sterling and did not fair too badly.
The Euro AND the EU. are not going to solve ANY Malta problems.
Malta can be a central point for Middle East and Asian trade,
suitable as a < Free port > for international trade.
The Euro is a straight jacket unsuitable for ( luckily ) Dwarf Malta.

Muscat.Pat

Jul 3rd 2009, 13:53

@ Joe Vella
And how did Tonio Fenech stimulate the local economy? Is it by increasing the water and electricity by 185%? Is it by increasing ( again) the price for heating oil and cars? Is it by increasing the deficit to a new record high before the elections ; months before the credit crunch started? Add to this the 4.0% inflation- which is the highest in Europe- and you get a 4% erosion of the salaries.! Some stimulation of the economy this was!

Joe Blogs

Jul 3rd 2009, 13:40

You see because of the potholes we got two punctures! Hope we did not damage the rims! :)

A Agius

Jul 3rd 2009, 13:28

@ joe vella: Maybe you are the only one to have heard that. EU Prime Ministers reduces taxes to increase economy, unlike this government. But as usual, trying to defend the undefendable. But I must remember that you are living in another planet...

A Vella

Jul 3rd 2009, 13:26

@ joe vella: I wonder what would your comments be had it been a labour government in the office!

Galea. L

Jul 3rd 2009, 13:19

So is the next budget going to make the car loose its two good wheels as well?

dusty williams

Jul 3rd 2009, 13:18

And now its all 4 wheels! Tonio hi!

joe vella

Jul 3rd 2009, 12:57

well mr green whether we like it or not, it is going to be taxes- all the EU prime ministers have been hinting at increased taxation to recover deficits generated by cash injections to stimulate their economies, it cannot and will be no different here
the massive decreases in exports and imports/tourism etc only means that there is less going into government coffers
unfortunately our government does not have the ability to curtail its cost while the economy is receeding so the only way to recover lost ground will be higher taxation in one form or another

D.MANGION

Jul 3rd 2009, 12:56

PART 2-
... Demand for a product is very much linked to marketing....why should the workers suffer, if their marketing/selling departments do not manage to sell their product ? Where do you draw a line on which jobs are more productive than others? - 0 our of 10 for Joe Farrugia's line of reasoning.

4-Why is it that the Malta Employers Association, the GRTU, The MHRA are always consulted about budgets BEFORE the workers' representatives (like GWU/UHM/CMTU ect)?
This way of consultations frequently presents the workers representatives with a fait accompli' rendering their consultations nothing but an expercise in P.R. - 4 out of 10 for the way such consultation process takes place.

P. Schembri

Jul 3rd 2009, 12:52

And we can't afford to repair either puncture, and no spare wheel in sight, that's how the Maltese economy is Hon. Minister. And more like a vintage car or shall I say karrakka. That's how your precious government brought the country's economy.

D.MANGION

Jul 3rd 2009, 12:45

Part 1-
Allow me to make an effort to try to be as objective as is humanly possible for a middle class worker, and comment on this article.

1-Yes Dr. Tonio Fenech deserves credit and praise for passing us throught the worst economic crisis of recent history with the least possible damage. I had expected worse. BUT I WAS FULLY AWARE OF THIS LOOMING CRISIS EVEN DURING THE ELECTORAL CAMAIGN DURING WHICH HIS PARTY WAS MAKING IMPOSSIBLE PROMISES. 9 out of 10 for minister Fenech.

2-Reform in the Public Service has been in the government's priority list since 1988 and apparently it is still in the making ! The visible progress has been too slow during the past 15 years. 1 out of 10 for the past and present PN governments on this.

3-The director general of the Malta employers assosciation is fully aware that our inflation rate is above the EU average, and yet he wants to tie our wage increases with productivity. What about those jobs who are unrelated to productivity ? What if the demand of a product is low ? Why should the worker suffer if there are few orders for the pruduct that he produces?

F J Brincat

Jul 3rd 2009, 12:45

Yet, the signals being sent by you are not so healthy. So, what about the next budget Mr Fenech? You’re planning to kick start the economy or are you going to turn it in a car with no wheels?

James Green

Jul 3rd 2009, 12:39

Using taxes to cure deficits is like using leeches to cure anemia. R. Reagan