The Labour candidates elected to the council of the Local Councils Association yesterday won more votes than there are Labour councillors in the association, PL leader Joseph Muscat said this morning.

The election was open only to members of local councils.

Dr Muscat, speaking at Fgura PL club, said this development was very significant. Councillors who were not elected on the Labour ticket had voted Labour. It was a reflection of the general disillusionment of the government and how the Labour Party was continuing to attract more people to its ranks.

The PL, Dr Muscat said, was getting increasingly closer to the people. That was evidenced, for example, in its campaign for a refund of VAT paid on vehicle registration tax, and that campaign would continue now that the European Commission itself had confirmed that the former system under which VAT was charged broke EU rules.

Dr Muscat said Malta was in a situation where, in August, exports and imports dropped, unemployment rose and the gainfully occupied decreased. And yet, instead of having a Prime Minister focused on the country's problems, Malta had a Prime Minister intent on trying to keep his party together. This caused instability.

Malta, Dr Muscat said, deserved better.

It was shameful, he said, that nothing was being said about an EU report that showed that Malta had the highest rate of early school leavers, with almost 38% leaving at the end of secondary school. In contrast, the EU target was of just 10 percent of early school leavers.

In his speech Dr Muscat criticised the government over rising prices, corruption, medicine shortages and education costs, among other issues. He also complained over fees being introduced by the banks and said proper control was needed to safeguard families and small businesses.

On tourism, he said Malta needed a minister who was properly focussed on this sector and on 'selling' Malta to tourists. He also insisted that the PL would never accept the privatisation of Air Malta.

U-TURN ON GAMING LAW

Dr Muscat said that the Prime Minister, following pressure from the PN parliamentary group, appeared to have made a U-turn on proposed regulations for the gaming industry. This, he said, further showed government instability.

Following reports of the Finance Minister having been abroad with major gaming operators, Dr Muscat said he expected a declaration form Dr Gonzi on who he believed.

NOMINATION OF EUROPEAN COMMISSIONER

Dr Muscat also asked what Dr Gonzi was waiting for to nominate as EU Commissioner. Was this another case where the interests of the party came second to the national interest? Dr Muscat said he did not politically agree with incumbent commissioner Joe Borg,but he had worked well and won respect. He was a natural choice and should be nominated for a second term, Dr Muscat said.

Dr Muscat criticised the government for putting off the parliamentary debate on the power station extension until an auditor's report was completed. He observed that the ministry itself had already confirmed that the new €200m plant would need to be replaced in seven years' time and that it would produce 31 tons of soot every days. It had confirmed that the emissions threshold was lowered while the tender was being considered. Had that not happened, the contract could not be awarded to the Danish company which won the tender. All this did not need further confirmation by the auditor, Dr Muscat said.

He said that on October 25, the PL would hold a demonstration in Zabbar to peacefully but firmly show that truth would prevail.

PN COUNCILLORS DENY PL CLAIMS - PL REACTS

The College of Councillors of the Nationalist Party in a statement denied that the PL candidates in the election of the Local Councils Association got more votes than there are PL members of the association and urged Dr Muscat to check his figures.

The Labour Party said in a counter-statement in the evening that in the vote for the president of the association, the PL won 54% of the valid votes when the amount of Labour councillors is 53%. The PN won 46%.

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