Labour leader Joseph Muscat yesterday warned the government not to repeat last year's mistake when it raised the water and electricity tariffs, which created big problems for businesses and families.

"Those who are advising you have driven you into the wall. Do not let them drive the economy into the wall. Don't repeat the same mistake twice," he warned the Prime Minister as he called for a maximum ceiling to be set on all government tariffs and licences.

Speaking during a mass meeting at Żabbar, bedecked by Maltese and EU flags, Dr Muscat repeatedly told his audience that the Prime Minister could not be trusted. From managing the economy to the issue of black dust, from the Nationalist Party's internal squabbles to the ballooning deficit, the Labour leader constantly emphasised the issue of trust.

Talking about the forthcoming budget, Dr Muscat expected a responsible budget that tackled the high cost of living, job creation and corruption.

High inflation and corruption, which he described as a tax on everyone, were threatening jobs, he said, listing 10 proposals Labour would like to see implemented.

Dr Muscat called on the government to establish beforehand the maximum rates for water and electricity consumption for next year to do away with the uncertainty.

Similarly, he said, the government should freeze all charges, licence fees and tariffs to create stability.

He then called for the creation of an agency for consumer protection with its first remit being to investigate the price of medicines. In a bid to address the high cost of fruit and vegetables caused by what the EU Commission described as market imperfections, the Labour leader urged the government to tackle the "abusive" situation at the vegetable market (pitkalija).

Dr Muscat said the tourism sector had to be helped and called for the removal of the accommodation tax on tourists announced in last year's budget and which will come into force in 2010.

He reiterated his call for the reduction of the VAT rate on tourism-related services and restaurants.

Taking a leaf from the proposals made by the Chamber of Small and Medium Enterprises - GRTU, the Labour leader called for a revision of the eco-tax system. He did not give details on how it should be reviewed but insisted it should not weigh down businesses while still serving as an environmental incentive.

Dr Muscat said banks should also do their bit for the economy and urged the government to start negotiations with them to lower their exorbitant charges.

The Labour leader also called for the introduction of a legal provision under which anybody losing his or her job would be entitled to benefit from a moratorium on home loan repayments for a period of time.

Finally, he also suggested a revision of the 12 per cent tax on property sales to make it easier for young couples to buy their first home.

Anticipating the government's criticism of his proposals, Dr Muscat said the money to finance the suggestions could be found by tackling corruption and waste.

He cited as an example the shipyards' Fairmount contract, which on its own cost the country €40 million in losses.

"Leaving more money in people's pockets would stimulate the economy and I trust you with money more than I trust Dr Gonzi's government," Dr Muscat told his audience. He reminded them that the Nationalist Party had promised to cut income tax to 25 per cent at a time when Dr Gonzi had said he was already seeing an economic storm coming.

The Prime Minister could not be trusted, he repeated, since there was no visible and plausible explanation for the ballooning deficit which reached €345 million in August.

"The government spent less money in capital projects this year and it cannot claim to have spent the money on subsidies for water, electricity and gas because these were removed."

The government was unstable and Dr Gonzi was more concerned with his party's internal problems than the problems faced by ordinary people, he added.

"The Prime Minister does not know when the budget day is, let alone what measures it will take to help people in these difficult times," Dr Muscat said, describing the government's problems as the "Gonzi crisis".

With reference to the concern of many people in the south about black dust, which has been plaguing the region for years, Dr Muscat said the government was taking people for a ride.

He also referred to the new power station in Delimara, which is expected to produce 31 tonnes of toxic dust a day, insisting the government had changed its policy to go for cleaner technology that ran on gas and instead opened up the possibility for a Danish company to win the tender with antiquated technology.

Referring to the Finance Minister's trip with two prominent businessmen, Dr Muscat again called the Prime Minister's judgment into question.

"The Prime Minister chose to act one way with one minister and another way with Tonio Fenech," he said with obvious reference to John Dalli's resignation in 2004.

"How can we trust Dr Gonzi to act in a just way when he even makes distinctions between his own people?" the Labour leader asked.

Dr Muscat said the new movement spurred by the Labour Party was attracting more people to its fold. He called on people to look ahead towards the "future that united" them rather than the "past that divided" them.

Earlier the crowd was addressed by the two deputy leaders Anġlu Farrugia and Toni Abela.

Dr Farrugia accused the government of employing a number of people irregularly with Air Malta after the election by manipulating the records at the Employment and Training Corporation.

On his part, Dr Abela accused the Prime Minister of not wanting to face reality, using the global recession as an excuse for bad governance.

Reacting to Dr Muscat's comments, the Nationalist Party said the PL has yet again confirmed how detached it was from the world financial and economic reality. The message given by its leader was that no international banking crisis and economic recession existed.

The PN added it was easy for Dr Muscat to insist that tax be reduced without having to shoulder the responsibility to see from where to get the money to keep the country's finances and confidence on a sound footing.

Dr Muscat preferred to be superficial without committing himself on anything, as he had done last June when he said he could give no guarantees on water and electricity tariffs if he were in government, the PN said.

ksansone@timesofmalta.com