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An irresponsible Budget - Joseph Muscat

Labour leader Joseph Muscat today accused the Minister of Finance of having presented an "irresponsible Budget."

He said that it was shameful that in a two hour speech the minister had not told the people what they wanted to know - how the power tariffs would affect their cost of living and what the governemnt would do about it.

It was even more shameful, he said, that the government was saying it would spend €10 million on an allowance to ease the impact of the tariffs, when the government would rake in €85 million from the same tariffs.

It was also a disgrace, he said, that the government would remove the subvention given to Mepa and as a result fees would be revised upwards.

Dr Muscat, said soon after the Finance Minister concluded his speech, the government failed to tell the people by how much the water and electricity rates would go up, when this was what they wanted to know.

The people, he said, had been expecting a responsible budget which curbed the cost of living, created jobs, and fought corruption.

But this was an irresponsible Budget by a governemnt which was raising the cost of living, a decision that was also putting jobs in danger.

The government was also facing serious allegations ranging from commissions on the Delimara power station extension to the Fairmount and VAT scandals, the allegations on the Malta Tourism Authority, as well as allegations on breach of ethics and favours.

The government was discredited and the Budget was a half-hearted admission of failure.

At least, Dr Muscat said, the government had taken up some of Labour’s proposals including the setting up of a consumer agency, the monitoring of medicine prices and the revision of pitkali practices. He hoped these promises would not stay on paper.

He expressed disappointment that other proposals made by Labour had been changed, ignored or pushed aside, such as the proposal for the removal of VAT on restaurant services.

The government, Dr Muscat said, lacked the courage to say that a new tax was being imposed on people wanted to build their properties. The €6 million subvention on Mepa was being removed and the Authority would therefore have to raise its tariffs instead.

Dr Muscat asked how realistic was the promise that €429 million would be spent on capital projects when spending this year was less than projected.

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