'A half-hearted admission of failure'

This was an "irresponsible Budget" because in a two-hour speech the Finance Minister ignored the most pressing issue: water and electricity tariffs, opposition leader Joseph Muscat said yesterday.

The government last week announced that the utility rates would increase once again, following a similar and very controversial hike last year, but no price details have yet been issued.

Dr Muscat harped on this issue yesterday, saying it was shameful that the government was saying it would give €10 million to ease the impact of the tariffs, when it would rake in €85 million from the same tariffs. He said the government should have also said by how much gas prices would rise.

He denounced the removal of €6 million given to the planning authority (Mepa), since this would force fees to be increased to make it self-sufficient.

He said government lacked the courage to say that this was a new tax being imposed on people who wanted to build properties.

Everyone had been expecting a responsible budget which curbed the cost of living, created jobs, and fought corruption, but this was not the case.

He warned that inflation would jeopardise jobs, as would the increase in utility tariffs.

Dr Muscat took the opportunity to say that the government was facing serious allegations, ranging from commissions on the Delimara power station extension to the Fairmount losses, VAT scandals, and allegations on breach of ethics and favours.

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

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 remain on paper.

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

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

After his press statement, Dr Muscat did not allow questions.