Muscat insists Air Malta problems must not be excuse for sale

Labour leader Joseph Muscat insisted this morning that any talks with the European Union on state aid to Air Malta should not include commitments to sell the airline if its current problems were not solved.

Dr Muscat was reacting to an announcement on Thursday that the government would hold talks with the EU on ways how it could support the airline after it made a €31m loss in its last financial year.

Speaking during a radio interview, Dr Muscat said one could not have a repeat of what happened at Malta Shipyards, where the governemnt was selling the ‘yard after its restructuring efforts failed.

Air Malta had always been a contributor to the economy. Indeed, it was a vital element for Malta's tourism industry and the economy.

The new restructuring plan, he said, should be drafted in consultation with all the trade unions, and it should be made clear that the airline was not for sale. The PL would never accept any such sale, he said.

PL GENERAL CONFERENCE

Speaking on the PL general conference, Dr Muscat said the challenge was whether the Labour Party would remain just for the traditional labourites, or whether it would open up to others who had left, who had never voted PL.

Once the conference was over, he said, the party needed to reach out even more to the different sectors of society.

Referring to the abolition of the post of general secretary, Dr Muscat said this decision was based on a wealth of reports on the reasons why the PL had lost two general elections. The reports spoke on the need for a full timer to be responsible for the party administration, and the streamlining of other posts. As a result, a CEO had been appointed and the responsibilities of the other posts were being re-defined.

MEPA DECISIONS

Dr Muscat said it was unacceptable that the government tried to gag Parliament so that it would not discuss the power station extension before Mepa took its decision. Once Parliament had held off its decision while the auditor-general investigated this issue, Mepa should have done the same. Therefore, once Mepa had decided to go ahead with its meeting, the Speaker was right to allow the debate in the House on Wednesday, despite government objections.

Dr Muscat said the people could not have confidence in public authorities when, for example, Enemalta blamed Mepa for having switched off power station precipitators (filters) and Mepa blamed Enemalta.

Of course, the biggest issue with regard to the power station was how costs came before the people's health and the power station would therefore use heavy fuel.

Dr Muscat also argued that Mepa had reversed its decision and approved the freeport extension last week because there were now no pending elections. Last year the application was denied before the EP elections were close.

Dr Muscat said he could not understand how the Prime Minister had said that Malta had successfully passed the test posed by the recession. With the economy being so weak, and so many people unable to make ends meet, such a statement by Dr Gonzi showed how he was cut off from reality.

A month had passed with the new utility rates, but no bills had been issued yet, and uncertainty continued to prevail, Dr Mscat said. How could they budget and plan? And instead of making things easier, the government was making it more difficult. For example, those who fell back on their payments now faced a penalty interest rate of 6%. LPG gas prices had gone up twice. He hoped it would not go up again.

Clearly new methods were needed to ensure that no burdens continued to be imposed on the people.

BUS OWNERS

Dr Muscat said the government had ‘lied' to the bus owners before the election. In a letter sent by then Transport Minister Jesmond Mugliett, the minister had said he was confident that current reform talks would bear fruit and the service would continue to operate for the next 10 years, after which the bus owners would then be compensated if things changed.

Immediately the general election was over, the drivers were promised 10 years employment on minimum wage and the owners were offered compensation only if they gave up their business and their buses. And the people would have to pay €55m for the government to buy back its false promise. Those €55m would have been very useful to ease the utility bills burden, help Air Malta or refund VAT on vehicle registration, Dr Muscat said.

The government was claiming that this would not impact on public finances since the compensation would be paid by the transport authority. Yet an NSO press release issued in October showed the Authority as an extra-budgetary unit.

Referring to tourism, Dr Muscat said he could not understand how the tourism authorities had not responded quickly to promote Malta while Europe was freezing. The government, he said, needed to ease the tax burden on this sector and increase overseas promotion.