(Adds government's reaction)

The Prime Minister's statement that the government was seeking to change the perception of poverty was shocking for its insensitivity, Opposition leader Joseph Muscat said.

Rather than seeking how to reduce the families' burdens, Dr Gonzi wanted the people to think this problem was only being imagined and unreal.

The reality, Dr Muscat said in a statement, was that confirmed by an EU study which showed that 61 per cent of Maltese and Gozitan families were finding it difficult to keep up with the cost of living, especially because of the high water and electricity bills.

This was confirmed by people who were respected and above politics, such as Caritas director Mgr Victor Grech.

Rather than accepting the fact that his own decisions had led to the creation of these problems, the Prime Minister was saying that they were just a perception.

This was Dr Gonzi's same reaction to a study which showed the people's concern about corruption, which was simply another tax, with the government saying the people were thinking there was corruption when there was none, and blaming the Labour Party for the perception.

The reality was that the government's policies and decisions were increasing poverty and lowering the people's standard of living. How could families trust the government if the government did not even realise there was a problem.

The PL understood this reality and a Labour government would combat poverty and improve the standard of living, he promised.

GOVERNMENT'S REACTION

The government accused the Opposition leader of ignoring the truth and what the Prime Minister said for partisan reasons.

It said in a statement that Dr Muscat was misinterpreting the Eurobarometer survey and not differentiating between reality, perception, poverty risk and real poverty.

The difference between these elements was basic, elementary and essential for a serious analysis. But the Labour leader opted for political opportunism.

The government said that while other countries were reducing social benefits, freezing wages and reducing investment in the social sector, the Maltese government was investing more in these areas for no one to fall behind.

Faced with the international economic and financial crisis, other countries had a record deficit and unemployment.

The Maltese government, on the other hand, was attracting more investment to create more job opportunities for young people and workers while keeping the deficit and unemployment under control.

It was also implementing a policy of social justice and solidarity so that no one would fall behind.

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