Problems at agency handling EU funds raised in memo given to minister - Muscat

Problems with the national agency responsible for EU educational funds were highlighted in a handover document given to Dolores Cristina in 2008 when she was appointed Education Minister, according to Labour Party leader Joseph Muscat.

The Opposition Leader said yesterday Mrs Cristina was not credible when she said she did not know about the ongoing mismanagement that led the European Commission to suspend two educational programmes.

Dr Muscat thanked taxpayers for being ready to foot the €500,000 bill for the minister's mistakes but said taxpayers deserved better. Speaking at the University residence in Lija, Dr Muscat said gas prices were skyrocketing but this was not happening anywhere else in the EU. People should not have to pay 250 per cent more simply because of a "private monopoly" that had been set up without safeguarding the consumer.

Referring to the news that failure to reach EU energy targets would cost the Maltese €400 million, Dr Muscat said there was lack of strategy in this sector, which was also reflected in other aspects such as national projects.

Dr Muscat said the government was incoherent even in its approach to censorship, where a group of artistes wanting to stage a play were prevented from doing so but foreign star Kid Rock was allowed to swear in front of a church during the Isle of MTV party last week.

There were various questions to be raised on the recent reduction of 62 medicine prices thanks to an agreement reached by the government and importers. The price of some medicines was cut by 50 per cent, meaning that people had been buying medicines for double the price for years.

Preliminary research by the Labour Party showed that many of the medicines chosen to be reduced in price were already being replaced by more advanced versions. "This is a question of too little, too late," he said, adding that the announcement was done as a blatant publicity stunt.

Labour's spokesman for competitiveness, Chris Cardona, said it was unacceptable for the government to buy a private hospital from "a friend" simply because he did not manage to sell it privately.

Referring directly to Frank Portelli, CEO of St Philip's Hospital, he said the government would be buying his hospital to make good for the CEO's debts.

The Ministry for Resources and Rural Affairs said Dr Muscat's interpretation that Malta would have to pay €400 million for not reaching energy targets was incorrect.

According to a report by the Auditor General, if Malta only manages to secure one per cent of its energy from renewable sources (instead of 10 per cent), the cost of fines, buying green certificates from other countries and having cooperation agreements with other countries would amount to over €400 million.

But the ministry said the three actions listed were exclusive of each other, so if solutions were found through green certificates or cooperation agreements, the fines would not have to be paid.

The government said that, regardless of Dr Muscat's constant criticism, it would continue bringing investment to the country while enhancing social structures to make up for price increases.