Budget does not meet people's expectations - Muscat
Opposition leader Joseph Muscat said today that the Budget did not meet the people’s expectations and would not improve their living standards.
Speaking at a press conference after the Finance Minister’s speech, Dr Muscat said the Budget had done nothing to reduce the burdens of the water and electricity rates, the 'tax of corruption' or the government’s costly inefficiency.
The budget would not put money in the people’s pockets but would erode purchasing power.
He said that the Prime Minister had promised to reduce income tax from the first Budget of this legislature - despite knowing of the gathering economic storm clouds - but three Budgets on, this promise had not been kept, and the people had therefore been denied a total of €141 million, or €200 from every family every year.
Instead of easing the people’s burdens, this budget imposed new burdens such as the increase in the duties on fuel.
Dr Muscat also hit out at the increased VAT on collective accommodation, saying this could undermine tourism’s competitiveness. This measure, he said, had apparently been decided without consultation or proper studies. The government, he said, was playing with the livelihood of 40,000 tourist sector workers.
The Opposition leader said that despite stopping its subsidies to the dockyard and Enemalta, and despite selling many of its companies, the government debt position had continued to deteriorate.
This Budget, he said, was a repeat of the exercises of the past, where the burdens on the people were imposed throughout the year, as was the case with the utility tariffs and the higher bread prices.
There was no doubt that as the elections approached, the government would become generous, he said, but the people had to remember the unfulfilled promises of the past and what they had cost them.
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J A Borg
Oct 26th 2010, 16:18
'Budget does not meet people's expectations..'
And you, Joe, do not meet people's expectations as a future Prime Minister! Remember one thing: it is easy to comment, harder to impliment! Remember that if one day you are a PM, what YOU expected of today's budget will be expected from YOUR budget. I hope you will live to your words!! (unlike the way you lived according to what you preached about the EU. 'Made in Brussels'. Remember?) My belief is that the earthquake you promised will come IN YOUR FIRST BUDGET! You were so busy attacking the Budget, that you missed the news on Bloomberg!!!!
L.Gatt
Oct 26th 2010, 14:24
sure Dr. Muscat.. and joining the EU was a bad idea too..how about trying to come up with ideas rather than moan on what the others do!
J Borg
Oct 26th 2010, 13:24
@Marica Micallef. People have to learn to live WITHIN their budget! If you cannot cope when you have two jobs, even if you add another two jobs, you will STILL probably not cope. Some people MANAGE (although only just), to cope with only one job, on minimum wage, even though they have children. Many pensioners also do, although they don't live a luxurious life!
V.Spiteri
Oct 27th 2010, 09:12
Couldn't agree with you more!!! Some people seem to think that money is unlimited, and when it runs out it is the government's fault not their own incompetent budget keeping!
Having said that, I am sure there are genuine persons and families who require government aid (but a post-graduate, ie. educated person through government financial assistance with two jobs should surely know how to manage his finances.)
Most people on minimum wage manage! So should you! Stop moaning!
Cheers.
P.S: Ahhhh, what I would give for some constructive critisism from our future leader...Alas!
Paul Borg
Oct 26th 2010, 13:19
Very shallow and syuperficial as usual....the economic situation is not as bad as the LP has been trying to portray it.......The LP should start to try to explain what it will be doing and not moan about everything.....
Everybody must understand or at least try to understand that Malta is no longer cut off from the rest of the world like it was in the 70s & 80s and recession has hit us a bit. So it would be naive to expect tax-cuts. Anyone with a little bit of sense can understand this but the LP does not. This shows why the floating voters have not voted LP for quite some time.
Then yes you can criticise the goverment on many things but the LP has abdicated from its reponsability in giving a serious alternative to this country for quite a while and seems to be comfortable with it.
J Micallef
Oct 26th 2010, 12:31
Heard it all before, bla bla bad negative horrible shocking bla bla. You know what, I mostly agree that the PN has made a lot of mistakes and still does, but simply pointing that out is not what I look for in an opposition leader.
A very simple question for Dr Muscat - If he were Prime Minister, what would his budget look like? We don't know, because all his comments are criticising the PN measures, but I have not hear him say what he would do, and how he expects these measures to impact government finances.
For example on their fancy new website the PL is complaining about high, water / electricity tariffs, unreduced taxes AND that we still have a deficit, not balanced, budget. So will Dr Muscat would reduce water / electricity tariffs (and therefore increase government subsidy of Enemalta), reduce taxes AND balance the budget? Does he have even the slightest notion of how economies work?
john vella
Oct 26th 2010, 12:18
Dr. Joseph Muscat
If there was a budget that made a fool of us all, this is the cherry on the cake of the nation. Roads that are supposed to last 25 years and cost a fortune are falling apart after the first rain, is there anyone accountable? We where promised with less government meddling things will be cheaper, did they?. If government employment has grew with out any official application for these jobs, who are these that are being employed? A new bridge that the Italian blew during the war is planned to be built but there is no money to buy medicine. This government is cut from the reality of the Maltese suffering that even the bishop observed, this is the time to speak out!
Joe Vella
Oct 26th 2010, 11:15
Sur Joseph Muscat, This is what Bloomberg had to say: "Germany, Malta Boost Economies as Europe Lags, Lisbon Council Study Shows." Bloomberg,Oct. 25/2010
Below is the link for you and the Gloom and Doom crowd,
://www.bloomberg.com/news/2010-10-24/germany-malta-boost-economies-as-europe-lags-lisbon-council-study-shows.html
JOe VELLa
Oct 26th 2010, 12:31
Dear Joe you are so keen to keep referring to the 'Bloomberg Report'.
I doubt if Bloomberg Financial News know where Malta is, however the reporter who feed the news item and was published by Bloomberg is a Maltese I know the Maltese source, if you want I write his name. You be surprised!
Joe Vella@yahoo.co.uk
Oct 26th 2010, 16:28
Dear JOe, The Blomberg report is based on a study; not expressing an opinion.
"Germany and Malta, the euro region’s largest and smallest economies, are alone in boosting their competitiveness and fiscal sustainability in the past five years, a study showed" .........................
“Virtually all euro-zone countries still face a massive task in getting their public finances back in order,” Michael Heise, Allianz chief economist and principal author of the study, said in a statement. “There is furthermore a pressing need for improvement in the fields of structural competitiveness and productivity.”
Greece, the trigger of the debt shock that rattled the euro, ranks as the economy most at risk, trailing Portugal, Spain and Ireland.
Heise said the indicator would have offered an early warning of Ireland’s fiscal crunch, showing as early as 2008 that the country was plummeting down the euro economy rankings.
European governments plan to set up a similar scoreboard to monitor economic imbalances to prevent a repeat of the debt crisis, though they are divided over how to punish poorly performing countries."
To contact the reporter on this story: James G. Neuger in Brussels at jneuger@bloomberg.net
To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net
B. Cremona
Oct 27th 2010, 22:19
If our economy is doing so well... why did need to increase taxes? Maybe we should forward the report to the minister too.
Guess its a sacrifice we have to make, so as to prosper in the next two years, just as we suddenly prospered before the previous election. Pity the recession hit us just weeks after that. :)
From the gloom and doom club to the malleable and gullible lot.
marica micallef
Oct 26th 2010, 09:49
It seems like those comments belong to people who are so well off not to be affected by the bugdet. I am a post graduate, work two jobs and I still can't have a decent standard of living with a house loan. Maybe I am living on another planet.
G. Mangion
Oct 26th 2010, 11:51
@ marica micallef( quote I am a post graduate, work two jobs and I still can't have a decent standard of living) You grumble and you have 2 - Two Jobs !!!
Ara Vera **************************** !
T Cuschieri
Oct 26th 2010, 12:30
@ G.Mangion
You forgot to mention that (probably) she got paid (stipend - but it's always better than paying the course yourself) to study and become a post graduate. Imma n-nies jinsew malajr hux.
jeffrey fenech
Oct 26th 2010, 09:20
Great speech joeseph so now are we going to stay as sitting ducks and wait for more for the year to come.If the prime minister wanted to increase on public sector jobs why did he not begin with his sub ministers, thats employing 2 for 1 not 1 for 2 who he elected this year with sky high wages all from the pockets of the tax payers.And if airmalta is never going to be competitive with other airlines why not do as ship building and tarzna to solve the problem or sell tickets for 20 euros .
m farrugia
Oct 26th 2010, 09:04
aktar ma jmur aktar jixbah lil alfred sant
u l-poplu illum ikompli bil hajja normali tieghu qisu ma gara xejn
il weekend li gej ghawdew ikun mifqugh bin nies ghal mid term, familji isiefru, jieklu fir ristoranti, jixtru fis shopping centre, u tal labour jikkunslaw f''Joseph jeqred fuq il One Tv.
Ma jinbidlu qatt.
U bid-difetti kollha taghhom in Nazzjonalisti ghadhom bic-cans li jerghu jitilghu f'elezzjoni ohra.
salvu azzopardi
Oct 26th 2010, 10:55
tajjba m farrugia ghax ma saqsiex x kienu qed jieklu..pizza bejn tnejn ? u saqsijom kemm il darba qed johorgu jieklu barra.......u hallina xbin!!!
Joe E Galea
Oct 26th 2010, 11:22
@M Farrugia: Ghandek xi statistika li tissustanzja dak li ghidt?
Joe Vella
Oct 26th 2010, 12:12
@ Joe E. Galea, The statistics are all there for all to see. Just a finger tip away for your to retrieve. Perhaps you are as blind and the rest of the Gloom and Doom Crown or have your head suck in sand.
Joe Micallef
Oct 26th 2010, 13:24
Joe EGalea
Inti ghandek statistika biex tissutanzja dak illi qieghed tighd int?
Joe E Galea
Oct 26th 2010, 08:51
To all the PN lackeys who only know how to parrot NET TV and Radio 101, can anyone of you illuminate us with an objective criticism? Can anyone give us an in-depth analysis of the effects of the budget measures? I bet none of you understand a word from the budget, so your insults have no effect at all. I think the ones who need to grow up and get a brain too together with a life are all of you PN apologists.
Joe Vella
Oct 26th 2010, 11:17
Sur Joe E. Galea, This is what Bloomberg had to say and not Net TV nor Radio 101: "Germany, Malta Boost Economies as Europe Lags, Lisbon Council Study Shows." Bloomberg,Oct. 25/2010
Below is the link for you and the Gloom and Doom crowd,
://www.bloomberg.com/news/2010-10-24/germany-malta-boost-economies-as-europe-lags-lisbon-council-study-shows.html
T Cuschieri
Oct 26th 2010, 12:49
Did Joseph Muscat give any objective criticism? More than objective, did he give any CONSTRUCTIVE criticism?
Joe Scerri
Oct 26th 2010, 08:47
James Zammit,
call him wrong, when this government has put us in debt to over our heads, and talks about reducing deficit but not reducing debt. 4.2 billion my friend. And counting. How will this be paid back? And the ministers laughing all the way to the bank. Some people really like to stick their heads in the sand.
JJ Borg
Oct 26th 2010, 08:04
One must say that labours only alternative was a website ... What's joseph going to do when he becomes prime minister god forbid.
J Borg
Oct 26th 2010, 07:59
At least there is no tax on sour grapes, dear Joe. What situation would we be in had we heeded to your predecessor's advice of devaluating the Lm instead of accepting the Euro?? I cannot even imagine. Or if we had heeded to the advice you gave to Iceland?
We will be expecting a budget that '...meets people's expectations and improves their living standards' when (or if) YOU are at the helm. Or possibly, you would find a 'hofra' then, and blame it on PN.
You intend to be Malta's youngest Prime Minister one day. Being the youngest, unfortunately also means being the most inexperienced!!
Joe Micallef
Oct 26th 2010, 06:07
For us folk in Malta it is fit to be happy. On the one side we have a government who dished out a decent no frills budget and on the other side we have a leader who pledges to put more money in our pockets - The joy is all the more justified since the rumour is that the living wage benchmark is that afforded to Marisa.
Kif tista ma tkunx ferhan!
Stefan Spiteri
Oct 26th 2010, 00:05
B. Caruana,M. Aquilina,James Zammit
Tell me why you think Muscat is wrong and Gonzi is right cause this buget was nothing but lies and more lies
M. Mamo
Oct 26th 2010, 00:04
GROW UP JOSEPH!!
I dream of becoming a millionaire but that will only stay a dream ... so I brag because Gonzi's budget didn't make me one?
Stop dreaming and kidding with us trying to make us believe your Malta (if ever) will be a dream!!!
B. Farrugia
Oct 25th 2010, 23:58
All together now....let's all act surprised at this reaction!!! Some things never change... the PL is one of them!!
Mary Ann Borg
Oct 25th 2010, 23:45
He had every reason to look so frustrated. What is he going to tell the pensioners now that they will be receiving the full cost of living increase? What is he going to tell the population now that it has been made globally known that the only two nations in the whole of the EU that actually increased their ecomomic activity were Germany and Malta. The only item I did not like with this budget is the 2% increase in tourist beds because I have a sneaking suspicion that will be going straight to our money-sucking Air Malta that the government intends to subsidise with €100M. Otherwise, this has been yet another proof that this country is being run by Par Idejn Sodi. So solid in fact, that while other governments, including our past colonial masters like France and Britain, have people out on the streets protesting atall the cuts etc, we have a government that feels comfortable enough to increase the expense on education, health and our pensioners. Now all Joseph has to do is cringe and expect -as he already stated - that with the present rate, the budget two years down the road will be his deathknell.
Charles J. Buttigieg
Oct 26th 2010, 14:09
"What is he going to tell the pensioners now that they will be receiving the full cost of living increase?" Hi hi hi hi hi. €1.16 instead of € 1.00 per week hi hi hi hi. For this alone I'll vote Gonzipn next time. hi hi hi hi.
Gorg Borg
Oct 25th 2010, 23:05
usual bla bla - no substance
John Gatt
Oct 25th 2010, 22:58
What a weak Labour Leader!
A.gauci Cunningham
Oct 25th 2010, 22:46
@james Zammit----Joseph was not the only one who was not very happy. MHRA are very, very unhappy and so should the 40,000 who work in hotels. This government has a thrown a 6 million burden on tourism just when this industry has started recovering from 2 horrid years. As if the water and electricity weren't enough!
Joseph E Briffa
Oct 25th 2010, 22:27
JM has to say something to keep his party faithful happy and put words in their mouth during tomorrow's debates at work..you can't blame the guy. He is defintely not happy not because the people have been left 'biex igorru il-pisijiet', like Tony Zarb says but because this is a sound budget full of fresh ideas which when implemented will continue to keep Malta's economy on right track. He is naturally disappointed that the reduction of the rate for people earning more than Eur30 000 has not yet come about; don't think for a moment that there aren't Labourites who earn more than this amount. Tony Zarb in his infinite wisdom is disappointed that the minimum wage has not been increased and turned into a 'living wage'. Government has introduced an incentive to help minimum wage earners to get out of this rut. They will earn more when they become skilled and when they improve their education. We can't afford to have the pay of unskilled and semi-illiterate prople increased without a corresponding improvement in their education. Otherwise how can we retain competiteiveness? JM and Tony Zarb should come out with something sensible.
B. Caruana
Oct 25th 2010, 22:00
More than the same...grow up Joseph
M. Aquilina
Oct 25th 2010, 21:58
The more Labour try to change the more they remain the same
James Zammit
Oct 25th 2010, 21:57
I saw Joseph's press conference and must say that he did not look happy! I don't blame him, after 3 years of spreading doom and gloom now we have clear proof that he was wrong - very wrong!
Joe E Galea
Oct 26th 2010, 09:03
I bet he was not happy, I don't blame him. Who will be with such a budget?
Let me mention you some really bashing measures: i) VAT increase on tourism, such a sensitive industry which this island depends mostly on and which was recovering slowly, now the gov. gave it another blow downwards. ii) Fuel excise increase: Fuel affects every aspect of our lives, we will pay the increase directly, then we will pay the increase indirectly as most of the products and services, which in some way or another use transportation and fuel, will increase. So for the consumer, this increase is multi-fold. iii) Increase in cement tax: well it affects those would like to buy a property and those who would need to restructure their property.
There are good points in the budget, but they are definitely outshadowed by these 3 measures only.
So before you release air from your behind..ooops mouth...think objectively and please give us a break from the parroting parade and take your head out of the sand too.
T Cuschieri
Oct 26th 2010, 12:57
AH! So tourism was recovering? Funny I never heard it being mentioned before ... and I do follow ONE News!
Thanks for your subjective thoughts though! Any constructive feedback now?