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Government is taxing the country dry – Muscat

Opposition leader Joseph Muscat this evening accused the government of taxing the country dry and said that the key to economic growth was actually fair taxation.

In the last part of a two-hour speech about the Budget, Dr Muscat listed 10 points which he said, would characterise a future Labour government.

He said that a future Labour government would base itself on meritocracy not mediocrity, as at present. This would be a governemnt based on a movement which went beyond the limits of a traditional political party.

A Labour government would build on what was good and would not bring in changes for the sake of change but would instead focus on the country’s real needs.

A Labour government would be honest with the people. The people would accept sacrifices when the country’s real situation was explained to them rather than being told one thing before the election, and something different afterwards.

This would be a governemnt which would put the country’s not the party’s interest first.

It would ensure that it was the well off who carried the heaviest burdens and now those with a small income. The people would understand the need for sacrifices when they could see that taxes were raised fairly and spent wisely.

Labour would be radically different from the current government with regard to economic growth. For Labour, the generation of wealth would come first. The government was taxing the country dry. But Labour believed that the key to economic growth lay in taxing less to earn more, by stimulating consumer confidence.

There was a limit to how much a governemnt could reduce its spending, but a Labour government would invest more in key areas of the economy that yielded growth, such as tourism.

And when spending needed to be reduced, that would be spelt out clearly and within seat deadlines, in contrast to the current Budget, which was very vague, saying that spending would be cut by 2% without saying where.

A future Labour government would destroy the tax of corruption, in all its levels, Dr Muscat said. It would also bring about a generational change in tax collection, shifting taxation from income to environmental issues. In this way, people who were enterprising and were successful because of their hard work would not end up being penalised by paying more tax.

In the EU, Dr Muscat said, it was time for Malta to stand up and be counted. Malta should insist on being given what it was promised, and it should no allow itself to be strait jacketed in the financial measures which it needed to take. After all, the big countries did what they wanted when they wanted.

In this context, Dr Muscat said, he was surprised at comments by Dr Gonzi backing the British position to cap the EU’s budget growth. Had he not realised the repercussions on a country such as Malta, which was said to be a beneficiary from the EU budget?

Labour, Dr Muscat said, was in favour of an extended maternity leave and the introduction of paternity leave. Having longer maternity leave would mean a higher participation rate of women in the employment sector. It would ultimately mean more taxpayers, and hence, more sustainable pensions.

Labour would also promote a discussion on the living wage to ensure that all workers had a salary which enabled them to have a proper standard of living. This, he said, would not be an imposition, but a discussion leading to consensus.

Earlier, in his remarks on the various ministries, Dr Muscat reiterated, when speaking on education, his view that Malta should have a second university which did not replicate the current one but offered a choice to students and academics in several areas . Furthermore, he said, the budget of the education ministry was lacking in support services to vulnerable services.

In the health sector, he said, the people would pay more and wait more for the cancer facility to be set up, when this should have been set up already. Furthermore, only €1 million for the new cancer unit were being allocated for next year.

There were still many question marks on the Rehabilitation Hospital, not least where and when it would be set up. The governemnt had also said it would buy St Philip’s Hospital, without saying what its use would be.

The government had lost credibility in its efforts to reduce the waiting lists. This year the government was to have spent €4 million more to cut waiting lists, but it only spent €206,000. The waiting list for cataract operations was supposed to have been eradicated by this year, yet 5,436 were still waiting for operations.

Furthermore, Dr Muscat said, the reform of the primary health sector had made a disappearing act in the Budget and it was clear that the ultimate aim of the government remained to introduce charges. Indeed, charges were being introduced by stealth because medicines were not available in government dispensaries, and, because of the waiting lists, people were opting for private surgeries.

Turning to the environment, Dr Muscat said air quality should be top of the agenda. This was a problem which was affecting all of the country and needed urgent attention. However, the black dust problem was a certificate of government incompetence.

Dr Muscat said it was not credible to introduce a tax on cement as a means to protect the environment. This was only a revenue raising measure which home-buyers would suffer.

The pollution pays principle was something laudable, but taxes in this sense should only replace other taxes, and not be used to raise revenue.

Dr Muscat asked when the wind farm studies would be completed and whether Malta would achieve the EU clean energy targets on time.

Another problem, Dr Muscat said, was how the water table was being rapidly depleted. A proper strategy was needed to cut waste, store rainwater and reuse water for agriculture. Malta could not continue to dump into the sea as much water as it produced from reverse osmosis.

Dr Muscat said much had been made of the Mepa reform, but the Budget speech made no mention of the new tariffs which consumers had to shoulder – house adjustment applications would increase by 400% and applications for garages had doubled, among others. The application to demolish a building would cost 17 times more. This was what the people were getting from the Mepa reform.

Near the end of his speech, Dr Muscat insisted that the government could make considerable savings by eliminating corruption and inefficiency.

For example, €4 million could have been saved on the BWSC contract commission, €40 million on the Fairmount ship conversion contracts, €23 million on the value of the land given away when Maltacom was privatised, €2.5 million on the breakwater bridge to nowhere, and the squandering of millions at Transport Malta and other agencies such as MITA, where a particular driver was paid as much as a lawyer, not to mention Arms Ltd and the VAT Department, where a performance bonus was also to be given to the persons under whose noses the VAT scandal had taken place.

Dr Muscat also mentioned other cases of excessive spending, including high salaries for Mepa officials and for consultant David Spiteri Gingell and thousands spent on the refurbishment of the offices of the Enemalta chairman and the Finance Minister’s secretariat.

In all, he said, without going into the line items, the governemnt could have saved €72 million.

It was that way, he insisted, that the government could get its money, not by austerity measures such as the water and electricity bills.

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gcForte

Nov 3rd 2010, 16:56

@ A.Vassallo..Kull tant ma inkunx naf jekk nidhaqx jew nibki, jien x`imkien semmejt li jien kontra il bugit ? Pero meta kien ikollna il bugit fejn jorhos il bulibif, konna inkunu nafu li ghal sena shiha ma kienx ser jghola il bulibif. Illum ghal liema bugit qeghdin nireferu ? ta kull sena ?, sitt xhur ?, tlett xhur ?, xahar ?, gimgha ?, KULLJUM ???. Jekk ghal principju naqbel mieghek; ghalhiex Dr, Gonzi ma zammx kelmtu u nizzel l`Income tax " min 35 % ghal 25 % bhal ma weghed fil bugit tat 2008.Tinshiex li il krizi ekonomika kienet ghada ma bdietc. Mela ma tafx li ghal dan il gvern kull gurnata li tghaddi ikun hemm xi haga straordinarja. Telf ta zmien fl MCESD, maratona ta aktar min satejn fil parlament, imbaghad tigi matulek ja sena u jibda iffaqqalek left right and center.Kull hadd jgholli kemm irid u kemm jghogbu, u ikollna nisimaw min Dr. E.F.A, u noghqodu nigru min hanut ghal l-iehor ha insibu l-irhas, bulibif u tonn taz zejt. Ibqa zgur li la il P.L.u aktar u aktar Joseph Muscat ma ghandhomx bzonn lili sabiex niddefendihom. Pero hadd ma hu ser jghallimni fuq il politika.

gcForte

Nov 3rd 2010, 13:51

@ Carina Borg..........Int qatt rajt lil dak li jghamel il " Magics " jurik ser jghamel min qabel. Fadal sentejn u nofs ohra ghal l-elezzjoni. u li kieku hemm xi hadd jazzarda ibbassar x`ser jigri f`dan iz zmien kollu........Nostradamus jinzel gharkuptejh quddiemu. Ma tahsibx li qeghedin nipretendu hafna ?.

L. Gatt

Nov 3rd 2010, 18:33

@gcForte.. m'hmmx ghalfejn tkun 'Nostradamus' biex JM jghid x jghamel issa, kieku kien fil gvern. qatt ma smajt proposta ohra minghandu.

Dik hazina ghax ****** . Kieku jien nghamel hekk ****** . Jekk jghamel hekk, u jkun qed jghid affarijiet li jghamlu sens nibda nghati kasu, il bqija....

simon borg

Nov 2nd 2010, 20:49

what's in an emblem fleur? the US republicans havean elephant, the democrats have a donkey! and they tend to share the largest power in the world. it could have been a mosquito for what i know. trying to demonise a group of people is not on. i am certain Dr Gonzi and Dr Muscat have Malta and Gozo deep in their hearts. you can either agree or disagree. but do it in style. nevertheless, if you insist i maybe tend to agree with you on the ice cream but if you delve deeper into the meaning of the black background of the PN emblem then i would rather keep on licking.

M. Camileri

Nov 2nd 2010, 18:08

You can't compare Malta to France or England! Since they are large countires, the economic crisis would be much harsher. We should compare ourselves to Cyprus which is a small island and which depends on tourism like us! It is politically unfair and incorrect by GonziPN to say we did much better than other bigger countries as stated above! Its an easy way for this gov to compare with England, Italy and France . . . but again . . . what about CYPRUS!????

M. Camilleri

Nov 2nd 2010, 17:29

La int tajjeb daqshekk fil-kalkoli tal-miljuni (jew qed tikkwota l-figuri ta' BONDIPLUS) imissek tkun tajjeb biżżejjed biex tinduna li dawk il-miljuni kollha li ffranka l-gvern minflok naqqas it-taxxi, ħariġhom kollha l-poplu Malti, inkluż jien u int sieħbi! LEJBURIST u mhux!

gcForte

Nov 2nd 2010, 15:03

@ Gorg Zammit........Ma nafx min fejn gibtha li Joseph Muscat fahhar lil Fenech Adami.... J.M. fahhar it tmexxija fiz zmien EFA fejn jirigwardjaw il finanzi li kienu taht John Dalli. Pero jien xorta ma naqbilx ma J.M. Il mazzra ta dejn kbir li ghandna ma sarx f`dawn l-ahhar 4 snin kemm ilu Dr.Gonzi. Ilu jikkomula min Dr. E.F.A.mid 90 jiet. Issa qeghdin intuh aktar importanza ghax bil bravura li ghamilna li thallna fil E.U. spiccat id deroga ta 7 snin, tawna sentejn ohra ghax il bambin habbna u inqalat il kwistjoni tal banek ta barra min Malta. Kieku min din is sena bdejna nigu ikkastigati mill l U.E. li tant tiftahhru biha. ( Fuq hekk biss naqbel ma l-U.E. ) ghax kieku il P.N. fil qamar tellawna bid dejn.

gcForte

Nov 2nd 2010, 14:28

@ G Portelli..............You and all the P.N. apologists are so afraid of Joseph Muscat, that you are trying to assassinate his character. This was always the P.N. strategy, like the Red Indians. If you will kill their chief they will retire. If we go back to the thirties, it happened to Strickland ( the founder of this paper ), they attacked ferociously Dom Mintoff, they tried to make a fool from K.M.B. and they had dis respect to Dr. Alfred Sant. Now next Dr. Joseph Muscat. The name of the game is ...Do not kill the massage, but kill the messenger. Il verita twegga hafna, ghax kieku tghoqodu kwieti. Mhux ahjar ghalikhom jekk huwa hazin ?

P Runz

Nov 2nd 2010, 14:55

I dont see a character assassination here - what I see is legitimate questions about how the PL will fund these proposals. Be positive and answer the questions - don't talk about scare tactics!

gcForte

Nov 2nd 2010, 17:05

@ P Runz... Quote from G Portelli`s comment ." Yesterday he shown for the superficial amateur he really is. There was no substance and could not substantiate his proposals which were mainly hot air anyway ". P Runz,....G Portelli did not argued the message ( what J.M, said ) but attacked the messenger ( J,M himself ) that is the difference. Everybody have the right of opinion, and one should respects others opinion, but it is a known secret what I have said in my comment, that the strategy of the P.N. always have been to assassinate the character.

Joe E Galea

Nov 2nd 2010, 14:01

Under GonziPN the economy is strenthened for example:
4million euros in commission on the BWSC contract
• Over 40million euros on the two Fairmount boats
• Salaries for MITA where the Chairman’s driver earns as much as a company lawyer.
• 280,000 euros in annual salary and perks between 5 managers at ARMS

Gonzi is very thrifty and a very good economist!!

Jonathan Mifsud

Nov 2nd 2010, 13:24

After 20 years with the PN on a spending spree Dr Gonzi is trying to sell us the virtue of thrift !

R Gauci

Nov 2nd 2010, 13:21

That's because he did not say much of substance and what little he did was shot down in the costings exercise later in the evening.

R Busuttil

Nov 2nd 2010, 13:02

Meta il-PN telgha fil-Gvern sab ma wiccu 6,000 impjegat gdid mal-Gvern. Ibazat fuq salarju ta €15,000 il-wiehed (u mhux qed inqis spejjes ohra), dawn qed jiswew il-pajjiz €90 miljun fis-sena! Fuq medda ta 25 sena dawn gew jiswew il-pajjiz izjed minn zewg biljun Ewro.

U dan minghajr ma kkonsidrajna kif zvinatna it-Tarzna.

Il-PN kellu ir-ruh socjali li ma jkecci lil hadd u hemmhekk ghamel l-akbar zbal - imma il-PN ma jilghabx ghal gallerija kif jaghmel Joseph Muscat.

Il-bierah d-diskors ta Joseph Muscat kien superficjali u l-aghar wiehed f'dawn l-ahhar snin. Kien qisu qed jindirizza mass meeting. Sustanza XEJN!

gcForte

Nov 2nd 2010, 13:51

@ R Busutill..........Nibda min ta l-ahhar, Jien nirrispetta l-opinjoni tieghek, jekk J.M. ma ghagbokx tibzax, ghallahares kullhadd jaqbel. Ara jien meta jitkellem Dr.Gonzi waqt li nirrispettah niddejjaq ghax naf li jitkellem ghal lasta, pero nisimaw xorta wahda. Ma nafx min fejn gibt il figura ta 6000 impjieg gdid. Sa fejn naf jien il P.N. dejjem il figura ta 800, kien jghejd, u hadiemhom ic cimiterju.Jekk int taf fejn haddiemhom, nitolbok tghejdli. Issa int ghedt li il paga tahhom kienet ta 15000.00 ewro, jew ekwivalenti ghal Lm 6500.00. Taf li dak iz zmien dik il paga kien jaqbadha manager go Lukanda....Taf li qeghed titkellem fuq Lm 124.00 fil gimgha. Ma tahsibx li int qeghed superficjali. Rigward it tarzna, huwa sigrit mgharuf li il P.N. qatt ma raw ghajn ghal haddiema tat tarzna. Min dejjem ridu jeqirduha. Ghamel tajjeb il gvern nazzjonalista jew ghamel hazin ? Min jaqbel u min ma jaqbilx. Pero hadd ma jista jichad li kienu in nazzjonalisti stess li qerdu lid dockyard ghal ta l-apposta. Ma ninsewx il kas jew ahjar il misteru tal Fairmount. Ghad irridu nisimaw bih il quddiem.

james grech

Nov 2nd 2010, 12:13

Maybe the issues you are referring too are as you said, I take your word for it. However you might appreciate that holidaying in a country is usually one thing, and yet another living there. Have you for example considered the fact that maybe they have higher wages? Furthermore by mentioning these other issues, such as energy, tax and wages, was Dr. Muscat correct about those facts? I would be highly surprised if Dr.Muscat was trying to feed us lies. By what he said he shed more dark shadows over how Government is actually playing around with figures to show us a different picture.

J.Scicluna

Nov 2nd 2010, 22:15

WHAT lights, Jenifer?!?! Your GonziPN makes sure that it is OFF most of the times!

Get a life!

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