Muscat accuses government of losing moral authority

Labour leader Joseph Muscat said yesterday it was “shameful” the extension to the Delimara power station was moving ahead at a fast pace when the “controversial” contract was still being discussed by a parliamentary committee.

“With over €112 million already paid to the Danish company BWSC (which won the contract), it is clear there is someone who wants to rush things,” Dr Muscat said in an interview on the party’s One Radio.

“This case clearly showed the government lost its moral authority and social heart in its leadership. The government could have taken different decisions,” Dr Muscat said.

Turning to Friday’s protest organised by the party in Valletta when thousands turned up to demonstrate against the increase in the cost of living, Dr Muscat said a “strong and united” message was sent out against the burdens imposed by the government. The next step would be taken at the party’s annual general conference, which would be the starting point to widen the progressive movement to the rest of the country, Dr Muscat said.

Prime Minister Lawrence Gonzi had lost all “moral majority” in Parliament and would lose if each MP voted according to their conscience, Dr Muscat said.

One of the factors that brought about the prevailing situation was the double pay Dr Gonzi and other Cabinet members received without anyone’s knowledge, including Nationalist MPs, he said.

This rise was not mentioned by Finance Minister Tonio Fenech in the Budget estimates and he should shoulder responsibility for it, Dr Muscat insisted.

The people deserved more transparency on many issues, including how the country bought fuel. “Even though the government does not have control over the international price of oil, it has control over excise duty and taxes imposed on imported products,” Dr Muscat said.

Yet, in the last Budget, the government chose to increase tariffs to the extent that Malta had the highest fuel prices ever even though internationally these were not the highest registered, he added.

The government also had to explain why prices were not cheaper when the price of oil went down over the past months. In addition, the government also had to address the problem of increased prices, especially in food products.

“It’s unacceptable that inflation in Malta was twice that of the eurozone when salaries were among the lowest in Europe,” he said.

The government had no control if the price of flour increased internationally but it could still help bakers in terms of fuel and electricity costs, Dr Muscat said.

The Nationalist Party said Dr Muscat’s comments about the price of oil clearly confirmed he was taking people for a ride in saying the increase was the government’s fault.

The opposition was lying when each time it said the utility tariffs did not depend on the international price of oil, the PN said.

PN general secretary Paul Borg Olivier specified that Dr Gonzi did not receive a salary from the party.

The Finance Ministry pointed out that the contract for the Delimara power station extension was chosen for its environmental factors and, together with the interconnector to Sicily, was needed to help the Marsa power station close and to generate jobs.

It was also €296 million cheaper than the offer made by Israeli company Bateman, which had “good contacts” with the opposition as was recently revealed in the House Public Affairs Committee, the ministry said.