Ministry says Labour has poor grasp of economic situation
The Finance Ministry said this afternoon that claims by Labour spokesmen that the government was giving a wrong picture of the state of the economy only served to show their impressive detachment from reality and a poor grasp of how the world economy works.
The ministry was reacting to a press conference given this morning by the PL spokesman on the economy and on finance - Karmenu Vella and Charles Mangion.
The ministry noted that the PL spokesmen had compared the growth forecast issued this week by the International Monetary Fund with the government's own growth forecast for 2012, made in November 2011.
"The IMF has come up with lower forecasts on the basis of developments which have taken place over the past weeks which have unfortunately seen a rapid deterioration of the European economy as highlighted in reports presented by the IMF and Standard and Poor's. This is precisely what Government has been warning about – a fact which Labour deems convenient to ignore," the ministry said.
Moreover, the ministry said, in comparing end-of-year projections for financial results with figures for the first nine months, the Opposition should know that significant revenue streams, particularly Government's tax revenue, take place towards the end of the year.
"Hence, the economic and financial arguments brought about by the Opposition can only be explained either as an effort to confuse people or else a very worrying exercise."
Conveniently, the ministry said, Labour was hiding Malta's real results in terms of job creation, including a recently published European Commission report which stated that Malta was amongst a limited pool of countries to experience job increases in the crisis period. Malta currently has the fifth lowest unemployment rate in the European Union, the ministry said.
"Lastly, the Opposition is also incorrect in its comments on Air Malta. Government has been consistent in its position that a recapitalisation plan is now allowed unless a restructuring plan is approved by the Commission. Government's decision to inject close to €200 million through equity and property purchase in our national airline is the confirmation of Government's commitment towards giving a future to Air Malta."
See PL press conference at
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carmelo buttigieg
Jan 25th, 19:23
If the economy is in good state as always stated by the Government, why have Standard and Poor's downgraded Malta's ratings and and IMF has predicted a lower GDP growth?
M Grima
Jan 25th, 18:54
Imagine the fate of Malta's finances if we didn't have the finance guru, Tonio Fenech to steer us through such a turbulent period. The guy knows it all and if you dare criticize him, you are labelled an incompetent fool who is detached from the real world. This is the same ministry who has lost the country millions of Euro with the oil hedging agreements, this is the same ministry who will solve AirMalta's problems by sacking half the workforce, this is the same ministry who closed the drydocks and selling it for peanuts, this is the same ministry who had the cheek to accept a free ride to London and free tickets for the Emirates stadium. This is the same ministry who year after year squandered our hard earned taxes in meaningless projects like Ghost (Smart) City, the harbour bridge which leads to nowhere, the roofless theater, the new parliament, etc. This is the same ministry who year after year continued to increase the national debt to astronomical heights. This is the same minister who year after year has presented us with one deficit after another. This is the same ministry who had promised us through his PM that he will decrease income tax. There is only one word which justifies your actions Mr. Fenech, INCOMPETENT.
Mr Mark Borh
Jan 25th, 19:06
Let's see you put a budget together then...
Lawrence Fenech
Jan 26th, 01:53
@Borh.
You do not have to be a wizard to make a budget out of the taxpayer's money, the maltese are not cwic like Tonio has labeled them with no shame to say so.
Marylyn Law
Jan 25th, 18:44
This junior Minister i just tell him to stop for a minute and think a bit . Id differenza qeghda fi sustanza ton sabih . Ftakar li int lanqas ghall sindku m kont kapaci ahseb u ara kemm int kompetenti li tkun ministru . Ftakar xkien qal il primnistru ghaziez tieghek mall amerikani - MGHANDIEX nies KAPACI u ftakar li int wiehed minnom
Fuq il finanzi zgur li ma jistax il pajjiz joqghod fuqkom wara li fqajtu il kaxxa ta malta bi dejn !! bhalissa qed nahsdu dak li zrajtu intom !!
Edgar Azzopardi
Jan 25th, 18:15
Labour has poor grasp of the economy?? Says who?? A junior accountant , with a basic degree in accounts and none in economics, and who for lack of better candidates ended up running the economy and finances of the country and causing 4,2 BILLION debt? I would screem with laughter if it were not so sad, arrogant and pathetic. Labour have the likes of Profs Scicluna in line for running the country finances, a person respected even in the EU, and a leader with a doctorate in economics - slightly better equiped to grasp the economy than a basic accounts degree, and a job as a junior in a big accounts firm, no Mr Fenech ?
Victor Calleja
Jan 25th, 18:08
Hallina Tonio u mur erga ohrog ghal kunsill ta B'Kara
pat muscat
Jan 25th, 21:28
Il Kunsil ta B'kara imtela bid-dejn ukoll?
j brincat
Jan 25th, 18:01
What grip does the minister have on the economy when yesterday Dr C Mifsud Bonnici declared in Parliament that he cannot provide the audited accounts of such parastatal bodies like MEPA, Air Malta and Enemalta?
Enemalta's debt ALONE exceeds €500 million (five hundred million euro) and its audited accounts have not been submitted to the House of Parliament since Y2008.
What grip on the economy can the Minister possible with such basic information not on hand?
(jb)
Victor Vella
Jan 25th, 17:53
Issa jibghat ghalik Joseph Tonio ha taghlimna int kif inkisru pajjiz bid-djun u qtiltu pajjiz bil-guh. Ara int hsibt ghalik ghax hadt 600€16c fil-gimgha.Ma tantx tidher li kont konfuss meta sraqt dawk il-flus minn fuq dahar in-nies.Taf kemm tifhem int billi urejt kemm int genju u tfajt 500 haddiem ta` l-Air Malta il-barra meta dawn setghu jkunu produttivi u ssa spiccaw jghixu fuq it-toqol ta` flus il-poplu. Taf kemm int bravu. Kompli idhak. Ma tantx fadallek.
Peter Murray
Jan 25th, 17:49
Thank the LORD that the smiling assassin has got a good grasp of the situation.Such attachment to reality obviously stems from flying in private planes owned by party donators!
Joseph Calleja
Jan 25th, 17:30
So after you managed to screw up and deplete Air Malta for the last few years, now, you want the TAX PAYER to inject close to €200 million to maybe save it? He who lives by the sword, dies by the sword. Shame on you Finance Ministry. Your Party has been in power for the last 25 years and you have the gall to blame the PL for the demise of Air Malta? Even if by any chance they were part of the destruction of Air Malta, the Finance Minister of the PN, which is Tonio Fenech was in charge of over seeing the finances of the airline. No by no means should the TAX PAYER agree to inject €200 million in a failing airline. Like I said many times before, the only people that are going to benefit from this are the people on top making those unearned high salaries. This is like the Costa Concordia incident, once that ship started to lean on it's side it was a bit too late to correct the mistake. It is going to take a lot more than the €200 million bail out to save Air Malta. And why is Air Malta, which is the property of the Maltese Government (Tax Payer) selling it's assets to the Government (Tax Payer) when the same Government (Tax Payer) already owns the assets of Air Malta? Maybe it is the manipulation of money? Also remember that when money speaks, the truth remains silent. Now it is time for the Finance Department to speak up and tell the truth. €200 million can fix a lot of road and maybe help the economy in general. I say privatize Air Malta. and save the TAX PAYER a lot of money in the process. Don keep pouring money into a bottomless pit so the top brass can enjoy the fruit on the tree. No the TAX PAYER should not be held accountable for your mistake and incompetency.
Gustav Svensson
Jan 25th, 17:22
Well look who is talking, can just make me smile.. Malta have serious and unacceptable problems that the goverment have not tackeled
- Corruction
- Poor legal system
- Poor measures to improve the environment
- No existing planning to improve the infrastructure
- Gaming companies downsizing and leaving
- Real estate sector that are about to collaps
- What will happen to Air Malta and the local banks
etc
pat muscat
Jan 25th, 17:03
You've got a 'good grasp' of the economy alright ! You have never balanced a budget in 25 years, and, left for our kids a mountain of 5 billion of debt!
W Cassar
Jan 25th, 16:59
I have another headline....
The Finance Ministry has poor grasp of what goes on at the VAT Department....
John Williams
Jan 25th, 17:22
Where is the LIKE button??
Lawrence Fenech
Jan 26th, 01:55
@ Cassar
Agreed.
joe vella
Jan 25th, 16:56
for significant revenue streams read creative accounting (or quantitative easing) and dressing up of figures to suit the final objective
for injection of funds in order to save air malta, read a conscience saving exercise to try and make up for the enormous, uncontrolled squandering of money through mismanagement brought about by appointment of blue eyed boys to the top posts with little bother as to what they were achieving and this includes the huge expenditure on the useless avros which nobody has explained
C Galea
Jan 25th, 16:55
Why did the EU made you Mr Fenech to reduce the budget by 40 milion??
Was it because you knew what you were doing??
Iddahhakniex
R. Balzan
Jan 25th, 16:51
This minister thinks he is God's gift to Malta and a financial wizard like nobody else. With his past "vast" experience as a company auditor he was promoted to manage Malta''s finances and he has proved himself to be an expert at creative accounting, more than anything else. It would do this big-headed person a world of good if he starts showing some humility and stops looking down on everybody else. I can mention at least 5 persons within the PL ranks who are more experienced and much more qualified than you are, honourable minister.
Emanuel. Vella.
Jan 25th, 16:51
mela mhux bhal clikka gonzi pn.
Joseph Camilleri
Jan 25th, 16:48
Don't tell me, and you do have a grasp on the economic situation, right Minister Fenech?
Ok, now tell me something that I also enjoy, whilst laughing my head off.
Antoine Vella
Jan 25th, 16:45
Labour insists on cheap propaganda. Government answers with facts.
This looks like it's going to be the theme of the electoral campaign: facts vs lies
Kenneth Williams
Jan 25th, 17:14
Ghadek temmnu?????
Joe A. Borg
Jan 25th, 17:46
Sure Profs Vella.. make sure you do not come knocking on my door this time like you usually do.
R. Balzan
Jan 25th, 17:58
Ibda' ppompja, Antoine, forsi nsalvaw!
Mr Mark Borh
Jan 25th, 19:05
You're right Antoine! I'm seeing a lot of comments from people in this thread who don't know how to read the facts, they don't know better.
Lawrence Fenech
Jan 25th, 16:41
What you have a good grasp of Tonio is the tax payer's money, 1,000,000 Euro still in your pockets is the perfect example.
Kenneth Williams
Jan 25th, 16:38
L aqwa li ghandna ekonomija bomba....wara l budget innaqsu 40 miljun.......wara nghidu li gejja sena iebsa. IDDECIEDU
Carmel Cilia
Jan 25th, 16:29
Il-ministru li ghanda jifhem fil-finanzi: tant jifhem li budget li prezenta ftit ilu l-Unjoni regettulu lura u qaltlu li kellu high expectations u li fis-sitwazjoni ekonomika prezenti kien daqxejn pruzuntuz iz-zejjed. Imbad jigi illum u jghid dan il-boy ,li bhalu u daqsu hadd ma jifhem, u li ilPL maqtuh mir rejalta. Ma jridx jaqliba lilProfs Scicluna tghid. Kemm ghandu ragun Franco Debono.
N Spiteri
Jan 25th, 16:29
hu biss jifhem dan!!
N. Agius
Jan 25th, 16:28
More scaremongering going on..... So the logic is this... You make a big mess, you try to win an election by saying that only you can fix that mess.
Mr Colin Camilleri
Jan 25th, 16:25
When Tonio Fench learns to ask for fiscal receipts from his maids, so that ALL gainfully employed pay their share of tax, then I will believe what he says!
Charles Micallef
Jan 25th, 16:25
Ministry says Labour has poor grasp of economic situation ................ and he does?
Carmel Zammit
Jan 25th, 16:24
We shall all be thankful to God almighty for having provided these islands with Mr. Tonio Fenech otherwise everyone else on these islands is a dumb illiterate in economic affairs. Pity he could not get his budget accepted by the EU. Probably the guys there, like all dimwitted PL speakers need some brushing up with Gonzipn economic theory.
Carmel Debono
Jan 25th, 16:21
...of course not , one has to have a weekly raise of 500 euro to know how mux ekk sur ministru?
Joe A. Borg
Jan 25th, 16:18
Is this the same person that had to revise our national budget only a few hours after it was approved?
min iħawwad fil-borma jaf x'fiha...
James Catania
Jan 25th, 16:15
If Tonio Fenech is saying it , IT MUST BE TRUE, thank you Dr Fenech for illuminating the masses and saving us mindless drones from using our brains to make a decision.
R. Gauci
Jan 25th, 16:11
Ta` l-UE hekk jahsbu fuqek Dottor Fenech ghax diga gibdulek widnejk fuq il-budget u l-Air Malta, allura x'naghmlu issa?
Charles Massa
Jan 25th, 16:10
Forsi sur Ministru ghax tal Labour huma cwiec Maltin? Biss haga wahda nghid li tal PN lanqas budget ma kontu kapaci taghmlu ghax ma giex accettat minn shabkom tal Eiropa. Meta irrid nidhaq noqod nisma l ministri nazzjonalisti
Joe Grech
Jan 25th, 16:09
Tonio Fenech has been responsible for Finance, the Economy etc. He must have realized that Air Malta was going bust. He should explain NOW to the Maltese WHYT he never lifted a finger to help the Airline. He knew that certain people were getting free Airline tickets so how come he did not say anything about that? Also why did he allow more workers to join the airline especially just before elections?
As for efficiency how does he explaine the infamous VAT scandal - or the problems his Ministry faces to collect governmental property dues?
Trying to give the impression that this Ministry is above all reproach is certainly wrong!
Mr Marcel Dingli
Jan 25th, 16:06
Looks like the Dalai Lama is talking. Hemm xi file? Do you Grasp it? Capito?
lilly vella
Jan 25th, 16:00
lanqas kontu kapaci taghmlu budget tajjeb u tridu taghajru l oppozizzjoni??
J Drury
Jan 25th, 16:10
Ms. Vella, qisek tifhem hafna inti... proset hey!! Ara tithajjarx tohrog ma tal PL, ghax bhalissa lil kulhadd qedhin jaccetaw ta, forsi ikollok xi cans Lilly....
A. Schembri
Jan 25th, 16:17
Prosit lilly, tajba u veru kienet din
U nigu f dan ma nafx ghalfejn il pn huwa daqsekk bezghan minn elezzjoni meta hu jiftahar li qedin fost laqwa fl ewropa...dik il haga.
Paul Giordimaina
Jan 25th, 16:22
lily intom nies momija ghal poter.tant hu hekk li tkunu pronti tiktbu xi haga kolla mibeda ghal PN biex forsi tikonvincu lil xi hadd u labjad tejdu li hu iswed.
Paul Sammut
Jan 25th, 16:41
Lilly Gonzi PN not only the budget they did wrong. but almost all they did ,So lets face it we can never do worse then them.
Lawrence Fenech
Jan 25th, 16:42
Lilly.
Prosit.