Labour would finance its proposed waiver on the inheritance tax for disabled people and other measures in the sector through increased economic growth and partnerships, leader Joseph Muscat said yesterday.

Similarly, rather than raising the pensionable age as the European Union was calling on the government to do, a Labour government would focus on boosting economic growth to avoid meddling with the retirement age.

Addressing party supporters in Rabat during a commemoration of Sette Giugno, Dr Muscat questioned the Prime Minister’s promise of achieving a balanced budget by 2015, when this should have happened two years ago.

Lawrence Gonzi’s political credibility was being further eroded as his government was spending beyond its means, Dr Muscat said.

“Dr Gonzi does not have the right economic mindset to understand a basic principle: that you cannot spend what you do not have and whatever you spend has to be prioritised.”

He gave as an example the new Parliament building, saying Dr Gonzi seemed bent on inaugurating it before his term was up.

Dr Muscat spoke about his vision of a movement attracting those who were fed up with the two-party system, saying one of its purposes was to distribute wealth to achieve a fair society, where those who wished to work were able to do so and where the middle class did not work more to earn less.

He reiterated the party’s proposals that social impact assessments had to precede major government decisions and that current services would be kept and supplemented by new services in the community.

Homes would be provided in the community for disabled people to live in when their parents passed away. He also criticised Dr Gonzi’s “hysterical reaction” to his proposal last week, saying parents of disabled people felt hurt by Dr Gonzi’s comments.

The pair traded jibes on the subject, with the Prime Minister accusing the Labour leader of promising to introduce something that already existed.

On Sunday, Dr Gonzi said Dr Muscat should be ashamed of himself for trying to mislead disabled people and their parents in this way.

In return, Dr Muscat said parents had told him that the services Dr Gonzi had claimed were in place did not exist on the ground or were limited.

“We aspire to being the first country in Europe to introduce a guarantee to the disabled for a community life.

“We are aware that all this costs money but it will bring about a social revolution like when maternity leave, the minimum wage, sick leave and pensions were introduced.”

Turning to the political situation, Dr Muscat said the fact Dr Gonzi had not appointed a new minister for home affairs and local government proved that he was a hostage to the problems within his own parliamentary group.

He had assumed responsibility for such a vast sector because “he did not want to rock the boat”.

Leader in Dubai

Labour leader Joseph Muscat will today be visiting Dubai for meetings with senior Tecom officials.

Tecom is the majority shareholder in telecommunications company Go and the promoter of Smart City.

The Labour Party said the talks would focus on these enterprises and projects.