Prime Minister Lawrence Gonzi said today that while it was good that figures showed that Malta had emerged from recession, the country was not yet out of the woods. Speaking in a Radio 101 interview, he appeared to rule out a reduction of the top rate of income tax to 25% in the coming Budget, given the current economic situation, but said that could happen in the future.

Malta needed to remain careful about the decisions it took, because the source countries which Malta depended on for its exports and tourism were still in crisis and it would take years for them to recover, he warned.

INCOME TAX

Dr Gonzi said that prior to the last elections, storm clouds were seen on the horizon, but no one could have anticipated the severity of the storm which the world, including Malta, endured.

As a result, the promises which were made before the election could not be fully kept. In the situation which developed, it was not be wise to reduce income tax to 25% from 35% - although that could happen in the future.

In countries such as France, the socialist government, much praised by Joseph Muscat, had raised the top rate of tax to 60%, Dr Gonzi observed.

The Maltese government disagreed with raising income tax further, but it wanted to ensure there was sustainability in government finances. Despite not fully keeping its promise, the government over the past four years still reduced income tax and improved benefits and many sectors had benefited, including parents and women who returned to work, Dr Gonzi said.

Questioned about the PN's internal troubles, Dr Gonzi said these were matters which seriously troubled him, but the most important thing was that the country was continuing to move forward.

JOBS

Earlier in his address, during a Radio 101 interview, Dr Gonzi defended the government's claim that it created 20,000 jobs in the past four years, and said that the figure included circumstances where people lost their jobs and their jobs therefore needed to be replaced.

He said that Labour's claim that only 9,000 jobs had been created simply did not make sense as otherwise unemployment would be far higher. One only needed to see how many students graduated from the University in the past four years.

Ratings agency Moody's had been among those who praised the government's policies, he said. "In the countries around us, unemployment is rising. In Malta it is going down," he said.

It was heartening, he said, that Malta was now out of recession and, furthermore, tourism was reaching new records.

He warned, however, that Malta was not out of the woods. Malta's main markets for manufacturing and tourism were still in crisis and recovery in Europe could take years. Malta needed to continue to take the decisions that were needed to create jobs and sustain education and health, among other sectors.

Dr Gonzi defended health services, saying waiting lists in most sectors were going down and the standard of medical and hospital care was constantly being praised. Under this government, the people's accessibility to medical care had grown. Unfortunately, those who enjoyed a good service did not usually write in the media.

Malta needed to sustain medical services through economic growth and by removing subsidies which were not needed, while focusing resources where they could be most beneficial. 

Referring to the resignation of Stephen Brincat, the Director of Oncology, Dr Gonzi said he had deep respect for Dr Brincat. He had disagreed with various administrative decisions taken by the government. The government did not question his medical judgement, but in administrative matters, the government had a duty to see what was happening elsewhere, Dr Gonzi said.

As for his claim of political interference, he said the issue was that there were empty beds in Boffa hospital and a request was made to transfer patients there from Mater Dei, in their own interest. Furthermore he could not understand how the issue of two deaths from suspected chemotherapy toxicity was raised now.

Dr Gonzi warned that sectors such as health could not remain sustainable if Joseph Muscat kept all the promises he made in the past four years. This government had taken unpopular decisions to stop spending on subsidies which was not yielding results, such as the dockyard and the bus service.

Dr Gonzi accused Labour of being divisive while preaching unity. That could be evidenced in the criticism which the party made, and the insults made by people such as Joe Grima, he said.

FRANCO DEBONO

Asked whether he was concerned that Franco Debono may move a no confidence motion in the Minister of Health, possibly forcing the government to hold a general election, Dr Gonzi said one would see.

The PN’s internal problems had seriously worried him, he said, but yet, the country was moving forward, unemployment had dropped and the number of gainfully occupied had risen.   

What parents worried about was not what would happen in Parliament in October, but whether their children would have good opportunities in education and the availability of jobs, Dr Gonzi said.  

DOM MINTOFF

Asked about the Mintoff factor in the coming general election, Dr Gonzi said Mr Mintoff had been a symbol of division for many, but the PN had done its duty and shown respect and dignity to the former prime minister. That, however, did not erase the long history of  wrong policies and problems whose consequences were being felt, such as property requisitions, company take-overs and career opportunities lost because of a severely restricted University.

Labour, he said, was trying to rewrite hisotry. And to top it all, Edward Scicluna had even praised Mintoff's economic policies - which yielded military corps, bulk buying and product shortages.

One should not be personal in political attacks, also involving Mr Mintoff, Dr Gonzi said. As Speaker he had spent hours in personal discussion with Mr Mintoff and had enjoyed the experience, particularly his view of history and of his uncle Archbishop Gonzi.

But in discussing the future, one should not try to hide the past, as Labour was trying to do.

On the Gaddafi lookalike in Rachel Tua's facebook page, Dr Gonzi said he was not interested in what Dr Tua said, but what interested him was that Labour had given her its blessing, while criticising others.

 

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