Updated - Adds Finance Ministry reaction - Labour leader Joseph Muscat this morning criticised Tonio Fenech's handling of his ministry and 'confusing' statements he had giving last week on the government's deficit targets.

Speaking at a political activity in Mqabba, Dr Muscat said Mr Fenech did not  know what the final deficit figure for this year was going to be.

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Mr Fenech was unable to achieve any of the financial targets he set in the Budget for this year, showing the kind of incompetence which would have had him sacked had he been in the private sector, Dr Muscat said.

On the one hand, he had last week admitted that the government would not achieve its deficit target (of 2.3%) but then said the government would meet it.

The reality of the situation was that this country was spending more on debt servicing than it was spending on education or health, Dr Muscat said.

CONCERN ABOUT ENEMALTA

He expressed concern about the financial situation of Enemalta and said Mr Fenech had endangered the future of the corporation and its employees.

Enemalta, he said, had a debt in excess of €700 million. Now Mr Fenech was spearheading a government loan of between €40 and €50 million.

Whoever was participating in such decisions would be held responsible by the new government, Dr Muscat warned. 

Unfortunately, it seemed that the government's priority was to inaugurate the  new parliament, to the detriment of middle-lass taxpayers.

Referred to last Thursday's speech by the prime minister at an EPP conference in Florence ,Dr Muscat said it was easy for Dr Gonzi to speak about values, but then the ministers and himself had taken a €500 a week raise behind the people’s backs when people are paying more in taxes and and seeing prices rise.

Dr Muscat also spoke on the Labour Party's National Congress, which will be held next week, and said it would set the  guidelines of Labour’s electoral manifesto which would include concrete proposals and a roadmap for economic growth.

FINANCE MINISTRY REACTION

In a reaction, the Finance Ministry said the Opposition was trying to hide its incompetence by ignoring the country's achievements. It was significant, the ministry said, that the economy had grown by 0.9% in the same quarter when the eurozone economy got smaller. Investment in Malta grew by 3.6%, exports were up 12% and the gainfully occupied increased by 1.4%. Average wages had also grown. 

As for Enemalta, the ministry said the government was taking measures to ensure that tariffs did not rise, despite rising oil prices. The borrowing which Dr Muscat had referred to was being made for the interconnector project which would reduce Malta's dependence on oil. 

 The ministry asked what Dr Muscat's plans for Enemalta were and whether they would translate into an increase in tarrifs. 

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