Throwing caution to the wind

At one point during the Labour Party congress, Joseph Muscat appeared to contradict himself in a manner that must have left many wondering what the PL’s electoral manifesto will eventually look like.

Never mind the bit about his declaration that a Labour government would be the most feminist government in Malta’s history, though this too requires clarification. What really stood out was that in almost one breath he said that his party’s manifesto would not be a list of promises but rather a roadmap, and then in no time he went forth and made three promises.

None of them is new, but the party has to decide what it plans to do: either draw up a roadmap or resort to what political parties always do: make promises. The likelihood is that despite all the talk about roadmaps, Labour will cram its programme with promises.

His party has not yet decided it is time for the electorate to know exactly what Labour has up its sleeve, but, as an indication of how far it plans to go, it courageously states as its number-one pledge a reduction in energy tariffs.

The second promise is that Labour will not reduce student stipends, and, third, that it will not raise the pensionable age.

Labour has been talking about its intention to reduce the energy tariffs for some time now, but, contrary to its initial impression, it is most unlikely that it will be able deliver on this shortly after it is elected, that is, if it is elected in the first place.

Dr Muscat has said the Labour Party in government will bring about a reduction in tariffs through a combination of improved technology, a better-managed energy policy and a reduction in red tape. But, quite significantly, he has not given a timeframe within which the party plans to do all this. Does the party have any idea when this can be achieved? And what kind of tariff cut does he have in mind?

Will voters go for Labour’s promise to bring down energy rates? This government had made an incalculable mistake when it raised tariffs at one go instead of gradually, as many had advised at the time. But the reasons for the rise were most valid; only the way it was executed was wrong.

However, the most important point is: should Malta continue to subsidise water and electricity consumption? The government, shocked by the extent of the negative reaction to the energy tariffs rise, is most unlikely to raise tariffs again in the short-term, and definitely not before the election.

But how is Enemalta, wallowing in debt, going to get out of the difficult situation it is in if it is not allowed to make up for the cost of the fuel it buys for the generation of electricity – particularly at a time when international oil prices are still high despite slowing down recently?

Labour is not alone in promising not to cut stipends; the Nationalists would not dream of doing this either. And neither of the two parties would dare to touch the free health service.

The more election day approaches, the greater the temptation is for the parties to throw caution to the wind, despite their promises to the contrary. The result – as the Nationalists have seen with their 2008 election campaign tax cut promise – is that reality comes back to bite the party in government. Labour will not be able to say they were not warned.