Labour leader Joseph Muscat this morning called for transparency in the mechanism of oil purchases and pricing, saying local diesel and petrol prices did not reflect fluctuations abroad.

Speaking in Sta Venera, Dr Muscat noted that Enemalta on Wednesday announced the second  increase in diesel prices in as many months, for a total increase of 1.5%. In the rest of the world, he said, diesel prices had gone down 3%.

Local petrol prices were down 2%, he noted, but abroad they were down 7%.

This, he said, showed the need for transparency in oil purchases and pricing.

Dr Muscat reiterated Labour's commitment to reduce the utility tariffs. The tariffs, he said, were the biggest obstacle to economic growth and social development. Rather than receiving zero amount bills, as the prime minister had said on Friday, people were seeing their accounts turned to zero when they paid their bills.

In his speech Dr Muscat reiterated Labour's commitment to create a new middle class.

Key to the new middle class, he said, was education, and it was unacceptable that the present government has reduced spending on education by €7 million as one of its measures to reduce spending. It would have been far better, he said, had the government reining in on its squandering.

Dr Muscat stressed that Labour would not pit one class of society against another. It would also work with investors and employers because their role was key for economic development. 

He said a Labour government would act against the 'legalised usury' mechanism employed when VAT was overdue by businessmen. Sending businessmen to prison did not achieve anything. It did not ensure that the due VAT was paid. 

Dr Muscat said the Gonzi government would be remembered for its record debts, currently running at €5000 million, of which a third were Dr Gonzi's direct responsibility. Just paying interest was costing the country more per day than it spent on education.

People had a right to wonder where this money was going. €1000 million had gone for Mater Dei Hospital, which was found to be too small after just a few years, and a power station which did not work.

By the end of the year the government would claim that it had achieved its deficit targets, but it would do so by ignoring the people's needs, while carrying on with un-needed projects.

For example, Dr Muscat said, ministers Gatt and Fenech in three years had spent €23 million on consultants when the advice which these consultants gave left much to be desired, such as the advice on Arriva, the choice of power station and Air Malta. This showed how a Labour government would find the money to address the people's priorities.