Finance Minister Tonio Fenech yesterday asked Labour leader Joseph Muscat to shoulder responsibility for Malta’s downgrading by credit rating agency Standard and Poor’s.
It is my responsibility to open people’s eyes
He said the downgrade was a result of the Opposition’s “irresponsible” decision to vote against the Budget even though an election was already on the cards.
Mr Fenech claimed Standard and Poor’s, like other credit rating agencies, were also preoccupied by Labour’s pledge to reduce water and electricity bills.
The Finance Minister said Labour’s proposals would continue to burden the already debt-laden Enemalta.
Later, Mr Fenech admitted the report made no mention of Labour’s plans to reduce water and electricity rates but had warned about Enemalta’s debt.
Mr Fenech made his statements during a press conference at PN headquarters where he and Tourism Minister Mario de Marco spoke of the need for the country to have sound finances.
Reiterating the message in the PN’s latest billboard, both ministers warned that jobs, healthcare and education were only guaranteed when the country’s finances were on a sound footing.
Malta, Mr Fenech said, had continued to invest in jobs, healthcare and education at a time when other countries were cutting expenditure and facing mass protests in the streets.
Mr Fenech then turned to the downgrade, saying that he had to comment about it since a local news portal had prematurely released the report by Standard and Poor’s, which was embargoed for publication until later at night.
He said the report showed Labour was jeopardising Malta’s fiscal position even from the Opposition benches, proof that it would do even worse once in government.
The Prime Minister had offered various options to Joseph Muscat not to vote against the Budget while still declaring the Opposition’s lack of confidence in the Government. This is what happened in countries like Italy and The Netherlands, he said.
Confronted by journalists who said the credit rating agency scrutinised the Government’s work, not that of the Opposition, Mr Fenech denied this claim. He referred to a recent credit rating report which had given a positive outlook for Malta due to the Opposition’s commitment not to stray too far from Government policy if elected to power.
Mr Fenech said the Government was committed to a restructuring plan dealing with Enemalta’s debt and warned that Labour’s proposals would derail this process by loading more debt on the corporation.
In the evening, Mr Fenech was questioned by journalists during a debate organised by the Broadcasting Authority.
Among other questions, Mr Fenech was asked whether he would resign if Labour delivered on its energy plans once in Government, seeing as Dr Muscat had promised to resign if his plans did not reach fruition.
Mr Fenech said he would not be able to resign because he would be on the Opposition benches if Labour were elected, not a minister.
“It is my responsibility to open people’s eyes,” he said, warning that Labour’s plans would endanger all that the country gained through its sacrifices.
Mr Fenech reiterated his criticism of Labour’s proposals and insisted that the Government would be able to maintain the country’s sound financial situation by continuing to tackle the deficit and debt while keeping utility tariffs at the lowest sustainable levels.