Finance Minister Tonio Fenech has linked the country’s marginal rise in unemployment over the last 11 months to uncertainty caused by next Saturday’s election.
Labour does not talk substance on the economy
Interviewed by The Times Business, Mr Fenech said that while the Government was concerned at the marginal increase in unemployment and would continue to make job creation a priority, “Unfortunately, a few months before an election the demand for employment falls, because investors wait.”
He added: “It has always been like this, when an election approaches investment slows down. If you have confidence in the PN’s economic policies then you shouldn’t stop investing, unless, of course, you fear a change in government. Unfortunately under a Labour government the business sector does not have the same confidence in investment and job opportunities as it does under the PN and this is a historic fact.”
He said that during 1996 – 1998 under Alfred Sant the country had the highest rates of unemployment and the lowest rates of investment in the economy, and in the pre-1987 period job opportunities came through military corps.
“Business has a tendency to be fearful of Labour policies. Labour’s economic programme is devoid of any new initiatives. It repeats what this government has done in this legislature and says it will improve upon. In reality the real new ideas for industry, tourism and small businesses are in the PN electoral programme,” Mr Fenech said.
The Finance Minister said that Malta needed no change in its economic policy which “is lauded by everyone including the Commission and the IMF” but said the Government needed to be closer to business and to continue supporting business in times of difficulty.
Asked if he was concerned that the electorate would not vote on the government’s economic record but on political issues, he replied: “This does concern me. In other countries people are voting to have a job, because they are unemployed; in Malta we are not realising that our jobs are also on the line when we come to vote on March 9. We cannot take it for granted that the economic situation will be maintained irrespective of who wins.”
He criticised Labour for only talking about childcare “which is half baked” and for their energy plan “which is not doable in the timeframe they are proposing and which in reality will increase rates, not decrease them.” He added: “Labour does not talk substance on the economy”.
Mr Fenech said much had been done to reduce red tape and bureaucracy but the question of permits and Mepa needed to be continued to be addressed. “You always need a balance but there is scope for some changes [in bureaucracy] to be brought about,which would help with economic growth,” he said.
He said if the economy does not continue to maintain its pace of job creation and if the country is run by a government which does not make the economy and jobs its priority, then the country would suffer.
“On March 9 the choice is very simple, Malta already belongs to us all, we don’t need Joseph Muscat to do that. What we need is a government which will ensure that our future is safe, that jobs will be created and that the quality of life of our families will continue to be sustained and to progress. Any other choice will mean that we will lose jobs. Labour has always been associated with low growth rates and unemployment. The choice is very clear,” he said.
Mr Fenech pointed out that the leader of the Socialist bloc in the European Parliament said that after France it was now Malta’s turn to have a Socialist government, but a year after the change in France the country was experiencing bigger problems.
“The Socialist President [in France] has not only not solved the problems, he has created new ones. This is no time to risk. The Nationalist Party is not perfect, and has made mistakes, but on the issues that matter, such as your job and quality of life Labour has nothing compared to us,” he said.