PN leader Simon Busuttil speaking in Parliament yesterday. Photo: Matthew Mirabelli

The Labour Government’s first Budget was a good one based on an inherited sound economy but a dishonest one, according to Opposition Leader Simon Busuttil.

In his reply to the Budget speech, Dr Busuttil said the country “was living beyond its means” and indirect taxes were financing the reductions in income tax and utility rates.

The Government was “robbing Peter to pay Paul”. It was a “populist” budget because the European Parliament election was on the doorstep and Labour wanted to “win at all costs”, he said, accusing Prime Minister Joseph Muscat of focusing on “campaigning rather than governing”.

The Government had presented a nicely wrapped Budget but omitted the details that would not have gone down well with people.

“The Budget was a good one because you inherited a sound economy which enabled you to be generous,” he said, as he called on Dr Muscat to acknowledge that the situation he found was not disastrous.

He said it was a Budget of “continuity” but questioned why similar positive measures introduced by former PN administrations were voted against by the then Labour opposition, including the cut in the highest bracket of income tax.

It was as if the Government had experienced a conversion on the Road to Damascus.

The Budget’s numerous measures lacked explanations of how much they would cost and who would pay for them.

While it had measures to incentivise people to go to work, it lacked a clear vision of how to create jobs.

The Budget increased the tax burden by €170 million, about €400 per capita, in breach of Labour’s electoral pledge not to increase the burden of taxation on families.

At the same time there were spending cuts in important sectors such as primary health care, obesity programmes, dementia, rare diseases, disability, the blood bank, which had its budget halved, and IT investment in education. And there was absolutely nothing about Gozo.

The EC was contradicting the deficit projection while Government debt would grow by €550 million over the next three years.

Turning to plans to reduce the energy tariffs, Dr Busuttil admitted that the previous PN administration had made a mistake when it raised the tariffs in 2009, saying it would have been better to spread the increase out over time.

He acknowledged that the PN had paid a heavy price for this mistake, but added that the Government was now being “dishonest” in claiming that bills would go down by 25 per cent for everyone, as thousands would only see their bills reduced by 15 per cent.

Moreover, the energy cuts would cost €25m, almost equal to the amount the Government was planning to collect through increases in licensing and fuel – €21.4m.

While it was saving €52m a year thanks to the BWSC power plant extension, a PN project, he complained the Government was only reducing tariffs by half this amount.

On the environment, Dr Busuttil said Labour had become a “victim” and “hostage” to its own promises, with the environment being first to suffer with haphazard development permits being dished out.

Eight months into the legislature, the Government had not yet solved hospital problems such as waiting lists, stretchers in corridors and the never-ending out-of-stock medicines. “Didn’t you have a roadmap on everything?” Dr Busuttil asked.

He said it was “incredible but true” that there were plans to start charging people for healthcare, with the first payment being asked for IVF treatment.

Dr Busuttil noted that the electoral slogan Malta Tagħna Lkoll (Malta for all) was missing from the Budget speech because the Government was bent on dishing out appointments to its own inner circle.

He listed former Labour officials given government posts and mentioned Energy Minister Konrad Mizzi’s wife Sai, who was receiving €13,000 a month for her role as ambassador.

He also criticised Police Commissioner Peter Paul Zammit over “blatant abuse of power” and the “super-fast-tracked” promotions at the Armed Forces of Malta.

He turned the passion in his speech up a notch when he spoke about the “obscene” citizenship scheme, warning that the PN would stand up to defend the country’s identity.

As PN MPs waved their passports, Dr Busuttil invited MPs on the government benches not to be scared to say no to this scheme.

“You pledged loyalty to your country. The sale of our citizenship is an immoral act of prostitution and an insult to citizens. Today, before we vote on this law, stop it and let’s discuss ways of turning it into an investment scheme rather than a sale,” Dr Busuttil said.

He said it was ironic that the Government saw the need of a White Paper on whether animal circuses should be allowed but did not deem it fit to consult on something much more serious.

Dr Busuttil again warned that the Opposition would publish names of people accepted for the scheme and withdraw it and the citizenships purchased once it returned to power.