Prime Minister Joseph  Muscat said this evening that a heads of agreement had been reached for a pilot project which will see the door-to-door distribution of medicines in two localities, in line with an electoral pledge. The medicines will be distributed to people aged over 75 and those with mobility problems.

Dr Muscat was speaking in Parliament about the Budget.

He said the crucial word about the Budget was ‘optimism’. The silent majority was confident that the country was moving forward and would continue to progress. The people also knew that their own conditions were improving.

This was a Budget which encouraged and rewarded hard work and discouraged benefit abuse. 

Dr Muscat said Malta was seeing consistent economic growth, a deficit which was under control, job numbers that were growing and unemployment at a record low.

Under the former government, unemployment has been increasing consistently. The present government had turned the situation around. In the last 500 days of the former government, 6,900 jobs were created. Under this government, in its first 500 days, the increase was of 13,600.  

This was a result of the government's strategic policy which had seen it reduce taxes, improve the investment environment and help the workers and the population through lower power tariffs and free childcare, among other measures.

Dr Muscat recalled that the government last year projected a deficit for this year of 2.1 per cent. The Opposition had criticised the government's forecasts, but he could now say that the targets would be achieved. 

But the PN was used to projections which were not met. Former minister Tonio Fenech once missed the deficit target by €110 million. 

The economy was performing better than EU projections and growth next year would be three times the EU average. The value of wages was also way above what was projected.

This, Dr Muscat said, was a government which took decisions. Even the absorption rate of EU funds had been raised, from 30% under the PN, to 60% now. 

The government would continue to move the economy forward while being vigilant, not least to ensure that Malta's tax regime remained competitive, despite pressures from within the EU.

REAL VALUE OF WAGES UP

In the first half of this year, he said, inflation was up 0.4 per cent while the value of wages had risen by 3%. This meant that the real value of wages was up by €8 a week. Yet, despite the low inflation, the government had given a one-time bonus of €35 to everyone, without burdening private employers.

Dr Muscat denied that the government had engaged 4,000 workers in the public service. The Opposition leader, he said, should not include replacement of personnel as new jobs, and it was not true anyway that 1,500 had retired from the civil service. Since the retirement age had risen to 62 this year, only some 600 had retired. 

In the last 19 months of the former government, 2,400 people joined the civil service. 2,793 joined under the present government, including some 800 taken on temporarily from Arriva. 529 were engaged in health services and some 400 in education. In the last 19 months of the former government, 787 were engaged for jobs which did not require qualifications, compared to 461 under the present government.  

Dr Muscat observed that former Prime Minister Gonzi used to boast of creating 20,000 jobs in five years. Using his yardstick - which he did not agree with - the present government had already created 15,000.

The Budget measures, he said, continued to promote employment, with new benefits for single parents who went out to work and couples with a low income who both declared their work.  Maternity leave was up for both employees and the self-employed. The latter would see an increase of €73 per week. 

Dr Muscat went over the various budget measures and said the government would not forget the former port workers. 

BENEFIT FRAUD

Dr Muscat said tackling benefit fraud was a duty of all those who believed in social justice. The government, he insisted, never said that those who depended on social benefits were thieves. It was those who abused who were thieves. 

The government was giving more benefits to those up to 23 who were unemployed and under training, but it would withdraw benefits for those who refused training. The same applied for single parents.

This, he said, meant turning the page on a culture of abuse. 

EDUCATION AND HEALTH

Dr Muscat said he marvelled at how the Opposition leader yesterday said nothing about education. The government was spending €41 million more on education. It was investing in new schools, giving a sabbatical for training by teachers and it was giving a new allowance to low income families, as long as their children had a 95% school attendance record.

The government had increased the stipend, albeit by 2c, but stipends were now tax free and the students were also getting a stipend pro-rata. The government had also significantly increased spending in the University.

Neither had the Opposition leader said anything about out of stock medicines. Under the former government, the situation was of 130 missing items per week. Now it averaged five. And a heads of agreement had been reached for the distribution of medicines door-to-door to start in two localities as a pilot project.

A new scheme had also been launched for a company formed of doctors to perform operations at Mater Dei when the wards were normally unused, as long as the surgeons involved achieved a quota of operations during their normal working hours.  

WEAK CONCRETE AT HOUSING ESTATE

On the hospital concrete issue, Dr Muscat said this was not an isolated case. Problems had now also surfaced at Binja Buqana, Mtarfa, where many people lived. Measures were already being taken to strengthen the structure to ensure that the families were safe.

SHOOTING INCIDENT

Dr Muscat said he was disgusted by last week's shooting incident, more so as it involved a member of the police force. This issue angered him and he would not shelter or cover up for anyone.

Alas, the leader of the opposition was judge and jury and had refused to nominate the chairman of the Board of Inquiry, while creating his own narrative. 

Dr Muscat said he wanted to know who had misled officials about the 'warning shots' and how.

It was however important that Home Affairs Minister Manuel Mallia had a proper escort. He knew of the threats the minister received as he carried out his crucial work, not least the 'clean-up' of the prisons.

Dr Muscat said Dr Busuttil was puerile, however, when he said that Owen Bonnici should have stepped down before appearing before a magistrate over a traffic accident. Did Dr Busuttil believe judges were influenced in this way?

PARTNERSHIPS WITH THE PRIVATE SECTOR

Dr Muscat listed partnerships planned with the private sector in terms of the Budget including Trade Malta to help companies forge new overseas markets, an international call for the running of the Malta Film Facilities, the running of Cospicua  health centre by the private sector, the rehabilitation of the St Luke's Hospital building, the building of a motor track and the building of a breakwater at Marsaxlokk.

VAT REQUIREMENTS

On the requirement of VAT registration, even for companies with a profit of less than €7,000, Dr Muscat said the purpose was to ensure there was a level playing field in that all traders, even those with a low income, were required to issue receipts. Those with the small income would still not be required to file a return, but they had to register for a VAT number and issue receipts.

On capital gains, Dr Muscat said the changes were meant to avoid tax avoidance by those who listed  their properties on loss-making companies. Contrary to what the Opposition leader had said, the changes would not impact on separating couples.

On the tax burden, Dr Muscat said the burden was rising to 33%. But it was worth recalling that a PN report had projected a tax burden for this year of 34% or €30 million more in taxes, twice as much as imposed by the present government this year. And this would have been without the power tariff cuts. 

MORAL AUTHORITY

Dr Muscat said the leader of the opposition could hardly speak on moral authority when he had taken a million in consultancy services and direct orders. The former ministers had taken €1.6 million when they raised their salary by €500 a week. And contrary to popular belief, they only returned €300,000. Would Dr Busuttil ask them to refund the remaining €1.3 million?

In appointing a number of backbenchers to government boards, the government had actually saved money, Dr Muscat insisted.  

ENERGY

Dr Muscat reiterated the government's promise to cut energy tariffs for businesses by a quarter from March. The restructuring of Enemalta would continue and plans to build a gas power station would go ahead. The timeline would be explained by the Energy Minister during the Budget debate.

The cut in the tariffs would be maintained and would have no impact on the deficit, Dr Muscat insisted.

He said his promise had been to resign if private companies did not come forward to invest in this sector. They had come forward, and he was not going anywhere.  Enemalta would become a motor of the economy after being a millstone, he said. 

FUEL PRICES

On fuel costs and Dr Busuttil's comments, Dr Muscat said his use of his own personal car was cheaper for the government than buying a car equivalent to what Dr Gonzi used to have. He paid his own insurance.

And Dr Busuttil should say that his car was a government car and his fuel and insurance were paid by the government. 

This government, he said, had reduced petrol prices twice. Between January and November, petrol prices in Malta were 10c lower than the EU average. Malta had also offered stability of prices.

If Dr Busuttil was arguing that petrol and diesel should be cheaper because oil prices were down, he would ask, why had the former government not lowered electricity prices when the oil price was as it is now?

Incidentally fuel prices in Europe had not followed the same pattern of the drop in oil prices and the difference with local prices was narrow.

THE ENVIRONMENT

Dr Muscat said that while he understood the concerns of NGOs, major steps were being taken through the conversion of oil to gas for power generation and the tax on fish-farm feed.

In criticising minister Leo Brincat, it would have been better had Dr Busuttil looked at George Pullicino and how, for example, the 2006 ODZ plans were changed in jigzaw puzzle fashion. More was to come about this.

When he spoke on Gozo Dr Muscat said the government was keeping all options open about a permanent link and would carry out a cost benefit analysis on a possible tunnel.

THE BUS SERVICE

Dr Muscat recalled the state of the bus service the government had found. Dr Busuttil was critical of the €23m subsidy, but had then wanted a free transport service for children in private and church schools.

The new bus service, he said, would have a broader route network but the fares would not change. True, some were trying to cause problems, such as through a court protest. It was known that the government was renting buses from the same people who had filed the court protest and who would benefit if the introduction of the new bus operator was delayed. 

He said road projects were being staggered as far as possible, to ease congestion.

The government, he said had not taken decisions on staggering  school hours, and this would be subject to wide consultation.

Concluding, Dr Muscat said the government wanted to bring about a change in the quality of life of persons with disability. Lawrence Gonzi, Louis Galea and Dolores Christina had helped in the integration of children with disabilities in schools but the process needed to be continued in employment and the Budget included provisions to bring this about.

He said parliament would next year enact the Gender Identity Bill. It was hoped that the reform of the drugs law would be concluded this year, giving a second chance for those found with a small amount of drugs for personal use. The law would also allow the medical use of cannabis. At the same time, a system of bailiffs would be in place so that when the assets of the drug barons were seized, they were truly seized.

Concluding, Dr Muscat said the government was dynamic. It was creating jobs and wealth which it was distributing fairly while fighting abuse. It was not a perfect government, it was ready to review without arrogance, while continuing to reward hard work. 

MOTION APPROVED - MARLENE FARRUGIA THANKS THE PM

A motion for the Budget to be considered in committee of supply was approved with 35 in favour and 28 against, since a number of MPs were abroad.

Labour MP Marlene Farrugia, who praised Dr Busuttil for his speech yesterday, voted with the government and in a Facebook post thanked Dr Muscat for his work, for recognising what had been done well, for admitting mistakes and for committing to correcting them. 

BUSUTTIL'S REACTION

In a reaction to Dr Muscat’s remarks, Dr Busuttil said Parliament had witnessed theatrics by a prime minister who was on the defensive because his credibility was in freefall.

The prime minister in a two-hour speech had not listed any new sector for economic growth. He had also still not given a time-line for the power station which was meant to be ready two years ago the general election.

Dr Busuttil said the prime minister had not given explanations to the people hit by his tax increases, such as students who would only be getting an increase of 2c per day, and pensioners who, studies showed, were seeing their living conditions deteriorate as their bills rose.

On the behaviour of Labour backbenchers, Dr Busuttil said the prime minister had not defended anyone other than Manuel Mallia. He had not defended Luciano Busuttil, Helena Dalli, Owen Bonnici, Konrad Mizzi, Joe Mizzi and Chris Cardona.

Yet it was over Dr Mallia who the people were most angry. Through his defence, Dr Muscat was an accomplice in the minister's abuse of power. The inquiry ordered by the prime minister was not the way for political responsibility.

Was Dr Muscat a hostage of Dr Mallia? Dr Busuttil said the prime minister had lost his moral authority and the opposition would move a motion of no confidence in the minister (See separate story).

 

 

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