Simon Busuttil has warned the government it would have to steamroll over the Nationalist Party if it did not back down on the university at Zonqor Point.
He called on the Prime Minister to clearly rule out developing a university on the earmarked site, which was an outside development zone.
The Nationalist Party leader said the Prime Minister's hard-headedness had united a movement of "moderates and progressives" against him on the Zonqor project.
The reference was to the slogan adopted by Joseph Muscat when he was elected Labour leader in 2008.
Dr Busuttil said the PN was with the new movement that was born as a reaction to the proposed development on ODZ land. To applause he then listed groups that formed part of the movement.
Dr Busuttil said the environment was the future the PN had to embrace and insisted that previous PN governments had "a good environmental track record".
"Don't let anyone tell you our environmental record was not good," he told PN councillors this morning.
Dr Busuttil said the environment was one reason why he wanted Malta to join the EU since the country would have obtained funds to improve environmental standards. He said air and sea quality had improved and it was disrespectful for the government to criticise the previous administration for building a sewage treatment plant in ODZ at Ta' barkat when this ensured cleaner seas.
The PN leader dedicated most of his speech to the Zonqor university proposal, insisting it was shameful the government had lowered the standards for university certification to accommodate the Jordanian investors. He called on academics, intellectuals and students to rebel against the lowering of educational standards, saying this was an example of how the government had embarked on a race to the bottom.
But he also questioned the credentials of the investors, whose only track record was construction and hotels.
Dr Busuttil insisted the university could be built in numerous other areas around Malta without touching ODZ land.
He then brushed off the damning report on the quality of concrete at Mater Dei Hospital, insisting this was a smokescreen to divert people's attention from the Zonqor issue.
Dr Busuttil ridiculed the conclusions that the concrete used to build the hospital would not withstand an earthquake saying that anything spoken by Health Minister Konrad Mizzi had to be taken with a pinch of salt.
"If there are problems the government can turn to the contractor, the supplier of concrete and the people who certified the project and take action," he said, calling it predictable that the government was trying to blame the former CEO of the Foundation for Medical Services, who is now the PN's commercial CEO.
Returning to the Zonqor controversy, Dr Busuttil said a new whiff of air had permeated in society of people who did not fear standing up to the government. These were people who refused to be bought, he said.
Dr Busuttil then accused Dr Muscat of dishonest politics by trying to"buy" people out. He said people like Luciano Busuttil - who was made part-time chairman of the Sports Council - Cyrus Engerer and Jeffrey Pullicino Orlando had a price.
The mention of Dr Pullicino Orlando's name was greeted by boos from the audience present as Dr Busuttil insisted his soul was not for sale.
The PN could become a strong alternative government by the force of reason, he added and called on people to see through Dr Muscat's mask.
"People are now seeing the real Joseph Muscat, who bases his politics on dishonesty, arrogance and insulting people's intelligence. He uses people for their vote.
He is doing this with the people of the south and it is no wonder the PN registered the largest swing in its favour," Dr Busuttil said, accusing the government of losing its values and selling its soul.
"It is wrong to have politics that is soulless... people are priceless and cannot be bought," he told councillors, promising a future PN government would remain close to the people and respect them.
The speech ended to rapturous applause as councillors sang along with the party anthem and clapped.