Opposition leader Simon Busuttil said yesterday that, with a measly cost of living adjustment of 58c a week, the government was trying to take back what it gave the people through the cut in water and electricity tariffs.
Speaking on the party’s Radio 101, Dr Busuttil said he expected the government to keep its promises when it presented the Budget today and ensure that people’s standard of living improved.
Though he did not elaborate, he was clearly referring to the relationship between the cost of living adjustment and inflation. COLA is essentially a form of compensation for the inflation of the previous year that is handed out as a pay rise to workers across the board. This year’s low payout was the result of a drop in inflation last year, which, in turn, is directly linked to lower water and electricity rates.
Turning to the economy, he said that, while it was still growing, certain statistics were transmitting worrying signs. He said import and export declined since Labour took power, as did factory production. Retail figures similarly declined and government debt continued to grow at a pace not seen in the last 10 years.
He said the government had to confront such issues honestly, arguing that “once the government is saying that everything is going well, it should distribute wealth fairly in the Budget. We cannot have a situation where some people get €13,000 a month while others get just 58c,” he said in a reference to the pay package of Malta Enterprise China envoy Sai Mizzi, wife of Energy Minister Konrad Mizzi.
He said the Budget needed to be built on honesty because the Prime Minister had lost his credibility when he failed to keep his word on the delivery of the Enemalta power station, which, according to the original commitment, was meant to be ready in four months’ time.
He said that, while unemployment compared very well with the European average, the government had engaged about 4,400 workers between the general election last year and the end of this June. “This is artificial job creation. What we need is the right investment climate for the private sector to create jobs,” Dr Busuttil said, adding that the Finance Minister should use this Budget to show that the government was to generate wealth in new sectors.
“So far, it has only been able to benefit from what the former government had done,” he quickly added.
In a reaction, the Labour Party said the Opposition leader was being his usual negative self, adding that his statements also confirmed he did not understand how the economy worked.
“Simon Busuttil is still surrounded by the same people who missed the economic targets they themselves had set, the same people who left a mess behind them which the Labour government is cleaning up,” Labour said.