Labour yesterday deemed the Nationalist Party’s allegations about the Australia Hall deal as being libellous.

This was a public contract drawn up according to law, it said, adding that it would not sue because the PN would be unable to pay damages given the financial mess it was in.

Labour said it had been given Australia Hall in exchange for its headquarters in Marsa and a plot of private land that had a far bigger value.

The contract was based on a promise of sale signed 20 years ago listing prices the party had agreed to at the time. The contract was not published earlier because of two court cases, one by the PN and the other by the Nationalist government. It was also because of these court cases that Labour had to proceed with the prices featured in the promise of sale.

Political parties were exempt from paying taxes in Malta, so there was no reason for it to declare a lower sale price in a bid to pay lower taxes.

“The people were aware the PN knows nothing about finance. It now appears that, although loaded with lawyers, it knows nothing about the law either,” Labour said.