Opposition deputy leader Mario de Marco told Parliament yesterday that while the European Commission had issued a positive report on Malta’s economic situation, many sectors were struggling – manufacturing, retail, pharmaceuticals, digital printing and electronics in particular.

Speaking during the debate in second reading of the Budgetary Measures Implementation Bill, he said notwithstanding this, the government continued to impose taxes, while local banks, through their high interest rates for businesses, were not doing enough to help the local economy.

What was the government’s economic vision when it was rating short-term gains above long-term vision, he asked.

Between January and November of last year, the manufacturing sector registered a 22 per cent drop in exports – by far the biggest of any EU member state.

What was the government’s economic vision when it was rating short-term gains above the long term?

The first time Dr de Marco mentioned the drop in exports, the government had said it was only one factory that registered a drop.

This was extremely worrying, he said, because it was a large company and its exports were falling month-on-month. He hoped the government would do all that was necessary to save this company, which represented a considerable chunk of Malta’s exports.

Pharmaceuticals and digital printing were also suffering, with both registering a drop in turnover, employment and salaries. There had been a drop of more than €700 million in exports, and even if one removed fuel from the equation, there had still been a €400 million drop.

A major cost for the manufacturing sector was fuel, but the Opposition’s call to lower prices had fallen on deaf ears.

When the hedging agreements expired in March, he hoped to see prices under €1 per litre, similar to the fuel price in many other European countries.

Interest rates for businesses were almost double those charged their foreign counterparts, he said, accusing local banks of not doing enough to help the economy.

Reports that it was doing well counted for nothing if people did not feel they had disposable income. Yet the Bill included a myriad of tax and tariffs increases.

Debt had increased by €220 million in the third quarter. The government had reassured this was not a problem, as payment for the BWSC plant was made during December. However, the truth was that this was a one-off payment, while salaries were not.

The government’s presence on the market should be minimal but the way it worked increased its presence.

It had to make space for the private sector, the real force behind the economy.

Dr de Marco invited government to have a serious discussion on the economy, public finances and a truly long-term vision for the country.