Lawrence Gonzi ended the Nationalist Party general council two Sundays ago with the words “truth will prevail”. Surely that was not a forum where he would likely be challenged in the truth-telling department, even though an MP or two... or three probably raised an eyebrow... or two.

This is nothing but political bias hardwired into our economy, compounding injustice.- Helena Dalli

In sombre tone, the Prime Minister then continued on the same theme last Wednesday during the Budget debate in Parliament. Dr Gonzi just about told us that if we followed his path of truth he would lead us to the promised land.

Did he maybe have in mind the truth that he had been hiding with regard to the payment of the honorarium over and above ministers’ salaries and the rise in duty allowances? It is not just the opposition now exposing what’s going on behind the taxpayers’ backs.

The Auditor General described the case as embarrassing and a good example of bad practice. He points out the obvious – but which clearly isn’t obvious to the Prime Minister – that Cabinet decisions on parliamentary remuneration should be communicated to Parliament. This was always the case but not anymore, it seems. This lack of prime ministerial and ministerial transparency, coupled with excessive largesse (towards themselves), especially in the face of recent extra financial hardships faced by many, is abominable. This is the truth.

But maybe the Prime Minister was referring to the truth regarding the rationale underlying Budget 2012. In this case, the aim was to reach out to the PN’s increasingly disgruntled voter base. In the PN’s effort to salvage as much of what it has lost, as it can, the government went into partisan gear, left lower income groups in the lurch and concentrated on those at the higher end.

If truth be told, rather than helping those who need it most, this Budget offers a hand-out to the people (read voters) who the PN government will soon need most. Certainly, persons who work hard and are successful should be encouraged and incentivised. What is wrong is that the poor are not given a hand-up while being driven further down the poverty line by the exorbitant utility fees. This is nothing but political bias hardwired into our economy, compounding injustice.

Then, perhaps the Prime Minister was thinking about the truth concerning the maternity leave extension change of course.

We know that we need to increase workforce participation and the fertility rate. The working population in Malta is at 56 per cent. Malta’s fertility rate is at three children for every 10 adults. Policies to encourage more people to work and more women to have children are of the essence. The increase of maternity leave is one tiny step which helps in that direction. But after months of waffling about EU level playing fields, the government has seen the light… or almost.

The truth of the situation, scientifically laid down by the Edward Scicluna report, showed clearly that this policy would be beneficial to the overall economy.

The Prime Minister could also possibly have been referring to the truth we are being told about our manufacturing industry. Or are the three captains of industry who spoke up about the situation saying the truth? Which truth are we to believe? As the chairman of Toly products put it: “Forty years ago the main priority was job creation. Now the priority for the government seems to be how many costs it can pile on us”.

Ever-increasing government costs and bureaucracy have meant that three major manufacturing companies have set aside further investment plans they had for their Malta projects and invested elsewhere. But, still, we saw nothing in the 2012 Budget that sends a signal to these entrepreneurs to make them reconsider.

The difficult situation is confirmed in a research paper by Joe Falzon: “Between 2000 and 2007, the unit labour cost in manufacturing increased by 33 per cent compared to an increase of 14 per cent in EU27”. Prof. Falzon points out that we must know why manufacturing companies (30 in three years) are closing down and that we should be concerned about this. He noted that “this largest sector, which traditionally has been open to exports, potentially providing high levels of growth to the economy, has now lost its top place to wholesale and retail, which is a domestic sector depending on imports for growth”.

This notwithstanding, the government brushes aside such an important sector for economic growth only to give it a mention in the 2012 Budget informing us that its operational costs will increase further.

The same problem of red tape weighing down on business and that the high energy costs were hampering further investment was voiced by the chairman of Palumbo shipyard.

Which brings me to the pre-electoral parsimony with the truth regarding shipyard and Air Malta workers, among others.

The government already had plans for these workers if the electorate returned the PN to power and, yet, both groups of employees received personalised letters signed by Dr Gonzi – on the eve of the election – promising them the opposite of what was actually in store for them.

It is evident that, unlike what the Prime Minister declared, it is not truth but holding on to power that is the main source of the PN’s political inspiration.

helenadalli@gmail.com

Dr Dalli is shadow minister for the public service, government investments and gender equality.