In a 1980 episode of Yes, Minister, the private secretary insists that “the citizens of a democracy have a right to know”. Sir Humphrey retorts: “No. They have a right to be ignorant. Knowledge only means complicity in guilt; ignorance has a certain dignity.”
Access to information held by the public authorities is one of the keys to democracy- Joseph Vella Bonnici
By this kind of logic, the Maltese people presently have a lot of dignity. The lack of transparency and accountability has become the hallmark of this Administration. Take Budget 2012. The budgetary process kicked off way back in August with the launching of the pre-Budget document. Then, starting November 14, Parliament sat mornings and evenings for a whole month to discuss the Budget.
Barely a month later and the government had to work out again all its projections to reduce the proposed deficit by a further 0.59 per cent of GDP. The Minister of Finance insists that this was merely a precautionary measure “to give the government the necessary manoeuvring room to deal with any eventual fallout from international economic difficulties” (March 20).
We are told that a final decision on whether to implement these €40 million spending cuts will be taken in June 2012, depending on whether this year’s fiscal targets will be reached. Of course, given the track record over these last four years they will not be achieved. This is why the Ministry of Finance has given strict instructions that no ministry or government agency can exceed the revised figures.
Did Malta have to go through this charade? Didn’t the government have significant warnings that the euro crisis would impact adversely on Malta’s economic growth? Why did the government go to Parliament with a Budget based on a 2.3 per cent rather than a one per cent growth rate for 2012?
If the government really wanted to give a strong signal to all stakeholders of its commitment to cut expenditure it should have presented the “right” Budget in Parliament.
For how long will critical matters for the welfare of our country remain subjected to sheer political convenience? This Administration should have known that the European Commission is in no mood to play along with such gimmicks. The Greek experience should serve as a warning to our political class that there is a limit to abusing creative accounting and riding the merry-go-round.
Even if we accept that all was done in good faith and in the national interest, there is no reason why the government should not have gone back with its revised Budget to Parliament. And if the government is afraid, for its own reasons, of facing Parliament, then, at least, it should have debated the matter at the Malta Council for Economic and Social Development.
Why should the people learn about these revised estimates from the mass media in a piecemeal, ad hoc manner? Does the Ministry of Finance believe that the people have a right to know the real picture on such an important matter as its Budget?
And if the minister found it appropriate in his Budget speech to tell us about the completion of embellishing works at Villa Rundle, surely he acknowledges our right to officially know what the proposed budgetary cuts (such as €14 million in programmes and initiatives and €11.4 million from public sector entities) entail? How will such cuts impact on our economy and society in general?
The situation is further complicated by the government’s U-turn in subsidising energy rates. The government’s dogmatism on eliminating all subsidies, as they presumably encourage wasteful consumption, is conveniently being put aside.
In the Budget speech we were told that electricity rates will not be raised as Enemalta will be passing on to consumers the estimated €20 million savings being made from its switching operations from Marsa to Delimara. Given that the price of crude oil keeps rising (it presently hovers around $120, 50 per cent higher than the price determining existing tariffs), the government is now saying that it will be absorbing a further €26 million from Enemalta’s “non-core” expenses (whatever these are).
While not raising energy rates is a necessary measure for our enterprises and families, the government has not been telling us what impact this will have on its fiscal targets? What if oil prices keep rising? Is the government support being capped at €26 million? Why did Enemalta not enter into any form of hedging or similar arrangement?
If Budget 2012 was presented in good faith and the revised estimates that the government sent to Brussels are just precautionary, it should not be hard for the Ministry of Finance to explain to the public that a Budget is but a road map, a flexible tool, that is to be continuously adjusted in the light of the results being achieved.
Governmental budgets are meant to transmit trust and send important economic signals to society.
Access to information held by the public authorities is one of the keys to democracy. As the Carter Centre puts it, “information belongs to the people; governments simply hold information in their name”.
Responsible communication enables people to form their own judgement and makes them feel part of the political process.
If the government really wants to get closer to the people, it must start by respecting and providing them with the necessary information. This is the first golden rule that needs to be enshrined in the Constitution.
fms18@onvol.net