The Labour Party's plan to challenge in court VAT charged on car registration tax was aimed at gaining votes and went against the country's interests, Prime Minister Lawrence Gonzi said.

Concluding the National Party's general council, Dr Gonzi said the government had already implemented one-fourth of its electoral promises and would continue to implement the rest over the five-year term.

He said the Cabinet of Ministers would today discuss the final changes in the local council reform.

The Prime Minister also said that the reform of the Malta Environment and Planning Authority would soon be discussed at Cabinet level. Before it is passed through Parliament, a national conference would be held to discuss the reform publicly, Dr Gonzi said.

He criticised Labour leader Joseph Muscat for insisting that Malta was a net contributor to the EU. "Even though we publicly denied this statement several times and even though the EU Commissioner for Enterprise, Gunther Verheugen said that Malta was a net beneficiary, Dr Muscat will not admit his mistake," Dr Gonzi said.

Speaking about George Abela, who will be sworn in as President on Saturday, Dr Gonzi said that through his nomination the government sent out a very strong signal to the opposition to put aside partisan politics. "We opened the door. I hope the Labour Party (PL) will answer our call."

Referring to the new utility tariffs, Dr Gonzi admitted it was a difficult decision but one that had to be taken for people to learn that electricity cost money.

Malta would benefit from up to €1.2 billion in EU funds, a figure the PL denied, he said. However, he added, the EU was not about funds but about creating new opportunities and new markets for foreign investors.

PN general secretary Paul Borg Olivier criticised Dr Muscat for holding a protest against the government as part of Freedom Day celebrations when he himself had admitted that the event should be a joint celebration.

He also criticised Dr Muscat for being absent for seven out of 10 state activities since he became Opposition Leader.

Nationalist MEP Simon Busuttil said the PN might have to fight for its second seat, let alone the third, at the forthcoming European Parliament elections. The June elections would be tough for the PN and Dr Busuttil called on the electorate to examine carefully the track record of the MEPs of the different parties.

The PL said Dr Gonzi's speech lacked substance and did not tackle the problems of the high cost of living, the recession and illegal immigration.