Malta is paying more to the EU than it is receiving in funds, Labour leader Joseph Muscat claimed yesterday, accusing the government of being dishonest with the people.

He said that, while the government had predicted it would receive some €277 million in EU funds between 2007 and 2008, the country only managed to obtain €97 million at most - 27 per cent of what it planned to receive in 2007 and 44 per cent of last year's prediction.

At the same time Malta paid some €109.6 million to the EU, leaving the local coffers €12.6 million short.

He was speaking at a party activity in Vittoriosa yesterday morning. Without mentioning anyone by name, Dr Muscat said the reason the government did not obtain the planned funds may have been because someone was keener on coming to Malta to help the Nationalist Party win last year's general election than doing his job and getting the funds.

The Nationalist Party yesterday defended its track record saying a recently published report listed Malta as one of the countries that had made the best use of EU funds.

The report, published by EU Regional Policy Commissioner Danuta Hubner, refers however to a different period to that highlighted by Dr Muscat. It says that Malta used 91 per cent of the budget allocated to it - €88.7 million - between 2000 and 2006. Dr Muscat said Malta seemed to be a part-time EU member, with EU-imposed taxes coming into force immediately while the authorities dragged their feet over the implementation of consumer-protection measures.

He said that after years of procrastination the government had announced changes in the vehicle registration tax and those who bought a car last year could choose whether to register their car under the new system. But when some motorists went to the Malta Transport Authority for a refund of around €900 they were told they would receive credit against future licence payments rather than cash.

"The small print shows the government's dishonesty with the people. I am disgusted by this," he said.

He also spoke about the situation at ST Microelectronics, which last week announced would cut 450 jobs in 2009. He said that, although around half of these would be due to workers retiring or contracts ending, it still meant there would be some 200 fewer job opportunities.

He insisted that the moratorium on bank loan repayments should apply to everyone and not only to those whose job loss was heavily reported.

Dr Muscat said the upcoming MEP elections were going to be a challenge for his party, especially in view of the "traumatic result" in last year's general elections.

Referring to the proposal for an underground extension to St John's Co-Cathedral's museum, Dr Muscat said this was a decision that should be taken by Parliament and not by an "unelected person who does not have a democratic mandate" - a thinly veiled reference to Malta's ambassador to the EU Richard Cachia Caruana who represents the government on the cathedral museum foundation.

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