Issue link: https://maltatoday.uberflip.com/i/1544723
6 maltatoday | SUNDAY • 27 MARCH 2022 OPINION 2 maltatoday EXECUTIVE EDITOR KURT SANSONE ksansone@mediatoday.com.mt Letters to the Editor, MaltaToday, Vjal ir-Rihan, San Gwann SGN 9016 E-mail: dailynews@mediatoday.com.mt Letters must be concise, no pen names accepted, include full name and address maltatoday | SUNDAY • 3 MAY 2026 It's all about spending sprees so far Editorial FROM additional maternity and paternity leave paid by the government, to the construction of two new hospitals and extensions to Mater Dei and the Paola Hub; from an interest-free loan up to 25% of the property value provided by the government to free cancer medicine for all, the proposals put for- ward thus far by the two major political parties are all about more and more government spending. Let us be clear, some of the proposals boost wellbeing and indirectly can contribute to high- er economic productivity by ensuring workers remain in employment, while raising young children. Other proposals are targeting deficien- cies in the health system that were made worse over the past decade as a result of the misguid- ed emphasis on the Vitals/Steward project that drowned in corruption and failed to deliver. But what is missing in this conversation is how these pledges will be financed. Nothing is free. The benefits, the initiatives, the capital expend- iture comes out from the taxes collected from each and every one of us—at least from those who do pay taxes. We have never had an elec- tion campaign where pledges to increase spend- ing were balanced out with counter-measures that would raise certain taxes or propose cuts in other areas of government expenditure. Unfor- tunately, it has always been a one-way street— more spending, increased benefits, newer ben- efits, grander capital projects. Until the election is over. We realise that any such conversation is diffi- cult to have. Who wants to hear that income tax, VAT or national insurance will increase? Who wants to hear that importation duties and ex- cise taxes will increase? Who wants to hear that certain benefits will be means-tested or that cer- tain incentives will only apply to those who truly cannot afford or require assistance? The truth is that no one wants to hear such a conversation being played out and politicians shy away from it. The reply politicians give to how this largesse with public funds will be sus- tained is scripted: 'Economic growth will en- sure enough taxes are collected to satisfy all de- mands.' The formula has worked for the past 13 years. The economy has ballooned and government revenue has increased without the need for new taxes. Malta's headline figures are among the best in the EU and although debt has increased astronomically, its burden is more than bearable given the sustained economic growth. But this formula has its limitations. Unbridled economic growth has created a vicious circle that requires even more workers to contin- ue growing. With the pool of Maltese workers practically exhausted, the gaps have had to be filled in by foreign workers. As a result, the is- lands' population increased rapidly and expo- nentially, bringing with it social consequences. The property rental market exploded; property prices have shot up; the pressure on public in- frastructure like roads, sewage, electricity distri- bution network, schools and healthcare services, has increased. Hospital waiting times for oper- ations, appointments and emergency services continue to blight the system. Traffic has be- come a nightmare. Public transport cannot cope with demand. But we also know that despite the unfettered promises made at election time, a different real- ity starts to bite when the election is over. The big urban greening projects announced with fanfare in the 2022 election campaign by the Labour Party never materialised. The Magħtab incinerator, once billed as crucial for Malta's waste management plan, remains but a hole in the ground. The new hospital in Gozo and a regional health centre in the north of Mal- ta are nowhere to be seen. The basic refurbish- ment works on the theatre at the Malta Visual and Performing Arts School started just before the 2022 election, stopped dead just after the result was out. The glitzy metro plans of 2021 remained just that with a new re-dimensioned transport plan only announced now and which will require a further three years of studies, in- vestigations and planning procedures. What this means is that voters were given the impression these projects will happen but when push came to shove, they were forgotten, rele- gated to the bottom of the pile, abandoned or mired in tender issues that have caused intermi- nable delays. One may argue that abandoning certain pro- jects because they are not financially feasible, especially in a scenario where fuel and energy subsidies were introduced to ensure price sta- bility, is judicious. Not really. It is judicious if accompanied with honesty and frankness about the over-promising or the changed priorities be- cause of international turmoil. The prime minister recently boasted about the more than 140 collective agreements signed over the past four years involving public sector workers and which cost more than €1 billion in wage increases. It is good that public sector workers are paid decent wages. But somehow, we never have the conversation as to how many people are engaged with government entities as a political favour and not because they are really needed. So, when politicians from either side start promising everything, we know they will not deliver everything. We know that the growth formula being promised is likely going to cre- ate more social pressure. We know that once the Naxxar counting hall computers finish their work on 31 May, some of the proposals would have already been deprioritised because even this magic growth formula has its limitations. Quote of the Week "When you have a patient on the verge of dying, the doctor makes sure the patient is given more blood first before stopping the haemorrhage to save their life." – Finance Minister Clyde Caruana on TVM's Xtra, defending his fiscal policy to increase debt during the pandemic and the Russian-Ukraine war to cushion the blows from abroad and ensure the economy did not collapse. MaltaToday 10 years ago Cardona and Zrinzo Azzopardi vying for Labour deputy leadership 4 May 2016 ECONOMY Minister Chris Cardona Grand Harbour Regeneration Corporation chairman Stefan Zrinzo Azzopardi appear to be the two main contenders for the vacant post of Labour Party deputy leader following the departure of Konrad Mizzi from the post. MaltaToday is informed that Cardona told Prime Minister Joseph Muscat he intends to run a professional campaign to win the position, holding regular meetings with party delegates. Stefan Zrinzo Azzopardi, on the other hand, is depending on the backing of delegates who were allied to former planning parliamentary secretary Michael Falzon. Apart from his close friendship with Falzon, Zrinzo Azzopardi—who was party president for five years before the 2013 election—is also a close collaborator of La- bour CEO Gino Cauchi. Toni Abela, who resigned the post after being nominated for the position of auditor in the Eu- ropean Court of Auditors and later reneged on the appointment, is keeping his options open. This may also include considering being co-opt- ed to Parliament if Leo Brincat is confirmed as Malta's representative on the Court of Auditors. If Leo Brincat is successfully appointed audi- tor, a casual election will be held 10 days after he vacates his ninth district seat. Candidates must achieve 50% of the quota established in the elec- tion. In the remote eventuality that nobody reaches the quota or nobody submits a nomination, La- bour will co-opt someone to fill Brincat's seat. Tourism Minister Edward Zammit Lewis and Justice Minister Owen Bonnici were also being touted for the post. However, while the former is biding his time, Bonnici has declared that he is undecided about throwing his name into the hat. [...]