Issue link: https://maltatoday.uberflip.com/i/210069
5 News maltatoday, WEDNESDAY, 13 NOVEMBER 2013 CONTINUES FROM PAGE 1 Muscat: pro-business Labour delivered budget for middle-class IN reply to accusations that the budget had not addressed job creation, Muscat said that Malta Enterprise had now approved 30 major projects involving foreign investment – "and none of these companies are Brazilian", he quipped with reference to the infamous claim by former prime minister Lawrence Gonzi on the resettlement of the multinational from Libya to Malta, which had only opened a front office and moved away a few weeks later last year. Muscat also set much store in saying the budget had addressed all sectors of society, especially the middle class "which was abandoned by previous PN governments". "This is a budget that strikes a balance between economic growth and social needs. This is a government committed to wealth creation and the difference lies in how it is distributed fairly among all people – the well-off, the low-income earners and the middle class, on which the country was built." The budget presented last week was aimed at encouraging people to enter employment and the tax cuts included in the budget were aimed at reaching this goal, he said. "We will reward hard work and we will work the hardest of all," Muscat said, adding that the budget measures would steer people away from the trap of social welfare. He also noted that the government had reduced the deficit below the 3% threshold in just eight months, and slammed the Opposition leader for failing to recognise the government's success in reining in the deficit which had spiralled out of control under previous PN administrations. Pointing out the government's success in controlling unemployment, Muscat said that the European Commission was projecting the creation of 3,400 jobs next year, well above the 1,800 average under PN administrations. He also noted that inflation levels were also falling, but greater efforts were needed because some hard working people were still finding it difficult to make ends meet. Insisting that his government was pro-business, Muscat said that the private sector was the economy's motor and the creation of wealth depended on the success of business. Slamming Busuttil's "illogical and contradictory," reaction to the budget, Muscat said the PN's reaction to the budget lacked a serious economic analysis. "This government has an economic plan," Muscat said, adding that his finance minister's abilities were an asset to his government. Dissecting the Opposition's criticism that the budget was an electoral one, aimed at winning the 2014 European parliament elections, Muscat said: "I will not reply now, I will reply in next year's Budget speech if everything goes to plan." Describing Busuttil's criticism as "childish", Muscat said his government had not introduced any new taxes and that the tax burden on the people was less than that of the last budget presented by the PN government. "The government will rake in €21 million from increases in excise duties but in return we will give the people up to €60 million in new measures," Muscat said. He added that the PN had projected to take €26 million in taxes more than the budget presented last week projected. This was revealed by the financial projections presented by Simon Busuttil the PN in the electoral campaign. "The opposition has zero credibility," Muscat said. Humpty Dumpty opposition He mocked Busuttil when he reminded him of his warnings that a Labour government would result in the country requiring a bailout. "Instead I am here announcing reductions in the energy bills when the Opposition leader was the one who asked for a bailout for his own party. If anyone lived beyond his means it was the Nationalist Party which has failed to pay its own employees for months." Describing Busuttil's criticism as "amateurish" the prime minister said his speech had been littered with inaccuracies and lies, contradicting the actual increased allocations for such budgetary votes as those of the National Commission for Persons with Disability, IT in schools, health programmes and local councils. Given Busuttil's economic ineptness, he could only resort to "personal insults," Muscat said. On energy, Muscat said that Enemalta had been on a downward spiral before Labour took office and explained that through the government's agreement with the Chinese government, the state utility was no longer a dead weight and would save thousands of jobs. Comparing the opposition to Humpty Dumpty, Muscat said that the "Opposition's arguments and criticism of the government's energy plans broke into a thousand pieces." He added that families consuming less than 2,000 units would enjoy the new reductions "over and above" the current 25% eco-reduction they currently enjoy. On Busuttil's admission that the previous PN government was wrong in increasing energy tariffs in 2008, Muscat said: "the Opposition leader is not sorry for having introduced the increases, but for not having introduced the increases gradually." Muscat also shot down the Opposition's electoral pledge to introduce night tariffs which he said auditors KPMG had clearly described as unfeasible. Moreover, the prime minister said the report commissioned by the former administration had cost €15,000 and called on the Opposition to pay the bill. On health, Muscat said that the government had a long and strenuous road ahead of it to get the sector back on track. Currently, 35 medicines were out of stock, down from 116 in April, Muscat said. "This does not mean that we will rest on our laurels. It's still a large number Joseph Muscat of out-of-stock medicines and we will do our utmost to bring the number down." He added that upon embarking on his health review, former PN health minister John Dalli had encountered double payments for supplies at Mater Dei, supplies worth €50 million which were never delivered and the confusion in administrative and management departments at the hospital. "We have discovered up to €1 million in equipment which was totally forgotten and locked in a room," Muscat said. Muscat said that he welcomed the Opposition's initiative to have a bi-partisan approach in the health sector and insisted his doors were always open. On the environment, Muscat said that he was prepared to discuss the sector with NGOs who recently announced a protest against over development. "However, the Opposition cannot expect to be credible in its criticism," Muscat said, explaining that the controversial Mistra development permit could not be denied by MEPA because an outline permit had already been issued under the previous PN administration. While slamming the Opposition's "sudden" realisation of the problems facing the south of the island, Muscat announced the creation of a committee on the sustainable development of the south, which will include the government, the Opposition, church members and civil society. Citizenship scheme On the controversial IIP citizenship scheme, Muscat said he was still unsure what the Opposition's position was. "I respect whoever is against the programme but it is still unclear what the Opposition's stand is." In a somewhat murky criticism of the Opposition's stand, Muscat said that under PN administrations had approved up to 7,000 citizenship applications in previous years. On the Opposition's accusation that the company chosen to run the Individual Investment Programme (IIP), Henley & Partners might have a close relationship with the Labour Party, Muscat revealed that former finance minister Tonio Fenech had signed a testimonial praising the company's work and praising their "unrivalled" expertise in their advise on residence and citizenship. On the Opposition's threat to repeal the programme when in government, Muscat quoted the Attorney General's recommendations that the removal of citizenships would "run into serious Constitu- tional problems." He added that if the Opposition would one day repeal the citizenships granted, it would have to introduce new taxes to pay for the hefty damage suits it would face. Drug decriminalisation On education, Muscat said he was surprised by the Opposition's silence on stipends, adding that his government would "increase stipends next year, the year after and the year after again". Muscat also "challenged" society to judge itself, whether drug laws were just and hinted that the government was prepared to decriminalise drugs. Admitting that he was "torn" on the issue given that he was a parent, Muscat said that the issue should not be politicised.