Matthew Vella
Labour’s chief spokesperson on finances Charles Mangion launched a stinging attack on government’s stewardship of the economy, accusing Lawrence Gonzi of failing on his economic strategy.
Mangion said capital spending had decreased in 2009 to levels that were lower than those of 2007, despite promises for greater spending on projects.
The government spent €169 million in productive investment in the first nine months of 2009, which is €9 million less than the spend of 2008.
“It’s no wonder capital projects, roads and drainage works have fallen behind,” Mangion said. “It’s the opposite of what happens in other European countries – this investment is necessary to maintain competitiveness and aid the labour market.”
Mangion said the government also collected €22 million less in VAT, due to the increase in energy bills, which consequently led to less consumer spending.
“In turn this has meant many small businessmen suffering the consequences of reduced spending. While other European governments increased money in people’s pockets, the government is pressing even more upon Maltese and Gozitian families,” Mangion said.
“Now the prime minister is not even capable of guaranteeing a reasonable period in which gas, electricity and water prices will not escalate. These were the greatest contributors to the phenomenal rise in inflation in our country – the highest in Europe on essential items such as food and medicine.”
The Labour MP added that despite saving a massive €40 million on tariffs, owing to the reduced capital spending, and lower terminal benefits for shipyard workers, the deficit had still risen by €75 million to €334 million, four times more than what government had projected last year.
“Government brings up the excuse of an increase in social benefits, but according to the latest statistics, the spend on social benefits was €10 million less than last year’s,” Mangion said.
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