[ANALYSIS] Bernard Grech’s speech: Good punchline, hazy vision

Bernard Grech's response to the budget was full of potential although it failed to present a convincing narrative outlining his plan for the country. 

The Opposition leader frequently mentioned what "a government led by himself" would do, but this was often followed by generic promises like "ensuring that every decision by a future PN government would be based on its impact on quality of life". 

Nonetheless, he did capture the public mood with a few jabs at a fatigued government “without head or tail” and prone to U-turns, and a Prime Minister “secluded in an ivory tower without doors and windows”. 

Grech’s punch lines 

He also cleverly pitted Abela against his own ministers, including the finance minister. 

“The Minister for Finance expressed his astonishment that in the US and China, they already have driverless taxis. I do not know if this was a dig aimed at the one sitting next to you. Because what we have today is a government without a driver, as you yourself suggested in an interview with MaltaToday,” Grech noted. 

Bernard Grech cleverly pitted Prime Minister Robert Abela against his own ministers, including the finance minister Clyde Caruana (Photo: James Bianchi/MaltaToday)

He was referring to Caruana’s warning that decisions like the Villa Rosa local plan change could threaten the Labour government’s credibility and if it ignores people’s concerns, it will suffer the consequences. 

In this sense, Grech had a good script, even if his delivery tended to be long-winded and tiring – he spoke for more than two hours and ultimately required permission to extend his time. This latter situation prompted government Whip Naomi Cachia to agree to an extension, albeit with a sarcastic remark that Grech was more focused on quantity than quality. 

Focus on social wellbeing 

The Nationalist Party leader, however, sidestepped the budget's key aspect – the €140 million tax cut – dedicating a large part of his speech to poverty, mental health, and the social sector. He even touched upon the lack of resources in addressing child abuse and domestic violence. This focus, although often expressed in a tedious moralistic tone, highlighted neglected yet crucial issues. But he also repeated outdated platitudes on the war on drugs at a time when governments internationally are increasingly ‘normalising’ drug addiction and framing it as a health issue. 

It was only toward the end of his speech that Grech “welcomed” the tax cut, while also promising to expand the parent tax brackets to give families with children greater tax relief and reduce company taxes. In short, Grech went an extra mile in tranquilising the electorate that the Opposition will not just endorse the government’s fiscal relief but will offer more.  But while noting that the government tax cut is being introduced in the absence of a plan, it remained unclear whether a PN government would prioritise capital investments over tax cuts. One of the weaknesses of the budget, identified by former Labour leader Joseph Muscat last week, is the way the tax cut was delivered in one blow instead of being split over a timeframe to give the government more elbow space when it comes to investing in capital projects. 

The population quandary 

One noticeable improvement over Grech’s previous speeches was the way he framed his criticism of overpopulation, rarely mentioning foreign workers except to express empathy for those who sleep rough. Instead, he focused on the strain on the country’s infrastructure due to the population increase. He also government’s economic model, which he described as one where the sole focus is “to generate internal consumption, increasingly based on a continuous rise in population, cheap labour, and construction” despite the pressure it creates on infrastructure and well-being. 

One noticeable improvement over Grech’s previous speeches was the way he framed his criticism of overpopulation, rarely mentioning foreign workers except to express empathy for those who sleep rough (Photo: James Bianchi/MaltaToday)

While this critique avoids xenophobic or racist overtones, it also overlooks demographic and social realities, which inevitably drive a demand for foreign labour, especially in sectors where Maltese workers are no longer interested in working. Neither does he convincingly rebut the argument that without foreign workers Malta would be poorer. 

Statistics galore 

Grech attempted to impress by citing study after study, though sometimes giving incorrect interpretations. For example, when referring to a Central Bank report showing that the top 10% hold four times as much wealth as the bottom half of the population, he claimed the income disparity between the highest and lowest earners is among the greatest in Europe. However, the CBM report also states that, despite this rise in inequality, Malta’s wealth Gini coefficient – a measure of inequality – has only increased slightly, from 0.54 in 2010 to 0.59 in 2023. 

The CBM report states verbatim: “This figure remains well below the euro area average of 0.72, positioning Malta as the third least unequal economy among the countries surveyed by the Central Bank DWA.” 

Grech attempted to impress by citing study after study, though sometimes giving incorrect interpretations (Photo: James Bianchi/MaltaToday)

Moreover, Grech showed a limited understanding of economics when he criticised the government for increasing debt from €5 billion in 2020 to €10 billion, disregarding that, despite heightened spending during the pandemic and on energy subsidies to cushion the impact of spiking international prices, Malta’s debt at 50% of GDP remains well below the 60% threshold set by the EU.  

Instead, Grech casts doubts on EU approved statistics. “The debt is not a percentage which the government can play with, particularly in suspicious revisions to statistics, which the government published in an attempt to paint the situation in a good light,” he said.  If true this would be a very serious matter as it means that the National Office of Statistics is colluding in fraud.   

A new port in Gozo 

And while the Opposition is right to question the government’s priorities, its aversion to public spending does not bode well for its plans to invest in public services, public transportation, and even a new “alternative port in Gozo.” 

Although, Grech correctly criticised the government for postponing transport-related decisions and presenting one plan, roadmap, and vision after another, he himself proposed considering the construction of an “alternative port” in Gozo, admitting in a press conference that “serious studies would need to be conducted to ensure that communities and the environment will be respected.” 

Although, Grech correctly criticised the government for postponing transport-related decisions and presenting one plan, roadmap, and vision after another, he himself proposed considering the construction of an “alternative port” in Gozo, admitting in a press conference that “serious studies would need to be conducted to ensure that communities and the environment will be respected”

In reality, the environmental sustainability of such a project depends on its location and scale. Proposing this without specifying a location risks raising concerns among environmentalists about the coastal impact while also raising developers’ expectations, who may see this as an excuse to build a new coastal town around the new infrastructure. 

Ultimately, despite his imperfect delivery, Grech managed to land a few effective blows, suggesting the Opposition has identified the government’s major Achilles’ heel: the erosion of its authority. However, Grech still lacks a convincing narrative to persuade the electorate that he has a better plan for the country.