[Watch] Gonzi secures confidence vote, but Muscat warns that ‘crisis remains’

But with Nationalist backbencher Franco Debono now openly challenging another Cabinet minister – Carm Mifsud Bonnici – with a motion on justice reform, and with nationwide disgruntlement over the public transport reform still rankling, the road ahead appears bumpy as ever.

Prime Minister Lawrence Gonzi last night defused speculation that he may be considering a snap election, stressing that his government remained committed to safeguard the national interest while slamming the Opposition as “opportunist” and claiming that it is unfit to govern.

Backed by all his 34 MPs, the Prime Minister won a vote of confidence in his government and vowed to persist in ensuring stability, vigilance and good governance against the economic turmoil affecting the eurozone and the world’s financial markets.

Gonzi addressed the House for 45 minutes, introducing the debate on the confidence motion he called last Friday in the wake of backbencher Franco Debono’s abstention from voting with government against Labour’s call for Transport Minister Austin Gatt’s resignation.

In a placid tone, the Prime Minister addressed the House reading off a script that listed the challenges faced by his government since he was confirmed in Office in 2008.

Gonzi’s speech was historical in itself, given the fact that it concerned a vote of confidence a week prior to announcing the 2012 budget.

But the Prime Minister’s message of stability was contrasted by Opposition leader Joseph Muscat, who questioned Gonzi’s ability to govern, referring to issues raised last Friday by Debono.

Muscat said that Gonzi leads a “defective majority” and listed events that showed clear difficulties in his leadership over a number of issues, where MPs dissented from his government’s position.

“This vote will pass, but the crisis remains,” Muscat claimed, as he listed a number of issues that have brought cracks within the government, among which are the introduction of divorce, increased honoraria for ministers, primary health reform, the administration of ARMS, the Delimara power station extension and the public transport reform.

While defending the Opposition’s role in the House by backing government in its approach to handle the troubles faced by Air Malta, and its backing to strengthen the Ombudsman, and reforming the Rent Law, Muscat said that his side however will never back Gonzi in imposing burdens on the people.

Muscat charged at what he defined as a Prime Minister “detached” from the realities people are facing, adding that the resilience shown by Malta over the past two years was down to the Maltese people, and nothing else.

He questioned government’s ability to cope with the increasing demands from the European Union, and warned that on the pensions reform alone, it is clear that the Prime Minister does not merit the confidence vote, given his reluctance to express reservations at the model for reform as proposed by Brussels.

Muscat stressed that he will not reveal his party’s policies yet, adding that these will be known “when the time comes,” fending off a point of order raised by the Prime Minister, who accused him of being ‘politically convenient’.

Later in his speech, Muscat assured all present that his party’s policies have all been costed, but reiterated his commitment to see that working mothers will be granted maternity leave and not lose out on their children’s allowances.

But in his speech, Gonzi kept a constant focus on the economic crisis that has wreaked havoc across the globe, and claimed credit for his government’s ability to weather the storm and protect the country from the direct impact of such crises.

Noting the recent social unrest in Greece, Spain, Italy, Britain and the US, with people taking to the streets demanding better governance, a stop to austerity measures and for the creation of jobs, the Prime Minister reiterated his government’s constant attention to ensuring social protection, even though difficult decisions had to be taken and shouldered.

“The financial storm affected all countries, but our country could ride the wave because of its strong leadership. And I pledged to make my best to see our country sail through the storm... we want to take on these challenges and turn them into opportunities,” he said, adding that “as high as the political price might be, God forbid that the same would happen in Malta... we take no masochist pleasure in taking hard decisions. A responsible person shoulders the burden of tough decisions”.

Governing is not easy, Gonzi said, as he turned to his ministers and MPs who listened attentively to his speech.

“This government’s policies have determined that the Maltese feel the least of the effects of this global turmoil... the last protest was not by demonstrators who had lost jobs, of parents who cannot pay for their children’s education, pensioners whose pension was cut, elderly who did not have free healthcare... but by demonstrators against the new public transport service”.

He took the opportunity to apologise once more for the shortcomings in the reform: “Yes I do apologise again for the service delivered so far... that is why I created a task force today to handle the service”.

Gonzi hit out many times at Muscat for constantly criticising government over the difficult decisions it had to make, while proposing no alternative solutions.

Increasing the utility tariffs was for Gonzi the “most difficult and controversial” decision he had to take in the wake of an uncontrollable spike in the price of oil from US$70 a barrel in 2008 to almost US$150 per barrel that same year.

“We hiked the rates to be able to carry the price of oil. If we hadn’t done that, we would have had great problems in public spending and raised our deficit to alarming levels, endangering the economy,” he said, while hitting out at Muscat for not saying what he will do if elected to government.

“The Opposition says it will reduce utility rates but it is scared to explain how. The Opposition knows that it has to pay for reduced utility rates, and the result of that would be to increase the deficit. Because this is not a one-off subsidy, but an annual appointment. If you don’t have a solution for this, the only consequence is increasing the deficit... increasing taxation to recoup what it loses from one end. You have no idea of what to do. We’ve already gone through the same experience in 1996 when the Opposition removed VAT and replaced it with a system that proved to be even worse,” he said.

The production and supply of energy remains a major challenge for government, the Prime Minister said, adding that major investment is underway to improve the generation and supply of energy in the country and ensure the right infrastructure to face tomorrow’s demand.

On public deficit, Gonzi assured the House that the commitment remains to bring the budget down to a surplus.