Finance minister dispels Franco Debono factor on waning business confidence

Finance minister Tonio Fenech has disputed the effect of Nationalist MP Franco Debono's open rebellion against the government, as being conducive to a lack of business confidence by investors fearing an impending election.

With parliamentary votes suspended over the past five months since Debono first sounded his warning that he would withdraw support for the government, shadow minister for the economy Charles Mangion said the prime minister's questionable command of his one-seat majority was sowing some uncertainty in business circles.

"I've had people ask me... is an election coming, is government staying on? They consider waiting before investing further until a new government is in power. The element of instability is there and it cannot be strengthening confidence. The government must go for an election," Mangion told a small audience attending Bank of Valletta's networking conference at the Excelsior Hotel.

Finance Minister Tonio Fenech rebutted the perception of 'economic uncertainty' precipitated by Debono's parliamentary unruliness, saying that investors' confidence could only be dented if they were unsure of what a forthcoming government would bring.

"Investors know Nationalist governments are pro-business. On the other hand Joseph Muscat has been trying to convince investors that Labour will be 'safe for business'. An impending election does not influence this level of confidence: Italy is always going through parliamentary elections, and investment does not stop there. What businesspeople ask is if they will still see a stable economic climate after an election."

Fenech added that it was more likely that Labour's secrecy on its forthcoming economic programme for the election was what was sowing uncertainty amongst entrepreneurs. "The less Labour speaks in clichés, and the more it gives us facts about the way they intend stewarding the economy, the more certainty entrepreneurs will have. Even the government managed to pre-empt the slowdown before a budget by launching pre-budget consultation periods, allowing investors to know they will not be experiencing any shocks."

Parliament will be voting on the Budget Measures Appropriation Bill - a money bill that requires a majority - on 9 May, Europe Day. The law will put into effect the 2012 budget measures. But the bill has been postponed by Leader of the House Carm Mifsud Bonnici over fears that Debono might vote against the bill. If the MP abstains, it will be Speaker Michael Frendo's casting vote that will allow government to survive the crucial vote.

The bill must be passed by the 14 May.