Joseph Muscat reiterates 'underdog' claim

Labour leader Joseph Musact says the party will be the underdog in forthcoming elections because the government is employing tactics of 'fear.'

Labour leader Joseph Muscat
Labour leader Joseph Muscat

Addressing the Labour Party faithful in San Gwann, Opposition leader Joseph Muscat maintained that his party will be the "underdog" in the general elections. He also welcomed the presence of former nationalist activists within Labour's ranks.

"There are many Nationalists who are hurt at the way the government is running the country. There are people among us here today that up to a few months ago were active in the Nationalist Party. However they do not identify themselves any longer with the PN because they have been abandoned," Muscat said

In anticipation of the forthcoming general election Muscat said "I mean it when I say we are the underdogs."

He said the GonziPN system is ready to do anything to install fear in people. Muscat explained that employees in various sectors are being told that they will lose their job if Labour is elected to government.

However he said "your job will be safeguarded by a new government. What we will offer is hope and not fear. We will not use this against anyone. Hope will attract people towards this movement which will toil to make this country a better place for our children."

In defence of the 'youth guarantee' proposal, the Opposition leader described the plan as "the foundation of our policy."

He said the plan will be a guarantee that ensures a better future for all. "If we are elected to government we do not want to leave debt but jobs and wealth. The 'youth guarantee' will ensure the future of our country for the next twenty, thirty years. We do not look at the next election but we look at the next generation.

Muscat explained that 16-year-olds will be encouraged to voluntarily take up training and education after six months from leaving school. "This will mean that less people will be dependent on social services and less people will end up in jobs that do not satisfy their needs."

Echoing the US Presidents Barack Obama's calls for economic growth in the eurozone, Muscat said the party will ensure that economic growth and the creation of jobs will be a priority together with controlling the deficit and national debt. Muscat said this can be achieved by having a skilled workforce.

"Nobody is born without skills, abilities and potential. We will succeed when young people show off their skills and their acquired abilities. They will have no need to plead for favours from politicians but they will get what they deserve without them needing to ask for anything."

On Air Malta, Muscat said that while workers of all political beliefs were side-lined and given the boot, the government did not have any qualms in employing foreigners on huge salaries.

Muscat reiterated that the self-employed have a central role to play in the Labour Party movement, saying that commercial activity is vital in the generation of jobs.

The Labour leader also stood up for self-employed who are facing charges over unpaid VAT returns. He asked whether it is wise to have these persons in prison where they will cost the state €70 every day. He said these persons should be encouraged to generate more wealth and not face criminal charges.

He said the penalties and interests charged by the government are leading many small businesses to bankruptcy.

Muscat said up to 120 small businessmen had been imprisoned because they had defaulted on their VAT payments. While saying that VAT should be paid by all, Muscat said "this is an act of vindication not of justice. The problem is not the VAT bills but the problem lies in the penalties and the interests the self-employed have to pay. This is institutionalized usury."  

He added that the family has been the most abused term in the last year. "The Prime Minister Lawrence Gonzi said the family will be at the centre of government's policies. Go tell that to the families of self-employed persons in prison over VAT issues. Persons creating jobs are being treated like criminals."

"This is the arrogance the movement will never accept and the country cannot take it any longer. Workers and employers have not always looked at each other favorably but they are partners in creating jobs and wealth," Muscat said.  

Muscat also questioned why the Prime Minister was not aware of the stagnant situation for business in Gozo despite having two Gozitan ministers in his Cabinet.

On energy, Muscat asked whether the government shares the same thoughts as the Enemalta executive chairman Louis Giordimaina who this week claimed that the generation of renewable energy in Malta is "almost impossible."

He also shed doubts on the declarations that the Delimara power plant extension tests will be extended.

In reference to the Richard Cachia Caruana saga, he said the people leading the country should be loyal to the country and not to some éminence grise.

"Hearing the government's recent statements it almost seems that the country cannot do without Cachia Caruana," Muscat said.

"Lawrence Gonzi is taking umbrage that Labour is 'believing' what an American official is quoted as saying the cables," Muscat said. "However the Nationalists were the same people who 'believed' a North Korean press agency in portraying me as having supported Pyongyang's missile launch."

Muscat's address was preceded by short speeches by the PL deputy leader for party affairs Toni Abela and candidates David Farrugia Sacco and Ian Borg, who joined the Labour leader in expressing their condolences to PL deputy leader Anglu Farrugia following the death of Farrugia's father. 

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Every administration tries to reduce the national debt. The more so now that the EU is insisting that the debt should not be in excess of 60% of GDP. One way of aiming at this figure is to invrease the GDP but unfortunately we are living at a time when hardly any economic growth is envisaged in the EU. And since our trade is mainly with EU countries and most of our tourists are sourced from there, it is fa from easy to expect Malta's economy to keep growing in the next couple of years. The other way is to reduce expenditure and/or increase revenue, thereby reducing the budget deficit. From then one can aim at a budget surplus which would enable the exchequer to reduce borrowing - albeit we borrow from the locals who get a good income from their savings. Of course every coin has two sides. Borrowing less will results in less dividends in Maltese pockets; the excheuer ploughs back 15% of this amount by w2ay of tax at source. Reducing public spensing will result in less work for our labour force in the construction and related industries. Increasing revenue is the easiest option for any administration. But introducing new taxes or raising existing ones will bite even further into people's pockets. Unemployment figues would start to rise again. So it is not easy for any administration to reduce the national debt.