‘Muscat is already damaging the country in opposition, let alone in government’- Fenech

Tonio Fenech tonight once again demonstrated his political savvy, deflecting questions and turning arguments on their head in a press conference style debate organised by the Broadcasting Authority.

According to Fenech, Standard and Poor’s rating downgrade is down to two factors. “The budget did not go through. This has brought about uncertainty in the country. Secondly S&P is factoring in the debt burden that Labour's energy proposal will bring on Enemalta.”

“This situation could have been prevented. Joseph Muscat did not want to hand the Maltese population the benefits of the budget. This shows how even the smallest decision can have a ripple effect on the country's economy,” Fenech said.

Warming to the theme Fenech continued, “the 2013 budget was conducted under extraordinary circumstances. I can understand the fact that the opposition votes against a budget in normal circumstances, but it was clear that the budget was not going to make it through Parliament. In democratic countries what normally happens is that the opposition help toe the line.”

“The Prime Minister asked for cooperation with the budget. When Joseph Muscat was asked to put the national interest above partisan politics, he did not step up to the plate. Joseph Muscat is already damaging the country in opposition, let alone in government,” Fenech exclaimed.  

Pointing out the incongruence in Muscat’s position Fenech said, “despite agreeing with the budget, Joseph Muscat took the irresponsible choice.”

Defending the increase in Malta’s deficit, Fenech stated that government spending is a means to an end.

“The deficit in itself is not a worrying issue. Debt to GDP is the worrying factor, and sixty percent is the ballpark figure,” Fenech said.

“I want to emphasise that debt in itself is not a negative thing. To invest in the country’s economy, debt has to be taken on. The European Commission has actually encouraged the use of government spending in order to stimulate the economy,” Fenech said.

Responding to accusations that the government had dragged its feet on certain reforms, Fenech rebuked, “the European Commission has pointed out the growth of our financial sector, and we have to be careful that this does not create economic imbalances. We welcome the Commission’s comments calling on the need for a balanced economy.”

“We have already undertaken important reforms such as those to Air Malta and the dry docks. Every legislature has to choose certain priorities,” Fenech said in response to accusations that the government had dragged its feet on certain reforms.  

“The framework for keeping Enemalta above water has already been put in place. Enemalta is committed to paying off its debt year by year,” Fenech said in reference to the special purpose vehicle agreed upon last year. We know how we are going to pay Enemalta’s debt. The solution is not to load more debt onto Enemalta and then resign.”

Turning to the government’s own energy policy, Tonio Fenech defended the use of heavy fuel oil.

“The government has always opted for cleaner energy options. We converted the old coal powered Marsa plant to run on oil. The new power station uses the cleanest oil in its category,” Fenech pointed out.

Explaining how the government had already done its homework on the gas pipeline, Fenech said, “without EU funding in place, opting for the pipeline would have actually resulted in energy tariffs going up. We decided to go for the gas pipeline when the European Commission confirmed that it would help us financially. Labour’s proposal will isolate us from the EU.”

“A lot of experts have said that the project is too ambitious or more studies need to be carried out. A 25% reduction sounds nice, but is it realistic? Publish! What is the PL’s problem in showing the methodology behind their figures,” Fenech said.

Questioned on whether he would resign should the PL’s project prove successful Fenech retorted, “I cannot resign because I will not be in government.” Seizing his chance to take control of the agenda, Fenech coolly whipped out a tablet pre-loaded with images of successful PN projects, firing off numerous figures related to these projects.

Highlighting the difference between the PN and PL’s approach to economic management, Fenech reiterated the PN’s commitment to reducing income tax levels. “We will leave more money in your pockets so that you can make the right choices. The PL is trying to give you a €100 reduction in your tariffs, and that is the be all and end all of their policy. Our battle against social exclusion comes from providing a stable economy.”