Deficit target is government's biggest test, ‘optimistic’ Muscat says

The money injected into the economy through the reduction of water and electricity tariffs will be equivalent to seven years of budget implementation, Prime Minister Joseph Muscat said today.

Addressing the party faithful at a Labour activity in Zurrieq, Muscat said “the optimism in the country” was being felt by all. Kicking off his speech on the closure of the Marsa power station - ahead of the switch to gas next year - Muscat said his government did what the previous administrations failed to do in 27 years.

"They prophesied themselves as the experts of the European Union and yet, it was them who accumulated €3 million in fines due to the delayed closure of the polluting Marsa power station. We were then elected and in two years did what they could not do," he said.

In two weeks’ time, he said, businesses will start saving up to €70 million as the utility tariffs reduction for business kicks in. Muscat said the switch to gas was “the biggest environmental contribution” any government could make.

The Labour leader focused a chunk of his address on the government's energy plan, reiterating that it was honouring its electoral pledges of reducing utility bill, switching to cleaner energy and Enemalta's turnaround. He said, that against what the PN is saying over fuel prices, the price of petrol was 6c cheaper than the EU average.

Hinting at a possible lifting of the excessive deficit procedure, Muscat said the government was edging closer to meeting its deficit reduction target, confirmation of which is expected by the European Commission in the coming weeks.

"Meeting this target would be the biggest achievement of a Labour government. In two years, we would not only have reduced bills, taxes and increased services, but we would have managed to reduce the deficit and debt burdens for future generations," he said, insisting that such a result was possible through economic and social reforms.

A fiery Muscat praised the Individual Investor Programme - otherwise known as the citizenship scheme - saying that it was “the envy” of other countries.

Taking a dig at Simon Busuttil's catchphrase “stench of corruption” - with reference to the €4.2 million Cafe Premier bailout - Muscat said “the stench was coming out of the Pandora's box that has been opened.”

Reiterating that individuals coming forward would be protected under the Whistleblower's Act, Muscat urged people with information on Gozo's free construction case to come forward.

Revealed by MaltaToday, a whistleblower has already come forward, revealing how a scheme involved private Gozitan building contractors who were commissioned by Anthony Debono, who was employed at the Gozo ministry, to carry out cement, concrete and construction works on quarries, private homes, roads and garages to constituents at no cost to them. 

Debono was Gozo Minister Giovanna Debono’s husband. 

No tenders were issued for the work carried out and neither did the contractors have a letter of acceptance to show for the work done. 

To be paid, the private contractors would have to invoice the Gozo ministry on work which they did not carry out but under other projects that falls under the remit of the works department of the Ministry for Gozo, where Anthony Debono was in charge. 

All the material for these works was provided by the Gozo ministry itself – including cement, stone and metal mesh.