Former shipyards chairman John Cassar White interviewed in Illum

In the interview, Cassar White says the government should realise the increase on VAT on tourist accommodation is not wise, and that a contingency plan should be prepared in the eventuality that its decision backfires.

“It’s a budget that achieves the country’s short-term targets but not our long-term goals as far as public finances and the economy is concerned,” Cassar White says.

He even expresses scepticism over repeated claims on deficit-reduction measures. “I think we must take certain promises by politicians with a pinch of salt.”

His biggest concern is the disappointing treatment of the pensions time-bomb. “This budget has not effectively addressed the structural weaknesses of our economy and not enough is being made on the reform of our health and pensions systems.”

The full interview appears in today's issue of Illum.