The 2020 Budget failed to address Malta’s institutional, social and environmental challenges and once again fell short of any ideas on how to identify new economic niches, the Opposition leader said on Monday evening.

Moreover, those at risk of poverty had almost reached 90,000, partly due to government’s heavy reliance on importing foreign cheap labour. 

Adrian Delia levelled criticism in parliament in his reaction to the 2020 Budget speech delivered last week by Finance Minister Edward Scicluna.

“Joseph Muscat’s metropolitan Malta is one in which disparities are on the rise,” the Opposition leader said, when giving his overall evaluation of the six years of Labour government so far. 

The Labour administration was anything but one based on meritocracy, transparency and accountability.  

“We want an economy which distributes wealth in a socially just manner,” he said. 

“A PN government would fight corruption, create opportunities for everyone and make us proud of being Maltese once again,” he said.

In his address, Dr Delia noted that workers were not reaping fruits of the economic growth, which, he insisted, should be measured through social and environmental wellbeing rather than gross domestic product. 

“While the economy grew by five per cent, wages only increased by 1.1 per cent,” he remarked.  

The economy can thrive if we increase the skills of Maltese workers and create new economic sectors

Dr Delia said that between 2008 and 2012, Malta had higher economic growth than the EU average despite not relying on cheap foreign labour.

“The economy can thrive if we increase the skills of Maltese workers and create new economic sectors,” he said. 

Touching on the main challenges ahead, he criticised the government for not taking measures to address Malta’s declining reputation in the financial services sector and the risk of being blacklisted, in the wake of the Moneyval report

On the banking sector, he said that the government could not absolve its own responsibility by blaming the regulator.  

“The government should give us comfort to say what measures were being taken to strengthen the banking sector, just like the efforts it is doing to sell passports worldwide,” he said.

“The government is blaming these problems on its own successes but it has no such problems to give a €150,000 golden handshake in the MFSA,” he pointed out. 

Dr Delia called on the Prime Minister to take the bold step to “remove those around him causing such harm”.

Prime Minister Joseph Muscat listens attentively as Adrian Delia criticises the budget. Photo: Chris Sant FournierPrime Minister Joseph Muscat listens attentively as Adrian Delia criticises the budget. Photo: Chris Sant Fournier

The Opposition leader also urged Dr Muscat to heed the warnings of banks like HSBC and APS, and constituted bodies like the Chamber of Commerce and GRTU to safeguard Malta’s reputation before it is too late.

Malta’s institutional damage was also being caused by government’s blatant manner of buying backbenchers’ silence by appointing them at the helm of public entities. While noting that such conduct had even been flagged by the Standards Commissioner, he challenged the Prime Minister to repeal this measure, which had been enacted by amending the law in 2013.

On the issue of housing, the Opposition leader said that affordability had become an issue. 

“According to KPMG, housing increased by 25 per cent. Can the Finance Minister explain how the 1.1 per cent increase in wages compensate for this?” he asked. 

Dr Delia noted that government’s plan to give a loan to raise enough funds to make a deposit was testament to the seriousness of the situation. 

Dr Delia lashed out at the government on the manner in which it had refused to take on board the Opposition’s motion to declare a climate emergency. He called on the government to make the necessary amendments to the motion, before taking a vote in order to reach consensus. 

Taking a dig to the prime minister’s slogan of wanting the make ordinary people rich, he said the ones who had thrived were shady foreigners and oligarchs with no connection to the island, who bought a Maltese passport. 

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