Editorial | Wednesday, 17 September 2008

Get real and you shall be forgiven

As well meaning as Tonio Fenech may have been in consulting the public before drawing up his proposals for the 2009 budget, there are some unpleasant scenarios in the economic climate from which no modern way of doing politics may escape.
There can be no recommendation, be it from the public, social partner or otherwise, that indicates how government may bypass the dark economic undertones biting into Europe this year.
This is no longer a matter of what can be done, but rather of what should have been done. But as unfair as it may be to put electoral interests before those of the country, one may at times be better off in accepting this situation as it is: a sad reality, one that we will have to live with until Malta truly becomes part of the EU.
Ultimately, had the PN decided not to over-promise before elections, they would have lost to MLP, who would in turn have attributed their victory to an equally open-handed manifesto. The same argument could have applied had Labour come out victorious last March. The situation is not expected to end until the new way of doing politics is also exercised during electoral campaigns.
Deficit figures will not improve this year, which means that in some way or another, next year’s budget must make up for both this year’s missed target as well as those of 2009. This can only be done in three ways: increase revenue, decrease expenditure, or both. Either way, if we are to remain on track, one should not expect a budget that is both responsible and generous this October.
Yesterday, the Finance Ministry issued a glossy leaflet that we shall all be receiving by post. The publication will help us assess proposals that are to feature in the next budget document. Printed on chlorine-free paper, the leaflet implies a message of responsibility, sustainability and achievement. Each section is coded by a different colour indicating different sectors – be it enterprise, ICT, social policy or otherwise. Each of these sections features two shortlists, the top one highlighting what has already been achieved, and the bottom one a sneak preview of what we are to expect by the end of October.
Invariably, the top shortlist enlists initiatives whose cost may be closely related to a vote-snatching strategy: income tax reductions, the Blueskies scheme, and the discounting of Gozo-ferry ticket rates, to name a few.
In the bottom shortlist, however, the proposals seem more rational, more responsible and more directed towards Fenech’s dream of creating a sustainable economy. A one-stop-shop aiming at empowering start-ups and SMEs, for example, is a welcome proposition. It would be hard to oppose strengthening the ICT sector, or assistance to students in pursuing studies abroad.
It is not what is written in the proposal shortlist that needs to worry readers; but rather, what has been omitted.
There is no feature on the promised tax cuts for example. No mention has been made on the Gozo Eco Island promise. The idea of introducing new sources of energy has been left vague. One may of course argue that government may implement its pre-electoral promises over a span of five years, and that we cannot expect all electoral promises to be fulfilled at once.
But now that the electoral hullabaloo is over, and it is more than likely that we are governed by this administration for at least the next four and a half years, it would not hurt if within the ministry’s fully blown PR exercise, the messages, implications and hard facts related to this budget are clarified without further anticipation. This will not lose the PN any votes in 2013.
“Forget the tax cuts”, we would have liked to read; or an explanation on how government expects to generate record revenues from tourism when a large number European tourists coming to Malta are now clearly cash-strapped.
We would have liked to see a clear answer on alternative energy, seeing that surcharge rates are not expected to fall any time soon. We would have liked to be told how youths will be spurred to take up enterprising activities – on how to take up careers that generate new ones. We would have liked to see whether government has made a proper analysis on Maltese savings, and in turn, create ways of building confidence for further private investment.
Old school politics and good management aren’t necessarily the best of friends. One only hopes that Tonio Fenech’s modern management style does not only extend to healthy consultation but also to achieving targets without resorting to impress with over-ambitious projections, or half-baked PR campaigns.