Let me describe what I remember of Alfred Sant’s 1996-98 administration. The impression I got at the time was of a bumbling administration, muddling through and lurching from one crisis to another. It seemed that Sant and his administration had bitten off more than they could chew and were totally unprepared for Government.
He had promised to abolish VAT because it was wrong for Malta and to restore the previous tax system of import and excise duties and levies. On discovering the hole in Malta’ finances he shot himself in the foot by creating an even bigger hole through the abolition of VAT. Then he found that he could not restore the previous system because of the rules of our major trading partner that is the EU. The EU even forced him to introduce an excise duty on Maltese made goods which never carried any import duties before. He showed that he did not have any plans and policy was made as he went along.
This was not the only misstep. I remember a particular anonymous article in Orizzont entitled “if I were the Finance Minister’. Whoever wrote the article aired the view that if he were the Minister of Finance he would devalue the Lira. This fooled no-one and the article started a stampede of flight of capital. Likewise the then Minister of Finance wanted to re-introduce the Capital Declaration with the Income Tax return. Another flight of capital ensued. Both plans were abandoned.
Then there was the debacle of the increased water and electricity rates. The increases were computed amateurishly creating huge anomalies between the various categories of consumers. These had to be revised. There were several other U-turns which showed that policies had not been thought out before being implemented.
However it was not all doom and gloom. Tourism was, for example, one of the few bright spots of the administration. But these successes were few and far between. That is why in 1998 Sant was voted out. In twenty months he had managed to lose his electoral majority. In other words he blew it.
I need convincing that a Sant-bis will be any better this time around. I have serious doubts.
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3 comments:
It would be unfair to criticise the Sant administration without first mentioning the huge amount of national debt a 1996 Labour government inherited from PN. In Lino Spiteri's biography he clearly states that they knew there was a problem - they didn't know it was THAT big.
The VAT issue I think was one of the gravest mistakes of the Sant administration.
Regarding Tourism, it was quite a feat of achievement considering an Air Malta plane was hijacked in 1997. Such events always cause problems in the tourism figures.
Hehe regarding convincing - I too need convincing sometimes. But I think Labour is a better alternative than Gonzi.
Andre I did mention that Sant found the deficit. I wrote 'On discovering the hole in Malta’ finances he shot himself in the foot by creating an even bigger hole through the abolition of VAT'.
With regards to this election the problems with PN are not being addressed while MLP frankly fails to inspire. The major issues such as Europe and the Euro, have been resolved. This is the time where we can use the election to advance civil rights, culture, education, the environment and our democracy.
This is the best chance for the Maltese to break this stifling and limited two party system.
Well that is where I stand.
Good words.
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