15 - 21March 2001

The writing is clearly on the wall

The results of last Saturday’s local council elections have sent the government a clear warning: listen to what the people have to say. The results showed the administration that the Nationalist Party’s ride “on a wave of public support” is not what it was two years ago.
The Prime Minister, speaking after the results were announced, said he was satisfied in the present circumstances. There is no doubt that the government was disappointed with the result. Not only did its lose a considerable number of votes but the Labour Party made substantial gains. The increase in voter turnout could be taken as a vote of confidence in the local councils, however this increase was registered among Labour voters. What is more worrying for Dr Fenech Adami’s administration is the percentage of those who did not vote last Saturday, the majority of which come from PN strongholds – Swieqi and Gzira especially.
It is only natural, Dr Fenech Adami said, “in any democracy for every legislature to suffer in the local elections mid-way through its term of office”. He went on to add that the government has to take certain steps in the national interest and therefore “we need to keep our feet on the ground. Any changes which have to be made in the national interest cannot be stopped for the sake of votes”.
Very true, however, the Nationalists have always made the mistake of hardly ever listening to what the people have to say, in particular the business community. One can give various reasons to explain why confidence in the government has subsided mid-way through its term of office.
First, the government has emphasised more on national issues – such as membership of the European Union – rather than local matters. While the government is striving ahead with its bid to become an EU member, it has still not managed to rein in public expenditure, generate economic growth or stimulate the workforce. Why equate a national issue with the local council elections? It does not make sense.
The government appears to only ‘remember’ its voters when national elections are round the corner. It is here that the Labour Party has gone one step better than the Nationalists – it has taken care of its grassroots members and last Saturday’s turnout is evidence of this. By making their presence felt on a local council level, the Labour Party is setting the agenda for the next general elections. If Labour proves to be capable of performing well, the government is in for a much more difficult ride than it expects.
Secondly, the introduction of fringe benefits has only further distanced the middle class. They are no longer willing to support a government that over the past two years has attacked their wage packet instead of doing its utmost to curb blatant abuses and tax evasion by certain categories of professionals. The constituted bodies over the past weeks have heavily criticised the government for introducing taxation on fringe benefits because this new tax only serves to disincentivise workers. The Nationalist Party knows only too well that the majority of its voters are middle to upper class workers, ie businessmen and management. If Dr Fenech Adami’s government is willing to ‘harass’ it voter base, it is signing its own death sentence.
There are other warning signs that the government has failed to address. The governor of the Central Bank, Mr Michael C. Bonello, did not mince his words: the time of reckoning has come. People are living beyond their means. Something has to be done.
It does not take the governor of the Central Bank to tell businessmen that something is wrong with the Maltese economy. They know that. What they would like to hear from the government, however, is that something is being done to give businesses a fresh boost of economic activity. They want guarantees that negotiations with the EU are being done in a transparent manner and the bitter pill they have to swallow in the short-term will be exactly that – short-term treatment. They want the government to keep its promises. Yet more than anything else they want the government to take action.
The government is now in a position to take stock of the situation. It should not look for lame answers to justify the Nationalist Party’s disappointing show last Saturday. Dr Fenech Adami and his Cabinet have been given a chance to make amends. Hopefully, the will heed the people’s warning.