1998 Budget: a step in the right direction. - Moody's

The Prime Minister Dr Alfred Sant was correctly reported in today's The Times (2 February 1998)to have discerned a strategy in the current media attack on Government which is "being employed to disrupt the Labour Government". It was obvious that Dr Sant was NOT attacking the press but the news management of The Times and the relative exercise in massive mendacity indulged in, simultaneously, by the Nationalist Party media.

Dr Sant was also correctly reported to have added: "They are doing it in an anti-national and anti-democratic way. They try to confuse the people's minds and one of the prime participants of this is Fenech Adami himself".

The Times, unfortunately, appears to have been roped in for this political offensive based on a deliberate attempt to misconstrue Moody's replies to questions put to Moody's analyst Ms Hanan Amin-Salem.

An identical twist to Ms Amin-Salem's reply appeared in In-Nazzjon's report penned by Pierre Portelli and in those of The Times'Natalino Fenech. It was evidently a concerted effort to put words on Ms Hanan Amin-Salem's lips .

"The articles (on VAT and the EU) were really misconstrued", said Ms Amin-Salem to KullHadd's Joseph Muscat (see KullHadd of February 1, 1998).

It emerges quite clearly that an orchestrated attack has been unleashed in the sound and print media with certain avidly anti-Labour journalists willingly acting as lynchpins.

The Prime Minister succinctly exposed this blatant manipulation of the news in this way: "The Nationalists try to develop an item of news manipulated by The Times, which has now seemingly become an extension of Radio 101, and other newspapers, so that information is twisted in a way to make it sound credible."

On January 27, The Times' banner headline read: "After July 1997, the country's credit rating started to deteriorate - Moody's analyst". The leading article was signed by Natalino Fenech who wrote: "A proposed review of the rating was prompted by, among other reasons, the removal of VAT and the freezing of the EU membership application".

This assertion, later belied by Ms Amin-Salem, was repeated almost verbatim on the same day by Dr Fenech Adami: "Moody's stand was clearly motivated by the removal of VAT and the freezing of Malta's EU application."

The Opposition Leader repeated this two days later (January 29), and as quoted in The Timeslinked his assertion that "Confidence in the country had been lost" to Moody's credit rating.

On the morrow, The Times quoted Dr Fenech Adami who again described Moody's statement as inferring that Moody's "was in the process of reviewing Malta's credit rating for possible downgrading".

A look at what Moody's Hanan Amin-Salem actually said will clear the air, put people's minds at rest and justify the Prime Minister's criticism of inspired articles.

Said Ms Amin-Salem: "The budget that was announced in November of last year (1997) is certainly a step in the right direction and what we need to do is to look closely at the extent to which the planned deficit-reduction targets can in fact be met".

Referring directly to the assertions splashed in The Times,In-Nazzjon and Radio 101, namely those regarding the removal of VAT and the EU application, Ms Amin-Salem bluntly stated: "I never mentioned that. What I said was exactly what I said to you about the mix of politics in order to tackle the deficit. I never emphasized it (the removal of VAT) as being in itself the trigger of a change in the ratings. And I remember saying quite clearly that all that matters is that there are measures to enhance revenues".

Moody's analyst, at this point, emphasized that the articles on VAT and EU carried in The Times and PN media "were really misconstrued" and that she "never brought them up herself."

The foregoing information has been carried in another section of the press. Newsman Joseph Muscat put this precise question to Moody's analyst: "When did you notice that the imbalances in the fiscal and external accounts started in Malta's case?" Ms Amin-Salem's reply was: "They had been there for some time and there is a structural trade balance deficit given the nature of the manufacturing industry in Malta."

To Muscat's next question, the analyst replied: "The fiscal imbalances started to widen significantly really in the past few years."

Later on during the same interview Moody'sanalyst affirmed: "The Budget that was announced in November of last year (1997) is certainly a step in the right direction and what we need to do is to look closely at the extent to which the planned deficit-reduction targets can in fact be met."

Asked whether she was referring to the recent industrial disputes when she mentioned "political restraints", Ms Amin-Salem's reply was in the affirmative: "We would again be looking at what impact that might have."

Queried why she also asked to review the ratings of BOV and Mid-Med Bank Ms Amin-Salem replied: " That is necessary because the ceilings of the country are the highest rating that can be issued to any entity in the country, whether the Government itself or any other entity that issues debts in that country."

To the direct question whether she had ever said that Moody's would review Malta's credit rating because of the removal of VAT and the freezing of the EU application, Ms Amin-Salem unequivocally replied: "I never mentioned that. What I said was exactly what I said to you about the mix of politics in order to tackle the deficit. What I was then asked was: 'Are you going to look at the removal of VAT?' I said that was one of the factors. But I never emphasized it as being in itself the trigger of a change in the ratings. And I remember saying quite clearly that all that matters is that there are measures to enhance revenues."

At this point in the interview carried in KullHadd of February 1, Ms Amin-Salem stressed that the articles (carried in The Times and In-Nazzjon) on VAT and the EU application were really misconstrued. Said the Moody's analyst: "I never brought them up myself".

This statement goes to show how loaded and leading were the questions put to the Moody'sanalyst which resulted in the "inspired" articles slammed by the Prime Minister.

What Moody's actually pointed out in their comments could be summarized up under these headings:

(1) They have been watching the ratings since 1994 (so they could not be commenting on consequences of the 1997 budget, the removal of VAT or the freezing of the EU application);

(2) Financial imbalances in the fiscal and external accounts have been there for years given the nature of the manufacturing industry in Malta,

(3) Government must take adequate measures to combat these deficits.

Ms Amin-Salem's denial of the assertions trumpeted by the pro-PN press condemns the accusation levelled at the Prime Minister by The Times, as part of a concerted political attack on Government.

It must also be pointed out that the manipulation of news may claim right of existence in a democracy but it certainly is not conducive of a climate favouring the infrastructural overhaul the country sorely needs after years of laisser-faire under the previous administration.

IL-BUDGET 98: Pass fid-direzzjoni t-tajba. - Moody's

Il-Prim Ministru kellu raíun meta qal lill-Konferenza Íenerali tal-Partit Laburista li jilmaó strateíija fl-attakk li qed isir bóalissa lill-Gvern "bil-æan li jfixkel lill-Gvern Laburista". Hija óaía ðara li Dr Sant ma kienx qieæed jattakka lill-istampa iúda lit-tóaddim ta' l-aóbarijiet li sar minn In-Nazzjon,Radio 101, The Times f'eúerðizzju qalil ta' taghwig ta' fatti.

Dr Sant úied jæid, "Qed jaæmlu dal-óbit b'mod anti-nazzjonali u anti-demokratiku. Qed jippruvaw ióawwdu l-imóuó tan-nies u wieóed mill-ewlenin li qeædin jieódu sehem f'dan il-óbit huwa Fenech Adami nnifsu."

L-istess taæwií fit-tweíiba ta' Amin-Salem deher fir-rapport miktub minn Pierre Portelli f'In-Nazzjonu f'dawk ta' Natalino Fenech f'The Times. Hija óaía ðara daqs il-kristall li kien sforz biex jitqieæed il-kliem fuq fomm Amin-Salem.

Artikli mæawíin

"L-artikli (fuq il-VAT u l-UE) kienu tabilóaqq mæawíin," qalet Amin-Salem lil Joseph Muscat tal-KullÓadd (l-1 ta' Frar 1998).

Jidher ðar li qed isir attakk miftiehem fil-media tar-radju u ta' l-istampa msejjes fuq il-kollaborazzjoni ta' xi íurnalisti óorox kontra l-Gvern Laburista.

Il-Prim Ministru íabar dan kollu fi ftit kliem biex jikxef il-manipulazzjoni sfaððata ta' l-aóbarijiet meta qal: "In-Nazzjonalisti qeædin jippruvaw joóolqu kwistjoni bl-aóbarijiet immanipulati minn The Timesli issa saret qisha estensjoni ta' Radio 101 u ta' íurnali oórajn óalli t-taærif jitæawweí b'mod li jkun jitwemmen".

Fil-31 ta' Jannar, In-Nazzjon íab x'qal Dr Fenech Adami jiíifieri, "li Alfred Sant íab il-finanzi tal-Gvern fhiex inhuma æax neóóa l-VAT u æax tellef lill-pajjiú il-vantaííi kbar ta' l-UE kif issa qed tikkonferma l-aíenzija internazzjonali Moody's li issa beósiebha tniúúel il-livell ta' Malta li sa Mejju li æadda ma kellha ebda ósieb tniúúel."

Óarsa lejn dak li qalet Hanan Amin-Salem ta' Moody's tiððara kollox, isserraó ras in-nies u tiííustifika t-tmaqdir li æamel il-Prim Ministru lill-artikli mnebbóin u li jbaxxu l-livell ta' l-istampa Nazzjonalista.

Fid-direzzjoni t-tajba

Amin-Salem fil-fatt qalet: "Il-Budget ta' Novembru tas-sena l-oóra (1997) huwa bla dubju pass fid-direzzjoni t-tajba u kulma rridu naæmlu hu li nóarsu mill-qrib kif jistæu jintlaóqu l-miri maósuba biex jitnaqqas id-deficit."

B'riferenza diretta æal li ntqal f'In-Nazzjon, fuq Radio 101 u f'The Times, jiíifieri dwar it-tneóóija tal-VAT u l-iffriúar ta' l-applikazzjoni, skond ir-rieda tal-poplu, Amin-Salem qalet bla tlaqliq: " Jiena qatt m'æidt xejn fuq hekk. Dak li æamilt jien kien li semmejt it-taólita politika bil-æan li jissewwa d-deficit. Jiena qatt ma sóaqt li t-tneóóija tal-VAT qanqlet it-tibdil fir-ratings. U niftakarni sew næid li l-aqwa li jkun hemm miúuri maósuba biex jikber id-dóul."

L-analista ta' Moody's, hawnhekk, saóqet li l-artikli li dehru f'In-Nazzjon u fuq Radio 101 "kienu tassew mæawíin" u li "qatt ma kienet semmiethom hi."

It-taærif t'hawn fuq deher f'taqsima oóra ta' l-istampa. Il-íurnalista Joseph Muscat staqsa lill-analista tal-Moody's sewwasew dan: "Meta sibtu li beda l-iúbilanð fil-kontijiet fiskali u barranin fil-kaú ta' Malta?"

It-tweíiba ta' Amin-Salem kienet din: "Kien ilu hemm u hemm defiðit strutturali fil-bilanð tal-kummerð minóabba x-xeóta ta' l-industrija tal-manifattura f'Malta." Dawn il-ówejjeí jafhom u jammettihom kull min hu serju u jifhem fl-ekonomija. Min jæid il-kuntrarju jkun qed jigdeb. Æall-mistoqsija li mbaæad staqsa Muscat, l-analista wieíbet: "L-iúbilanð fiskali beda jikber bil-kbir fil-ftit snin li æaddew".

Iktar 'il quddiem fl-intervista l-analista ta' Moody's stqarret: "Il-Budget imóabbar f'Novembru tas-sena l-oóra (1997) huwa bla dubju pass fid-direzzjoni t-tajba u kulma rridu naæmlu issa li naraw kif jistæu jintlaóqu l-miri æat-tnaqqis tad-defiðit."

Tilwim industrijali

Æall-mistoqsija jekk kellhiex f'rasha t-tilwim industrijali ta' dan l-aóóar meta ssemma "tliííim politiku", it-tweíiba ta' Amin-Salem kienet fl-affermattiv: "Irridu naraw x'impatt kellu dat-tilwim".

Æall-mistoqsija diretta kinitx qatt qalet li Moody's se jkollhom jirrevedu r-rating tal-kredtu minóabba t-tneóóija tal-VAT u l-iffriúar ta' l-applikazzjoni ta' l-UE, Amin-Salem ma qaæditx tomæod kliemha: "Dawk qatt ma semmejthom. Dak li æidt sewwasew kien dwar it-taólita politika bil-æan li jissewwa d-defiðit. Li staqsewni kien, 'Se tóares mill-qrib lejn it-tneóóija tal-VAT?' Jiena weíibt li kien wieóed mill-fatturi li rridu naraw. Imma qatt m'æidt li kienet fiha nnifisha li qanqlet il-bidla fir-ratings. U niftakarni næid sewwasew li l-aqwa li jittieódu l-miúuri biex jikber id-dóul".

F'dan l-istadju ta' l-intervista Amin-Salem qalet li l-artikli li dehru fuq In-Nazzjon u fuq The Times fuq il-VAT u l-applikazzjoni ta' l-UE kienu mæawíin tabilóaqq. L-analista qalet sewwasew: "Qatt ma semmejthom jien."

L-istqarrija turi kemm kienu maósubin minn qabel il-mistoqsijiet li saru lil Amin-Salem u li sfaw ikkritikati mill-Prim Ministru.

Tliet irjus

Dak li tabilóaqq qalu l-Moody's fil-kummenti taæhom jista' jiníabar taót tliet irjus:

(1) Kienu ilhom jæassu fuq ir-ratings sa mill-1994 (u æalhekk ma setæux qed jikkumentaw fuq il-konsegwenzi tal-budget ta' l-1997, it-tneóóija tal-VAT u l-iffriúar ta' l-applikazzjoni ta' l-UE);

(2) L-iúbilanð finanzjarju fil-kontijiet fiskali u barranin kienu ilhom hemm is-snin minóabba x-xeóta ta' l-industrija tal-manifattura f'Malta;

(3) Il-Gvern irid jieóu miúuri xierqa biex jissielet mad-defiðit f'kull qasam.

Ið-ðaóda li Amin-Salem æamlet dwar l-asserzjonijiet li dehru f'taqsima tal-íurnali, fosthom In-Nazzjon, tikkundanna l-akkuúi li saru lill-Prim Ministru li maqdarhom bóala attakk politiku miftiehem kontra l-Gvern.

Ta' min wieóed jisóaq li l-manipulazzjoni ta' l-aóbarijiet tista' tistenna li jkollha spazju f'demokrazija iúda úgur li ma tæinx biex titkattar klima b'riúq it-tiswija infrastrutturali li l-pajjiú jeótieí bil-kbir wara snin twal ta' telqa taót il-Gvern ta' qabel.