'Obscene' report ignores subsidies

In a strong reaction to the MLP report, which it described as "another gross lie", the Agriculture and Fisheries Ministry yesterday said it contained figures belonging to the realm of science fiction and was nothing but a string of allegations which a Labour MP has long been making in Parliament, and which had been repeatedly and categorically denied.

The report completely contradicts the MLP's own allegations that the agriculture sector would be ruined by EU membership, the ministry said, because it was now claiming that:

¤ farmers would be selling their produce at higher prices, thus greatly enriching themselves;

¤ pig breeders will be selling their products at double today's prices and this would therefore double their present income;

¤ herdsmen will be selling beef at almost twice today's price;

¤ poultry breeders will become rich because eggs will be sold at one and a half times their present price;

¤ Maltese pasta will cost more;

¤ fishermen will double the price of fish caught in Maltese waters.

Until a short while ago, the MLP used to claim that all these people will starve to death with EU membership. The report was another somersault on this baseless allegation.

The report completely ignores what Government has negotiated, namely that thanks to subsidies on raw materials like sugar and grains will prevent these commodities or their byproducts from rising in price. These subsidies will be paid partly by the EU and partly by the Maltese government. The report also completely ignores the fact that competition will keep prices down.

The government had prepared a subsidy scheme for farmers and cattle and pig breeders spread over several years to ensure that their incomes will not drop. Thanks to these subsidies the price of various products, including pork, which dropped by 15c a kilo this year, eggs, which cost 10c a dozen less, and other locally processed agricultural products, will now cost less.

"The report is so obscene that Dr Sant even managed to double the price of a large loaf of Maltese bread from 16c to 30c," the ministry statement added. "It is under the senseless 'partnership' being proposed by Dr Sant that prices will rise".

It went on: "With this amateurish report, which is full of lies, and with the statement made by the European Commission to the Farmers' Association regarding the removal of levies (see page 6), the Labour Party has now completely lost its credibility with everyone: consumers, farmers, cattle breeders and fishermen".