Aug 30 - GSD Criticises Picardo’s “Walter Mitty” Financial World
The GSD has said that it is only in Mr. Picardo's “Walter Mitty version of the public finances” that gross public debt has decreased since 2011.
A statement from the party explains: “Mr Picardo leaves out of all his public statements that Government owned companies owe £700 million in debt, over and above the £446 million the Government itself owes. This £700 million, for which the public purse is ultimately responsible, has been used for public purposes to meet GSLP/Liberal manifesto promises. Does Mr. Picardo really expect people to believe that the Fairy Godmother is responsible for repaying the debts of Government owned companies?
“This spectacular increase in the debt of Government owned companies has been a major source of concern for the GSD since 2013, when we discovered the existence of Credit Finance Company Limited. It then became clear that Mr. Picardo was using Government owned companies to borrow money to pay for his many manifesto promises in circumstances where the legal borrowing limits did not allow his Government to borrow such huge sums directly.
“The debt owed by the Government and Government owned companies, therefore, exceeds £1.1 Billion. Mr Picardo says that our criticism of this level of public debt might have a negative effect on Gibraltar's credit rating. Only Mr Picardo would attempt to place such a foolish spin on things. If our credit rating is affected, it is because of the unprecedented high levels of public debt that he has saddled Gibraltar with and not because we criticise him for it!”
The Leader of the Opposition, Daniel Feetham, added: "Mr Picardo relies on the fact that people might not understand that when he talks about Government debt, he excludes the debts of Government owned companies. That debt is being used to pay for the huge public spending spree he has undertaken in the last four years in a ruthless quest to keep himself in power. This was reckless in any event but more so in a situation where he knew that BREXIT was a possibility. It is Mr Picardo who has placed his political ambition above the long term well-being of Gibraltar.”
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