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No report on pensions issue two years on


By Nadine Brincat

DESPITE PUBLIC statements from senior government ministers, the Pensions (Welfare) Commission, has still not finalised the report to be presented to the government. The long-awaited report is said to have stalled due to technicalities.
The government set up the National Commission on Welfare Reform in June 1999, in recognition of the need to review the welfare system.
It is recognised that unless the reforms are made, Malta will face a major crisis in its social welfare system.
This year Lm12 million will be spent on care for the elderly and Lm191 million on social security benefits.
Another Lm0.5 million will go towards housing and another half a million for family and social welfare.
A spokesperson from the Ministry of Social Policy told Malta Today that the government is pressuring the Commission to finalise the report.
"We want the report to be ready as soon as possible, however, we want a report which is done well," he said. "The Ministry has regular updating meetings with Anthony Galdes, the Commission’s Chairman, so that we know what is going on and are aware of the current stages of development."
In his Budget speech, last November, Finance Minister John Dalli expressed his disappointment that the report had not been concluded so far.
Minister for Social Policy, Lawrence Gonzi, also expressed regret over the Commission’s tardiness in completing its report by the end of 2000.
When contacted, late last year by The Business Times, our sister publication, Mr Galdes, the Chairman of the Commission, said that if it depended solely on him, the report would have been completed by the end of last year.
"However, there is a technical team of professional officers in the public sector who have to giver their input and they have other work to do first," he said.
"The projections over time which are being carried out require much work, particularly regarding simulations of possible reform scenarios. Social security reform is, after all, very complex."
The Commission, which is composed of a representative of different Ministries concerned with the issue and a number of interested parties, was due to present a report of its findings to the government by October 1999.
The commission was set up by the Prime Minister Eddie Fenech Adami on the 21 June 1999 to examine the social security system in Malta and its sustainability and to make its recommendations on possible reform especially with regard to pensions.
The commission has sought advice from the World Bank, which has been involved in various pension reforms worldwide. A technical panel has been established in collaboration with a World Bank expert, to help the Commission establish the most favourable models to adopt.
The Commission’s interim report included various considerations and guidelines to be analysed for recommendations and changes for the Maltese social welfare system.





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