Alternattiva Demokratika Chairman Harry Vassallo yesterday slammed the government for irresponsibly engaging in “massive overspending” without ensuring value for money, at a time when public finances were in dire straits.
Presenting his party’s proposals on public spending for the forthcoming budget, Vassallo said the Mgarr terminal spiralled from a cost of Lm6 million to Lm14 million without any explanations given for the steep rise in expenditure.
About the Mater Dei hospital project, Vassallo said that despite the prime minister’s assurances, the Greens remain very skeptical of the final cost of the whole project.
“An update from Dr Gonzi on the cost estimates to date is forthcoming,” Vassallo said. “We are also very concerned not only with the cost to completion, but also with the cost to operate, that as yet have not been specified. It is imperative and in the national interest that government publishes the estimates of operational cost of Mater Dei when partially operational and fully operational. We hope that such analysis has been made, and if so should be published. We are worried that the population will only be made aware of the fiscal burden of this project after the conclusion of the next election. If possible, and affordable, alternatives to opening Mater Dei in 2007 must be sought. Mater Dei should not be an electoral trophy for the Nationalist Party.”
The party’s spokesman for finance, Edward Fenech, said that no substantial changes in payments for welfare can be made, apart form pensions restructuring.
“Our welfare system must be protected, responsive and effective where it is needed most,” Fenech said. “Targeted spending reductions must be of a medium term basis, and in this regard, we are advocating for consensus on reducing public sector and public service employment via a five-year policy of no substitution. If one considers that over a year approximately 1,000 employees retire from the public sector/service then a medium term reduction of 5,000 persons can be achieved without anybody losing his or her job. This can bring about an incremental saving of about Lm6 million per annum, with a saving of Lm 30 million per annum over the next five years.”
This strategy will enable government to meet the challenges of increasing social spending due to changing demographics, the need to boost educational expenditure and the disproportional rise in health costs, Fenech said.
Referring to abuse in social benefits, Fenech said that over 9,000 persons were receiving disability benefits.
“We expressed serious doubts over rampant abuse of the system,” Fenech said. “What concerns us even more is the fact that those people who are genuinely entitled to receive disability benefit are receiving petty benefits because of others who unconscientiously beat the system, sometimes leveraging political patronage. The Green Party is not advocating for a reduction in the vote for disability benefit, but we are arguing for the elimination of abuse that will enable those in serious need of the system, to be given more adequate assistance.”
AD is also proposing an increase of budget allocation for local councils but not through additional spending.
“As we have been saying for some time we believe that the budget for local councils should be increased substantially if government seriously wants to empower them,” Vassallo said. “However it is not imperative that additional funds are provided, but rather that more resources, in terms of hardware and manpower are given to local councils. Personnel form the Ministry of Environment and Rural Affairs as well as from the Ministry of Resources should be seconded or assigned to local councils, where their work can be better monitored.”
