After Budget, Muscat calls for discussion on minimum wage

Prime Minister Joseph Muscat has said that the best thing about last Monday’s budget was that it ‘did not rob Peter to pay Paul,’ while acknowledging that it was time for there to be a serious discussion about the Minimum wage.

He said that the government had taken on the burden of helping people in order to allow businesses to grow, and that the government would wait for there to be agreement with social partners before taking any action.  

The government, he said, was succeeding in distributing wealth however it was not doing so by taking anything away from business. He said that at the end of the day, it is business that creates wealth and that while it is easy to say that one should take money from the wealthy, it is the government's responsibility to ensure that everyone does well.

“This is why we are pro-business, everyone depends on the bigger players and it does not help anyone if business were to stop doing well,” said the Prime Minister.

Muscat was speaking at a political activity in Vittoriosa where he said that it is was important for people to remember where the country started, three and a half years ago. He said that before the last election the country was facing a number of issues such as increasing unemployment, high electricity tariffs, a huge deficit and no help being given to those on the minimum wage.

He added that while some believed that mediocrity was something the country had to live with, the Labour Party believed that the country could perform a lot better than people had imagined.

He said that the government’s first priority was always to stabilize the economy, which he said was the basis for everything the government is able to do.

“If the economy is not doing well then you cannot do things such as those we announced in the last Budget. We have prepared the foundations for a strong economy, by helping people enter the workforce and slowly wean themselves off benefits, and now we are seeing these policies come to come to fruition,” he said.

Muscat once again outlined a number of budgetary measures such as a €4 weekly increase, which he said in some cases will see some families benefit from an €18 weekly increase in their income. He added that the government has taken a decision to take on the burden of helping people in order to allow business to grow while acknowledging that it was time for a discussion on the minimum wage.

“It is time to start talking about the minimum wage and whether it is still enough for people. It is time for us to work towards consensus with the social partners and stakeholders on a way forward. The government will not take steps until there is an agreement however,” said the Prime Minister.

Muscat also insisted that while it had not received much attention in the media, the government had succeeded in removing precarious work from government jobs. He said that all employees that work for private companies, doing work for the government, had been given contracts and an increased wage, with government paying for the difference.

He said that it was also time for a discussion on equal wages for workers doing the same job adding that it is not right for one worker to be paid less than other simply because he was engaged by a contractor.

Muscat said that the government had increased pensions for the second consecutive year and spoke of a number of measures announced last Monday that would improve the quality of life of those “who have given a lot to the country”.

He said that the first €13,000 earned by pensioners would not be taxed, irrespective of where it comes from.

Addressing claims by the opposition, that the budget had failed those most in need, Muscat said that he would not use Caritas to gain political mileage. He did say however that he was happy with Caritas director, Leonid Mckay’s, “objective analysis”, where he stated that the voice of the weakest in society was finally being heard.

“He said that the voice of those without a union is finally being heard. Workers have unions, however those who are at home taking care of sick parents or siblings do not. They have us, these people have us,” said Muscat.

On measures taken to help those living with disability, Muscat said that the government was building on what the Labour Party had started in the 50’s, which resulted in children with a disability no longer being hidden away in a basement.

Muscat also praised former Prime Minister Lawrence Gonzi for his work in this respect acknowledging that the Nationalist Party had also done a lot to continue what the Labour Party had started.

“It is true that we have had our differences, but in this regard I commend Lawrence Gonzi who in his years of service did a lot for these people,” said Muscat.

Muscat concluded by saying that he had only scratched the surface of the huge number of social measures announced in the Budget and that he wanted to show what a plan by a government with a vision looks like adding that the government wanted the country to succeed for the collective good.