[WATCH] No appeasement of unhappy Anglu Farrugia, Muscat says

Labour leader Joseph Muscat has denied having appointed his former deputy leader to head a delegation to a foreign conference as a way of appeasing Anglu Farrugia after the latter decried his party's ties to big business.

"There was an agreement that Farrugia would represent Labour abroad, even if other opportunities arise... so far all I can say is that Farrugia is responsible for this delegation," Muscat said when asked what role his former deputy leader had assumed inside the party.

Muscat announced the rapprochement with the former deputy leader, who was axed ostensibly on grounds of comments in which he had questioned the integrity of a magistrate, during his party's television fundraiser on Sunday.

But Farrugia, who previouly described his resignation ordeal as having been "stabbed in the back" by Muscat, has refused to say whether there was some form of rapprochement with the Labour leader.

Farrugia will be attending a Commonwealth conference held in the British islands of the Falklands, in the south Atlantic, together with Nationalist MP Jesmond Mugliett - the latter having been banned from contesting the 2013 general elections by his own party.

"I never had any problems with the Labour Party. My problem was with Joseph Muscat," Farrugia told The Times.

On his part, Prime Minister Lawrence Gonzi pointed out in a press conferece today that Farrugia and Mugliett's trip to the Falklands was part of a Maltese parliamentary delegation, playing down impressions that Farrugia was hand-picked to represent Labour.

Today Muscat reaffirmed his party's opposition against increasing retirement age, insisting that Labour's roadmap at incentivizing economic growth and more female participation in the labour market and introducing a private pension 'third pillar' could stave off the need to raise pensionable age.

Muscat said that a new Labour government would "start a process" - not to be achieved within this legislature - to eventually see minimum pensions reach 60% of the national average income.

Muscat said that he was "convinced" that an economy that sees more women entering the labour market, would ensure pensions remain sustainable without the need to increase retirement age.

"We want to see the elderly remaining part of the community: we will exempt them from paying national insurance on pensions if they live in their private residence. It does not make sense for the elderly to employ carers and at the same time be treated as some sort of employer. Instead it will be the government to pay their national insurance contribution."

Labour would also give full pensions to pensioners working beyond retirement age, as laid down in the 2013 budget.

Muscat also said a new Labour government would harshen penalties against the abuse of the elderly, and strengthen the role of the Commissioner for the Elderly, raise standards at homes for the elderly and day centres.