Grech proposes government to absorb COLA increases as a measure to curb inflation

Opposition leader Bernard Grech proposed on Sunday that the government should absorb the cost of living increases by offering tax incentives. 

This measure aims to break the "vicious circle" of inflation, according to Grech, as employers are forced to raise prices to compensate for the cost of living adjustments (COLA) they have to provide. 

Speaking on Net, Grech argued that this burden on employers could be alleviated through tax incentives, preventing further price hikes.

Grech also suggested that COLA increases should be exempt from taxation. Currently, the government profits from these increases through taxation, which Grech deemed unfair.

By removing taxes on COLA adjustments, he believes that employees would receive the full benefit of their wage increase, reflecting the cost of living.

This year, the cost of living adjustment reached an unprecedented €9.90 per week for all full-time employees, resulting in an estimated additional €25 million in taxes for the government.

Grech criticised this situation, questioning why the government would tax an increase in wages meant to account for the rising cost of living.

In addition to tax incentives, Grech proposed that the government should establish a €40 million fund to assist importers in absorbing higher costs. This measure aims to reduce the burden of increased prices passed on to consumers. By supporting importers, the government could alleviate the impact of rising costs on the general population.

Speaking of the hospitals' deal, Grech spoke of patients affected by the consequences of the fraudulent Vitals/Steward hospitals deal.

He criticised the diversion of hundreds of millions of euros meant for refurbishing St. Luke's Hospital and constructing a new hospital in Gozo, resulting in suffering for patients. 

Long waiting lists, postponed operations, and medication shortages were cited as the consequences of this mismanagement.

Grech also emphasised the issue of chemotherapy drugs being out of stock, despite their availability abroad. He expressed concern over the impact on patients and urged the government to address this issue promptly.

Furthermore, Grech reiterated his call for a public inquiry into the death of 20-year-old Jean Paul Sofia, who tragically lost his life in a construction accident in December.

On Mother's Day, he paid tribute to Jean Paul Sofia's mother, Isabelle Bonnici, who continues to fight for justice. Grech appealed to Prime Minister Robert Abela to heed Sofia's mother's pleas for a public inquiry, emphasizing the importance of obtaining the truth and providing closure to those affected.

Although Abela has maintained that a magisterial inquiry is already underway and should be expedited and comprehensive, Grech urged unity in pursuing the public inquiry requested by Sofia's mother, acknowledging her suffering and right to find closure.