Muscat warns that PN will raise retirement age if re-elected

Updated at 5:58pm with government statement.

Labour leader Joseph Muscat has described the present political situation as "dangerous", accusing Prime Minister Lawrence Gonzi and his entire Cabinet of having no economic insight.

Speaking this morning in Rabat for the party's Sette Giugno commemoration, Muscat also warned that if the Nationalist Party is re-elected to government the pensionable age will increase once again.

The minister for justice and family, Chris Said, has denied that government plans to increase the retirement age. "Muscat is not saying the truth. Today people who reach pensionable age have the choice to stay in employment and recieve a salary and their full pension."

In a clear indication that Labour will take on Lawrence Gonzi and his government's economic credentials, Muscat said that while he had a good pool of people fit to be finance minister, Gonzi "does not have anybody in his team."

"This lack of insight is evidenced by Gonzi's defence of capital projects. We are not against capital projects in themselves, but these must create wealth. Mater Dei hospital, including all the overruns in its construction, was a project which benefitted a lot of people. However, I ask, who will benefit from the new parliament?"

Muscat insisted that capital projects must only be undertaken only if they guarantee the generation of long-term employment and strengthen infrastructure.

"The same lack of insight is evidenced in the pension reform. Recently the EU said Malta must raise the pension age but so far we have had no reaction from the government."

However, Muscat said that the government had already agreed with these proposals over a year ago when the EU had published its pension reform proposals document. "Gonzi will raise the pension age if he is elected to government again. I have never said that there is an agreement in place about this but if Gonzi is re-elected to government pension age will raise again."

The Opposition leader also spoke at length on the party's 'fair society' proposal, saying Europe was facing austerity measures because of a lack of discipline where European countries were living beyond their means.

"No deficit reduction is sustainable without economic growth," Muscat said, added that Gonzi said that by 2015 Malta would have a balanced budget. "But this was supposed to be achieved two years ago. Who is he fooling? After making same pledge four years ago he expects us to believe that the target will now be reached in 2015."

The PL leader said Prime Minister Lawrence Gonzi does not have the "mindset to understand economic basics such as that you cannot spend more than you have and that you have to prioritise spending... His only aim left for this legislature is not to resolve the pension or bureaucracy or the utility bills issues. His only aim is to unveil the new Parliament."

He also noted that the current administration is spending more money on the new parliament than on a new oncology hospital which was already supposed to be completed.

Talking about the current political situation characterised by the resignation of Carm Mifsud Bonnici as home affairs minister followed by Monday's vote of confidence in government, Muscat told the party faithful to remain focused.

"Unlike us, Gonzi cannot stay focused because of the internal problems he is facing. The Prime Minister treated Austin Gatt differently to Mifsud Bonnici. When Gatt face a vote of confidence the Prime Minister said if Gatt goes down we all go down.  On the other hand he told Mifsud Bonnici I will send you a card."

Muscat said Gonzi has "no courage to announce the new formation of his Cabinet because he does not want to rock the boat."

He added that unlike past portfolios the Prime Minister held such as tourism, the environment and finance he did not pick a Parliamentary Secretary to help him out in home affairs.

Muscat described it as a "very sensitive" portfolio which includes hot potatoes such as migration, local councils and national security.

He said Gonzi was held hostage to the problems within his own parliamentary group and only assumed responsibility for such a vast sector because he did not want to create further problems.

Muscat also reiterated his call for accountability at Bank of Valletta after last week's decision by the MFSA to fine the bank for mis-selling an investment product

"The chairman of the bank is appointed by the government and it is not enough to say he was a good person. Somebody has to assume responsibility. If nobody assumes responsibility it will be the politicians who made the appointments who will be held accountable."

He warned the party supporters to expect hysteria to come from the Nationalist Party in coming weeks. Muscat added "Labour is ready to talk on the past but the past does not only mean the pre-1987 years.

"We are far more interested in speaking about the present and the future of the country. However in Parliament this week, the Prime Minister was more concerned with an MP who laid down a number of conditions and another MP who showed that he is ready to take his place."

Muscat said Labour remains the underdog however while the PN is tied to power, the PL is serene and just wants to create a just and fair society.

Gonzi has not understood Labour's movement

Muscat went on to say that Prime Minister Lawrence Gonzi has failed to understand the movement of progressives and moderates which he said includes "labourites, former labourites, former PN sympathisers and  un-committed voters."

He compared the movement to that behind the 7 June 1919 riots which Muscat said was composed of nationalists and Manwel Dimech followers who struggled against the establishment. This movement, Muscat said  "made the colonial administration realise that nothing and nobody can stop the Maltese people."

"This movement is fed up with the current political system. The movement born four years ago has already achieved a lot but we have much more to do in the years to come. We do not look at the past but we only look at the future. Gonzi has not understood this and he simply thinks that he is facing a political party," Muscat said.

 He added that Labour realised that in order to remain relevant it needed to create a movement encompassing a wide range of persons. "This movement will not only bring temporary change as happened in 1919 or in the EU membership referendum campaign. We will struggle for change and keep on working in the same direction to make Malta best country in EU."

Measures for disabled persons will be "revolutionary"

The Opposition leader also spoke at length on the party's 'fair society' proposal and said that Labour is inspired by the notion of a fairer society.  He said Europe is facing austerity measures because there was a lack of discipline and European countries were living beyond their means.

Muscat said the 'Fair Society' policy is a uniting factor behind the movement which aims to create wealth which benefits everyone and not the few.

"Wealth created should benefit everyone according to how much each person deserves. Every child relieved from poverty is a person who can contribute to wealth creation and avoid becoming a victim of crime, abuse and precariarity.

He added that the movement believes in social justice as a tool to help who is in need and make sure that they also move forward.

Muscat also defended "everybody's right to criticise politicians including myself" because all citizens have a right to disagree with politicians.

He reiterated his proposal to carry out social impact assessments when elected to government which will be "analytical and critical studies."

"They will not be one-dimensional but wide ranging studies that can show what impact government decisions will have on society. Reparatory measures will be introduced before decisions are taken and maybe even stop government from implementing decisions which have adverse affects. If anything government will be conscious and be informed of the repercussions."

Talking at length on the party's proposal on disability, Muscat said these will be "revolutionary measures" which he compared to other measures such as the introduction of pensions, the minimum wage, sick leave and maternity leave.

"This will cost money and will need a lot of resources but it will be a pillar on which a fair society will be built. We will put the parents' minds at rest by providing residences in the community for disabled persons granting them dignity independence," he said.

Muscat explained that this will be financed through public-private partnerships modelled on existing partnerships providing homes for the elderly. He added that present facilities and programmes will be maintained and NGOs will also be involved in this reform.

"This will ensure that disabled persons can lead an independent life after the death of their parents in the same locality they have been brought up. Their place is not in a hospital or institution but in the community."

While saying that he will not react to the Prime Minister's hysterical reaction to this proposal, Muscat said this had hurt a lot of parents. Muscat added that "big improvements have been achieved but it is not enough."

After explaining how the measures will work, including the setting up of trusts administered by persons chosen by the parents of disabled persons and inheritance will not be taxed, Muscat said Labour has a "political will to carry out this reform."

"It will cost money but this measure in inevitable because if it is not done more money will be spent. While the current government's priority is to build a new parliament we will find the money to make this major project happen"

He said this will make Malta the first country in the EU where as a rule all disabled persons will live independently in the community.

Other speakers included the party's president Stefan Zrinzo Azzopardi, MP Chris Cardona and Labour candidate Ivan Buttigieg.

Zrinzo Azzopardi said Labour's movement is spurred by desire to create a fairer society and the creation and distribution of wealth. He added that Labour can guarantee that it will remain close to the people and not close its eyes and ears like the current government is.

Labour MP Cardona said the e-card PN secretary-general Paul Borg Olivier sent in support of Carm Mifsud Bonnici should have been sent to the pensioners who cannot ends meet, the patients who are kept in corridors at hospital and the persons who cannot pay the expensive utility bills.