Muscat to target 'section of middle class not reached by economic growth'

The country will soon start feeling the effect of decisions taken by the government since the beginning its mandate after these are set to start bearing fruit, Prime Minister Joseph Muscat said.

In a 20-minute recorded interview on ONE Radio, Muscat said the government will continue to implement a number of reforms to reach the weakest members of society. Having focused its attention on the health and energy sectors, the government is set to push for further social reforms. Insisting that the economic growth registered should be felt by everyone, Muscat admitted that its benefits were not reaching everyone … especially “certain sector of the middle class”.

“Not everyone is reaping the benefits of our economic growth … there are certain sectors of the middle class that should be feeling more the wealth that is being created,” the Labour leader said, promising to address this issue as well.

He earlier said that the low unemployment rates being registered were a positive sign but it was not enough. The adjudication of the White Rocks tender in the coming weeks and the works on developing the former shipbuilding site into a maritime hub will create new places of work.
Muscat’s interview focused on budgetary measures to help pensioners, the stable fuel prices, what has been achieved in the health sector, the €200 million investment at St Luke’s Hospital and the criticism of opposition leader Simon Busuttil who said the PN was being kept in the dark.

For the first time in 25 years, 12,000 pensioners will be receiving a higher pension following a budgetary measure to increase the minimum pension by €140 per week.

Those aged over 75 will receive an extra allowance.

“We did not reach everyone and there are people who do not have enough to get by. But this is just the start,” he said, adding that a stronger economy will help government in its social initiatives.

During the interview, Muscat also took the opportunity to call on gym operators to pass on savings from slashed VAT rates to the consumers.

The prime minister argued that many gyms chose to retain the same membership prices or increase the fees instead of reducing the prices as was the government’s intention when it announced reduced VAT rates.