‘Government taking from no one, giving to everyone’ – Muscat

Prime Minister Joseph Muscat toasted his government as one that “takes from no one and gives to everyone” and accused the Opposition of being “stuck in slow motion”.

Addressing the Labour Party faithful at a political activity in Haz-Zebbug, Muscat said that he would rather face criticism for taking decisions than shy away from taking important decisions out of a fear of backlash.

He cited government plans to waive tax arrears for developers who provide the state with properties to be used as social housing. The story appeared in today’s Sunday Times, but Muscat said that such a scheme had been in the works since 2013, under then-social policy minister and now President Marie-Louise Coleiro Preca.

“Rather than build social housing units in a field somewhere, the government will make use of existing properties,” he said, while ensuring that the values of said properties will be determined by auditors and vetted by an independent board.

Muscat said that the Labour government is implementing projects – such as the interconnector, a gas pipeline connecting Malta and Italy and the newly-inaugurated Esplora science centre - that had been visions of previous PN administrations but that had never left the drawing board.

Similarly, an animal hospital in Ta’ Qali that he will launch later on today was envisioned by the previous administration but not realized by the current one.

“It will be a state-of the-art animal hospital, and will not only welcome animals from Malta but also from Sicily, who don’t have their own hospital.” 

‘Discussion on minimum wage is welcome’

In his speech, Muscat welcomed a recent call by a coalition of NGOs for the minimum wage to increase by 3.5% for three consecutive years – to between €11,000 and €12,000 annually, but warned that such a decision cannot be taken rashly.

“Through various benefit schemes announced in the 2017 Budget, the government has effectively increased the minimum wage by between €4 and €15 a week. We couldn’t simply increase the minimum wage without prior consultation, as such a move comes with its own economic risks, but we did give a clear sign that we believe that the minimum wage is not high enough.”

The Prime Minister also flat-out rejected calls by the Opposition to introduce a second-pillar pension scheme, arguing that it will force workers and employers to pay 4% more in social security contributions - hence leading to a decline in peoples’ disposable incomes and the growth of the black economy.

“Average-income earners will have to pay €750 more a year in social security contributions, while those on the minimum wage will see their annual income decline by some €350. Also, employers will not be pleased at having to pay 4% more in social security contributions, which could convince more of them to start employing workers to off the books.” 

‘Living within our means’

The Prime Minister said that the government intends to live within its means, describing it as “a responsible parent who gives their children from what they have”.

“Our first concern was the massive debt that the previous administration had left behind, and that our metaphorical children would have inherited,” he said. “We managed to turn the wheel around and the deficit will next year decline to 0.5% of our GDP. We have practically reached a point whereby we are earning as much as we spent, and we are now at a position where we can sit down around a table and discuss means of how to best redistribute the country’s wealth.”