The Labour Party is against the rise in pension age as from next year and that the pension is calculated on a 40-year period instead of 30 years.
Labour leader Dr Alfred Sant, who was addressing supporters in Rabat yesterday morning, said the party had spent four months looking into the government’s proposed reforms of the pensions system and “there is nothing to be ashamed of if we took four months to outline our position”.
He said the Nationalist government had taken 15 years to build a new hospital, 10 years to build the Mgarr and Cirkewwa ports and two years to draw up a plan for the tourism sector.
Dr Sant said the parliamentary group was in agreement that consensus had to be reached between the government and Opposition before any changes were made and he insisted that it was not true that the government had a mandate do so.
“It is not true that the pension system will collapse within five years because every study indicates that problems will only appear between 2025 and 2030,” Dr Sant said.
He said the government had been discussing the issue since 1998 yet only came out with two proposals: to change the pension age and to increase the period of time on which the pension is calculated.
Labour’s parliamentary group is proposing, he said, that in 2009, a consultation process should begin leading to the publication of a White Paper. The following year, in 2010, a national congress for all stakeholders would be organised to decide on what changes needed to be made. These changes would start being implemented from 2011 onwards, he said.
Dr Sant said these changes must take place within the context of an improved economy and linked to other reform programmes in health, social welfare, non-contributory pensions and elderly policy.
“Hence, the Labour Party will be presenting a calendar of activities that is based on reality and the true circumstances that the country finds itself in at the time,” the Labour leader said.
He said the party’s parliamentary group believes that the maximum two-thirds pension should be increased as from now, and such an increase should compensate for the economic and social changes that have occurred since the last revision of the ceiling in 1981. Dr Sant said the MLP was committing itself to ensure that those receiving a two-thirds pensions will not be affected even if they receive a services pension.
Gozo and electoral districts
Dr Sant said the Nationalist Party was using Gozo to be able to change the electoral districts to suit its needs. He said the MLP agreed that Gozo should be a district on its own, including Ghajnsielem, but no changes should be made to the other districts. Dr Sant said the Nationalists were not happy with this proposal which was fair, in line with the Constitution and one that removed any doubts about the system. He said the present electoral districts were the best since 1976 as they allowed a party with a 10,000 majority to obtain a three-seat majority in parliament.
Turning to parliament, Dr Sant said the government must respect the integrity of the institution, adding that the party was not ashamed that it took 10 hours to discuss a motion it had presented.
“If the government maintains the same approach that with a majority of five it can do what it wants, then the Labour Party will not think twice about calling for another debate or even take further action,” Dr Sant said.
The Labour Party leader said the government had distanced itself from the people. With regard to the revision of development boundaries, Dr Sant said that even Nationalist supporters were angry at the government. He criticised the new plans for the Park and Ride scheme and the port reforms, adding that Malta had become “Mickey Mouse country”.
He also hit out at Parliamentary Secretary Tony Abela for sending letters using the PM’s letterhead while pretending that they were of an official nature and not private.