Government’s inability to identify solutions to address the high cost-of-living crisis will continue to widen the gap between income groups, the PN said in a statement on Tuesday.
PN MPs Ivan Castillo, Graham Bencini and Ivan Bartolo said that the Central Bank's Policy Note released on 8 January, 2024, confirmed an alarming picture, where those with low income and pensioners face the highest levels of inequality compared to other groups, due to the high cost of living crisis.
The Central Bank of Malta released a policy note last week, with data which reveals that the inflation gap between lower and higher-income groups has reached ‘historical highs.’ Significant concerns was raised for the economic well-being of low-income households.
“Instead of assisting the most vulnerable, Prime Minister Robert Abela dismisses them, continuing to provide no solutions for the high cost of living crisis,” PN MPs Ivan Castillo, Graham Bencini and Ivan Bartolo said in a statement.
The PN said that for these people, most of their income is spent on food, health, and household services.
Products related to these needs are the most affected by the increase in the cost of living, the PN said, adding that the Labour government continues to do nothing to address the high cost of living problem. This continues to “break” those with low income and pensioners, it said.
“The Labour party’s vocabulary has also eliminated the concept of the new middle class, just as it has eliminated the middle class itself,” the PN said.
“The government's inability to identify solutions will continue to widen the gap in income groups,” it said.
The PN said that it is also clear that disposable income - the money in the pockets of workers and businesses, is decreasing.
“Information released by the Central Bank indicates all this. It is a clear sign that the Labour government has failed in the fight against the high cost of living and the repercussions that arise from it,” the PN said.
The PN said that government needs to understand the urgent need to conduct a Household Budget Survey, to better understand the situation of Maltese and Gozitan families, while also addressing the high cost of living more effectively.
The Nationalist Party insisted that the government should implement its plan, where the COLA increase should not be taxed, and tax credits should be given to employers so that they do not have to raise prices to compensate for the COLA increase.
The PN also said that government should create a National Fund to support industries that import or export to manage the expenses of the high cost of living effectively, as well as the establishment of new economic model with new sectors that create quality jobs.