02 September 2010
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‘Luxury apartments for free’?
by Eddy Privitera

I was both disappointed and astounded when I read what the Azzjoni Nazzjonali leader, Dr Josie Muscat wrote (TMID, 26 November) under the heading The games are over. Dr Muscat wrote: “I cannot but applaud what Minister Dr John Dalli had to say about the spectacular social housing he witnessed at Pembroke”. And then added: “This is what AN meant when it insisted that each and every citizen has the right to enjoy the fruit of his labour. He is not allowed to do that when his money goes to fund luxury apartments given away for free!”

Dr Muscat seems to be unaware that Housing Authority apartments are far from being given away for free, as he opined. So much so that a considerable number of people, mainly engaged or young married couples, separated people, single mothers etc have opted to buy just one-third of the apartment since they cannot afford to borrow the sum needed to pay the full price of the apartment, supposedly being “given away for free”!

The AN leader seems to be insensitive to the great sacrifices so many of our young and not-so-young people are having to endure for so many years in order that finally they may have what they can call “our” or “my” home! Even if that home is just one-third of it because the other two-thirds will still be government property! “Luxury apartments being given away for free”, my foot, dear Mr Muscat and Minister Dalli!

I can also understand why the AN leader applauded Minister Dalli for what the minister said about the “spectacular social housing he witnessed at Pembroke”. Is Dr Muscat envious that working class people (by “working class” I mean those who earn an average wage or salary) may also have the opportunity to live in a nicely designed apartment in a nice location instead of in blocks of gabubi in the traditional housing estates? Or is it because the Housing Authority’s schemes are offering competition to private property speculators? Or is it because such nice areas as Pembroke, so near to Madliena and Ibrag where so many rich people live, should be reserved for the affluent in our society?

Dr Muscat shows that he does not understand, or understands quite well but is totally against, what a Welfare State actually means. The setting up of the Welfare State by the Labour government was not just meant as some kind of charity for “the poor, the needy and the disabled”, as Dr Muscat seems to think. The Welfare State was set up in recognition of the State’s responsibility to offer vital services, such as social and health services for free to all Maltese citizens irrespective of their income. In this way even those who pay hefty taxes throughout their life, and would have helped build up Malta’s economy, would also enjoy the fruits of their labour, and hefty taxes, just like anybody else. And this by right and not as charity!

I believe that Dr Muscat’s admiration of Minister Dalli also came about after the Azzjoni Nazzjonali leader had read what Minister Dalli had said in Parliament on free medicine. Minister Dalli had made it plain that in his opinion, the government should only dispense free of charge those medicines “which cost a lot of money”.

I quote what the minister said as reported in the press: “Minister Dalli made it plain that we have to decide whether we should keep giving all medicines free of charge, or else just those medicines which cost a lot of money.”

Minister Dalli made it obvious that he favours giving only those medicines which cost a lot of money. No indication was given as to which medicines he considers as costing a lot of money. And which is the price limit at which medicines will have to be bought by those who need them.

Hence those who may have agreed with the minister’s comments about the “social housing at Pembroke”, may find tomorrow that they, or members of their family, may no longer be able to get their free medicines for their chronic condition because Minister Dalli may not consider them as “poor or needy”! I am certain that Dr Muscat also agrees wholeheartedly with Minister Dalli on this matter.

Coming back to the question of “luxury apartments being given away for free” as Minister Dalli described the Housing Authority’s apartments at Pembroke, may I first clear up a misunderstanding which many people may have on what is supposed to be “government subsidy” to those who buy such apartments.

The so-called “subsidy” is only a virtual subsidy. The government does not fork out any money to subsidise those apartments. The subsidy is simply the discounted price of the apartment when compared to similar apartments on offer by private property developers.

And as we all know, many such apartments are on offer at very inflated prices!



Eddy Privitera

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