Speaking at the end of a meeting of the Malta Council for Economic and Social Development, Dr Gonzi said the White Paper on the pensions system will be made public in the next few weeks. The one on the health sector will be published later on this year, or early in 2005.
Dr Gonzi said the pensions reform was necessary to make the system sustainable and provide an adequate pension.
Unless the current system is changed, there could be a possibility that people retiring in 10-15 years’ time will not receive an adequate pension.
The reform in the health sector is equally important. Expenditure in the health sector is increasing more than in other sectors, and one needs to work out what needs to be done to improve the situation.
The MCESD meeting was originally convened to discuss the convergence plan the government submitted to the European Union. The plan aims to bring the country’s deficit within reasonable levels by 2007.
Most of the social partners taking part in the meeting were annoyed that the government had presented the convergence plan without previously discussing the matter with them, and they made this clear during the meeting.
Union Haddiema Maghqudin general secretary Gejtu Vella made this clear in his presentation, saying that the government had met various entities including the Central Bank, the National Office of Statistics and the Welfare Reform Commission, but it did not feel that the matter should be brought up at the MCESD.
He said the absence of ministers at MCESD meetings hampered the council’s work because the permanent secretaries present for meetings were not involved in decision-making, but were simply administrators. It is politicians who make decisions, not civil servants, he added.
Mr Vella appealed to the government to enter into what he described as a constructive dialogue with all social partners in a bid to solve the country’s financial difficulties. The union felt that the burden of such a difficult financial situation should not be placed on workers, pensioners and their families.
His comments were echoed by General Workers’ Union general secretary Tony Zarb, who said the government’s mistakes in handling the financial situation should not be paid for by the workers.
The MCESD should not be a “forum of convenience”, he said, but one in which the social partners work together towards a solution in the best interests of the country.
He said that, in its convergence plan, the government had laid down that 1,000 new jobs had to be created each year until 2007. The GWU said it feels the number is too low and the government should strive to create more jobs than stipulated.
Winston Zahra, president of the Malta Hotels and Restaurants’ Association, said the meeting addressed important issues aimed at improving the current situation. With regards to the tourist industry, he felt the government’s plan was “too conservative” when it should have been “more aggressive”.
Chamber of Small and Medium Enterprises (GRTU) director general Vince Farrugia said there is a need for reasonable targets to be set. Rather than planning to reach targets that are not achievable, one should seek more credible goals, he said.