He said the 48-page draft plan, prepared by a group of five experts appointed by the party, includes concrete proposals to improve the economy rather than merely criticising the current situation.

The plan, presented to the media during a press conference at the National Labour Centre in Hamrun yesterday, is based on the following five points:

Using our productive resources in the best possible manner to create the necessary wealth to continue offering solidarity to whoever is in need.

Offering an opportunity to everybody to be able to create wealth, both as an entrepreneur as well as an employee.

Working so that everybody has access to necessary goods and reduce the risk of relative poverty.

Creating new means in which we can take care of those who are not able to take care of themselves.

Creating the best economic and social environment to cater for an ever-increasing proportion of old people in our society.

Dr Sant said that in view of the social-democratic roots of the Labour Party, the report is of the opinion that economic and social regeneration are interrelated.

The report, he said, refers to the European Union (EU)’s Lisbon agenda for economic and social development since it is consonant with the party’s holistic view of economic development.

The Labour leader said that at present Malta is “far away” from the targets set by the Lisbon agenda.

Dr Sant said the report recognises the need for a reform of the welfare state but does not agree with its dismantling.

He said the welfare state must now cater for new social realities as there are single parent families and other families now besides the traditional family.

Dr Sant said the report revealed that over the past years, government’s social expenditure increased marginally, whereas operational costs increased substantially due to, among other things, the mushrooming of Quangos which are not accountable.

So the real cause of the spiralling government deficit was not the social expenditure but the ever-increasing operational costs, he commented. Dr Sant said the report also showed that the pensions problem was not as huge as the government would like to give the impression it is.

The Labour leader said the government was interested in creating this impression in order to lay the ground for the introduction of further taxes to cover the ever-increasing deficit.

Dr Sant said the report showed as well that economic liberalisation has not led to greater competition.

The Labour leader mentioned as an example local banks, which have registered profits of 25 to 30 per cent when the growth of the Maltese economy was not more than three per cent.

Dr Sant said real competition would have led to lower interest rates for loans, among other things.

He said the report was the basis for a “wide” and “frank” discussion within the party structures, starting from the National Executive, as well as with society at large.

Dr Sant said the outcome of this discussion would eventually lead to the formulation of proposals for party policy to be approved by the General Conference.

Asked by journalists whether the report was an alternative to the Social Pact proposed by the Union Haddiema Maghqudin, Dtr Sant said that the plan was a parallel channel for discussion to the Malta Council for Economic and Social Development (MCESD).

Dr Sant invited all those who have a stake in the economic and social regeneration of Malta to come forward with their concrete proposals, which would be made public.

He said that the party was going to give a copy of the report to all social partners, not only those represented in the MCESD.

Dr Sant would not reveal the names of the experts who drafted the report, saying that when the names of those who had contributed to other reports in the past were revealed, they were “harmed”.

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