He mentioned, among other things, a decision on the cost of oil and the relevant rise in the cost of electricity, a decision on the pension reform and other measures that have to be taken and announced during the budget.

Speaking to UHM pensioners, Mr Vella said that a reform in the pension system was important for it to become sustainable. He said nearly 37,500 people are receiving a pension amounting to nearly Lm90 million, while nearly 9,000 people are receiving an invalidity pension amounting to Lm13 million. Moreover, another Lm36 million is spent on the pension for widows and widowers, he said.

The pension system has to be changed because, as time goes by, the amount pensioners are receiving is becoming increasingly minimal in view of the rise in the cost of living and the value of money, he said.

He said Malta was still giving pensioners an amount stipulated in a legal notice of 1987. “We cannot continue having a pension amounting to two-thirds of Lm6,750 because purchasing power is surely going to decrease, resulting in another form of poverty,” he said.

Mr Vella said the government started discussing reforms in the pension system before the last budget during a weekend meeting in Gozo. Then, the social partners had convinced the government to postpone taking a decision since the government still had no clue what it wanted to change.

Now that the documentation has been prepared and the government has all the necessary information, UHM is in the process of preparing a white paper on the proposals for this reform, he said. These will have to be discussed and agreed upon with the social partners before coming into force, he said.

Mr Vella also spoke about the discussions which will eventually lead to a decision of a social pact for Malta, a tri-partite pact signed by the unions, the government and the employers. He said the social partners are striving to reach an agreement by the end of this year, possibly this month. If no agreement is reached, the three sides will continue pulling their individual strings in opposite directions to the detriment of the country and its competitiveness, he said.

During his speech, Mr Vella also mentioned the increasing price of oil and added that a decision regarding such rise should be taken as soon as possible. Mr Vella said the government could either put the strain on individual companies or else on consumers. Whatever decision is taken by the government, it has to be taken in the best interests of the country, he said.