Judge Philip Sciberras, who retired earlier this year, will be managing a fund established by the Labour Party in which the honoraria increase for parliamentarians who are renouncing it will be deposited.

Speaking at the last political activity for the year in Zebbug, Dr Muscat said the judge, known for his integrity and impartiality, accepted the proposal “there and then”.

The fund will be helping charities and institutions like the Dar tal-Providenza, Dar Nazareth, l-Istrina and families in need, he pointed out.

The way the decision to increase the honoraria was taken and its timing “hurt a lot of people”. It was therefore “unacceptable”, Dr Muscat said.

It transpired the decision was taken on 5 May 2008, in some post-election party, Dr Muscat believed, and no one was told about it. Was it not for parliamentary questions from PL MPs, no one would have known anything, he added.

“The Opposition will not be bought,” Dr Muscat insisted. Maltese families are still in recession despite any statistics that may be issued. Water and electricity bills will increase by €14 million next year, fuel costs are high and workers’ conditions are deteriorating.

While refusing the salary raise, Dr Muscat has left other MPs and even mayors, whose allowance has also been reviewed, free to decide whether to renounce it or not, after assessing their personal situations.

He said the PL had weighed a number of other possibilities, including depositing the money at the law courts while at the same time insisting against the increase, or depositing it in a fund for certain necessary public projects. The suggestions proved to be difficult to handle bureaucratically, and so the setting up of the fund under Judge Sciberras appeared the best solution.

Karin Grech compensation judgement

Dr Muscat was baffled over the government’s decision to appeal the Karin Grech compensation judgement delivered last week.

While not contesting the compensation money, the government is insisting there was no political discrimination against the Grech family.

Describing the government’s decision as “insensitive” and a huge blow to the efforts for national unity over the years, Dr Muscat said there is no difference between the Karin Grech and Raymond Caruana cases.

“There should be no difference between people of the first and second class,” he stated.

A minute of silence in memory of the two victims was observed at the start of his political address.

Pensions reform

The recently published pensions reform report clearly shows the restructuring for sustainable pensions Dr Gonzi pushed forward in 2005 had failed, he said.

The report was suggesting second pillar pensions paid by private entities. This meant workers would have to pay a separate contribution in addition to the national insurance (NI) that was already being paid.

But in 2005, the government had said it was not yet the time to introduce the second pillar pension scheme, blaming the economy which was going through delicate times.

The report, drawn up by a person paid €82 per hour, raises a lot of questions which the government must answer, Dr Muscat asserted.

Among these was the suggestion that the children’s allowance starts going to a fund accessible when children reach pension age, rather than being sent to parents, as is presently the case. Although it is not yet clear whether this system will be voluntary or mandatory, however it reflects a weakening social structure.

The number of children being born must be enough to sustain pensions, the report notes. Consequently, the government vote against the maternity leave extension in the European Parliament was “ironic”.

It also shows lack of vision and incapability to take long-term decisions.

Commenting on the possibility that the Commission which drew up the report would call the Opposition for talks on the pensions reform, Dr Muscat said he is ready to participate in parliamentary discussions, but not in some commission behind closed doors.

While the PL was participating in discussions over Air Malta, he still felt decisions were being taken behind its back because three weeks had passed and little had happened. Understanding the Air Malta issue could be commercially sensitive, he said the pensions reform was definitely a national issue.

For this reason, the Social Affairs Committee in Parliament should ask the people who drew up the report to explain certain assumptions and proposals made. The issue should then be taken forward from there.

Public Accounts Committee

Describing the government’s stunt to accept witnesses testifying before the Public Affairs Committee as a “colossal u-turn”, Dr Muscat noted the Opposition has no problems with any list of witnesses presented but expects the same from the government if it wanted to name additional witnesses.

He also condemned the government’s “enormous frenzy” in spending people’s money in huge newspapers adverts giving their version of events. Reactions from the public shown in letters to newspapers on the government’s decisions were negative.

In fact, Prof. Edward Mallia said the government is being very economical on the truth or, as Dr Muscat put it, “the government and truth are not friends”.

People were realising the environment is dropping in the government’s agenda.