The Budget 2012 proposal for a compensation of €4.66 per week to make good for the cost of living adjustment as reported in the media, gives a true picture of how prices of essential commodities have increased.

National statistics show that the Maltese families are spending less in terms of nutritious foods, like vegetables, meat and fish, due to higher prices, and are consuming more cheaper junk food.

A rise in energy prices, fuel, food and other essentials, have led to an increase in inflation. The arguments put forward by the European Commission and the Malta Employers’ Association to bring to an end the COLA system, or to link COLA with productivity, goes against the market logic, thus resulting in an increase in inequality and threatens industrial stability.

Żminijietna – Voice of the Left believes that the present COLA system is not reflecting realistically the cost of living adjustment. We believe that the present mechanism should be reformed to give a more realistic wage adjustment. This can be achieved by working the calculations on the ‘median wage’ and not any more on the ‘basic wage’. The ‘household budgetary survey’ should also be conducted more frequently.

■ Alfred Vella

Żminijietna – Voice of the Left