The government’s annual Budget is primarily an accounting exercise regarding the management of the country’s financial situation. For the third year running we have measures reducing costs and taxes and increasing pensions and other benefits. Let us be clear about what the country has been experiencing since March 2013. The mentality of people has been revolutionised in such a way that expectations have changed from dreading Budget speeches announcing higher taxes and austerity measures, to Budgets heralding tax cuts and pay increases. This alone is a quality leap that reflects the internationally certified excellent performance of a Labour government, midway through its first legislature.
The budget for 2016 cannot be evaluated on its own, since it is essentially part of a roadmap of rebuilding and consolidation spread over a five-year period. It definitely erases the habitual convenient prop of traditional propaganda schemes, whereby austerity used to be imposed during the first years of a legislature with a gift spree around the end of the term.
It is indeed most satisfying that the budget for 2016 has been acclaimed by all financial and social stakeholders as balanced and positive. Many people have, in fact, pointed out that the whole exercise has once more shown that this is a government that listens and delivers, with a sound knowledge of family situations and challenges. All responsible commentators have acknowledged that Malta is doing well, with a strong economy.
Such a strong economy is meaningful in real terms when it keeps in mind its social obligations, and that is exactly where Labour excels. True to its principle of social justice, this year – once again – the government has prescribed further tax cuts and increases in pensions and social benefits in support of the lower income bracket. This is matched with price stability regarding utility bills and fuel costs for families and the business community, in order to safeguard the standard of living, planning and competitiveness. Here again, the only criticism came from the Opposition, which keeps forgetting its own false prediction of barely 30 months ago, that cuts in utility bills was only a gimmick!
The budget for 2016 is also a landmark for the two important sectors of the population for which I am responsible as Parliamentary Secretary – the elderly and people with a disability. It is already a very important step forward that pensioners – about 12,000 of them – with a low income will receive an increase in pension, enabling them to avoid getting any nearer to the risk of poverty. Another welcome concept is that of incentives for those who, in agreement with their employers, choose to continue working after their normal retirement age. But the social aspect of next year’s budget goes much deeper than that. It further tackles the major challenge brought about by longer life expectancy – the ever-increasing demand and the corresponding sufficient availability for accommodation for long-term elderly care.
In this sector, it was already an achievement that, in the past year, we have managed to reduce the waiting list for long-term care residential services by around 30 per cent. Since last month, we have also succeeded in lowering by 24 per cent the number of those who require assessment by our multi-disciplinary teams, who are entrusted with categorising each case according to urgent, medium or low levels for admission. During the past year we had already focused on the importance of prime carers, namely close relatives and friends. In addition to specific training by experts for the many informal carers, I have already indicated that government is seriously studying alternative proposals to support the idea of encouraging family members to care for their elderly relatives within their immediate community.
One important measure in the budget for 2016 is precisely targeting this reality. By way of a pilot project, we intend to encourage in a tangible way the immediate family to proceed with their precious care of older relatives. Government proposes to pay 50% of the minimum wage to people employing professional carers. I have repeatedly said that none of our services is ever intended to replace family care, but to basically support and complement it. The pilot project will specifically move along those lines and help those currently waiting for a place in one of our residences, to opt for spending their last years within their own family and at home. This will also be a boost for job creation, especially for women, and will also enable informal female carers who have abandoned – or are considering leaving – their jobs to care for their older relatives, to return to work or continue working.
At the same time, the two existing schemes – Carers’ Pension and Social Assistance for Carers – will be revisited with a view to providing better benefits to more people who want to look after their elderly relatives in the family home. This is another clear statement that the government encourages care for the elderly within the community, providing support from public funds.
This will, however, not deter us from our continuous efforts to increase availability, not only within state-run homes but also through public-private partnerships – both of which which are constantly on our agenda. The introduction of the National Minimum Standards is proof enough of our commitment to upgrade the best quality levels in the services provided. Additionally, government expenditure will grow significantly during 2016 to increase the availability of residential care for our ageing population.
We have also been very active in addressing challenges brought about by those suffering from dementia, and apart from providing specialised training for carers and a national helpline, we have upgraded a specific ward at St Vincent de Paule, together with preparing additional space at the Mtarfa home.
Other projects that have taken off during the past year include more day centres and night shelters. With even more determination, we will proceed with our training programmes for workers in the field of elderly care and move ahead with transforming day-care centres into learning hubs, nurturing more possibilities for active ageing. Again, the allocated budget has increased significantly.
The 2016 budget has also markedly addressed the other important sector within my portfolio, namely people with a disability. Through the implementation of the specific law we introduced earlier this year regarding the employment of people with disabilities, we have witnessed a striking average 24 new jobs a month for this sector. This is even more significant if we note that fewer than 100 such jobs were created annually in past years. In 2016, we intend adding more incentives, with government funding national insurance contributions for these employees and a 25 per cent refund to employers in respect of wages paid. This is another example of a healthy economy with a social conscience. In my endeavour to include Gozo in all budgetary initiatives, plans are at an advanced stage to provide job opportunities in Gozo, such as document management, to Gozo residents with disabilities.
The €30 million project planned for the Pace Grasso area in Paola will include a priority centre with residential facilities within the community for people with a disability. This will result in the creation of a hub for people with disabilities that will not be an institution, and that will promote community inclusion and participation. As well as private residences, it will include a hostel, a respite centre and various facilities such as a swimming pool and a day centre in order to offer a range of the services that people with a disability need.
I am undoubtedly very keen to see tangible progress with our project for a Just Society. Apart from the specific hub and the priority centre already mentioned, we are continuously working on the ambitious goal of having in place 10 smaller residential homes for people with a disability, by the end of this legislature. The Siggiewi residence is already welcoming its first residents, with another one about to be completed in Gozo shortly. Others, including those in Żabbar and Pembroke, are only awaiting Mepa approval to begin.
We have two other initiatives that will tangibly improve the life of people with disability. We have a new empowerment programme and another innovative concept that will be implemented via the new Sharing Lives project. These two projects were not mentioned in the Budget speech but were included in the estimates. There is also an increase in funding in respect of both the allocation to Agenzija Sapport and the National Commission for People with Disability, and also in respect of capital expenditure to allow us to finance our projects.
With such provisions in Labour’s Budget for 2016, I feel proud to point out that the strong economy we have built in our first two years is fully aware of its social obligations. Saying that it is a fair distribution of wealth and support to everyone is certainly an understatement!