Recent statements by the Finance Minister, parachuted into parliament without ever having contested an election, Clyde Caruana, reveal the government’s attitude to workers and to the economy in general, ADPD said in a statement.
Chairperson Carmel Cacopardo said: “Let us remember that Clyde Caruana is the architect of an economic policy based on cheap labour. This government also came up with the indignity of selling citizenship. Former PM Muscat, and now his ‘continuation’ Prime Minister Abela, also perpetuated the Nationalist Party policy of depending on international tax avoidance, and fictitious letterbox companies for a good chunk of so-called ‘economic growth’, while expecting solidarity from abroad.
“We are indeed living in unprecedented times, however instead of discounting the need for all workers to receive dignified wages for their labour, Caruana should be discussing, both in Malta and with his European Union counterparts, how to reform the economic system to favour workers, SMEs, cooperatives, gig-workers, innovative enterprises and the quality of life of us all. He should stop sticking his head in the sand and stop insisting on neoliberal and anti-worker policies.”
ADPD Secretary General Ralph Cassar noted that Caruana seems to have abandoned any semblance of progressive policies in the sphere of taxation and prefers profits to be made off the backs of workers with low wages, rather than reforming the taxation system. An EU-wide and national discussion on a social credit or Universal Basic Income is sorely needed. Unfortunately on the European front, the Maltese government, will fall back to its untenable position that it does not want to discuss these matters.
“It is inevitable that the minimum wage should in concrete terms become a real and proper living wage. As Moviment Graffitti rightly pointed out, the minimum wage itself should be a living wage, in the sense that ensure an adequate level of income to meet the daily basic necessities of every household. Although there have recently been some slight increases in the minimum wage, these are far from the minimum required for a decent quality of life. The 2016 Caritas report on the minimum income for a decent living is still as relevant today as it was five years ago, especially in view of the fact that Malta's cost of living has become too high. An example is the rental market, which is ironically becoming too expensive even for relatively well-paid employees, such as those in industries of a high-value added nature, such as gaming.”
“Furthermore, the cost of not introducing a living wage has translated itself into handouts to the general public, which are becoming even more expensive for the public coffers to handle. For years on end, the Government has preferred to not distort producer and consumer surplus, rather than maximise social welfare. Hence, the opportunity cost of making the minimum wage a living wage is by far less than that of doing nothing, in economic terms.”
“ADPD will remain consistent. We are the first party to push for a periodic revision of the minimum wage. The others just trail behind and bring up excuses to avoid reform.”