Budget Failed To Make Best Use Of Malta’s Limited Resources, ADPD Stress
Malta’s green party has stressed that the Budget for 2023 failed to make use of the island’s limited resources.
Referring to the additional COLA benefit, the ADPD described it as a “misguided attempt to create an alternative mechanism to one that already exists” in an issued statement.
“The need for the newly-created COLA additional mechanism confirms what we have been stating all along – that the current mechanism badly needs to be updated to reflect better today’s needs,” the ADPD Chairperson Carmel Cacopardo said.
“For the first time, the Minister of Finance is confirming that more than 80,000 people are living in poverty. While the policy of handouts Father Christmas-style has been reinforced, these individuals are not being assisted to improve their situation so that they no longer need to depend on social benefits.”
It continued to say that while the current geopolitical realities are undisputable, “one would have expected that the Budget would have included more measures to improve quality of life”.
“It has long been felt that the basket of products and services on which the minimum wage and COLA is worked out needed to be revised to reflect today’s needs.”
It explained how Caritas’ studies have shown that the minimum wage is at least 40% less than what it needs to be. “Therefore this means that low-income earners cannot ensure a decent living for their families.”
Only a regularly revised basket, will lead to a decent minimum wage and improved pensions and social services that ensure a decent living income.
“Government hard-headedness in its refusal to revise the current basket on which the minimum wage is calculated is keeping people dependent on low wages and on government handouts.”
“It is also pertinent to point out that employers should not only expect government handouts but should do their part to enable employees to enjoy the living standard they deserve.”
Referring to the energy subsidies, the party remarked that it could have been an opportunity to encourage people and businesses to change their lifestyles and make them more sustainable.
“The massive spend on blanket subsidies is a result of abject carelessness in the energy sector over the years, and the lack, except for token measures, of effective investment in renewable energy.”
“Instead of blanket subsidies, it would have been better to focus help on those sectors which are heavily dependent on petrol and diesel, with the help which should also aim to reduce this dependence.”
“We are not convinced that the €70,000 of subsidies per hour is necessarily the best way to use the country’s limited resources. What studies has the government commissioned to back its decisions?”
It continued to say that basic, essential consumption of electricity should remain subsidised. “Otherwise, the subsidies on the consumption over and above essential use, and on fuels should be studied better.”
“It is pertinent to point out that more expensive fuels are a price signal which can push towards fewer cars on our roads, with people using cars when absolutely necessary. This price signal should be coupled with more frequent public transport services, and serious investment in safe roads for clean modes of transport, resulting in better air quality for us all.”
The Green Party reiterated that this Budget could have focused more on the necessary measures – social and environmental – to improve, permanently, everyone’s quality of life.
What do you make of the ADPD’s reaction?
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