Finance Minister Caruana has abandoned any semblance of progressive economic policies

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 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.”

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Il-Ministru tal-Finanzi Caruana abbanduna politika ekonomika progressiva

Id-dikjarazzjonijiet riċenti mill-Ministru tal-Finanzi, Clyde Caruana, li sab ruħu fil-Parlament mingħajr ma qatt indenja ruħu li jikkontesta elezzjoni, jizvelaw l-attitudni tal-gvern lejn il-ħaddiema u lejn l-ekonomija b’mod ġenerali.

Iċ-Chairperson ta’ ADPD Carmel Cacopardo qal: “Ta’ min wieħed ifakkar li Clyde Caruana huwa l-arkitett tal-politika ekonomika tal-gvern ibbażata fuq cheap labour. Dan il-gvern ħareġ ukoll bl-idea tal-mistħija li jbiegħ iċ-ċittadinanza Maltija. L-eks PM Muscat, u issa l-Prim Ministru ‘tal-kontinwità’ Abela, ipperpetwa wkoll il-politika tal-Partit Nazzjonalista li jiddependi fuq l-evitar internazzjonali tat-taxxa, u fuq kumpaniji fittizji msejħa ‘letterbox companies’ għal biċċa sew tal-hekk imsejjaħ ‘tkabbir ekonomiku’. Dan filwaqt li jippretendu solidarjetà minn pajjizi oħra f’oqsma diversi. Tassew li qed ngħixu fi żminijiet bla preċedent, madanakollu l-ħaddiema kollha għandhom jirċievu pagi dinjitużi għax-xogħol tagħhom. Caruana għandu jiddiskuti, kemm f’Malta kif ukoll mal-kontropartijiet tiegħu fl-Unjoni Ewropea, kif għandha tigi riformata s-sistema ekonomika biex tiffavorixxi lill-ħaddiema, lil SMEs, lil kooperattivi, lill-ħaddiema tal-gig-economy, lil intrapriżi innovattivi u l-kwalità tal-ħajja tagħna lkoll. Għandu jieqaf jinjora l-bżonnijiet tas-soċjetà u jieqaf jinsisti fuq politiki neoliberali kontra l-ħaddiema.”

Is-Segretarju Ġenerali tal-ADPD Ralph Cassar innota li Caruana jidher li abbanduna kwalunkwe sembjanza ta’ politika progressiva fl-isfera tat-tassazzjoni, u jippreferi li l-profitti jsiru minn fuq dahar il-ħaddiema b’pagi baxxi, minflok jirriforma s-sistema tat-tassazzjoni. Hemm ħtiega kbira ta’ diskussjoni wiesgħa kemm fuq livell Ewropew, kif ukoll f’pajjiżna stess dwar sistemi ta’ kreditu soċjali jew Dħul Bażiku Universali. Sfortunatament fuq il-front Ewropew, il-gvern Malti, se jibqa’ jieħu l-istess pożizzjoni insostenibbli tiegħu, dik li ma jridx jiddiskuti t-tassazzjoni u kwistjonijiet soċjali u ekonomiċi oħra.

“Huwa inevitabbli li l-paga minima għandha f’termini konkreti ssir paga li biha tgħix b’mod dinjituż – l-hekk msejjħa living wage. Kif irrimarka ġustament il-Moviment Graffitti, il-paga minima nnifisha għandha tkun living wage, fis-sens li għandha tiżgura livell adegwat ta ’dħul biex tissodisfa l-ħtiġijiet bażiċi ta’ kuljum ta ’kull familja. Għalkemm dan l-aħħar kien hemm xi żidiet żgħar fil-paga minima, dawn iż-żidiet huma ‘l bogħod mill-minimu meħtieġ għal kwalità ta’ ħajja deċenti. Ir-rapport tal-Caritas tal-2016 dwar id-dħul minimu għal għajxien diċenti għadu relevanti llum, bħalma kien ħames snin ilu, speċjalment fid-dawl tal-fatt li l-għoli tal-ħajja f’Malta saret insostenibbli. Eżempju ta’ dan huwa l-prezz tsl-kirjiet, li ironikament huma wkoll wisq anke għal impjegati relattivament imħallsa tajjeb, bħal dawk f’industriji ta’ valur miżjud għoli, bħall-gaming.”

“F’termini purament ekonomiċi l-introduzzjoni ta’ living wage tnaqqas il-bżonn ta’ għotjiet soċjali mill-gvern. Paga minima diċenti ekwivalenti għal living wage, tfisser aktar nies jaħdmu, aktar dħul għal gvern minn taxi, u fuq kollox benesseri soċjali aħjar.”

“L-ADPD se tibqa’ konsistenti. Aħna l-ewwel parti li imbuttajna għal reviżjoni perjodika tal-paga minima. L-oħrajn jibqgħu lura u jġibu l-iskużi biex jevitaw ir-riforma.”

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