Welfare reform?

As the debate on the future of the welfare state in Malta continues, it is very relevant to consider the issues involved in welfare reform. Clarifying such issues should help towards producing a balanced, objective debate on a matter of national importance.

The first important issue is that regarding the sustainability or otherwise of our present welfare system. Arguments put forward such as that our present welfare system is unsustainable in the long term may yet prove to be fallacious.

We are told that the present system of pensions is unsustainable because of the imbalance between the number of contributory workers and the far greater number of pensioners in the future. Fewer babies are born and more people are living longer, which is problematic, we are told.

Expenditure in social services, especially in the health sector, is fast growing, we are again told, but our national income is not growing fast enough to keep pace with the increased expenditure. Therefore, there is only one solution to these problems: Welfare reform.

At first, such arguments seem logical and rational but, upon deeper reflection, one realises that the issues at stake are not so simple and that the consequences of welfare reform in our country may be totally negative in practice.

Let us start by considering whether, as a matter of principle, we are going to accept the fact that what Maltese citizens have acquired through so many years of sacrifices and social legislation is going to be surrendered for reasons of expediency.

I am one of those who believe that the welfare state is sacrosanct as is our country's independence, our Constitution, etc. The welfare state should be considered as part of our national heritage, something to be treasured. Therefore, dismantling it should never be considered as an option towards improving Malta's economic situation.

A moral argument against welfare reform in the Maltese context concerns the question of responsibility and accountability. Are we going to accept the fact that a government which fails in a most blatant manner to solve the country's economic problems, over several years, can then turn to its citizens and ask them for more sacrifices because of its incompetent performance? Remember that here we are speaking of passing the buck over to the most vulnerable section of our society such as pensioners, the sick, the infirm and others dependant on the health services.

Instead of welfare reform, what about initiating measures that would increase our national income without attacking social services? The attack on tax evasion and the abuse of social services should be increased. More measures should be taken to curb government expenditure, to attract more foreign investment, to make our country more competitive, to attract more tourists to Malta, to create employment, to grasp the opportunities created through European Union membership.

One should learn from history. When the Malta Labour Party was elected to government in June 1971 the Maltese economy was in a very bad state.

What Dom Mintoff and the Labour government did, however, was not to diminish social services but to increase them and create the welfare state while simultaneously increasing the national wealth through competent government and creative initiatives.

This brings us to the crux of the problem: Do we need to change our welfare system or do we need to change our government?