Editorial

The inevitable question that arises from a reflection on the Bill to tighten invalidity pension criteria and give powers to the Benefit Fraud and Investigation Directorate is why has it taken so long for this legislation to come before the House.

Benefit fraud has been around for as long as social benefits have existed, and it seems that everybody agrees it has increased in recent years.

It would be unfair to say that the government hasn't been doing anything to counter benefit abuse. Last year alone, the Benefit Fraud and Investigation Directorate investigated 600 cases of benefit fraud in general and saved the Exchequer Lm500,000, this when the directorate had still not been set up by law and lacked the investigative powers which the new legislation will give it.

Indeed, it is not just a system of investigation which this country needs to fight benefit fraud, but an awareness campaign that benefit cheating is theft by another name. Campaigns by the inland revenue and VAT departments against tax avoidance, coupled with the actions of the Tax Compliance Unit appear to be having a positive impact in that tax revenue is up and people are now more careful about avoiding tax. But campaigns to dissuade people from cheating on benefits have been few and far between.

What one does hear about, alas, are the innovative ways in which people cheat the system - from changing their ID card address to claiming that a baby's father is unknown, moving in with relatives to claim social housing, under-declaring income, persuading or deceiving doctors into issuing doubtful medical certificates... the list is endless. Malta must list very high in an innovation list on this score.

The pity of it is that all benefit applicants then risk being viewed with suspicion by the authorities and, inevitably, genuine cases would have to wait for months until the application is thoroughly checked; some may even end up being denied the benefit they deserve.

Invalidity pensions appear to be an area where abuse is most rampant. The figures speak for themselves: there is an army of 8,000 people out there receiving Lm16 million in invalidity pensions. The Chamber of Commerce and Enterprise, in its budget 2005 proposals, had recommended a review of these cases, and this idea should now be taken up.

One of the strongest points of the new legislation is that invalidity pensions will not be for life; there would be periodic medical auditing and people found unable to continue their current employment, rather than being directed to social services, will be re-trained for alternative employment. That will be a godsend for those who derive dignity from work, and it should discourage those who see invalidity pensions as the door to early retirement.

This legislation needs to be followed up in different ways. The directorate will need a structure to function effectively and be seen to be doing so - deterrent is an important part of the game. But other legislation is needed too. Social Solidarity Minister Dolores Cristina mentioned the need to tighten up the way ID cards are issued.

But one should also improve the lot of those who genuinely cannot continue to work. The need for mandatory insurance for workers was raised in Parliament in October 2004 but has not been mentioned since. Ways need to be found for workers injured at work to be able to access compensation faster and one should better balance the responsibilities of the state and employers when workers are unable to work because of avoidable occupational reasons.