'Mountain gave birth to a mouse' - Sant

Labour leader Alfred Sant views the government's pension reform proposals as falling far short of what Prime Minister Lawrence Gonzi had been projecting.

"Indeed after all the expectations that were built up over the years, the mountain has given birth to a mouse," Dr Sant said.

The Opposition Leader was replying to questions put to him by The Times on whether the Labour Party would be reacting now that the government's pension reform proposals - which will affect pensioners and workers under future legislatures - have been unveiled.

Earlier this week, Dr Gonzi launched a strong appeal to the opposition saying it should voice its views on the reform, expressing hope that the country would achieve political consensus on the issue.

"Labour will definitely not be taking so long to react to the proposals that Dr Gonzi has finally made. We will be making our alternative measures known as part of our reaction to the proposals. We will do so, well within the datelines the Prime Minister himself has indicated for parliamentary debate," Dr Sant said.

He said Labour would be studying in depth the proposals "finally" being made by the Nationalist government regarding changes to the pensions regime.

"This is the first time in eight years or more that the PN administration has come up with its own definite proposals on pensions, even as it said that the Labour opposition had no proposals to make. Up to now, the Fenech Adami and Gonzi administrations always preferred to let the studies and documents published by the plethora of commissions they appointed feature as trial balloons with which no prime minister, deputy prime minister or minister ever associated himself or herself," Dr Sant said.

"It is quite clear that the Gonzi project on pensions falls far short of what he and his publicity machine had projected. The whole question about what happens to the second pillar for financing of pensions, which was touted some time back as the key to the whole reform, has been shelved.

"Has this been done for political reasons? Is it why for so many years, the PN government failed to say what its preferred option would be on pensions?" Dr Sant asked.

He pointed out that "oddly enough, the reason mentioned by the Prime Minister for doing so is that the economy is too weak at present for changes to be contemplated in this sector through the introduction of new taxes.

Yet, Dr Gonzi has been saying that the economy has been greatly improving this past year.

"Another point to make is that even within the limited framework announced by the Prime Minister for his much touted pensions 'reform', there are measures that needlessly promote social regress."

According to Dr Sant, the government seems not to have noticed how these measures could impact on middle to lower income earners. "Which is strange given that they have been over eight years struggling to arrive at some definite measures on pension 'reform'," he added.

"What remains crystal clear is that, following a long period of stagnation, we need to get the economy moving again through a well organised plan for economic and social renewal, that will give an impetus to wealth creation.

"If not, pensions and all public benefits that we take for granted in a modern state will be at risk. This is something that the Gonzi administration should acknowledge and work on honestly and fairly, in collaboration with all the social partners," Dr Sant said.