Pensioners breathe sigh of relief

Pensioners' organisations are pleased with the measures announced in the budget, especially because they feel this is the first time in years that senior citizens have been recognised.

Maurice Petrococchino, treasurer for the National Association of Pensioners, described the budget as "very good".

"Over a number of years the budget was failing to give direct help to pensioners. This is a welcome change," he said, when contacted.

"There were numerous points we had proposed to the government, which have been adopted, among them the stamp duty related to conjugal inheritance. We fought for this, it was promised and they delivered," he added.

Mr Petrococchino explained that widowers will now be exempt from paying the causa mortis stamp duty related to the inheritance of the residential home, as long as the property is not sold by the surviving spouse.

The association also welcomed the tax concessions for those who were living in private homes for the elderly. This would alleviate the financial burden of those who had no choice but to go to a private residence, or remain on the waiting list for St Vincent de Paul.

The measure providing benefits for those who receive a pre-1979 service pension was also greeted with enthusiasm. Mr Petrococcino said about 8,000 people would benefit from this measure, which will see them save up to Lm200 (€465.87) in what is at present deducted from their NI pension.

One shortcoming is that the budget failed to provide a tax rebate on private health insurance.

"Just to give you an idea, as an 85-year-old I fork out Lm1,200 (€2,795.25) a year for just the basic private health plan, which is very hefty. However, it's either this or I remain on a waiting list for years to undergo a particular operation," he said.

Albert Tabone, chairman of the Alliance of Pensioner Organisations, said they would be holding a meeting today with all the organisations within the alliance and releasing comments later.

However, he did describe the budget as a positive one, and welcomed the fact that it recognised senior citizens.

Mr Tabone also said the benefits for those who receive a pre-1979 service pension had gone down well with many.

"We are also happy that Malta is moving in the right financial direction and we hope it will be in the black by 2010," he said.

Mr Tabone said he was surprised that no attention had been given to the removal of anomalies in the Social Security Act that affected pensioners.

There was also no mention of the guaranteed minimum national pension at 60 per cent of the median income.