Impossible to control cost of living

Azzjoni Nazzjonali leader Josie Muscat yesterday challenged Nationalist Party leader Lawrence Gonzi and Labour Party leader Alfred Sant to sign a contract before a notary pledging not to raise taxes and not to increase VAT.

Dr Muscat said this would be a written guarantee that would win them a lot of votes but which none of them would ever sign, adding that not even he would sign such a declaration. "It's impossible to control the cost of living," he said.

Dr Muscat was replying to a question by The Times on his party's stand with regard to free healthcare. He said healthcare is not free at all although most people are under the impression it is. VAT was increased by three percentage points, from 15 to 18 per cent, and this increase was sidelined to sustain the present healthcare system. In addition, part of what every worker pays in National Insurance contributions is also devoted to sustain the healthcare bill.

"So this impression that our healthcare system is free is just a false impression. In fact, people are paying a lot for health services," he said.

Going through some of his party's proposals, Dr Muscat mentioned one which states that the pension people should receive should amount to about 60 per cent of the national average income.

When The Times asked how much such a measure would cost, Dr Muscat said no workings were available.

Replying to a supplementary question on how the proposal could be sustained, Dr Muscat said the government will have to cut red tape, bureaucracy and wastage, reduce its workforce drastically and set income tax at 18 per cent for whoever earns more than €13,976 (Lm6,000).

Dr Muscat said the "miserable" minimum wage of just €8,619 (Lm3,700) should be raised, especially since such wage and unemployment benefits are equal, acting as a disincentive for unemployed people to work.

He also spoke about the idea of a venture capital bank, which charged interest on profits rather than on the amount borrowed.

Dr Muscat said Parliament should be downsized and the President of Malta elected by the citizens rather than chosen by the government and the opposition.

He spoke about the need for the introduction of a Whistleblowers Act and an Accountability Act.