Gonzi defends raise for Members of Parliament

The Prime Minister yesterday acknowledged that people deserved “an explanation” regarding the generous pay rise granted to politicians two and a half years ago.

However, he questioned why the issue was being raised now, when the decisions were taken in May 2008, failing to mention that the public was only made aware of the issue through parliamentary questions in the past weeks.

Dr Gonzi said this was one of the first decisions taken in this legislature when it was also decided that former ministers would be given a sum of money to cushion their transition back into their private practice.

At the time, the government also made it legal for MPs to retain their jobs even if they were in government employment.

During a radio interview yesterday, Dr Gonzi said there were two issues at stake: the raise granted to all MPs and the fact that ministers and other high profile politicians were being allowed to retain this wage.

Both are backdated to March 2008 and will cost the taxpayer more than €4 million over five years.

Dr Gonzi said the last time MPs’ honoraria was upped was in 1990 and even Labour MPs had long been telling him it should be revised. This was only fair, Dr Gonzi argued, because of the added expenses for MPs that followed in the wake of EU membership, including a lot more travelling.

The Prime Minister said the issue was to be discussed during joint meetings planned between the government and the opposition. However, the Labour Party had ditched the talks after a contentious vote on the Delimara power station extension in Parliament some months ago.

Meanwhile, he said ministers, parliamentary secretaries and the Leader of the Opposition should not lose their MPs salary while other backbenchers were allowed to keep their own private jobs.

“What the opposition leader does with the money is his business,” Dr Gonzi said, referring to the fact that Joseph Muscat said he would not accept the money.

Dr Muscat has effectively given up €120,000 over five years, arguing that if he takes an MP’s honoraria he would be getting two pay cheques for one job. He has left his MPs free to decide what they will do with their raise and some have also said they would give it up.

In the case of Labour MPs they would have to give up some €8,000 per year, which adds up to €40,000 over the legislature.

The Labour Party has claimed it only got to know about the increased salaries in Parliament when the Finance Minister answered a question by Labour MP Leo Brincat. But the government has insisted that the issue was discussed with Labour whip Joe Mizzi before the summer recess and agreed upon – a claim Labour has categorically denied.

Meanwhile, The Sunday Times yesterday revealed that mayors will also be benefitting from a raise which together will cost the taxpayer an additional €220,000 a year. The increases are backdated to January.

Reacting to Dr Gonzi’s comments, the Labour Party asked why the Prime Minister had hidden the salary increases he was defending.

“This shows that Lawrence Gonzi is cut off from the reality of families who are struggling with water and electricity bills, fuel and gas prices and the increase in national insurance,” the party said.