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Gonzi accuses Labour of a minimum wage freeze

Prime Minister Lawrence Gonzi addressing a crowd of supporters in Victoria yesterday.

Prime Minister Lawrence Gonzi addressing a crowd of supporters in Victoria yesterday.

Prime Minister Lawrence Gonzi yesterday set the tone for the electoral campaign and accused the Labour Party of wanting to freeze the minimum wage.

He said Labour leader Joseph Muscat wanted to finance his proposal to lower utility bills by freezing the minimum wage, arguing that this meant the yearly cost of living adjustment would not be awarded.

Speaking in Gozo, Dr Gonzi insisted that the Labour leader could not be trusted because his policy went from one extreme to another.

But in a tit for tat, the Labour Party accused Dr Gonzi of lying about its proposal and insisted that the yearly increase to the minimum wage based on the cost of living adjustment would remain.

“There is consensus that the minimum wage should not increase more than the yearly statutory increase and, for partisan reasons, GonziPN is trying to undermine this,” the PL said.

Dr Muscat had said a Labour government would not increase the minimum wage over and above the annual cost of living adjustment, as suggested by some social partners, but would instead give low income families reprieve by lowering utility rates.

However, Dr Gonzi was unforgiving yesterday. “When the Labour Party realised that its proposal two years ago to have a living wage was criticised by everybody they ditched it quietly and now they go to the other end and propose freezi­ng the minimum wage.”

He argued that wage freezing was a policy tool used by former Labour Prime Minister Dom Mintoff in the 1980s.

He insisted that, under a Nationalist government, the minimum wage would increase every year according to the cost of living adjustment and noted that, since 2008, it had cumulatively gone up by almost €1,000 annually.

On Gozo, the Prime Minister said preliminary studies on the undersea tunnel between the two islands gave encouraging indications and if the end result was a viable project it would be done.

Taking a question from veteran journalist Leonard Callus about rumours that he may quit as Prime Minister, Dr Gonzi reiterated to applause that “a good captain never abandoned his ship”.

He said the election would come when the time was right for the country and urged voters to look at the experience of the past four years.

“Wrong decisions have put countries in very humiliating positions, not only for today but for the next 10 years,” he said, adding that his Administration managed to weather the economic storm.

As he has been doing for the past weeks, Dr Gonzi emphasised his government’s track record of saving jobs, keeping unemployment down and allowing the economy to move ahead.

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charles tabone

Sep 24th 2012, 12:39

Furthermore, may I ask, doesn.t the PM imagine the agony that will overcome laid down workers?

Mario Camilleri

Sep 24th 2012, 11:13

@Eddie, this is likely the political end of Gonzi, thereby the new 'Kapo' will inherit the PN party rather than the GonziPn!!

Ray Buhagiar

Sep 24th 2012, 12:15

At least there is no hint of a minimum wage freeze. I am a floating voter and the latest spontaneous u-turn by Dr Muscat from a living minimum wage to minimum wage freeze set me reflecting that this change of proposal was in fact done without much research. The spontaneous change of decision as a result of one study by Caritas scares me. I will still give Dr Muscat the benefit of the doubt but I am also worried about the claim of reducing the electricity Tariffs by converting to Gas. This conversion is not cheap and wonder where PL will find the necessary funds with a bad economy as already referred to be several PL candidates.

Charles Muscat

Sep 24th 2012, 12:36

Talk is cheap.

Nazzareno Cortis

Sep 24th 2012, 14:44

Ray Buhagiar------while everyone knows what Gonzi did in government---and so people ca make decisions------no one can take a desision on joseph Muscat---unless he is proven in power!!!! Afterwards comparasons can be made---mhux hekk siehbi??????

Mario Camilleri

Sep 25th 2012, 09:38

@Ray Buhagiar,
You said you're a floating voter and yet you only criticised Joseph Muscat!

Quote "with a bad economy as already referred to be several PL candidates" - No the economy is so truly bad that Simon Busuttil said that the country would be knocking on Europe’s doors for a bailout within a year or two if Joseph Muscat lives up to his promises.- http://www.timesofmalta.com/articles/view/20120916/local/Busuttil-will-stand-for-election.437047

"a couple was told by Prime Minister Lawrence Gonzi in an e-mail that there was no money to pay them" - http://www.timesofmalta.com/articles/view/20120829/local/-No-cash-to-pay-for-expropriated-land.434761

So does this mean that Malta is financially and economically sound?

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