Judge Philip Sciberras would manage a fund where the additional honoraria renounced by opposition MPs will go in aid of people and organisations in need, Labour leader Joseph Muscat said.

“I have renounced the second salary and it will go in a fund that will be used to help charity organisations, institutions, families in need and L-Istrina, among other things,” Dr Muscat told a political meeting in Żebbuġ yesterday.

Judge Sciberras, who retired in October, had immediately acc-epted to chair the fund, Dr Muscat said. “I promised he will work without any interference and in an impartial manner,” he added.

Dr Muscat criticised the timing of the pay rise and the “hidden manner” it was introduced for ministers, the Speaker and the Leader of the Opposition.

The rise only came to light after a Labour MP raised the question in Parliament, he said.

Backdated to May 2008, the rise came about at a time when families were still being affected by a recession and had to face the highest petrol prices ever.

“Even small businesses are hard hit. They either absorb the cost or pass it on to their customers. Recent official statistics also reveal wages are being eaten away by the increased cost of living,” Dr Muscat said.

He criticised the government over its “insensitive” decision to appeal a judgment which linked the murder of 15-year-old Karin Grech, who died after opening a letter bomb in 1977, with a politico-medico issue.

“I don’t think it is a matter of politics but this is offending the memory of Karin Grech, thousands of Maltese and Gozitans and her family just when they are about to commemorate the anniversary of her death,” he said.

On Friday, the government filed an appeal contesting a court’s conclusion that there was political discrimination in its decision to award Ms Grech’s family €200,000 as compensation. It did not appeal the €419,287 compensation awarded to the family by the presiding judge.

But Dr Muscat said the decision to appeal the “political motive” was a hard blow to the efforts made for political unity over the years.

There was no difference between Ms Grech’s murder and that of Raymond Caruana, who was shot in the Gudja Nationalist Party club in 1986. “Both were martyrs and we have to try and heal the wounds,” he said before a minute of silence was observed in their memory.

Turning to the pensions reform, Dr Muscat said a recent report drawn up by a government-commissioned working group revealed that Prime Minister Lawrence Gonzi’s 2005 pension reform had “failed”.

Among other things, the report suggested the immediate introduction of a mandatory private pension scheme targeted at people under 45 years old and a voluntary deposit of children’s allowance in a specific pension fund that becomes the child’s possession once s/he turns 18.

“The government’s sense of social justice is disintegrating,” he said.

The opposition would only discuss the pensions’ reform in Parliament as it was a transparent forum where everyone was accountable. “We are not interested in a committee that will hold talks behind closed doors,” Dr Muscat said.

He explained he did not have a good experience with the government commissions. “The decisions are taken elsewhere and I have a feeling it is happening now with the Air Malta steering committee. Three weeks have passed and there has been nothing of substance,” Dr Muscat said.

The Nationalist Party said in reaction Labour MPs knew about the rise in their honoraria as there were talks about this between the government and the opposition. Opposition whip Joe Mizzi had a meeting with the Finance Minister on the matter and an agreement was reached. Mr Mizzi even wanted MPs to continue getting free envelopes and mail, the PN said.

Moreover, it said Dr Muscat failed to say he had an income of €51,323 a year, including a €7,000 tax-free car allowance, free internet and telephone. Also, when he was a member of the European Parliament he had voted for his salary to increase from €1,295 to €7,000 a month, it said.

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