I cannot understand how the trade unions want a one-off payment in order to compensate the Maltese people for the hike in fuel prices. Last year we also had the same ridiculous one-off payment which did nothing more than compensate me for the year 2010. However, our utility bills have remained the same this year and the payment was not brought forward.

So who is going to compensate me for this year’s tariffs? No one, I guess. In fact I was better off two years ago than I am today. Which simply goes to show that the one-off payment does not work. The only way is a pay rise that is carried forward each year just like the tariffs are.

On the other hand, some trade unions are suggesting that a pay rise will result in Malta no longer being competitive. Why, I ask, when last year most of Europe enjoyed a pay rise of between three and six per cent, yet still compete with us?

A substantial pay rise would create more spending power, resulting in bigger sales for the retail trade, which in return generates more employment, wealth and tax revenue.

Just imagine what €10 a week extra would do. With a workforce of around 135,000, that’s a staggering €1.35 million a week cash in hand. That’s over €70 million a year more spending power. Which would do nothing more than boost sales. More than one off-payments do, for they are just a temporary fix and nothing more.

At the end of the day there are two ways of looking at economics, and for some reason we always look at the negative view of a pay rise, when we should be looking at the positive side.