With regret the Alliance of Pensioners Organisations wishes to state that our proposals together with the recommendations put forward in the Pension Adequacy Report 2018 by the Social Protection Committee and the European Commission to address the adequacy problem of our State pension on a long-term basis have been totally ignored.

To add insults to injury, as representatives of over 90,000 pensioners we were not even invited by the Ministry of Finance for the breakfast meeting to discuss the pre-budget document together with other stakeholders.

In the circumstances the Alliance of Pensioners Organisations can only say that pensioners’ expectations for Budget 2019 have been completely dashed as the measures implemented are on a short-term basis and there is no planning for the future.

In view of the disrespectful attitude taken by the Ministry of Finance towards elderly people and pensioners, the Alliance of Pensioners Organisations, as a form of protest, is not going to be involved in the merits or demerits of Budget 2019.

However the alliance is presenting 10 questions on the present trend and realities faced by thousands of pensioners and other vulnerable persons which need a reply.

It is a fact that currently Malta is experiencing an economic boom, full employment, surplus, persons enjoying exuberant salaries and fringe benefits, wealthy developers and other forms of progress.   In this financial environment where the rich are getting richer and richer one does expect that the wealth generated through our economic achievements is fairly distributed.   This is not the case as thousands of pensioners and other vulnerable groups are still poor or at risk of poverty and social exclusion.

In this scenario the alliance prepared 10 questions leading persons of goodwill to try and form a fair judgement on the current situation where presently the focus is on the budget.     

Is the gap between rich and poor is getting wider?

Although various measures were introduced to address the risk of poverty and the social exclusion issue the problem is still unsolved?

The Alliance of Pensioners Organisations can only say that pensioners’ expectations for Budget 2019 have been completely dashed

The income from the National Minimum Wage and the National Minimum Pension is still low when compared to the regular increase in prices of goods, services etc.?

The cost of living allowance of €2.33 a week is not enough for low income earners and pensioners to improve their quality of life?

The prices to purchase or rent property exploded in a way that while developers get wealthier, low-income earners including pensioners get poorer and poorer? 

That the Pension Reform addressed the sustainability of the system only and ignored completely the adequacy of pensions?    This was confirmed by the Social Protection Committee and the European Commission in the Pension Adequacy Report of 2018.

In Malta the common perception is that one cannot survive on a pension?

Thousands of vulnerable people including 22,000 pensioners who are at risk of poverty are not having a fair share of the wealth generated when compared to hundreds of privileged people earning high incomes? 

An extra increase of €2.17 a week in the pension rate is not enough to address the risk of poverty problem and upgrade the quality of life of pensioners?

The above increase may be enough for a pensioner to go once a week to a village bar and enjoy a cup of tea and two cheesecakes only.  

Members of the executive who are entitled to a service pension from the State are treated differently when compared to the conditions and remuneration enjoyed by members of Parliament and members of the judiciary on their retirement from service?  

It has to be pointed out that our Constitution proclaims that the executive, Parliament and the judiciary are the three pillars of democracy and should have equal treatment.  However this is not applicable when members of the executive retire and are entitled to a service pension for services rendered to the State. 

Finally it should be pointed out that the 10 questions are considered as an exercise to test the social conscience of all stakeholders, particularly those administrators and members of Parliament who are responsible for finance and social policy and who still believe in solidarity and social justice.

If from the above it results that the true factor prevails over the untrue then there are problems which need to be addressed as early as possible as the well-being of pensioners and similar cohorts are at stake.

Carmel Mallia is president of the Alliance of Persioners Organisations.

This is a Times of Malta print opinion piece

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