According to Eurostat, the percentage of those at risk of poverty or social exclusion in Malta, in 2017, was 19.3 per cent, down from 24 per cent in 2013. The rate of those considered to be in severe material deprivation went down by more than half between 2013 and 2017: from 9.5 per cent to 3.3 per cent – positive results that feature in all age brackets.
The figures speak for themselves. This government is following a clearly thought-out strategy, supported by an effective action plan, to face, head on, the issue of poverty and social exclusion. The main aim is to make a real difference in the quality of life of those who struggle to keep up with the rapid economic development taking place.
Such results are definitely not a factor of the platitudes and piety expressed by a leading member of the Opposition in a recent newspaper interview, but of technical competence and political commitment by a government with a clear vision.
One of the direct effects of a booming economy is the increase in demand for housing, both to purchase and rent. So we designed needs-led policies for different people as opposed to taking a one-size-fits-all approach.
In one Budget after another, the government retained the First Time Buyers Scheme while making it easier for second-time buyers to change their house and settle in one more in line with their current needs.
In addition, schemes such as the Home Assist Scheme and the Social Loan-Home Acquisition and Content Plan are concrete examples of the government enabling individuals to gain their independence, while at the same time rewarding hard working, relatively low-income earners. Without such schemes these would be unable to own a property to live in.
The government also thought of those who turn 40 and find it difficult to buy their own property, so it introduced the Equity Sharing Scheme. Measures were also taken to make the rental market more accessible, with more action planned in the months to come.
The investment of €60 million in about 1,000 new apartments and nearly 700 additional social housing units, together with the regeneration of the existing housing estates, confirm that social housing will remain a priority for the government.
Our response is ‘rights’ led, that is, people have a right to live in decent, affordable accommodation. The government is being both creative and innovative in its policies to address the needs of specific groups, however difficult this may be.
The government also entered into public social partnerships with voluntary organisations such as Caritas to offer services to those who, despite all the schemes, may still be in a vulnerable situation. No one in this country is allowed to fall between policies.
My Opposition colleague referred to the case of a pensioner and extrapolated this person’s circumstances to make it appear the norm for all pensioners. Every case is a human story and important to highlight. But isolated cases cannot form the basis of the claim that “a growing number of people are at risk of poverty”. EU statistics do not reflect the position asserted by the Opposition.
We have exceeded expectations
In a few years this government has succeeded in doing what the previous administration failed to do in decades. Among other things, it has effectively exempted pensioners from income tax. Pensioners aged over 61 will no longer pay tax on their pensions up to €13,400. It has introduced a scheme for part-time, self-employed pensioners to benefit from a preferential tax rate.
The government has maintained the annual €300 grant for those 75 and over. It introduced a scheme to augment the pension of those who stay in employment and do not claim a pension they are entitled to.
It has issued special government bonds offering a higher rate of interest than the market for those aged 62 and over. This was already done three times. Above all, we have increased pensions on four occasions.
In contrast, the Opposition was only able to offer piety and platitudes. Reforms need to be driven by concrete actions that make a difference in quality of life and not merely comfort people with piety. The government will always have pensioners high on its agenda and its policy responses will deliver an improved quality of life.
Change is a process led by a vision and the vision set in 2013 of a ‘Just Society’ (Soċjetà Ġusta) was and still is the driving force behind our policy measures and service programmes. In fact, in 2014 the government launched its 10-year National Strategy for Poverty Reduction and Social Inclusion. We set three specific objectives to be achieved: to ensure that our development is sustainable; to empower people to seek opportunities and capitalise on them, while promoting social solidarity as a societal value; and to consolidate social services and ensure that social rights are accessible to all, irrespective of background or status, and that such services are of the highest quality.
In this respect we identified six dimensions that the government considers vital for the well-being of all, while giving particular attention to those at risk of poverty and social exclusion. These dimensions are: increase income to make work pay and maintain social benefits that support periods of transition; employment that makes people independent while creating opportunities to upgrade skills; education and training, especially for young people and individuals returning to the labour market; health and environment; social services that ensure a dignified living for those in vulnerable situations; and culture that is accessible to all.
It is challenging but not impossible, and with a dose of realism we will update systems and programmes to stay on course.
The Opposition was reported to be working on what was called a ‘massive national plan’. It sounds grandiose but this government is not about impressing audiences but delivering on promises. We have exceeded expectations but this will not go to our heads. It will propel us higher in delivering quality services while steadily keeping on course towards a just society where each person, irrespective of who he or she is, matters.
Dr Michael Falzon is Minister for the Family, Children’s Rights and Social Solidarity.
This is a Times of Malta print opinion piece