Kultura ta’ dipendenza

Il-baġit għall-2023 li l-Ministru tal-Finanzi Clyde Caruana ippreżenta lill-Parlament nhar it-Tnejn għandu jkun deskritt bħala wieħed li jsaħħaħ kultura ta’ dipendenza.  Il-Gvern jagħmel użu mit-tqassim taċ-ċekkijiet biex jilħaq dan l-iskop! Id-dipendenza fuq il-Gvern, taħt il-Labour hi oġġettiv  inkoraġġit. Is-sitwazzjoni minn baġit għall-ieħor tmur mill-ħażin għall-agħar.

Dan hu forsi l-iktar ċar mill-mod kif il-Gvern imexxi l-quddiem il-politika tiegħu dwar il-pagi. Żviluppat differenza kbira bejn id-daqs tal-paga minima u kemm verament teħtieġ biex tgħix. Il-Gvern qed jipprova jindirizza din id-differenza billi jqassam iċ-ċekkijiet. Issa ħoloq COLA ġdida biex jgħin lill-vulnerabbli u dan flimkien ma numru ta’ sussidji li uħud minnhom mhux neċessarji inkella huma ta’ ħsara.

 Il-ħolqien ta’ dan il-benefiċċju ġdid għall-persuni vulnerabbli (80,000 skond il-Ministru) li ma jistgħux ilaħħqu mal-ħajja, hu pass pożittiv. Il-vulnerabbli jeħtieġu l-għajnuna, imma jeħtieġu ferm iktar minn ċekk ta’ madwar €300 li ser jitqassam fi żmien il-Milied. Kien ikun ferm iktar għaqli kieku l-Gvern iffoka fuq il-problema reali u indirizza din il-probema bis-serjetà. Issa ilu żmien ikaxkar saqajh.

Il-problema reali hi li l-paga minima hi baxxa ħafna: hi ferm il-bogħod minn paga li tista’ tgħix biha. Gvern wara l-ieħor għamel ħiltu biex din il-problema jevitha. Tajjeb li niftakru li l-benefiċċji soċjali, fil-parti l-kbira tagħhom, huma marbuta mal-paga minima u huma rifless tagħha. Paga minima diċenti awtomatikament teffettwa l-benefiċċji soċjali li riżultat ta’ hekk jitjiebu sostanzjalment, bi dritt.

Tul dawn l-aħħar għaxar snin tlett rapporti tal-Caritas analizzaw din il-materja fil-fond. L-aħħar rapport, li nħareġ fl-2021, kien ikkonkluda li hemm diskrepanza ta’ 40 fil-mija bejn il-paga minima u dak meħtieġ biex wieħed jgħix b’mod diċenti. Dan jammonta għal diskrepanza ta’ madwar €4,000 fis-sena. Din hi l-problema rejali!

Sakemm nibqgħu bil-paga minima baxxa daqshekk, it-tqassim fuq stil tar-rigali tal-Milied (Father Christmas) ser jibqgħu jsiru biex jitnaqqas il-piz minn fuq spallejn il-vulnerabbli. Xi drabi ir-rigali ta’ Father Christmas ma jkunux limitati għall-vulnerabbli imma qed jinfirxu ma kulħadd. Hekk ġara biċ-ċekkijiet ta’ qabel l-elezzjoni, u l-hekk imsejħa rifużjoni tat-taxxa!

Flok din id-dipendenza fuq dan it-tqassim, ikun iktar xieraq li l-paga minima tiżdied u issir paga li tista’ tgħix biha.  Dan jista’ jsir billi l-baskett ta’ oġġetti u servizzi li fuqu tkun ikkalkulata l-paga minima jkun aġġornat regolarment. Dan jelimina l-ħtieġa tat-tqassim ta’ cekkijiet ta’ kull xorta fil-parti l-kbira tal-każi għax il-paga raġjonevoli tkun ir-regola: ma jkunx hemm ħtieġa tal-benvolenza politika tal-Gvern, la fi żmien il-baġit u l-anqas, fi żmien ta’ elezzjoni ġenerali kif, b’mod abbużiv diġa sar.

B’żieda ma’ dan it-tqassim taċ-ċekkijiet bi pjaċir, flok pagi ġusti bi dritt, tajbin biex wieħed jgħix bihom, il-Gvern qiegħed ukoll japplika numru ta’ sussidji li huma mfasslin b’mod żbaljat.

Is-sussidji tal-petrol u d-dijżil huma żejda. Iż-żieda internazzjonali fil-prezz tal-petrol u d-dijżil, li huma madwar id-doppju ta’ dak li qed inħallsu Malta, hi opportunità unika li f’idejn kapaċi tista’ tikkoreġi l-iżbalji li għamel il-Gvern fil-konfront tal-problema tagħna tad-dipendenza fuq il-karozza privata.

Flok is-sussidji fuq il-prezz tal-petrol u d-dijżil ikun aħjar kieku ninvestu fl-effiċjenza u l-puntwalità tat-trasport pubbliku. Din hi opportunità unika li, f’idejn min jifhem tista’, fit-tul, twassal għal tibdil fl-imġieba tan-nies favur użu iktar tat-trasport pubbliku u użu inqas tal-karozzi privati.  L-introduzzjoni ta’ transport pubbliku b’xejn għal kulħadd mill-bidu ta’ dan ix-xahar kien pass primatur: l-effiċjenza u l-puntwalità tat-trasport pubbliku kellu jkun indirizzat ferm qabel ma ttieħed dan il-pass importanti.

Li tkun indirizzat id-dipendenza fuq il-karozzi privati hu oġġettiv politiku li l-Gvern stess ippropona fil-Pjan Nazzjonali dwar it-Trasport. Il-Gvern qiegħed jinjora l-pjan tiegħu stess.

Min-naħa l-oħra hu xieraq li l-konsum bażiku tal-ilma u l-elettriku fir-residenzi tagħna jibqa’ jkun issussidjat. Imma hu żball li is-sussidju japplika ukoll għall-konsum kollu ta’ kulħadd. Ikun ferm aħjar jekk setturi differenti tal-ekonomija jkollhom aċċess għal għajnuna mfassla għall-ħtiġijiet tagħhom sakemm iddum il-kriżi kurrenti.   Dan jista’ jagħti protezzjoni ferm ikbar kemm lill-impiegi kif ukoll lill-ekonomija. Fuq kollox b’dan il-mod jista’ jkun evitat li jkun issussidjat il-ħela u l-abbuż fl-użu tal-ilma u l-elettriku.

Ma hemmx ħtieġa li nsaħħu kultura ta’ dipendenza fil-forma ta’ tqassim ta’ ċekkijiet inkella b’sussidji mhux meħtieġa.  Huwa tajjeb li l-vulnerabbli jkunu mgħejjuna. Imma li tinbena u tissaħħaħ kultura ta’ dependenza bħala riżultat ta’ politika skaduta dwar il-pagi hi xi ħaġa ferm differenti. Dan jagħmel ħsara lit-tessut soċjali tal-pajjiż u għandu jinġieb fit-tmiem l-iktar kmieni possibli.

ippubblikat fuq Illum: il-Ħadd 30 t’Ottubru 2022

A Culture of Dependency

The budget for 2023 presented to Parliament by Finance Minister Clyde Caruana last Monday may be described as one which reinforces a culture of dependency. Government handouts are used, left, right and centre to achieve this objective. Under Labour the culture of dependency is actively encouraged: it gets worse with every budget.

This is most clear in the manner in which government deals with incomes policy. A chasm has developed between the actual minimum wage and what is required as a living wage. Government tries to bridge this through various handouts including the newly created special COLA for the vulnerable as well as through subsidies, some of which are unnecessary or damaging.

The creation of a new ad hoc benefit payable to vulnerable persons (estimated by the Minister at 80,000 persons) who cannot cope with the current rate of inflation is a positive step. They definitely need help, but they need much more than an approximately €300 handout at Christmas time.  It would have been much better if government focused on the real problem and addressed it head-on. It has been procrastinating for ages.

The real problem is that the minimum wage is ridiculously low: it is far from being a living wage. Governments have repeated sought to avoid addressing this issue. It is pertinent to point out that social benefits are mostly pegged to the minimum wage. A minimum wage at a reasonable level would automatically adjust all social benefits to an equally reasonable level too.

Three Caritas reports have analysed the issue in depth in the last ten years. The last report issued in 2021 had found a 40 per cent discrepancy between the minimum wage and what is required as a living wage. This translates into approximately a €4,000 shortfall per annum. This is the real problem!

For so long as the minimum wage remains at such a low level, government handouts in Father Christmas style will remain the norm in order to reduce the burdens on the vulnerable. At times, this Father Christmas benevolence is not limited to the vulnerable but spread to the benefit of one and all. The pre-electoral handouts and the so-called tax refunds are just two examples.

Instead of being dependent on handouts, it would be appropriate if the minimum wage is a living wage. This can only be achieved through a regular updating of the basket of goods and services on the basis of which the quantum of the minimum wage is determined. This would eliminate the need for most handouts at any time of the year as all would get their dues as of right, on a regular basis, and not be dependent on the political benevolence of government, be it at budget time or else, abusively, on the eve of general elections as has already happened.

In addition to a policy of preferring handouts to a clear statutory determination of a fair living wage Government has also embarked on a policy of increased subsidies, designed in an ill-advised manner.

The subsidies applied to petrol and diesel are uncalled for. The current international spike in fuel prices – approximately double what we pay locally– is a unique opportunity which, if properly managed could make up for government’s lack of action to address the car dependency problem on the Maltese islands.

Instead of subsidising the price of petrol and diesel it would be much better to invest in the efficiency and reliability of public transport. This is a unique opportunity which if properly managed could be the beginning of a long-term behavioural change: away from the private car and towards public transport. Having free public transport for all as of this month was a pre-mature step: the efficiency and reliability of public transport should have been adequately addressed before embarking on such an important step.

Addressing car dependency head-on is a policy objective proposed by government’s own National Transport Master Plan but repeatedly ignored by government itself.

On the other hand, it is appropriate to subsidise basic water and electricity domestic consumption. One should however think beyond an across-the-board subsidy.  Having focused assistance to different sectors of the economy tailor-made to their specific needs for the duration of the current crises would yield far better results in protecting employment and the economy in the long-term. It would definitely avoid subsidisation of waste and misuse of water and electricity.  

We do not need to create or reinforce a culture of dependency in the form of handouts and unnecessary subsidies. Helping the vulnerable is laudable. Reinforcing a culture of dependency as a result of an outdated incomes policy is something quite different: it damages the social fabric and should be reversed the soonest!

published on The Malta Independent on Sunday: 30 October 2022

Miljun euro kuljum f’sussidji

Is-susidji li qed jitħallsu mill-kaxxa ta’ Malta għall-petrol, dijżil u elettriku huma sostanzjali. Sa nofs Lulju anke d-dijżil użat minn inġenji kbar tal-baħar kien issussidjat! Permezz ta’ avviż legali, effettiv mid-29 ta’ Lulju il-Ministeru tal-Finanzi waqqaf dan is-sussidju, u għamel tajjeb.

Din il-bidla, bl-eliminazzjoni tas-sussidju tad-dijsil u petrol għal inġenji kbar tal-baħar kienet pass tajjeb il-quddiem biex ma jibqgħux jintużaw fondi pubbliċi fuq sussidji li la kienu meħtieġa u l-anqas ma kienu ġustifikabbli.

Is-sussidji li presentement huma użati għall-petrol, dijżil u l-elettriku jeċċedu l-miljun ewro kuljum. Fil-fatt huma qrib il-miljun u nofs euro (€1,500,000) kuljum.

Il-Prim Ministru, Robert Abela, f’dawn il-ġranet qal li mhux faċli li tillimita s-sussidji biex l-għajnuna ma tispiċċax għand min għandu l-mezzi, inkelli għand min jaħli. Naqblu perfettament li qatt mhu faċli tieħu dawn id-deċiżjonijiet. Speċjalment meta jkun meħtieġ li taqta’ l-benefiċċji lil min m’għandux ħtieġa għalihom!

Hu possibli li nikkunsidraw bis-serjetà t-tnaqqis tas-sussidji għall-petrol, dijżil u elettriku biex ikunu jistgħu jintużaw biss minn min jeħtieġhom. Dan it-tnaqqis jassigura li jkun hemm ferm iktar fondi għal dawk li verament għandhom bżonn. Miżura bħal din tnaqqas il-ħtieġa li tkun indirizzata l-ispiża għall-edukazzjoni jew għal xi qasam jew proġett ta’ utilità biex tagħmel tajjeb għas-sussidji.

It-tnaqqis fl-ispiża għall-edukazzjoni universitarja, kif qed jippjana li jagħmel il-Gvern bi tnaqqis fil-fondi għall-Università hu kastig indirizzat lejn il-ġenerazzjonijiet futuri.  Il-ġenerazzjonijiet futuri huma diġa mgħobbija bid-dejn pubbliku akkumulat, b’riżorsi naturali li kważi spiċċaw u b’wirt nazzjonali li qiegħed kontinwament taħt assedju. M’għandniex nagħmlu l-affarijiet agħar milli diġa huma!

Is-sussidji eżistenti jistgħu jonqsu iktar.

Is-sussidji fuq il-petrol u d-dijżil jistgħu jonqsu sakemm gradwalment jinġiebu fix-xejn.  Dan iwassal għal benefiċċju addizzjonali, ta’ inqas karozzi fit-toroq, u dan billi żieda fil-prezz tal-petrol u d-dijżil inevitabilment jikkawża ċaqlieqa lejn użu ikbar tat-transport pubbliku. Irridu fuq kollox niftakru li numru sostanzjali tal-vjaġġi li nagħmlu bil-karozzi privati huma għal distanzi qosra. Dan ġie emfasizzat ukoll mill-iStrateġija Nazzjonali tat-Trasport li tgħid li 50 fil-mija tal-vjaġġi bil-karozzi privati fil-gżejjer Maltin huma għal distanzi qosra li jieħdu inqas minn ħmistax-il minuta.

F’dawn iċ-ċirkustanzi, t-trasport pubbliku jista’ joffri alternattiva raġjonevoli. Iktar u iktar issa li minn Ottubru ser ikun bla ħlas! Jeħtieġ imma li jkun effiċjenti, jżomm il-ħin, dejjem, u jilħaq l-ikbar numru possibli ta’ lokalitajiet f’kull ħin. Dan għandu jinkludi servizz ridott imma effiċjenti matul il-lejl.

F’dawn iċ-ċirkustanzi, it-tnaqqis tas-sussidju fuq il-petrol u id-dijżil hi l-aħjar għażla li tista’ issir.

Imbagħad ikun jinħtieġ li jkunu indirizzati b’mod dirett l-impatti ta’ dawk is-setturi ekonomiċi dipendenti fuq il-petrol u d-dijżil. Dawn jeħtieġu għajnuna diretta u iffokata li tindirizza l-impatti ta’ din id-dipendenza.

Konsiderazzjonijiet simili għandhom japplikaw għas-sussidji li preżentement japplikaw għall-konsum tal-elettriku.

Il-konsum domestiku bażiku tal-elettriku għandu jibqa’ jkun issussidjat. Imma lil hinn minn dan il-konsum bażiku, anke hawn hu ġustifikat li tkun ikkunsidrata għajnuna iffukata u mfassla għas-setturi ekonomiċi differenti. Dan jagħmel ferm iktar sens milli jkun issussidjat il-konsum kollu bla limitu.

Għandha tibqa’ prijorità l-għajnuna li twassal għall-ġenerazzjoni u użu ikbar ta’ enerġija rinovabbli.  Hemm ħtieġa ta’ sforz ikbar biex tkun iġġenerata enerġija solari permezz ta’ użu iktar effiċjenti tal-bjut tal-bini pubbliku kif ukoll, fejn dan hu possibli, tal-ispazji miftuħa. Flimkien ma investiment ikbar fit-titjib meħtieġ fis-sistema tad-distribuzzjoni tal-elettriku dan jista’ jnaqqas l-impatt ta’ din il-kriżi enerġetika fuq il-pajjiż b’mod sostanzjali.

Li ngħinu li dawk li għandhom ħtieġa, tibqa’ prijorità. Imma l-għajnuna li tingħata għandha tkun waħda li tkun sostenibbli. In-nefqa ta’ miljun euro kuljum fuq sussidji (probabbilment ferm iktar) definittivament mhux sostenibbli.

Il-futur niffaċċjawh b’serenità permezz ta’ viżjoni sostenibbli. Dan jaqbel u hu fl-interess ta’ kulħadd. Kemm fl-interess tal-ġenerazzjonijiet preżenti kif ukoll fl-interess tal-ġenerazzjonijiet futuri. L-għażliet li għandna quddiemna mhumiex faċli. Hu biss jekk nagħrfu nidentifikaw il-prijoritajiet tagħna bil-għaqal li nistgħu nkunu f’posizzjoni li nħejju futur sostenibbli.

ippubblikat fuq Illum: 18 ta’ Settembru 2022

One Million euro every day

The subsidies being currently forked out by the public exchequer relative to the current price of fuel and electricity are substantial. Until mid-July subsidised fuel was also available for use by large seacraft. Through a legal notice effective on the 29 July the Finance Ministry tweaked the subsidy rules to stop this. This was a correct step to take.

This tweaking of fuel subsidy rules was a good step in diverting subsidies from being mis-used for non-essential purposes.  The subsidies currently applied to fuel and electricity exceed the sum of one million euro per day. In fact, they are getting closer to one and a half million euro (€1,500,000) per day.

Prime Minister Robert Abela is on record as stating that it is not easy to limit subsidies from being used by the wealthy and the wasteful. I agree that decision-taking is never easy. Especially when limiting access to benefits such that those who are not in need and the wasteful do not end up being subsidised by the state!

It is however possible to seriously consider limiting the fuel and electricity subsidies to be used only by those who need them. Such a limitation would ensure that more funds are available for those who really need them. It would reduce the need to curtail expenditure on education or other useful areas/projects to make good for the subsidies.

Reducing expenditure on university education, as government is planning to do through a reduction in its operational budget, penalises future generations. Future generations are already burdened with the accumulated national debt, with the depletion of natural resources and with the continuous ruining of our national heritage. We should not make matters worse than they already are.

Existing subsidies could be further tweaked.

Subsidies on petrol and diesel could be reduced until they are completely eliminated. This would have the additional benefit of less cars on the road as increased petrol/diesel prices would inevitably shift more of us to make more use of public transport. We should remember that a substantial amount of private car use can be avoided as it is for short distances. This has been clearly emphasised in the National Transport Master Plan which states that 50 per cent of car trips in the Maltese Islands are for short distances of less than fifteen minutes duration. Public Transport can offer the reasonable alternative in these circumstances, in particular being free of charge as from next month! It must however improve its reliability as well as its efficiency. It should also aim to reach as many localities as possible, including through an efficient night service.

In these circumstances reducing gradually and eventually removing subsidies on petrol/diesel could be the way forward.

The issue remains as to those economic areas which are dependent on petrol/diesel. In these cases, government should identify suitable focused aid which addresses the specific needs of the economic areas under consideration.

Similar considerations should apply to subsidies currently applicable to electricity.

Basic domestic use of electricity should remain subsidised. Beyond that, however, it would make sense to focus the required aid to industry and business in a focused manner, in tailor-made fashion. This would make much more sense than a blanket policy of subsidies across the board.

Increased emphasis on assistance to generate and make use of renewal energy should continue to be a priority. An increased effort must be made to generate more renewable energy through an efficient use of the roofs of public buildings as well as, wherever possible, adequate use of public open spaces. Coupled with an increased expenditure on improvements to the electricity distribution system this could reduce the impacts of this energy crisis on the Maltese taxpayer in a substantial manner.

Helping those in need is a priority. In should however be done in a sustainable manner! Spending more than one million euro per day on these subsidies is definitely not sustainable.

A sustainable vision is the way forward. It is in the interest of all. This is in the interest of both the present as well as future generations. The choices we need to make are tough. It is only if we get our priorities right that we can plot the way for a sustainable future.

published on The Malta Independent on Sunday: 18 September 2022