Gejtu Vella calls for social pact

Union Haddiema Maghqudin general secretary Gejtu Vella said that at such an important time for Malta the social partners together with the government should start discussions that would lead to a social pact that would also include the reforms in the welfare and pensions sectors, among others.

He said senior government exponents spoke about these reforms and mentioned harsh measures with the media before discussing these matters within the Malta Council for Economic and Social Development, which was set up precisely for this aim.

The government had not grasped the importance of the MCESD, but the union felt that enough time had passed for the government to start making good and effective use of it, he added.

Mr Vella, who was taking part in a discussion during the UHM Summer Fest at Qawra last night, said that in view of Malta's EU membership there was the need to draw up a forward looking plan to be agreed upon by the social partners.

This social pact, which should be based on social justice, should also see to taxation levels, competitiveness and productivity, the creation of work, education and the training of workers, serious controls on waste and abuse and the environment among other matters.

Mr Vella said that in recent weeks the UHM had carried out a series of meetings with constituted bodies individually to discuss various issues, including the economy and the country's future.

He said it clearly emerged from the meetings that at this most important time for Malta, the social partners together with the government should start discussions leading to the pact that would provide peace of mind for a definite period agreed upon by the social partners.

Mr Vella said the UHM firmly believed and insisted that what was being stated in public by government exponents on reforms in the health, pensions and welfare sectors, on the deficit, the creation of work and other issues, should be discussed between the social partners with the full participation of the government.

He insisted that the way that led to solutions was that of constructive and serious dialogue.

"The UHM was prepared to commit itself to this dialogue as soon as the government gave the signal that it also is prepared to work within this forum," Mr Vella said.

Mr Vella based his intervention on the need for the creation of work and wealth in a stable and socially just environment.

"No economic progress can be registered if the social aspect is destabilised," he said.

When he referred to EU membership, Mr Vella called for a national effort so that full advantage would be taken of the opportunities provided by membership.

This could only be achieved if the machinery of the MCESD were used effectively.

"A bigger effort was needed so that the social partners would have a say in decisions from a very early stage," he said.

The Labour Party spokesman for European Affairs, Evarist Bartolo said the biggest challenge Malta had in the years to come was whether it would be among the winners who managed to renew their economies to create jobs or among the losers who were not competitive anymore and could not create new jobs, as they were not attracting new investment.

"The government is not saying where our future economic growth is going to come from. It is not saying how it will succeed in attracting new investment in manufacturing, financial services and tourism or what steps it is taking to enable Malta to compete successfully with Central and Eastern European states for new markets and new investment.

"Nor is it taking the necessary steps to create a new and healthy economy in our country and is not succeeding to control the deficit, which has now reached seven per cent, and the public debt, which has climbed to 70 per cent of our gross domestic product," Mr Bartolo said.

He added that faced with a weak economy, serious problems in government finance and the new challenges brought about by EU membership, the government was forging ahead on its own and was ignoring the private sector, the trade unions and parliament, despite all the nice words about "a new spring" and "a new way of doing politics".

Mr Bartolo said the government had neither stated how it intended to spend the money that Malta would be getting from the EU in the first three years of membership.

"If these funds are not spent fully and effectively to help create the right conditions for an economic recovery, Malta will face serious problems because more jobs will be lost," he said.