Government urged to heed Archbishop's remarks on housing

Labour MPs Stefan Buontempo and Karl Chircop yesterday urged the government to heed remarks made by the Archbishop last Saturday.

Archbishop Joseph Mercieca had called on the state to "open its eyes wide" to the material problems of newlyweds, particularly their housing problems.

Dr Buontempo said there was no doubt that the young faced huge problems to acquire a residence, and, to make matters worse, even apartments offered by the Housing Authority were far too expensive for low income people.

What was the government doing to curb the high prices of property? Marriage breakdowns were increasing, and one of the major cause was the financial burdens which newlyweds had to shoulder.

Dr Buontempo said incentives should be given to the owners of empty tenements so that these would be put back on the market. The government, the opposition and the Church must do the utmost to solve the housing problem.

The remarks were made when the House continued to debate a bill to implement the measures announced in the budget.

Dr Chircop said action was needed over housing because property prices were rising much faster than wages. Prices had risen 400 per cent in nine years.

Dr Chircop said this budget widened the gap between the haves and the have nots. Although the biggest increase in the budget went towards pensions, the structure of social services was under threat. A case in point was how the vote on children allowances would drop by Lm650,000.

EU statistics showed that Malta was one of the most taxed countries and yet the government was continuing to raise taxes. At the same time, commodity prices were also rising fast, eroding purchasing power.

Unemployment was the main concern of many families as well as deteriorating working conditions. Under the pretext of increased productivity the government now wanted to reduce workers' leave.

Measures which were being formally introduced under this bill included higher kerosene and power prices. Also up was the price of bread, bus fares and various products falling under the eco-tax. The opposition believed that once in government, it must revise the taxation scenario so that the burden would be shared in a just way.

Michael Farrugia, opposition health spokesman, asked what had happened to the promised "new Spring."

The ETC, he said, was registering on part two of the unemployment register, people who should be on part one. This was being done to keep unemployment figures low, but as a result workers were being denied their benefits.

Dr Farrugia said somebody should be held accountable for the cost overruns at Mater Dei Hospital or else the government should assume its political responsibilities. The same applied for the hospital design changes. It was shameful that the agreed cost for the new hospital was Lm4 million more than had been recommended to the government.

Dr Farrugia listed social services introduced by Labour governments saying that, in contrast, the government had, in practical terms, ditched the concept of social housing, it was reducing holidays and wanted to introduce payment for health services. Labour governments set up companies which had been major contributors to the economy. The present government was selling off its assets.

This government found the money for its friends, and taxes for the people. The opposition would continue to point out the government's squandering including irregularities detected by the Auditor-General such as in the use of government cars. The opposition would continue to insist on accountability and transparency.

This, Dr Farrugia said, was a government which imposed its decisions without effective consultation.

Silvio Parnis (MLP) said those who voted for the Nationalist Party in the last general election were now feeling deceived. He said low-income families were bearing the brunt of the budget measures as even the price of essential items such as bread, kerosene and the bus service, had gone up.

Before last year's election, the government had promised heaven on earth but now the opposite was taking place.

Clearly, the people could not carry further burdens.

Anglu Farrugia, opposition spokesman on justice, said it was unfair that a third of the value of a property inheritance was ending up in the government's coffers.

Dr Farrugia asked what had happened over reports that duty free diesel had been sold at normal prices. Was it true that an out of court settlement had been reached between those concerned and the Comptroller of Customs?

The Labour MP protested over taxation and rising costs and said the people should not only say "enough is enough" but they should insist that the government reverse its decisions. Students, shop keepers and all sectors of society should voice their protest.

The new tax on mobile phones violated EU directive EC 97/13 on the liberalisation of telephony. That was confirmed by the European Court in a case instituted by Italian companies against the Italian government over a change that was similar to what the Maltese government was now imposing. This measure should therefore be withdrawn. If the government did not budge Malta's own mobile telephony companies could also go to the European court.

Dr Farrugia said Malta had one of the heaviest debts per capita in the world, the difference from South American countries being that most of Malta's debt was local. And yet the bill would allow the government to borrow a further Lm150 million.

Carmelo Abela, opposition education spokesman, who spoke earlier this week, called for an alcohol free zone near the sixth form and not a cigarette free zone, as inadvertently reported.

Government speakers are being reported separately.