Long awaited report on welfare reform presented to Government

The Chairman of the Welfare Reform Commission, Joseph Schembri, yesterday presented his report to the members and the government, over four years after the commission was set up.

The commission had not met for months after his appointment 16 months ago, and things only got moving again in spring.

Social Policy Minister Lawrence Gonzi and Finance Minister John Dalli were present for yesterday's meeting.

A period of consultation is now expected. The commission will be meeting within three weeks, during which time the government will prepare its own reaction.

The issue will then be referred to the Malta Council for Economic and Social Development.

"The idea is to have everything ready and finalised to be presented in the upcoming budget," Dr Gonzi told The Sunday Times.

He declined to comment on the findings of the report, which is expected to tackle the possible raising of the retirement age to 65.

The commission has been bogged down by delays since its inception. Its original chairman, Anthony Galdes, had stepped down in January 2002 as he felt that policies outlined in the budget curbed the commission's terms of reference. He had been chairman for two and a half years.

The government then asked former Central Bank deputy governor Henry Degabriele to take over. The commission had not met for the previous six months.

Mr Schembri was subsequently appointed chairman and had told The Times last May that he expected the report to be finalised within weeks.

The commission is made up of representatives of four ministries, the Attorney General's office and several constituted bodies. There is a vacant place for an Opposition representative. It was brought into being to obtain information on the financing of current and prospective pensions, gain understanding of the welfare gap and what legislative changes needed to be made.

The commission was also told to look at the strengths and weaknesses of systems in use abroad and to recommend proposals for the reform of pension funding as well as possible incentives and related measures.