Prime Minister Lawrence Gonzi confirmed this evening that ministers will refund an increase of €7,000 per year given to them from 2008 when the honoraria of MPs was raised.
He also said the increase in the honoraria to all MPs which the Cabinet had agreed upon - but has not been paid to backbenchers - would not be brought into force and would instead be referred to a House committee for its decision. He insisted the decision should be taken by the end of the month.
In a statement to Parliament, Dr Gonzi recalled that up to some time ago, civil servants who were elected to Parliament had to put their day job on hold and only received their honorarium as MPs. That situation was remedied in 2003 and civil servants were put on a par with other workers and could receive both their ordinary salary and the honorarium.
This government had in 2008 decided that the same principle should apply to ministers as it was unfair that ministers lost their honorarium when they became ministers, when they also could not do private work. This amounted to discrimination.
As was the practice abroad, it had also been decided in May 2008 that ministers should receive their honorarium along with their ministerial salary.
The honorarium, he said, was among the lowest in the EU. Only MPs in Lithuania and Bulgaria were paid less.
Dr Gonzi tabled a copy of The Sunday Times, where he had declared that ministers should receive both their ministerial salary and the honorarium.
The House, Dr Gonzi said, had several civil servants who drew a government pay and the honorarium, and that was as it should be. But this principle should also apply to ministers and parliamentary secretaries.
For example, he said, the House had three MPs who were consultants. Their ordinary salary was already substantially higher than that of a minister, and they got their honorarium. Were they to become ministers, they would draw a much lower ministerial salary, and, as the situation was up to some time ago, would also lose the honorarium.
The same applied to all other MPs who had other salaries which they would lose, along with their honorarium should they become ministers.
The decision that ministers would also receive their honorarium was therefore fair. It would not lead to a higher pension since the pension was based on the ministerial salary only.
Before the last summer recess, there had been agreement with the Opposition on the compensation given to MPs, Dr Gonzi said, the only sticking point being the allowance for mail.
The Cabinet this morning decided that:
He and the Ministers would refund the increase given to their honorarium.
The increase of the honorarium would not be brought into force but would be referred to the House Business Committee for its decision. He would insist that a decision was taken by the end of the month, Dr Gonzi said.