The Talking Point by Ivan Bartolo, the Nationalist Party’s spokesperson on the fight against poverty, entitled ‘Economy slowed, poverty hasn’t’, (May 22), is full of gratuitous claims backed by zero statistics. This is not the way to discuss the issues raised.

Bartolo acknowledges the fact that the COVID-19 control measures introduced by the government were fully justified, but he asserts, rather contradictorily, that the consequent economic slowdown was put at the top of the government’s agenda and second to healthcare. 

On the contrary, both health and the economy enjoy equal consideration and treatment in the government’s priorities. This has been made clear in all official statements, and also in practice through the measures taken.

Bartolo talks about the inevitable slowdown in the economy.  Yet, the European Commission’s Spring Forecast is testimony to the country’s strengths, as evidenced by the economic results expected this year, despite the disruptions imposed by COVID-19. 

The forecasts for 2021 are equally satisfying, again making us a positive forerunner among the member states.  By the way, the 13th best increase in GDP expected in 2021 is itself a positive reflection of the fact that this year we will have the fourth lowest decline, and we will thus start 2021 from a higher base than most of the others.                                                                                                                       

The strong economic and fiscal trends which this government has achieved since 2013 have guaranteed that the impact of COVID-19 will be mitigated, and that the whole population will benefit from this, including vulnerable people, who are the subject of Bartolo’s article. 

Bartolo writes about “many” people who are allegedly having difficulty paying their rent and utility costs yet, however he quotes no statistics.

Yet again, on the contrary, an article in Times of Malta (May 18) reports that “it is a tenant’s market for rental property right now, with supply far outstripping demand and prices going down by as much as 50 per cent in some cases, according to real estate agents”. Rental fees have dropped an average 20 per cent and even halved “in the case of already overpriced apartments, after an injection of an estimated 9,000 properties from the short-let sector of the industry.” 

There is no doubt that even longer-duration lettings are benefitting from the reductions in rent. 

The situation will improve even further when the various social housing projects launched by this government (some 18,000 units) will start coming on stream. The stabilisation of rents thanks to the recent rental market law will further undoubtedly contribute to alleviating the financial burden of housing.

As for utility bills, Bartolo says that people will have to pay higher bills due to their working from home.  Of course, he does not mention the fact that Maltese households paid the fourth cheapest price for electricity in the EU last year (Times of Malta, May 7). 

He alleges “widespread poverty”.  Based on what?  The latest available statistics are those for 2019, when households at risk of material deprivation in Malta were 8.4 per cent (2012: 19.8 per cent) of all households, whereas those at risk of severe material deprivation were 3.7 per cent (2012: 9.2 per cent). 

Ivan Bartolo alleges ‘widespread poverty’. Based on what?- Michael Falzon

While it is true that the at-risk-of-poverty rate (again in 2018) rose by 1.5 percentage points, this was to a considerable extent the product of the fast growth in economic and average income which affected the relativity between different social strata, not because of a reduction in the financial means available to vulnerable people.

Bartolo refers to food banks. The contribution of the Church and NGOs in this sector is highly appreciated, but one needs to keep in mind that most of these NGOs are assisted financially by the government.  He also seems to forget that the government provides support to vulnerable people and to people at risk of poverty, through various initiatives of its own, the financial cost of which is not captured by the poverty and deprivation statistics quoted above, which are based on financial transfers and exclude aid in kind.

The dismal picture painted by Bartolo does not correspond to reality.  In fact, the number of people who have had to rely on social assistance has decreased over the years; from some 14,000 in 2012 to around 6,800 in May this year. 

One does not exclude a change in the numbers as the economic impact of COVID-19 works its way through the economy. But the government has responded quickly and effectively, through its various measures to aid business and employees. 

On an economic level, the government’s spend on COVID-19 measures is one of the best in the EU, using a judicious mix of soft loans, tax deferrals, and various types of grants to both business and employees, which have been complemented by measures announced by the commercial banks, at the government’s behest. The government continues to monitor the situation and will intervene again, as and when necessary. 

I mention for example, the Private Rent Housing Benefit Scheme, which was extended to individuals who had lost their job, were on forced leave, were working reduced hours or were self-employed individuals at zero income due to the outbreak of COVID-19. 

The social benefits paid in respect of COVID-19 include parents’ benefit, disability and additional disability benefits, and medical benefits.  Over 82 per cent of these benefits have been paid to Maltese beneficiaries, and the rest to foreign ones.  As I write, over €12 million were paid to these beneficiaries.

Therefore, rather than turn a blind eye, the government has acted swiftly and diligently to alleviate the impact of COVID-19 on people, and in particular those who are the most vulnerable in our society.  We will continue doing so in the coming months, until we come out of this unfortunate situation, which we are confident we will do.

Michael Falzon is Minister for the Family, Children’s Rights and Social Solidarity.

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