News | Sunday, 11 January 2009

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Parliament to discuss hefty rise to ministers’ pensions

Karl Schembri
Government intends raising the pension of former ministers in line with the lavish pay rise of over 40% given to ministers and parliamentary secretaries last year, MaltaToday has confirmed.
A spokesman at the Office of the Prime Minister said government planned to discuss the pension rise on the Parliamentary Select Committee in the coming weeks. The committee will be discussing whether last year’s pay rise should be applicable to all former ministers currently receiving a pension. The spokesman would not give details on when the committee will be discussing the issue.
Last November, MaltaToday revealed that all ministers and parliamentary secretaries gave themselves a yearly increase of €14,966 barely two months since the election. The decision was never announced officially.
The figure is based on the honorarium paid to Members of Parliament which used to be forfeited by MPs appointed to the Cabinet.
The move is expected to drain further public finances as last year’s decision alone is already conservatively estimated to cost an extra €224,490 a year.
Before the decision, ministers were paid €33,495 yearly, based on salary scale 2 of the public service schedule. Under the new decision, their wage went up to €48,461.
Labour has not opposed the pay rise despite the austere times facing the country. In contrast with the rise for ministers, the last budget gave a meagre €4.08 cost of living adjustment to the rest of the citizens.
The whip for the Labour Opposition, Joe Mizzi, has agreed with the increase, while Union Haddiema Maghqudin secretary-general Gejtu Vella slammed the secrecy with which the pay rise was introduced.
Tony Zarb, secretary-general of the General Workers Union, said the pay rise jars with the sacrifices many workers have to make.
Speaking in his personal capacity, Labour whip Joe Mizzi had told MaltaToday he agreed in principle with the increase in ministers’ wages, but argued this should be accompanied by a greater sense of accountability on the part of Cabinet members.
Mizzi also questioned the timing of the salary increase. “Although I firmly believe that ministers are simply being given what is due to them, I understand workers who lament that the ministers are getting a pay rise while their standard of living is deteriorating. The timing of this measure is not a good one.”
A spokesman for the prime minister had defended the decision, justifying the ministers’ role as members of parliament as a separate job.
“The rationale is that Ministers have two functions, being those of a Minister and of an MP, and therefore carry out work pertaining to the two separate roles.”
Former ministers whom Gonzi sacked from his Cabinet as well as former Opposition leader Alfred Sant have also received together a total of €157,000 “to find a job”.

kschembri@mediatoday.com.mt

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