Thursday, July 28, 2011

The Communist Party of Malta opposes the part privatisation of the pension system.

The Communist Party of Malta opposes the part privatisation of the pension system.

The Communist Party of Malta calls ‘shameful’ the proposal put forward by the Chairman of the Pensions working group. The Chairman is once again appealing to the Government to immediately introduce on a mandatory basis a second pillar system based on a private scheme.

The Party deems this proposal to be the first step towards the privatization of the Pension system in Malta. The same method is being applied in the public healthcare system where essential services are not provided anymore in the community, as in the case of the dental care service. The long waiting lists for an appointment at Mater Dei Hospital are forcing patients to seek care in private clinics.

The Communist Party of Malta believes that it is the responsibility of the state to ensure sustainability of the pension system, firstly by establishing a pension fund. Secondly by increasing women and immigrants participation in the labour market, as this will increase further the social contributions. Enforcement against tax evasion will also be a beneficial to the sustainability of public finances.

“Family- friendly measures should also be encouraged so to address the problem of low women participation rate, while an increase in taxation on the financial and banking sector will help to address the sustainability of the pension fund”.

On a positive note, the Communist Party agrees with the increase in the social contribution by those families whose income is above €17,000 per annum. On the other hand, the Party disagrees with the idea to give away part of the pension scheme to a private insurance. The social contribution to a private insurance will increase more than it is today. International studies show that it will go up to 20%, when today the maximum is 12%.

The Communist Party of Malta, being a party embracing Socialist ideals can never accept the privatization, partly or wholly of the pension system in Malta. The workers should not accept more of the neo liberal policies.

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