Resources need to be used judiciously to address cost of living challenges better - ADPD

ADPD-The Green Party is commemorating Workers’ Day this year by focusing on the challenges being faced by households with the exponentially increased cost of living. This should be addressed by a judicious use of our resources, the party said in a statement.

It is definitely commendable to subsidise the basic energy and water consumption for residential use, but blanket across-theboard subisidies do not make sense, the party said.

“While as a country we cannot control what happens outside our borders, we do have a duty to do all that is necessary for ensuring a decent standard of living for all,” party chairman Carmel Cacopardo said.

“Positively, we note that our proposal of adjusting wages for cost of living twice a year, instead of an annual adjustment at budget time, has been taken up by trade unions. Hopefully we can in the near future see developments in this direction,” he said.

“We need, however, to go much further. ADPD has always been at the forefront in pushing for the adoption of a living wage,” Cacopardo said.

He added that there is definitely a case to retain subsidised energy and water use in order to mitigate the social impacts of an increase in rates in the aftermath of the invasion of Ukraine. However, such subsidies should be focused on those who need them, he said.

“The basic energy and water consumption of residential households should definitely remain protected and subject to subsidies in the medium term. This is a social necessity to protect the vulnerable and low earners. However, beyond subsidies applied to basic and essential energy and water consumption, there are no valid reasons for the current across the board subsidies of residential households. Those who can afford to run large domestic properties should be able to shoulder the increased cost of the energy and water they consume beyond basic consumption.”

“Moreover, there is generally no social need to subsidise petrol and diesel. The small number of cases where private vehicle use is required to address issues of disability can be addressed by focused assistance. Removal of fuel subsidies would signify a substantial increase in the price of petrol and diesel. The primary impact of the removal of subsidies applied to petrol and diesel would be beneficial as it would signify an immediate reduction of cars from our roads, more judicious use of cars and a substantial improvement in air quality.”

The adopted policy on subsidies should be revisited, the party said.

“Our resources are limited. We must use them judiciously to help the vulnerable,” concluded Cacopardo.