Our Social Model has come of Age

Our Social Model of the last seven years has definitely worked and if one needed any proof, the Corona Virus 2020 provided the litmus test that our vision of a Just Society was life changing for thousands of our citizens.

The last two successive Labour Governments have closely followed a programme that rewarded initiative, entrepreneurship, job creation, decent work and wealth generation. On the other hand, we were engaged in well thought out redistributive policies that ensured a fair burden of tax shares, avoiding disincentives to work, making work pay and providing a robust social protection system that is able to keep people secure, even in the worst of times.

In other words, this Government follows a Human Centric policy. The budget unveiled last Monday is a blue print of this approach, where this Government unleased the largest stimulus package ever, in terms of stimulating demand, protecting jobs, safeguarding the vulnerable, while at the same time, investing for the future.

The wage supplement was extended until March 2021 to secure jobs while enabling employers manage their wage bill. Work was rewarded by extending the threshold of the In-Work benefit to cover 4,500 additional individuals. The vouchers scheme shall be reissued which shall inject €50 million in the economy while the successful Gozo business friendly schemes are extended for a further period. Businesses signalled a sigh of relief, knowing that the seas are stormy, but they shall not sink.

Despite the pressure a stimulus package brings to bear on public finances, Government remained true to its mission of Social Justice. Apart from the COLA, Government announced, an additional vacation day, increased the income tax refunds, extended the tax exempt threshold for private pensions, while also allocated €9 million to address the compensations due.

The supplementary allowance was raised again, and elderly people at risk of poverty shall qualify for the allowance of €150. Adoptive parents for local children shall benefit from a maximum allowance of €1000, while foster carers who are so critical for the well-being of deprived children, shall have their allowance increased by another €520 per annum. Parents who stopped working to care for their disabled child, shall also benefit from a grant of €300 while older persons who need to recruit a carer to assist them shall see the subsidy on the salary paid, increased to €6000.

This benefit, comes over and above a total €5 increase per week to pensioners, tax exemption on joint computations and an array of other benefits, including a fresh issue of Government bonds above market interest rates, for older people.

Moreover, a list of measures were also announced, measures that make access to affordable housing a reality for many, especially young people, while students shall have free internet service if they continue their studies. The new palliative care centre in collaboration with the Hospice Movement shall see the light of day in the near future, while voluntary organisations are exempt from tax on the first €50,000 profits. An important measure aimed specifically to assist the capacity building of the sector.

This Government sees the future of the country a one offering decent jobs, productive employment, flexibility working arraignments, increased use of renewable energies and a 100% carbon neutral footprint. In this regard, the budget incentivises investment in automation, digitisation and the green economy. Artificial intelligence shall also feature prominently in education, transport and health projects while €450 million are earmarked to upgrade the industrial infrastructure to match the emerging needs. For the first time, Green bonds for investors shall be launched on the local stock exchange, in order to support the new phase of our sustainable economic growth.

The leader for the opposition described this budget as a package of recycled ideas. I would have agreed if Government reacted to the pandemic in the same way as the Nationalist party in Government did in 2018 during the financial crisis. At the time, the package of austerity measures that were imposed, threw the economy into depression, propelling unemployment, widening income gaps and shrinking the middle class.

This Labour Government in 2020, is faced with the most severe economic crises since the great depression. To address this, Prime Minister Abela unleashed a barrage of inclusive and sustainable growth policies and initiatives. They shall not only ensure a progressive distribution of dividends amongst various strata of society, but akin to our firm belief in Social Justice, we are placing the current and particularly the new generation, in pole position to turn their aspirations into reality.