Pensions Reform to Come into Force by End of December 

Valletta, Malta: 

Prime Minister Lawrence Gonzi stated that the Government is resolute that the pensions reform will come into force by the end of this year. 

While addressing a press conference following Dr Alfred Sant's criticism of the Government's plan on pension reform, he said that the MLP leader is trying to discourage the discussions currently going on between the social partners at the MCESD, the Government and the World Bank. 

Dr Gonzi explained that last year following a meeting between former Finance Minister John Dalli and the social partners held in Gozo, the Government's proposals on the pensions were not presented in the Budget for 2004. It was agreed that this process would be postponed until June 2004 following an analysis by the World Bank. 

It had been agreed that the process would have been done in confidentiality. The World Bank's analysis of the Government's guidelines, he said, was given to the social partners for discussion and suggestions. The Government has been inviting the Opposition to join the MCESD for a long time. 

Dr Gonzi denied that the Government wants to reduce the pensions. He said that the current maximum level of pensions would not be enough to lead a life in a few years' time. 

New politics he said, is when the MLP gives a contribution and suggestions on such issues. Everybody should have honored this agreement. "I am faithful in the MCESD which is the only forum in which all the social partners can give a contribution. These were given the time to make their own suggestions and some have already presented alternatives and requested further studies," the Prime Minister continued. He said that the Government too does not agree fully with the World Bank report and also has several suggestions. 

After the process at the level of MCESD is completed, the document would then be open for national discussion. 

No final decision has been taken so far, he argued. The Government has only presented some guidelines which the World Bank could analyze. There are various formulas which could be used to solve the problem, Dr Gonzi said. 

The Prime Minister continued that the pensions reform has three aims: to have a sustainable economic basis, to have adequate pensions and to analyze where the economy can continue to grow. He said that today's pension system does not encourage enough for women to work.