‘Long-term solution’ to traffic includes underground tunnels, sea connectivity

Prime Minister says work, education remain key to tackling poverty - Video by Ray Attard

The long-term solution to traffic remains introducing alternative means of transport – like underground tunnels – and increasing sea connectivity, Prime Minister Joseph Muscat said.

Flanked by deputy prime minister Louis Grech and finance minister Edward Scicluna, Muscat said he would speak more in depth of the government’s plans to address traffic congestion in his budget reply in parliament.

“This is not a new situation and we have to understand all the causes,” Muscat said, listing the increased number of people in employment, the investment in economy and the daily introduction of 40 new cars on Maltese roads every day.

He insisted that the past planning of one-lane roads has created bottlenecks.

“Whilst we need to improve infrastructure, the long-term solution remains alternative methods such as sea connectivity and underground tunnels.”

The traffic problem also requires a change in mentality, Grech added.

“We can allocate as much funds as we want but nothing will work unless people decide to change their habits. Grants and incentives given will all be in vain if there is no uptake. This problem needs a profound discussion and not criticism scratching the surface,” the deputy prime minister said.

In the post-budget press conference, Muscat spoke of the measures introduced to help low-income earners and the increase in pensions. In-work benefits and child supplements to help families with lower income have been retained and, in some cases, new ones introduced.

Asked whether the minimum wage should be increased to avoid dependency on government generosity, Muscat said the government believed in incentivizing work – one measure by giving a child allowance to those joining the workforce.

“Increasing the minimum wage won’t affect government as the ‘paymaster’ but it will make a difference to the private sector and its competitiveness,” he said, explaining that wages at all levels would then be pushed up.

He explained, that experience had shown incentives worked more: football clubs were now declaring their players’ salaries after a 7.5% tax was introduced; landlords declared their income from rentals following the introduction of a 15% withholding tax.

Muscat said a new measure introduced would help 3,700 families with one breadwinner on minimum wage. “There are families that, irrespective of the incentives, only one parent will go out to work. So we are giving them up to €150 per child. This is just one example of how we are fighting poverty.”

He insisted that the best way to tackle poverty was through work and education.

Muscat also spoke of the rate of employment, where seven out of every 10 jobs were created in the private sector.

In their introductory comments, the three Cabinet members expressed their satisfaction that the budget had been welcomed by social partners and NGOs.