Updated | Labour not promising to ‘be everything to everybody’

Labour leader Joseph Muscat defended his party's decisions not to 'be everything to everybody', saying his political position not to increase minimum wage is a responsible one for the economy. He insisted the party's will not promise anything which it cannot implement.

In an attempt to quell accusations of trying to be everything to everyone and promising conflicting things to diametrically-opposed lobbies and interest groups, Muscat insisted that the party's job is to be responsible and not populist.

The Labour leader was addressing journalists in the aftermath of the party's first national congress, which he described as "a responsible and coherent process."

"We believe in economic growth as a key driver. The Prime Minister is the only one not to have understood this, because it is obvious that we will not remove the cost of living adjustment mechanism [COLA]," Muscat said on Labour's stance not to increase the minimum wage for the first years, if and when elected to government.

Following criticism of the minimum wage stand, he accused Prime Minister Lawrence Gonzi of being "frozen in the politics of the past," adding that Gonzi had missed an opportunity to reach a wide consensus on a strategy to achieve economic growth.

Muscat added that Labour expected to be attacked for its proposals but he never expected the Prime Minister to attack the social partners, who are in agreement with Labour over the minimum wage.

Muscat has told unions that minimum wage should not be increased if it will lead to price inflation by companies shifting their increased cost-base onto consumers.

Muscat's position not to increase minimum wage has won the agreement of unions, the Malta Employers Association, and small business in general.

Only the Forum confederation of unions has so far insisted that an increase in minimum wage is necessary for low income groups.

The Forum Unions Maltin (Forum) has reiterated its stand on increasing the national minimum wage, but Forum's secretary-general Paul Pace stood by the union's demand but said claims of a wage "freeze" as being stated by the Prime Minister were "too harsh".

"It is important that low-income families are immediately given financial assistance to help improve their quality of life, despite proposals to lower energy tariffs by the PL. Whoever is in government needed to address the problem of low-income families immediately and not wait for the economy to stabilise some day."

Pace was referring to a recent Caritas study, A Minimum Budget for a Decent Living, which concluded that the minimum essential budget for a household of two adults and two children is estimated at €10,634, a lone parent and two children at €8,581 and for two older persons at €6,328.Caritas proposed that statutory minimum wage increases from around €150 per week to at least €180.

Taken to task on his party's decision to place economic growth ahead of improving wages, Muscat said: "The State must not shoulder all the responsibilities and make tax payers pay for everything. An increase minimum wages would stifle economic growth. As a Social-Democrat party we believe in the equal distribution of wealth, but economic growth comes first."

Muscat pointed out that the alternative to economic growth would be austerity which would hit the poorest sections of society hardest. He added that his party's job "was not that of being popular but to be responsible."

Despite his announcement that the minimum wage will not be increased, Muscat said the people's purchasing power is a central point in the party's programme.

Muscat also underlined the main message of Saturday's mass meeting to "build a new middle-class," and said: "The key is the standard of living and the benchmark is the purchasing power. The new middle class will be built by ensuring that everyone has the means to live a decent life and lift people out of poverty."

Insisting with the Blairite creed of encouraging private enterprise coupled with public-private partnerships, Muscat said: "The private sector should not be burdened with extra costs and the standard of living will be improved through the implementation of other measures." Although he did not explain what measures will be taken to achieve this, Muscat did warn that a new Labour government will clampdown on employers who engage workers on precarious conditions."

Asked what are the ideological differences, if any, between the Labour Party and the Nationalist Party, Muscat pointed out that "the differences today are more pronounced then ever" and while his party stands for responsible politics, the PN is stuck in the past and has turned to populism.

The PL leader added that another major difference between the two major parties is civil liberties, pointing out the parties' different approach to gay rights. However, Muscat did admit that certain issues such as "illegal migration" were not given enough importance during the 10-day national congress.

Asked about Labour's apparent reluctance to reveal its concrete policies, Muscat said the PN had only revealed its three major proposals within 30 days of the 2008 election, adding that the people were deceived because the current administration failed to deliver these proposals, namely cutting income tax cut, the Mepa reform and reducing hospital waiting lists.

"There is no need to divulge our proposals in detail now, we will do so at the most opportune moment when elections are called," he said.

Another focal point of the Labour Party's national congress was the reiteration of the promise to reduce water and electricity tariffs.

"The government lacks an energy policy and this is shown by its inconsistency on the Delimara power plant, which was first intended to run on gas, then constructing an extension running on heavy fuel oil and is now undertaking a study to verify the feasibility of converting the power station to gas before commissioning the new extension," he said.

Muscat also hit out at Nationalist MEP Simon Busuttil who last week said: "...I envisage that with a Labour government we are likely to be knocking Europe's door for a bailout in one or two years' time."

The Labour leader dubbed Busuttil, who will be contesting the forthcoming general election, "irresponsible" and said such statements, harmed the country which is being closely watched by credit rating agencies and other international institutions.