Hon Noel Farrugia, MP, 48 Triq Antonio Nani, Ghar Barka, Rabat.

 
The Editor,
Times of Malta,
St. Paul Street,
Valletta.
 
27th March 2006

 
Dear Sir,
 
LIVING BEYOND OUR MEANS
 
On March the 16th the editorial of the Times called on the social partners "to focus their attention on how the nation and households can prune consumption in order to increase savings ", and accused householders of living beyond their means.
Perhaps the editorial would like to give advice as to how many of the households can achieve this ; it would appear that they are simply unaware that many households are already forced to reduce their consumption in order to exist.
 
A few weeks ago I tabled a statement in Parliament setting out comparative household costs between 2003/4 and 2005/6 , based on household of a widow or a widower.
 
The government has not yet answered these figures, so we must presume that they accept them.
 
Lm 2003/4 2005/6
 
Each 3 weeks spent at supermarket for needs Lm 28
Lm 40
" " butcher
14 20
" " chemist
08 11
Each week fuels
05 07
 
TOTALS
Lm1110 Lm 1571
 
 
 
 
ANNUAL INCREASE in 2006 of Lm 1571 - Lm 1110 = Lm 461
 
 
Giving Total Annual Increase in cost of basics domestic commodities LM 461
 
A Widow/Widower INCOMES per 4 weeks 2003/4 2005/6
 
Lm 125.90 Lm 137.28
 
Per annum
Lm 1511.04 Lm1647.36
 
Cost of living increase ('05/'06 ) = Lm 1674.36 - Lm 1511.04 Lm 136
 
 
NET LOSS TO Widow/Widower HOUSEHOLDER Lm 461 - Lm 136 = LM 325
 
These figures do not include the increase of water & electricity bills, the increase in tobacco, alcohol, gas, telephone, water, electricity, medical visits, books, clothing, shoes etc.
We cannot blame the Retailers for this situation, because most of them have to buy from abroad and in 2003 LM100 would bring them 242 euros. In 2006 they have to pay LM109 for 242 euros, so their buying power has reduced by 10%.
So who is "living beyond their means" ?.
It is surely not the middle class who instead of going out every weekend, are going out one weekend in three.
The people on Social Security cannot even pay their water and electricity bills.
Surely the danger is that claiming we are all living beyond our means is that it could be taken as an insult to the intelligence of the majority of the Maltese people, most of whom are facing major cutbacks in their daily lives.
 
Are you living beyond your means ?, I am not, and I do not know many people who are; many, many people are finding it harder and harder to live on their income.
Ask the shopkeepers if they are selling their goods or are they getting stuck with stock ?
 
Above all remember that "living beyond our means" was the declared policy of the PN Government since 1987. Remember that a PN Government Minister famously said that we should "spend now and our children will pay".
 
Now we are all paying the price, and being criticized as we all have to face the increasing budget and deficit crisis created by a party which has been living beyond its means for many years, wasting our money.
 
Hon Noel Farrugia, MP, Opposition Spokesperson for Agriculture, Fisheries and Rural Development.