Watch: Government will only intervene if there is a failure in the sector – Muscat

Tista' taqra bil- Malti.

In a press conference on Monday, Parliamentary Secretary Roderick Galdes announced the 500 new homes that will now bring up the total of social housing accommodation to 1,700. During his contribution, Prime Minister Joseph Muscat said that the government will only intervene if there is a failure in the sector and as a general rule will allow the market forces to dictate the way forward. Muscat also said that the government will take social measures that will not misbalance the economy. He said that a family cannot be burdened with more weight than it is able to carry. He also said that social housing planning requires a long term strategy.

The Prime Minister stated that whilst the KPMG reported that the country is not experiencing a bubble in the property sector, we have in fact overheated the sector with that have increased at an exorbitant rate. He also said that the government has learnt that policies and measures nee to be consider the different economic cycles.

Joseph Muscat also said that the government does not practice a trickle down economic policy, where businesses and the rich get a reduced tax rate in order to be able to reinvest their financial assets back into the economy in the short term.

Social accommodation should not be inherited

The Prime Minister explained that the €60 million that the government will be granting for the social accommodation have been funded through the National Development and Social Fund which in itself is being funded by the IIP scheme, and will cover for 500 to 1,000 residences.

Muscat stated that people have forget their sense of entitlement for social housing as the government will be taking repossession of the accommodations once those using them will no longer need them.

Watch: An urgent need to increase social housing units

3,300 applicants still waiting for social housing

When Newsbook.com.mt asked him how the government is going to implement such measures, the Prime Minister replied that these measures will not apply to those that are already occupying social housing but only to new cases. He explained that if an individual get state aid, and also has children that have socially moved upwards, then these same children will not automatically inherit the social housing of the parent.

Muscat apologises

Prime Minister Joseph Muscat was also asked whether he was apologetic about the statement he made during the political debate against Partit Nazzjonalista and Opposition leader Adrian Delia last week when he distinguished between jobs that should go to Maltese and jobs that should go to foreigners. To this the Prime Minister replied that after seeing the footage he would like to apologise for the comments that he made.