Issue link: https://maltatoday.uberflip.com/i/682623
7 MATTHEW VELLA MALTA'S minimum wage was just over €460 a month in 2000, and over the past 15 years has climbed pain- fully slowly to just €672 a month – an increase of 46% over 2000 – accord- ing to Eurostat figures. Property prices, on the other hand, on average doubled since 2000, ac- cording to the Central Bank's price index on advertised properties. As of the end of 2015, prices for apartments, maisonettes, terraced houses and other properties had more than doubled over the base rate in 2000: an apartment that cost €100,000 in 2000 would cost €210,000 today. Minimum wage earners are finding it harder to obtain loans for property ownership, as prices rise faster than real incomes. A loan for a €100,000 apartment, which would necessitate a mini- mal deposit of €10,000 with a bank, would incur a mortgage of at least €400 monthly on a 35-year loan at 4.1%. But domestic banks are cau- tious in loaning out money that would create a dispropor- tionate burden on monthly salaries. Minimum wage earn- ers could expect a mortgage payment equivalent to 30% of their incomes, which would allow them a maximum €60,000 loan. But that is hardly enough to buy a decent living space on the Maltese property market. The Church organisation Caritas has long urged governments to raise the minimum wage, and in a sec- ond report issued last week said that families could not even keep up with even the most basic costs of living. "We won't venture an estimation as to how much the minimum wage should increase by, but the study clearly shows that some families with one breadwinner on the mini- mum wage cannot meet everyday expenses," Caritas director Leonid McKay said. "Ideally the minimum wage should increase gradually over a three year period." Caritas's study found that a couple with two children requires a mini- mum of €11,466 a year to live a de- cent life, while a single parent with two children requires €9,197 and an elderly couple on a pension requires €6,527. Food was the most significant cost – accounting for €6,211 out of the first family's budget, €4,604 out of the second family's budget, and €2,945 out of that of the retired couple. Caritas said the price of food has shot up by around 16% since the last time it conducted a similar study back in 2011. Inflation on food was 16% between 2011 and 2015. The study was based on the as- sumption that the low-income earn- ers live in social housing, are Pink Card holders, and re- ceive the maximum of state subsidies and benefits ap- plicable to them – including food and medicine aid and energy rebates. It also assumes that the people are healthy, that they make use of public health, education and transport ser- vices, and that their leisure activities are free. The essential costs taken into cal- culation were housing, food, cloth- ing, personal care, health, education, leisure, transport, household goods and laundry, Internet and mobile phones. In the EU, 22 member states out of 28 – Denmark, Italy, Cyprus, Austria, Finland and Sweden are the excep- tions – have a national minimum wage. In 2016, the monthly wage var- ied widely, from just €215 in Bulgaria, to €1,923 in Luxembourg. Malta is part of a group of mem- ber states with an intermediary level of minimum wages (€500-€1,000) which also includes Portugal, Greece, Spain and Slovenia. maltatoday, SUNDAY, 22 MAY 2016 News Office Space Required Valletta, Floriana or the Central Region Area The Ministry for European Affairs and Implementation of the Electoral Manifesto would like to receive offers for the lease of office space with a minimum area of 3,000 square metres and parking ammenities located in Valletta, Floriana or a locality in the Central Region Area in Malta. Information is to be submitted in a sealed envelope, and deposited at the Directorate for Corporate Services, Ministry for European Affairs and Implementation of the Electoral Manifesto, Tal-Pilar, 31B, Marsamxett Road, Vallettaby noon of Monday, 30 th May, 2016. Full details may be accessed from the following portal https://deputyprimeminister.gov.mt/en/Procurement/P ages/Procurement.aspx European Structural and Investment Funds 2014-2020 Project may be considered for part-financing by the European Structural and Investment Funds Co-financing rate: 80% European Union; 20% National Funds SU25_B2PO_CA121099.04.16 B oun c e P l a y H a v e F un ! Her's to Summer 500x707 B2PO.indd 1 18/04/2016 14:57 SU25_B2PO_CA121099.04.16 B oun c e P l a l a l y a y a H a v e F un ! Summer Summer Period Total Apartments Maisonettes Terraced Houses Others 2000 100.0 100.0 100.0 100.0 100.0 2001 105.1 103.9 106.7 105.8 104.3 2002 114.2 113.0 115.3 114.0 110.6 2003 129.3 128.2 128.0 130.5 122.8 2004 155.6 157.0 155.4 151.1 153.8 2005 170.9 173.7 176.7 188.9 160.3 2006 177.0 178.3 187.0 196.2 175.0 2007 178.9 183.3 181.4 205.3 171.9 2008 174.1 172.7 181.4 201.5 173.7 2009 165.3 162.2 173.7 207.8 169.6 2010 167.1 166.4 171.8 199.4 178.5 2011 169.3 173.0 174.5 197.6 172.5 2012 170.1 172.5 173.5 185.5 172.4 2013 173.7 175.1 184.5 193.0 179.7 2014 185.7 189.3 183.6 203.2 202.6 2015 197.4 203.7 201.3 208.3 210.5 Property price index Home ownership a chimera for minimum wage earners Based on advertised prices, source: Central Bank 'Others' consists of town houses, houses of character, and villas WE make reference to various articles published over the last few years on a number of media outlets, of which we are editors. In these articles lawyer Dr Pe- ter Fenech was mentioned in a number of contexts and in different capacities. We declare that Dr Fene- ch acted in accordance with the law in the afore- mentioned matters. It was never our inten- tion to slander and/or take away or injure the reputa- tion and/or integrity of Dr Peter Fenech. We apologise for any harm and inconvenience that we may have caused with our writings and/or comments. By virtue of this decla- ration, all pending cases between the parties, both of civil and constitutional nature are hereby being waived. Declaration by Saviour Balzan, editor of the newspaper MaltaToday, and by Matthew Vella, editor of the website www.maltatoday.com