Issue link: https://maltatoday.uberflip.com/i/1526771
6 maltatoday | WEDNESDAY • 18 SEPTEMBER 2024 NEWS MATTHEW FARRUGIA mfarrugia@mediatoday.com.mt NEXT year's Cost of Living Ad- justment (COLA) is expected to be in the range of €5 and €6, Malta Employer's Association (MEA) di- rector general stated. On Tuesday, the MEA broke down its proposals for Budget 2025 during a press conference. Here, MEA director general, Kevin Borg was asked whether he had an indication of what next year's COLA will be, to which he responded that during talks with government, it emerged that the COLA increase will be in the range of €5 to €6. This would mean that the COLA increase would be halved when compared to the previous year, as the adjustment amounted to €12.81 in 2024. Meanwhile, the MEA explained its proposals which were divid- ed in 11 sections, with the labour force receiving the most attention. Here, the MEA called for a ra- tionalisation of the local labour force, urging policy-makers to maximise the value of the coun- try's human resource through in- novation. The association noted that, "the public sector is riddled with underutilised personnel that can be more productively em- ployed," noting that such rational- isation will reduce the need for the importation of workers. Among the MEA's proposals on the labour force, they once again urged the "prolonged retention of valued local talent" through gov- ernment's strengthening of meas- ures which incentivise workers in retirement age to stay active in the labour market. The MEA called for increasing the effective retirement age while discouraging early retirement through fiscal measures, as well as raising awareness on "the impor- tance of contributing further to the labour market." The MEA further proposed strengthening career guidance structures, noting that such struc- tures could empower young peo- ple to make better-informed de- cisions about their future careers. On the general state of the econ- omy, the MEA warned that the country's economic trajectory is currently focused on maximising numbers without proper plan- ning, adding that this has contrib- uted to the deterioration of quality of life in the country. The association urged an imme- diate shift towards a model that emphasises quality, innovation, and sustainable growth, especially in sectors that have reached satu- ration. On tourism, the MEA under- lined the need for strategic direc- tion in the sector, noting that, "In- adequate long-term planning has led to a general deterioration of Malta's attractiveness as a tourist destination." Here, the association proposed lowering the VAT rate for catering services. Malta's infrastructure was al- so discussed, as the MEA spoke of the crucial need of long-term investment in energy supply, wa- ter resource management, and intelligent traffic systems, with construction activities focused on upgrading infrastructure. The association welcomed the reduction of taxes for middle-in- come earners, although it warned that more disposable income could have unwanted inflationary effects. "The MEA recommends conducting a scenario-based study of projected tax revenues from adjusted tax bands and pub- lishing the reasoning and objec- tives behind these tax revisions." On the subject of good govern- ance, the MEA urged full trans- parency in government contracts, including disclosing positions of trust and their remuneration. Employers call for increase in effective retirement age Malta Employers' Association broke down its proposals for Budget 2025 during a press conference (Photo: MEA) KOPERATTIVI Malta, the APEX organization representing local co-operatives, has released its Recommendations for Malta Budget 2025: Investing in Co-op- erative Prosperity for a Profound Transformation in Our Business Landscape & Economic Model, urging the government to har- ness the transformative potential of co-operatives to drive sustain- able growth and economic resil- ience. As Malta's economy continues to outperform its EU counter- parts, Koperattivi Malta is call- ing for comprehensive measures that position co-operatives at the heart of Malta's economic devel- opment. Key Recommendations for the 2025 Budget include: 1. Invest in the Co-op- erative Board to enhance Us- er Friendliness, Digitalisation, and Modernisation: Koperattivi Malta recommends elevating the Co-operative Board to the operational level of major au- thorities, by investing in digital solutions, increasing budget allocations, and establish- ing a centralised information register. These measures will streamline co-operative opera- tions, enhance user experience, and boost co-operative forma- tion and success rates. 2. Encouraging the uptake of Public Sector Co-operatives to Reduce Government Payroll Burden: Building on over 0 two decades of successful implemen- tation, Koperattivi Malta propos- es expanding the co-operative model within the public sector. By transitioning more public sector roles into co-operative structures, the government can reduce its payroll burden, im- prove public service efficiency, and promote economic sustain- ability. 3. Sustainable Commu- nities through Citizen-owned Co-operatives: Koperattivi Malta encourages the government to promote citizen-owned co-op- eratives as a vehicle for local sus- tainable development. This initi- ative aims to empower citizens to actively participate in economic activities, enhance social cohe- sion, and retain wealth within communities. 4. Removing Barriers for Co-operatives: The organiza- tion calls for the removal of in- stitutional barriers that hinder co-operative growth. Key meas- ures include issuing directives to eliminate operational hindranc- es, implementing monitoring mechanisms, and providing gov- ernment-backed funding pro- grams to improve access to cap- ital for co- operative expansion and innovation. 5. Incorporating Co-op- erative Values into the Curricu- lum: To cultivate a culture of co- operation and shared prosperity, Koperattivi Malta advocates for integrating co-operative prin- ciples into the educational cur- riculum. This initiative aims to instill values of cooperation, col- laboration, and community spirit in future generations, enhancing active citizenship and aligning with Malta's long-term develop- ment goals. Koperattivi Malta is commit- ted to supporting the Maltese government in implementing these recommendations, offering its expertise and experience in co-operative development. "Our proposals are designed to ensure that co- operatives re- main central to Malta's econom- ic and social landscape, driving sustainable growth and inclusive prosperity," said Daniel Schem- bri, CEO of Koperattivi Malta. With these strategic recom- mendations, Koperattivi Malta seeks to build a resilient and pros- perous future for Malta, ground- ed in co-operative principles and sustainable economic practices. KM invites all stakeholders to join in this effort to make Malta a leader of co-operative excellence and inclusive growth. Koperattivi Malta present 2025 Budget proposals