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10 Business Today maltatoday, WEDNESDAY, 16 JULY 2014 Malta's first Fiscal Responsibility Act discussed in parliament Download the MaltaToday App now Miriam Dalli Parliament is in the process of dis- cussing the first Fiscal Responsibility Act, through which Malta's first Fis- cal Council will be set up. The Bill was presented in parliament by Finance Minister Edward Scicluna, who together with shadow finance minister Tonio Fenech, spent yesterday morning in parliament scrutinising the bill, made up of 61 clauses. The process will now continue in the parliamentary committee for the consideration of bills. The objects of the Bill are to provide for a law on fiscal responsibility and for the establishment of a Fiscal Council. The Act aims to enhance the principle of transparency, obliging the government to make public all the information necessary to allow the assessment of the implementation of fiscal and budgetary policies. The principle of fiscal responsibility means that the government must carry out its fiscal and budgetary policy in a way that ensures sustainability for both the medium- and long-term. The purpose of the law is to ensure fiscal responsibility in the European Union, aimed at the execution of certain rights and obligations arising from the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union. The Fiscal Responsibility Act follows a recommendation by the European Council which found that the non-binding nature of Malta's fiscal framework and the short horizon of fiscal planning are not supportive of a sound fiscal position. In its country specific recommendations, the EU had noted that the adoption of the legislation meant to come into force by the end of 2013 and aimed at fulfilling the requirements of the Directive 85/2011/EU on budgetary frameworks and the Fiscal Compact had been delayed. However, the Council acknowledged that, according to the Stability Programme, the Maltese government was endorsing a Fiscal Responsibility Act, which is being approved by parliament. The draft act foresees the introduction of a balanced budget rule in structural terms, a debt rule, a three-year rolling budgetary framework and a gradual set up of the fiscal council which would be charged with endorsing the government's official macroeconomic and fiscal forecasts as well as ex-ante and ex-post monitoring of the respect of fiscal rules. Put simply, the Fiscal Responsibility Act places certain regulatory requirements on all current and future Maltese governments to keep public finances on track in an accountable and transparent manner. Certain fiscal rules established by the Act should ensure that the main principles of fiscal responsibility are adhered to, also in view of Malta's responsibility as member of the euro area. Salient points of the Act include the 'Budget Rule' and the 'Debt Rule' – this will require that the budget, barring "exceptional circumstances" should be in balance or in surplus, or the structural budget is converging towards medium term budget objectives in line with a set time frame. The 'Debt Rule' will require that when the debt-to-GDP ratio exceeds 60% of the gross domestic product, this would be reduced. The Fiscal Responsibility Act also strengthens the budgetary process and role of the Ministry for Finance. This will be achieved through the establishment of rolling medium term fiscal strategy (three-year) and the adoption of a top-down budgetary approach. Among others, it also provides for the regular monitoring of budgetary performance to allow more scrutiny by parliament, the fiscal council, and the wider public. Malta's first Fiscal Council The Act will lead to the setting up of the Fiscal Council, tasked with making regular appraisals and recommendations to the government regarding public finances. The main tasks of the fiscal council include endorsements of official forecasts; analysis of compliance of the medium term fiscal strategy and annual budgetary policy; monitoring progress of any corrective action being taken and make suggestions accordingly; and advise on legislation in the interest of maintaining fiscal discipline. The Fiscal Council should also provide the public with information to reinforce a democratic approach to responsible fiscal policy. The Fiscal Council will also be responsible for ensuring that this law is being adhered to. Finance Minister Edward Scicluna 5.7% more cruise passenger traffic in second quarter Total cruise passenger traffic during the second quarter increased by 5.7 per cent to 123,364, compared to the corresponding period last year. There were 89 cruise liner calls as opposed to 80 last year. Transit passengers accounted for the vast majority of total traffic (96.5 per cent), reaching 119,033. Around 55 passengers visited Gozo, while 6,183 passengers spent at least one night on board their berthed cruise liner. Visitors from EU states accounted for 73.7 per cent of total traffic, with the major markets being Italy, France and the United Kingdom. On the other hand, the total number of passengers from Non-EU countries stood at 32,492, of whom 37.9 per cent came from the United States. On a gender basis, female passengers accounted for 53.1 per cent of the total. The largest share of passengers fell within the 60-79 age bracket, followed by those aged between 40 and 59. Total cruise passengers during the first half of 2014 stood at 161,502, a rise of 15.8 per cent over 2013 levels. Of these, 78.2 per cent came from EU states. The highest increases were recorded from the French and Italian markets, which advanced by 13,772 and 5,886 passengers respectively. Female passengers numbered 85,535, and were in the majority. Most of the cruise passengers were between 60 and 79 years old, amounting to 72,274. These were followed by passengers aged 40-59, totalling 46,103. There were 112 cruise liner calls during the first six months this year, with an average 1,442 passengers per vessel, compared to 93 calls and an average 1,499 passengers per vessel in the first half of 2013. Film Commission receiving bids for scaffolding The Malta Film Commission are currently undergoing a number of training courses for the local film industry as part of an ESF funded project ESF2.186 – Re-skilling of workers for the industry. In order to support these courses the Malta Film Commission in conjunction with the European Social Fund (2007 – 2013) has issued a call for the supply and delivery of scaffolding equipment, lighting equipment, and generators sets. Invitation to bid will be awarded to the cheapest offer fulfilling the criteria set out in the available bid document. It is important that bidders indicate in their bids that they meet or exceed the requirements listed in the technical specifications listed. It is recommended that bidders who submit brochures/documentation which are issued by the original manufacturer are to highlight the section where the specifications listed below are included. Bidders can choose to bid for either one or all of the Lots listed (i.e. Lot 1: Scaffolding Equipment, Lot 2: Lighting Equipment and Lot 3: Generator-Sets). The bid document is free of charge and may be downloaded from the Malta Film Commission website http://www.mfc.com.mt/ page.asp?n=tenders. No bid bond is requested for this quotation. Only registered interested bidders will be informed of any clarifications. Sealed bids will be received in the tender box at the Malta Film Commission at Caraffa Stores, Cottonera Waterfront, Vittoriosa BRG 1721 up till 12:00pm noon (CEST) of Friday 25 July 2014. This call for bids is part-financed by the European Union under the European Social Fund (2007-2013) – Investing in your future