Issue link: https://maltatoday.uberflip.com/i/885114
16 maltatoday, TUESDAY, 10 OCTOBER 2017 Budget 2018 Reactions from social partners Chamber: 'Overall position of consolidated fund to remain negative' THE Chamber of Commerce described the government's room for manoeuvre as "un- derstandably restricted". "Indeed the overall position of the consolidated fund will remain negative in 2017 and 2018 with marginal gains in 2019 and 2020. However, the overall deficit in the consoli- dated fund is expected to re- main in the region of €100m over the period," the Chamber of Commerce said. "This may be interpreted that the government is re- injecting the additional re- sources raised from taxation back into the economy in the process boosting personal and company incomes." The Chamber of Commerce said it was evident that the economy was performing well and the recent positive economic performances have generated a positive effect on the state of public finances. It welcomed the govern- ment's decision not to intro- duce any surprise measures or new taxes. "This is to the ad- vantage of business momen- tum," it said. The main measure is the introduction of a deposit and refund system on plastic and glass beverage bottles. Energy For the third consecutive year, the Malta Chamber called on the government to acknowledge the fact that companies based in Malta are still paying among the highest energy rates across the EU. The Chamber proposed a number of measures that would help businesses over- come the expensive tariffs in- curred, including an improved Night Tariff framework, pur- chasing f lexibility as well as the introduction of privately managed energy distribution substations. Public holidays falling on a weekend The Malta Chamber noted the announcement and deci- sion to re-introduce public holidays falling on a weekend as vacation leave. "It must be made clear that discussions with the employ- er bodies are ongoing with a view to ensure that the final effect of this measure is cost- neutral to employers." MEA: 'fiscal manoeuvrability' BUDGET 2018 is a ref lection of a growing economy and a fiscal situation which is allow- ing the government more ma- noeuvrability to introduce a range of targeted measures to seek a better balance between economic, social and environ- mental objectives, the Malta Employers Association said. On the additional one day leave to employees, the MEA said this should give sufficient breathing space for the social partners to address the strain on competitiveness which a reduction in productive days entails, and design compensa- tory measures. The MEA welcomed the in- crease in the VAT thresholds from €14,000 to €20,000 for SMEs, together with the in- crease of Microinvest funds. It also welcomed the measure by which employers can off- set outstanding balances with amounts owed by the govern- ment to improve liquidity. The MEA however criti- cised the budget for the lack of new sectors of investment, "although the idea of setting Malta as a centre of excellence for blockchain carries consid- erable potential". The MEA criticised the budget speech as being "a bit hazy about Air Malta's future". It said that the general thrust of the current economic growth seemed to stem from an increase in the number of persons in employment, which is in itself the source of demographic, social and envi- ronmental challenges. "In fact, one of the main issues facing employers in Malta is the shortage of man- power. In the near future, we need to focus on how econom- ic growth can be generated through a stronger emphasis on increased output per per- son by shifting to higher value added activities through new economic sectors and also by upgrading existing ones. "This will be conducive to a growth which is more sustain- able. The government should also push for more control of its own spending to maintain a healthy fiscal balance in the years to come which in turn, will allow for even further fis- cal space for sound economic management." MHRA welcomes government's commitment to making Malta 'regional leader' BUDGET 2018 continued to cement Malta's commitment to becoming a regional leader as it introduced further in- vestment in infrastructure and embarked on a number of social initiatives, the Malta Hotels and Restaurants Asso- ciation said last night. In a statement reacting to the budget speech presented in parliament, the MHRA said the government's programme would go a long way to en- hance the tourism product and improve the quality of life for locals and tourists alike. "Specifically, the MHRA welcomes fiscal consolidation, the increase in the budget for the Malta Tourism Authority and measures that aim to im- prove the long-term sustain- ability of the general environ- ment," it said. The MHRA called on the government to implement concrete measures to address the issue of irregular and un- licensed accommodation and other services, which are cre- ating an unfair level playing field for legitimate businesses and resulting in millions of euros in forfeited revenues for the government. MUT disappointed AS other budgets under this ad- ministration, yesterday's budg- et speech failed to address the education sector's needs and instead only mentioned previ- ously-known facts, the Malta Union of Teachers said in reac- tion to the government's budget for 2018. The MUT said that it had been expecting some sound recommendations to deal with the serious shortcomings in the sector, where professional educators who were leaving the public sector were then being offered incentives to continue offering the same services. "While building new schools is important, the MUT would have expected a serious plan for the upkeep and maintenance of the older schools in the system," the union said. "At the same time, a better solution should have been found to ensure that school funding would no longer be dependent on the number of students." The MUT welcomed meas- ures to improve services for disabled students but insisted the government should start discussing inclusion on a broader level to address situa- tions where everyone was suf- fering – including the students. AD criticises lack of traffic and pollution measures ALTERNATTIVA Demokratika chairperson Carmel Cacopar- do said the party approved the government's efforts to finally introduce measures to deal with the issue of uninhabited properties. "The government is finally heeding AD's long standing proposals," Cacopardo said, "however we cannot fail to note that it is postponing the neces- sary and urgent intervention in the private rental market – the market is failing tremendously and state intervention is abso- lutely necessary immediately." AD was in agreement that the state had to guarantee adequate social housing for those who needed it, and it insisted that it had to be provided in tandem with services to help such peo- ple put their and their families' lives in a good position. "Despite boasting about the increase in the number of tour- ists and the competitiveness of this sector, the reality is that many workers in this sector have poor working conditions, and the infrastructure and ser- vices are not coping with the influx of tourists. This sector is notorious for the number of workers on zero hours con- tracts, an issue which the budg- et speech ignores completely," the party maintained. Furthermore, it said that the policy of increasing the capacity of existing roads, through flyo- vers and tunnels, would address congestion in the short term but would lead to more traf- fic. "The government is acting like an overweight person who 'solves' his expanding waist- line by changing his wardrobe instead of going on a diet. Al- though the Minister of Finance seems to have realized that the road building policy will not solve the problem, the govern- ment is ironically failing to act effectively other than promis- ing more road upgrades," it said. It praised the introduction of a deposit system for beverage containers, and noted that it had made the same proposal in 2004. The party was less positive about the government's waste management proposals, and said "the Government should admit that is has failed in waste management. Its plan to build an incinerator to burn 40% of waste is testament to its utter failure. Incineration of waste should be the last resort for waste that absolutely cannot be reduced or recycled." It was also not complimentary of the renewable energy pro- posals, saying the government was aiming for the minimum possible, and had not acknowl- edged the importance that such a sector had in the creation of jobs in the country. "It remains our aim to make Malta a 'net zero carbon' economy by 2050", the party added. GWU in strong approval of 2018 budget IN statement on the 2018 budg- et presented yesterday, the Gen- eral Workers' Union approved the government's introduction of an extra day of leave. It said that the union had been work- ing for this measure for more than a decade, and that it en- couraged the government to introduce in the coming years measures to add an extra day of leave for every public holiday which falls on a weekend. The union had persistently worked to make good for the injustice in this regard which had been implemented by the Nationalist government in 2005. The GWU said that it consid- ered the budget as one which distributed the money earned through economic success to workers and citizens. This was highlighted by the fact that no new taxes were introduced in the budget. The budget also recognised that social justice had to be hand in hand with economic growth, it added. It applauded the government's effort to address the rent prob- lem by regularising the way places are rented, and by intro- ducing more security and ac- countability in the sector. The measures announced, together with a drive for public consul- tation, give the indication that the government is considering the interests of current and fu- ture generations, and wants to guarantee fair rent conditions. At the same time, the union said, the government was also creating incentives for those who wanted to buy their first or second homes. Among other proposals which the GWU felt were positive were the revision of all employ- ment laws, the establishment of a national strategy on integra- tion, investment in infrastruc- ture and the manufacturing in- dustry, the increase in in-work benefits, the increase in the ta- pering of benefits for those who return to work and assistance to families who adopt children. The budget was "socially just", the union said, and one which all levels of Maltese so- ciety would benefit from. It was a budget which recognised workers' contribution to the improvement in Malta's eco- nomic circumstances and the social situation of its citizens in the past years, it claimed.