Issue link: https://maltatoday.uberflip.com/i/887355
Opinion 23 maltatoday, SUNDAY, 15 OCTOBER 2017 T here is no denying that Labour in government has changed the meaning of 'budget'. It has turned it into an event, worth anticipating eagerly. There are of course criticisms. Some say the budget 'did not affect me', but in reality it has: it was the first with no increase in taxes, duty or excise fees. The first budget solely about giving and not taking. What these people have failed to notice is that this budget did not smack down on anyone. We would all enjoy more money in our pockets, of course; but let us appreciate the first one where that money has not been taken out of our pockets. This was a budget with three objectives in mind. It intelligently worked on consolidating our economic growth and financial standing by providing enough stimulus with incentives that are affordable and sustainable for years to come. It ensured more people benefited from the wealth generated with further tax cuts and rebates, increased pensions, and assistance to targeted groups such as carers and fostering and adoptive parents. And ultimately it addressed the anxieties or problems of progress, the ones brought especially by the pace Malta has enjoyed over the past few years – the frustrations of congestion and traffic; disturbance from constant construction; growing waste generation; and Malta's case in particular, a sky-rocketing rent market that is slowly starting to exclude people from affordable housing. So what are we not saying about this budget? What few have noticed is how much this budget invests in the next generation, the one that's coming of age today as the "surplus generation". Today's children are directly benefitting from their parents' hard work. It is an economic, rather than an accounting exercise, one that does not put pressures on those at the start of a career, trying to balance work, family and study. Some measures may look small and of little consequence. But take for example tax exemptions for students who pursue a Masters and PhD. It shows that the government values research, innovation and creative minds, which are essential for a country like ours. Imagine what Malta could achieve if we could endlessly produce great young minds ready to take on tomorrow's challenges, valuing the work of think-tanks, start-up hubs, and innovation centres. Such a measure is an investment in resources for our country's future. Another investment went to youths, halving exam fees with a declared aim of abolishing them entirely by next year. These fees were a 'hidden' cost which has burdened low- income families for far too long, forcing them at times to make hard choices against their own children's future. As a movement, Labour has always believed in free education, and now we have made the step to further consolidate and implement it. The feminist agenda was also pushed forward. We saw a great leap forward in female job participation propelled by careful incentives and a new social service we have all come to take for granted: free childcare. The government is now pushing forward with more intelligent measures: increasing the Microinvest scheme to €70,000 for those businesses which are majority- owned by women will further incentivise women to venture into the business world, a world that is still very much male- dominated. It's in these targeted measures that the budget's lasting effects will be felt, with the same silent yet drastic impact that in-work benefits and tapering had. They will ensure this economy works for all and provides the right tools for a lasting and permanent boom. Nor can it be criticised for its lack of boldness in certain areas, chief ly the environment in its wider meaning. The plans to invest in waste-to-energy technology while sticking to recycling targets can be seen in the proposed bottle container refund scheme, showing an appetite to address long- standing concerns. The 'new water' project, once it comes into full fruition, will not only increase Malta's water resource but has the potential of replenishing our fast depleting water table. Less bold in housing That said, this budget seems to lack the same boldness when it comes to access to housing and the spectre of a disenfranchising and exclusionary rent and property market. We need to recognise that the recent boom in rent costs has easily wiped out most of the benefits and assistance that the government has been able to dole out over the last few years, essentially siphoning off our collective hard won gains to rent seekers. The budget does acknowledge the problem and strives to provide solutions through a proposed White Paper. However the government's present reluctance to regulate the market does not bode well. The issue is not going to go away or dissipate any time soon and the longer we dilly-dally in addressing it, the harder, more radical, the intervention will have to be down the line. Despite this, the budget does show that the government is well-versed in the issues that face the nation and there is a will to both recognise and address them. As we have now become accustomed to, the Opposition was too quick to criticise the budget. If 'no plan' means implementing the greater part of an electoral manifesto in one year, then the Opposition should hope the government does not come up with one any time sooner. A more acceptable criticism would be that the budget did not go far and deep enough, even though it does recognise the need to address the problems of progress. But then that would imply making some hard choices which the Opposition has little appetite for right now. If this budget is anything, it is an investment in our country's future. Investment in our people is crucial to sustain our country's progress. For Malta to move forward, the government needs to ensure that the Maltese people, families, and workers are moving along with it. And, we must remain vigilant and not become victims of our own success. We have made quick and remarkable gains in a short time. Hubris will see it all disappear even quicker. Alex Sciberras is a former mayor of Msida This budget is bolder than you think Housing and rent won't go away any time soon. The longer we dilly-dally on them, the harder, more radical, the intervention will have to be down the line Alex Sciberras