NEWS | Wednesday, 06 February 2008

Gonzi promises wider tax bands

Sant targets good governance, AD wants to split MEPA

The electoral campaign kicked off in earnest yesterday with three of the four political parties contesting the March 8 general elections holding press conferences on substantive issues.
Prime Minister and Nationalist Party leader Lawrence Gonzi announced an economic stimulus package comprising reduction of income tax for individuals and more incentives for women who wish to continue working.
“A new Nationalist government will widen the tax bands. The minimum taxable income will be raised,” said Gonzi yesterday at the beginning of his first electoral press conference at the Upper Barrakka Gardens in Valletta.
Subsequent bands will also be widened and the maximum tax rate of 35% will be reduced to 25% except for those with a declared income in excess of €60,000 who will continue to pay tax at 35%. These measures, Gonzi said, should “leave more money in people’s pockets.” Gonzi also made reference to Malta’s economic performance in the last year, with a growth of about 4% and inflation was still kept at one of the lowest levels in Europe.

1 In view of the fact that financial havoc in the US was expected to influence the rest of the world, the IMF has already urged other countries, including Malta, to take fiscal measures as a precaution.
A new Nationalist government shall leave overtime as it is at present. This means that it will continue to be taxed. However workers will benefit because of the widened tax bands. Gonzi insisted that this is far different from the MLP’s proposals which according to him will ruin workers’ income from overtime.
Women shall have one year of unpaid tax for every child they have. This will encourage them to continue working instead of resigning, Gonzi said.

Zero tolerance
On his part, Labour leader Alfred Sant reaffirmed the party’s commitment that a new Labour government would adopt a zero tolerance attitude against corruption even if he continued to defend the MLP’s decision to give aggrieved former Nationalist, Michael Woods a political platform.
Speaking during a press conference in front of the Auberge de Castille yesterday morning, Sant said that a new Labour Government would adopt a transparent leadership that will combat corruption, conflicts of interest and abuses of power.
Sant pledged that a new Labour Government would monitor the results obtained by Govern ministries and departments in the public sector in the projects that they would be undertaking to ensure transparency.
An internal audit unit under the Office of the Prime Minister would also be set up, which would carry out professional internal auditing covering Government departments and parastatal entities on those projects on which there are substantial financial interests involved.
“More than ever, today there the need of more serious governance where public tax money is used fairly. At present there is a lack of confidence in the country’s governance and the guilt for this lies in the Prime Minister’s weak pair of hands when faced with problems of abuse of power, corruption and conflict of interest,” Sant said.
The Labour leader insisted that under a new Labour Government, Ministries and Parliamentary Secretaries will be expected to sever their own commercial and profession relationships with private entities, comprising total or partial ownership of these entities as well as professional contracts with these entities, irrespective of whether they are paid or not.
The only exception to this rule will be made with medical professionals such as doctors and consultants, which will be allowed to continue exercising their profession with the condition as long as they are not remunerated.

MEPA’s wrongs
On its part, Alternattiva Demokratika (AD) focus ed on MEPA, with the party proposing reverting to a system with which development control and environment protection are managed by two distinct authorities, as opposed to the current situation where MEPA acts as an umbrella organisation for both remits.
“Development Control and Planning have dominated over the protection of Malta’s environment since MEPA was set up,” party Chairman Harry Vassallo told the press yesterday. “We now have a situation where MEPA, in itself, has become a deviation to the rule of law to the detriment of the environment that it is meant to protect.”
Vassallo went on to explain how the first-hand experience of Carmel Cacopardo, who he was flanked by, has not only made him decide to disassociate himself from the Nationalist Party but also to contest the next elections under the green party ticket.
On his part, Cacopardo also referred to AD’s proposal to hold local referenda for developments that would be subject to an Environmental Impact Assessment. “With this system,” he said, “democracy prevails over proposals such as yacht marinas in _ondoq ir-Rummien and Marsaskala.”
In addition, Cacopardo underlined the importance in a proposed revision to board appointments in the environmental system. “Board members should not be appointed by politicians but by specific committees. We need to recognise competence, not party membership,” he said.