NEWS | Wednesday, 27 February 2008

AN talks of the economy with Employers’ Association

Sabrina Agius

AN leader Josie Muscat yesterday said that the party’s manifesto on industry and economy is based on 10 important concepts with competitiveness being one of the crucial aspects.
“If this country has not yet realised, we need to compete in a world where it is becoming more difficult and sophisticated. If we lose our competitiveness, this country shall sink and this time we cannot say that it’s the Queen’s fault. Now we have to lead alone,” said Muscat.
He was speaking during a meeting with the Malta Employer’s Association, which yesterday formally presented its memorandum on Sustainability, Competitiveness and Proactivity to Azzjoni Nazzjonali.
Another aspect Muscat mentioned was bureaucracy. “None of the parties is attacking this issue as much as AN. We are insisting that the Government should reduce its costs. The capital expenditure must be reduced so that we can finally have a budget with a surplus by the year 2011. Instead, the Government has offered a budget where the national expenditure increased to 3.5% compared to 2007. This expenditure can be lessened within the two years 2008/9, if we amalgamate the VAT department with the tax and social security departments with ETC. We are also saying that the number of ministers should not be more than seven. Furthermore we are proposing to have a rationalisation of the local councils, an increase in COLA which should be partially proportional to the rate of inflation, and partially to the national productivity rate.”
All this should minimise bureaucracy, in AN’s view.
Muscat proposed fiscal incentives to encourage private medical insurance “as this would ease certain burdens the Government is facing.”
The AN leader said there should be a revision of the social security to track who genuinely is in need and eliminate those who are abusing from the system.
Muscat reiterated AN’s stand in favour of a flat tax rate. He insisted that tax would not be paid if a worker’s salary does not exceed Lm6,000.
Muscat lamented a lack of diversity in the economy insisting that economic growth last year came from two sectors: financial services and the gaming/internet sector.