NEWS | Wednesday, 23 July 2008

Pre-budget document welcomed with caution

Charlot Zahra

This week, social partners have cautiously welcomed the presentation of the 2009 pre-Budget document presented by Prime Minister Lawrence Gonzi and Finance Minster Tonio Fenech last Saturday week.
General Workers’ Union (GWU) Secretary-General Tony Zarb said: “The GWU notes that the pre-budget document already includes various proposals on which the Union has spoken about recently, particularly alternative energy use and better health and safety at places of work.
“In the document there are various other proposals which the GWU notices with satisfaction, such as the proposal on e-Government and communication, the proposal on equality and the proposal on Gozo,” he said.
“Another positive proposal is that about young people as well as that about the health sector. However there are other proposals on which the GWU would like to analyse more deeply.”
But when asked to elaborate on this last statement, Zarb declined on elaborating further. “The GWU will be able to comment more about the pre-Budget document following the presentation that the Finance Minister will be doing in the Malta Council for Social and Economic Development (MCESD), when it will analyse more deeply the proposals and their implications… The Union will surely be giving its position about those proposals which might not be on the same wavelength that the GWU expects them to be.”
On his part, Union Haddiema Maghqudin (UHM) Secretary-General Gejtu Vella said that it had now been established and had become customary for Government to publish early in summer the pre-budget document.
“This year’s main thrust of this document is sustainability. Thus ‘Together for a Sustainable Future”, implying, and rightly so, that there is nothing like a free meal, is very appropriate, while social solidarity remains the only way to secure the future of these small islands.
“With a document of almost one hundred fifty pages with ten chapters containing a variety of thematic issues, the UHM has embarked on a process of discussion with its the General Council before pronouncing our stand that will also include our claims and aspirations for next year’s budget.
“The UHM believes that in next year’s budget Government should delve into the financial difficulties of families in our society with low income who for a variety of reasons cannot shoulder the hefty increases in foodstuff prices and water and electricity new expenses,” Vella insisted.
He added: “The continuation in the reform process in the income tax bands is expected by the UHM in next year’s budget to alleviate the financial burdens that families had to shoulder this year. In this regard special attention should be given to families whose income is presently lower than the first level of taxation.
“While Government is encouraged to further deduct the income tax bands mainly for the middle class, the UHM is of the opinion that those on a low income paying no income tax should get a tax credit paid to them.”
The Malta Chamber of Commerce and Enterprise (COC) too welcomed the pre-budget document as “an important basis for discussion – not only within the Malta Council for Economic and Social Development – but also within the public sphere.”
“The chamber has already expressed its satisfaction upon government’s announcement that the pre-budget document would outline plans for the creation of a better regulation environment for businesses, i.e. eliminating red tape,” a spokesperson for COC noted.
“The chamber has long called for improvements in this area as it continues to hamper the business community in its quest to enhance its competitiveness.
“In the next few weeks, the chamber will be analysing and discussing the document within its internal structures and will make the necessary representations with the authorities, particularly within MCESD,” he added.
However, the Federation of Industry, FOI, has not yet prepared its position on the document published last Saturday week.
When contacted for comments by this newspaper, FOI Director-General replied: “We are still analysing the document. Please note that when we prepare positions on Budget, we take it to Council for endorsement - thus, it will take some time before we will be in a position to comment on this document.”

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