MLP economic revival study relaunched with some adjustments

Efficiency in collecting taxes without inhibiting economic growth and with the aim of reducing tax rates features in the Malta Labour Party's plan for social and economic revival.

The plan, launched yesterday by the MLP leadership, says that it "could be adapted to the circumstances that the party would face when it is elected to government".

The draft had been launched for discussion in August last year and the version launched yesterday contains none of the controversial proposals such as the removal of the bonus, a wage freeze for the civil service, an increase in national insurance for the self-employed and a tax on summer houses.

The new document will be discussed at the general conference which starts tomorrow.

The plan states that benchmarking systems in tax collection should be used "in a more realistic manner that is just". "However, in a situation where not more than 600 people declare over Lm16,000 as income and where more than a third of the tax due remains unpaid, one has to intensify efforts to curb tax evasion so that the burden on those who pay the taxes due should be lessened," the document says.

The document speaks about facilitating the participation of women in the workforce both by encouraging the use of flexitime, job sharing and reduced hours as well as by making the necessary changes in school hours so that children would be at school while their parents are at work.

The plan speaks about introducing the concept of creating a fund using 0.8 per cent of the income tax take to help those needing medical treatment abroad.

On pensions, the report says that this "should be examined in more detail" but because of the increased participation of women in the workforce and the new opportunities for work, the pensions system should remain a sustainable one.

The document proposes that ways should be found for vacant properties to end up on the property market and to create a legal structure through which disputes between landlords and tenants would be solved within a year.

It also speaks against the privatisation of sectors that have a strategic value to the economy, better value for money for government expenditure and removing the duplication of work that has been created with the setting up of many authorities and foundations.

The document also speaks about controlling inflation, "planned restructuring", giving tourism a new lease of life, investment in vocational training and long term plans to reduce unemployment.

It refers to the reduction of poverty and speaks on schemes that would enable the unemployed who find jobs not to immediately lose their social assistance.

The document states that the difference between the minimum wage and the unemployment benefit may not be big enough to encourage people to work and reducing the benefit gradually while reducing their tax rates could encourage them to find jobs.

Among other issues, the document deals with public private partnerships for homes for the elderly, integrating elderly within the community and restraining abuse of social services.

Apart from the document, the MLP general conference will also be discussing two motions on the party's stand on the European Constitution, one in favour of its ratification, tabled by the parliamentary group, and another urging the party to abstain, tabled by Karmenu Mifsud Bonnici and Labour veteran Carmel Sciberras.

The conference will be held tomorrow, on Friday and on Sunday and if need be, a session would be held on Saturday too, the party's deputy leader for party affairs Michael Falzon said.

Deputy leader Charles Mangion said the document on social and economic revival was meant to incentivise investment, strengthen the educational system, attack poverty and strengthen the welfare state.

Asked about the procedure on how delegates would be voting on the motion related to the EU Constitution, Labour leader Alfred Sant said delegates would be able to chose between one motion or the other in a single voting session.