Pre-Budget document lacks initiatives - AD

Alternattiva Demokratika chairman Harry Vassallo yesterday described the pre-Budget document, "Families Growing Stronger", as long on rhetoric but short on specific initiatives and commitments.

The government is making a mockery of the pre-Budget exercise. Unlike last year's document, this one even fails to mention the additional millions the government has available for next year's Budget. Why all this secrecy, Dr Vassallo asked.

The party spokesman on Finance and the Economy, Edward Fenech, said a serious document would state what the additional resources available to the government are and list the policy options available and the cost of these proposals.

The document, Mr Fenech said, fails to meet the people's expectations and needs.

AD had recommended a special child allowance of Lm160 per child and an increase in parental leave from 13 to 26 weeks, with the increase to be paid by the government, as a flat weekly allowance of Lm70.

What the pre-Budget document is proposing is an unspecified change in children's allowance and a miserly increase in maternity leave of one week, AD noted.

The document shows that the government has no intention of dealing courageously with the problems in the housing sector. Nothing will be done about the rent laws.

Instead the document talks about selective subsidies to the poor and nothing for the middle class. The winners in this policy vacuum are once again property hoarders and building contractors, AD added.

In the proposals, AD challenged the government to begin awarding compensation to people who have been suffering the injustices of the rent laws for six decades.

AD pointed out that the document does not refer to the electricity surcharge and its effect on the cost of living and on disposable income.

The 55-page document devotes just two-and-a-half pages to tourism and does not propose anything concrete for the sector.

AD had proposed that the introduction of a reduced VAT rate of 12 per cent on restaurants and tourist services, while stepping up inspections on VAT evasion.

That proposal was ignored and instead the pre-Budget document talks of Blue Flag beaches, AD added.

"Then, of course, we have the customary rhetoric about Gozo, that Gozitans themselves have become accustomed to ignoring. There is no alternative economic vision from over-development in Gozo.

"The lack of vision and courage is very serious. It comes as no surprise that the document has received such a lukewarm response from the social partners and civil society," Dr Vassallo said.