Employers want more cuts in red tape

The Malta Employers' Association yesterday called on the Prime Minister to cut red tape and bureaucracy.

MEA president Pierre Fava said red tape had been drastically reduced over time but more needed still to be done.

It was as a result of proper social dialogue in recent years that the country had managed to implement a number of measures to improve its finances, which resulted in the adoption of the single European currency.

What was important for the island was competiveness, sustainability and being proactive. Malta had advanced greatly but there remained many challenges, among them the lack of workers in various sectors. Both the government and employers needed to implement incentives to attract more people to jobs.

Mr Fava was speaking at a meeting with Prime Minister Lawrence Gonzi in one of the dialogue encounters being held by the Nationalist Party with social partners in the run-up to the general election.

Dr Gonzi said the generation of employment was the Nationalist government's main focus of attention. Other sectors, such as education, were equally important but were linked.

There were big differences between the Malta Labour Party and the Nationalist Party, including in their policies on education and the economy.

The fiscal package being proposed by the PN, which would grant further tax cuts, had been in the making for two years. It was expected to generate economic growth and the government was still aiming to end the 2010 financial year with a surplus balance.

"We increased government revenue but, at the same time, continued to ease the tax burden. It worked perfectly well in 2007 and we expect it to work equally well this year. We are taking measures to ensure that Malta remains a strong country to be able to face international challenges," he said.

Mr Fava said that as a result of European Union accession, workers now have increased rights and better working conditions. The MEA believed in the importance of more investment in education because this would generate employment and more revenue for the government without the need to resort to new taxes.