GWU calls for price stability agreements, tax cuts
The General Workers’ Union this morning called for new price stability agreements and a tax cut as a means to control inflation and boost the economy.
The union in a statement reiterated its concern over galloping prices, noting that in a year food price inflation had doubled and had now reached 9.7 percent, the second highest in the EU.
Such upward pressure on prices was denting the people’s living standards, particularly in the case of those with a low income and pensioners, the union said. The situation was set to get worse with the imminent increase in the power surcharge, and the removal of the government subsidy on bread.
The union said the government should seek new price stability agreements so that prices would not continue to rise. There was also need for other measures, such as tax cuts, to boost the economy and improve the people’s purchasing power.
Price stability agreements were introduced by the government ahead of euro adoption. They expired at the end of March.
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laurence schembri
Jun 5th 2008, 21:31
@ Charles Camilleri
Oh no... not another one!
In he 70`s and the 80`s having roamed all round the world, I`ve decided to condense my leisure-time to Europe, having relations here, Malta became more convenient. On each holiday I arrive in Malta stacked-up to my ears in chocolate for family and friends. I don`t eat the bloody stuff.
Whenever they visited (family and friends) I recall, that not once one of them ever bothered to walk into a shop and buy a bar of chocolate, I still wonder about this today.
P.S. Tax Cuts. Down from 35-25%; a) When? Coming Budget? b) How many people in Malta earn a salary above €60,000 a year? How easy it is to be taken for a ride, I will repeat, use your brains.
A Daley
Jun 5th 2008, 20:42
In Malta we still have heads buried in the sand.
You are challenged to come up with what is coming in the next budget?
PN went on a spending spree before the election, money which the Government did not have. It ALL came from more borrowing.
Can one refresh your poor memory and remind you that the miserable tax reduction before the election was for the previous 4 years of misery that we had to endure, when we were in a recession, while all the rest of Europe was having the best economic times ever.
PN promised to reduce tax, oh yes! I can assure you now, there will not be any tax reductions. On the contrary there is going to be another hefty increase including VAT. FALLUTI!
In the 80s we went to Sicily to buy mars and now we go to Sicily to buy, cars, food, cloths, furniture, the lot, cause everything is cheaper, while our salaries are the LOWEST in western Europe.
PN thought that MLP were going to be elected, so they crashed the economy before the election. Enjoy the next Budget, cause that is what you like best - SWAT!
Charles Camilleri
Jun 5th 2008, 16:16
The GWU is repeating the same mistake as her brother in arms before the election. Is she not aware that the Government has already reduced the level of taxation in the last budget and promised more in the electoral program, such reducing the tax rate from 35% to 25%.
As regards price control is the GWU suggesting that we should go back to the days when we had to go to Sicily to buy a bar of chocolate?
A Daley
Jun 5th 2008, 14:56
Anyone who think that the economy has nothing to do with the inability of our Government to reduce stealth taxes to reduce our suffering, a couple of challenges.
What would you like to see coming out of next budget?
What do you predict in the Government finances?
Please do not mention the 70s and 80s when ALL Europe had to ration fuel because it doubled in price overnight, and the world went through one of the biggest recessions in history. Is it convenient to forget the riots all over Europe in them days? ZID IL-PAGI, used to shout Eddie! Same goes to Gonzi in 2008 - ZID IL-PAGI - NAQQAS IT-TAXXI - L-EKONOMIJA SODA!
This is now and we are eating now not in the 70s, or 80s when we used to get £m2.5 and £m3.5 weekly cost of living increases to combat imported inflation, (15% in Europe!)
Where would Labour get the money from? From the strength of the economy that Gonzi was happy to suggest. Remember - Finanzi fis-sod? Ser ingawdu l-frott tat-tbatijiet li sofrejna!
So, out with the goods!
laurence schembri
Jun 5th 2008, 14:24
Another brainwashed Nat. Why blame China and India on the present situation of World economics? Blame the greed of the Western World, these are the culprits that created this present situation, cheap labour, thirteen, fourteen year old boys and girls on the conveyor belts earning as little as €1 a day, with the blessing of the EU.
I do not vote, I have no vote!
Dear Mr. A. Farrugia, I am an outsider, but, if you think you are in safe hands I wouldn`t like to be in the same boat with you, my advice to you is, sooner rather than later you`ll better start looking for a Mae West.
A Farrugia
Jun 5th 2008, 13:28
@lawrence schembri. At the present moment that's the big deal. Buying in bulk and not during the 70s or 80s. When things were more relaxed. And no china and india interferred in world economics. And from where do you think a labour government would have got its money to reduce the surcharge by half and handing handouts for overtime, etc. etc. Today we are all in the same boat, but with Gonzi, we are in safe hands. Look at your party... in tatters and shambles.
laurence schembri
Jun 5th 2008, 12:44
@ C. Mifsud - Adrian Gouder
At this point we are discussing food prices in Malta compared to the rest of Europe and not politics. Instead of a sharp tongue use your heads and have a good look around you and analyse what is happening, sharpen your brains, give your tongue and politics a rest.
If I am not mistaken only yesterday Finance Minister Tonio Fenech suggested that we should look for bargains. Shop at Lidl he said. I shopped at Lidl for years, long before they knew that Malta even existed. Lidl can afford to lower prices and do you know why?...Wait for it...they buy in BULK!!!
A Daley
Jun 5th 2008, 11:33
Why is it that someone understands the price stability agreement before the entry of the Euro(which happened just before the election – nice timing), but the same person fails to recognise that no other EU country imports over 90% of it’s food necessities from abroad like we do!
In the past two months, certain people were happily predicting that thanks to the strength of the Euro we can prevent some of the imported inflation. IT DID NOT happen!
If one does not agree with the GWU’s first suggestion, everyone in Malta agrees with the second one, REDUCE STEALTH TAXES.
The problem is that all the money injection by this administration has been coming from an ever increasing National Debt and not through the actual growth of the economy. The Government finances have been in dire straits for a long time and now there is no room to manoeuvre to reduce taxes like what is happening in all EU countries. The Government has been living way beyond it’s means and to make it even worse the expenditure was not going to an increase in capital expenditure, but in an explosion of recurrent expenditure. In short - (flus fl’idejn kollha dejn).
C. Mifsud
Jun 5th 2008, 11:16
What they really mean is price control. Back to the 80s.
Adrian Gouder
Jun 5th 2008, 10:19
I do understand why the Government went into a Price stability agreement prior to Euro adoption. But I fail to see the reasoning behind another such agreement. Perhaps if the GWU may kindly suggest in which EU country this has been adopted and the outcome of such agreement, we may understand the economic benefits behind it. Frankly, I fail to understand how benefits may be achieved, and how this tallies with the concept of free trade, or is the GWU suggesting we adopt bulk buying techniques?