GWU general secretary Tony Zarb in an initial reaction to the budget for 2009 said this evening that this was a tough budget for the workers.

He said the measures announced by the Minister of Finance, following closely on the new utility tariffs, would throw many small and middle income families into a crisis.

The income tax cuts were cosmetic and the increase in the price of fuel would create further difficulties.

The cost of living increase would not even be enough to cover the new utility charges.

Mr Zarb complained that the union’s proposals to help families and industries had been practically ignored. The only proposals which were taken up were those on a tax rebate to encourage more women to return to work and incentives for the use of alternative energy. Nonetheless, the incentive on alternative energy was not broad enough.

The UHM said that in contrast to the consultations on the utility tariffs, consultation on the budget appeared to have been effective. This budget had taken consideration of the international economic turmoil . The government was right to postpone the balanced budget target and the exercise appeared aimed at keeping the economy going at a time of slowdown.

The union welcomed the investment in the infrastructure and education as well as the measures for more women to return to work. It also welcomed the measures in favour of tourism and alternative energy and said the income tax revision could somewhat ease the impact of the utility tariffs, although it still felt they were too heavy a burden on families and industry.