Sunday, 28th June 2009 - 12:28CET
Tough budget decisions ahead
Tonio Fenech
Finance Minister Tonio Fenech this morning hinted at tough decisions ahead saying that the budget was to be drawn up in a difficult situation at a time when the economy was going through a difficult period.
Interviewed on Radio 101, Mr Fenech said:
“We, have to keep our feet on the ground... The economy is the government’s priority. This is the time to incentivise it and give it the necessary substance.
“This is not the time to be aggressive on the economy and it does not make sense that to solve a current problem we create a longer term one, he said.
Mr Fenech said that the first meetings on the pre-budget document were to start next week.
He said it was true that there were positive signs which showed that the economy had started to slowly recover but one had to move cautiously.
Although the government did not believe that it should increase the tax burden unnecessarily, the alternative solution was to reduce subsidies. “Why should I assist someone to pay a bill he can well afford to,” the minister asked.
While the government wanted to help those in need, it did not want to assist those who were not.
“If we do not want taxes to increase we have to pay for what we consume,” he said adding that contrary to the impression the opposition tried to give, it was not true that Malta was among the most heavily taxed countries in Europe. EU statistics showed the contrary, Mr Fenech said.
On the shipyards, Mr Fenech said that two companies had re-submitted an offer to take over ship repair and these were now to be evaluated.
He said that there had been initial problems with three companies expressing an interest but making minimal offers with a poor investment plan which did not satisfy the privatisation unit.
The government spoke to these companies telling them it had obtained a professional estimate of what offer and investment it should expect and the companies were given until the end of the week to submit their offer. Two did and if they accepted the conditions set by the government, the process could progress.
The minister said that employees at the shipyard were working on a week by week contract and the government’s order to the shipyard was not to accept loss making projects.
On the proposed agency to counter price abuse, Mr Fenech said this would not be able to control prices.
The structure the government was proposing would be a watchdog on the Office of Fair Competition and on the market, ensuring there were no cartels and listing shops that were selling for cheaper, helping consumers make their choice.
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Mela l-ewwel L-Enemalta bla kontroll ta xejn, u mbghad bini ta sptar bla kontroll ta xejn u issa l-bieb tal-Belt minghajr bieb u teatru minghajr saqaf u kocc hitan impoggijin bladocc u parlament gdid ha tkunu aktar komdi b'alla biss jaf kemm ha titla l-ispiza sakemm jitlesta.
U mbghad tigi tghidilna @Tough budget decisions ahead"!!!!!!!!!!!!!!!!!!!!!!!!!!
DAQSHEKK DHAQTU BIJA TAL-PN.
Joseph Muscat ladarba s'issa ghadu fl-opposizzjoni li jista jghamel biss huwa li jindika lil-poplu kif qed jigi imqarraq mil-Gvern. Huma l-ministri li forsi ghandom l-appogg tieghek li ghandom ir-responsabbilta li jissuggerixu u jahdmu ghall gid tal-poplu malti, liema haga qed iffallu bil-kbir.
Haga ohra li jista jghamel Joseph Muscat huwa li jhares lejn il-membri parlamentari li qeghdin bilqeghda faccata, jigifieri tal-PN, jkomplu jghaffgu u jhawdu u jiggieldu bejnithom.
U Joseph Muscat jista jissuggerixxi kif? jew kemm jitfa t-tajn biss ... (u jibqa fejn hu ... fl-oppozizzjoni :) )
2. Kick all immigrants out and save millions in health and running expenses.
3. The 420 million euros of EU funds that went to lawyers and 80 million euros every year.
4. Employ Maltese and you will have more NI. What is the point of spending millions to save jobs, when you have well over 20,000 illegal works from other countries.
5. Give a chance for small business to solve their EU penalty fees that came out of thin air without warning. Like MFSA. Also solve past tax problems ,which were created by government mistakes.
6. The property business was a large part of every economy and will take years to recover. Give the people the chance to work and create wealth with new ideas.
7. Social welfare is a total disgrace. We can reduce this sector by 20% and help those that really need to stand on their feet. The poor come first and we have 60,000 people that fall under the poverty line.
8. We have all the oil and gas that can make this country wealthy and the delays have become a scam to say the least.
Quote: "While the government wanted to help those in need, it did not want to assist those who were not." Well, well. Does that mean taxing the usual bunch of barons and friends? probably not. Alas, it means taxing the hard-working middle class, those people that socialists envy and the nationalists always feared for their diligence and perseverence.
When will the Govt really have the guts to tackle the issues of waste and inefficiency in its departments, ministries and authorities. It can start from Mater Dei, for example...
And then move on to the MEPA, MRA, MCA and the horrid Transport Authority.
And why mention the Drydock workers? what's so special about them? thousands of other busy ppl risk their lives everyday and have no golden handshake awaiting them.
How I wish that instead of a former auditor we had someone with some real life and business exeriece...sigh...but the whole cabinet lacks that.
Let's hope that the 'tough' decisions will also be the right decisions.
J---So Dr.Gonzi if as you say there are clouds on the horizon and the economic situation might sour what are you going to do to fight any bad effects off!!
Gonzi--We will reduce the highest taxband from the present 35% to 25%
j--But how on earth would you afford this?
Gonzi--hHEhehehehe...kemm hu helu......mhux ovvja...ghax ha nghidlek (nghallmek) meta tnaqqas it-taxxa tpoggi il-flus fil-but..u meta taghmel dan idawwar ir-rota ekonomika!! Imma din tal-Labour ma jistax jifhimha...hehehehehehehe!!
J--and when do you plan to do this!
Gonzi--(after a moment of silence)--In the first budget
...................the "interview" might be the result of my imagination but as far as I know the above is practically what was promised. So can someone tell me why on earth has this attitude changed?? I mean once we are facing such a crisis shouldn't GonziPN be using the pre-March 2008 logic to create wealth!!?? Yet it seems logic was only part of the pre-March 2008 spin meant to steal our votes now its time to "bite the bullet"!!
Ironically all this mess reminds me of that song which went something like....'Gonzi kompli mexxi"
Sur Attard, nassigurak li m'initix tinstema arroganti izda bl-ikbar rispett forsi inti li ma tafx x'qed tghid. Jekk hawn xi' hadd arroganti huwa dak li filwaqt li jissokka ic-cinturin tal-haddiem jholl ic-cinturin tieghu biex jghamel il-wisgha halli jimpala flus iktar fil-but tieghu.
Naqbel ukoll li ghandhom responsabbilta kbira iktar min manager go bank jew CEO f'xi kumpanija... izda meta xi'manager f'xi kumpanija jkun responsabbli ghall falliment tal-kumpanija dan normalment jitkecca jew jirrezenja minn rajh, izda dawn il-ministri wara li b'decisjonijiet hziena litterlament ghamlu deficit rekord ghal pajjiz flok jghidu kulpa mia u jirrizenjaw iduru fuq il-haddiem iz-zghir u jkomplu jghasruh bit-taxxi ngusti u mhux f'lokhom.
Sur Attard inhallu lil-poplu biex jiggudika kif iggudika fl-elezzjonijiet ta' tlitt gimghat ilu jekk iz-zjieda fenomenali li hadu l-ministri jekk kienetx zjieda gusta u f'waqta.
@ Robert Borg:
Other countries have higher tax rates, but they have HIGHER MINIMUM WAGES and a WELFARE STATE THAT actually WORKS when you need it.
Minimum wages in other neighbouring countries in southern Europe are double those of Malta, and labour laws are actually followed as a rule, and not as an exception.
If you couldn't find a place to book, it's because you did not have a budget high enough to pay for what was available.
If you are doing so well, why don't you help your godfather Minister Fenech and pay more taxes for the benefit of the country?
"Can Tonio tell us how is it going to control abuse if it's not going to control prices"
1. Can Joseph do so?
2. At least Tonio is fair in acknowledging that we live in a free market economy this is accepted by all sides in politics. We cannot FIX prices. Spicca z-zmien li nghidu fil-budget kemm jiswa l-corned beef.
3. The market should regulate itself. Il-Gvern li ghandu jaghmel hu li jara ma jkunx hemm abbuz...eg..kumpaniji jiftemu l-prezzijiet.
4. Zgur li l-Gvern ma jistax jghid kemm ghandu jiccargja restaurant. Sorry ta, jekk jien irrid inbiegh lapes semplici tal-kitba EUR 10, ghandi kull dritt.Pero hadd mhu se jixtrieh. U jekk xi hadd mignun bizzejjed biex jixtrih, mela allura jien aktar u aktar gustifikat ghax is-suq tani ragun.
5. Nahseb li l-Labour lanqas li ghandu dritt jitkellem fuq das-suggett, ghaliex sa sena ilu kien jghid li jrid jizvaluta l-lira b'10% u bhekk kien ikollna zieda awtomatika fl inflazzjoni bdak l-ammont
Ghalija, li f ricessjoni internazzjonali meta l pajjizi kollha ghandhom unemployment terribli u ahna bqajna b livelli stabbli ta impjiegi, u sahansitra zdied il konsum,fethu numru akbar ta negozji milli ghalqu..u ecc..ecc.... iva dak hu par idejn sodi
issa jekk fi zmien bhal dan tistenna li ma jinbidel xejn....tistenna li l gvern ma jghindx lil kumpanija fil bzonn....hekk sew? 2500 ruh bla job? u jekk qbilt li jghinhom, ha tgorr ghax ma jrahhaslekx il kont tad-dawl?
mela l-eu tghidilna li ahna fost l anqas pajjizi li nhallsu taxxi
ghandna kwazi kollox (il-basic) b xejn- edukazzjoni, sahha
beneficcji socjali, stipendji, nisa li jidhlu jahdmu jiffrankaw sena taxxa, ma nhallsux vat fuq ikel u medicini....
u xorta tgergru!
Totally agree with you.
How about the Ministers etc.. leaving their car and use the public service like many workers do?
How else could Gonzi pay for the outstanding €200 million on the Delimara power station?
How else could Gonzi pay for his Government's excesses?
How else could Gonzi pay for the mad City Gate project?
"On the proposed agency to counter price abuse, Mr Fenech said this would not be able to control prices,"
Can Tonio tell us how is it going to control abuse if it's not going to control prices?
J Martinelli
Why don't you come and live here to feel the pinch before you comment Martinelli? As fr "inrossu c-cintorin" Mintoff had issued the warning prior to the election and yet the people elected him because they believed in him. Gonzi said one thing and is making another. How about finanzi fis-sod, par idejn sodi, ecc?
This shows how arrogant Gonzi is when he is again disregarding the people just three weeks after they made him bite the dust.
Joseph Agius
The poor continuing to become rich? In what "spirit" are you writing Joseph?
what about jobless? possibbli ma tarawx ahbarijiet barra? miljuni bla job...uk..spanja..italja..franza.....mentri ahna konna l aktar pajjiz li hloqna xol?
kollox ward u zhar? zgur li le. assolutament li le. allajbierek ma ssibx fejn tiekol is-sibt jekk ma tibbukjax, karozzi godda u sbieh jibqghu jfaqqsu, skont l-NSO 3/4 tal-maltin siefru s-sena l-ohra, dal-weekend pruvajt ma shabi nibbukja farmhouse ghawdex l-erbgha li ghadda MA SIBTX available.....yet....nitkellmu isna se mmutu bil guh!
I totally agree with you and mostly with Eurostat that we have a difficult situation at a time when the economy is going through a difficult period.
But definetly not So difficult for you and for your fellow ministers and parliamentary secretaries to find it so easy to find thousands of Euros and capricously increase your salaries at a time when Cikku il-Poplu is struggling to pay his inflated bills and cope with the ever increasing costs of living. Arrogance and insensitivness are the only things that your Government is excelling in.
What a joke..... the joke is on us,
OUR LEADERS SHOULD LEAD BY EXAMPLE. GIVE BACK YOUR €300 weekly payrise YOU GAVE YOURSELVES LAST BUDGET.
Any government would spend more in a recession in order to sustain jobs and possibly create new ones to make up for those which are lost. So, the Valletta project is a good example of investing for the long term in the infrastucture and keep workers busy for the next four years. What's wrong with that?
The alternative is to stay put and let the recession take its course. The government will then spend more anyway, in unemployment benefits. How wise is that?
It could very well be that some subsidies will be cut and a means test applied so that those who are skimming the system will be stopped. Anything wrong with that?
"Min xarrab il-bakkaljaw irid jieklu" How pathetic! I think Mr.Cassar has eaten bakkaljaw before but not from this government. He should remember the years when we were made to tighten our belts - 'Irrossu c-cinturin'! Selective memory?
professuri suppost immexxuha malta.dawk li kif tghid xi nofs ta kelma jghidulek injorant int oqod hemm....
il bakkaljaw xarrbuh gonzi u shabu imma ha niekluh ahna joseph cassar..
kultura tar rizenji?
fejn f malta?
taht gvern laburista iva imma taht gonzi le..in office and in power.
Dr. Fenech, of course you do not assist with subsidies those who can afford. But who ca afford it Malta to pay 95% surcharge on energy bills? these are not subsidies but surcharges !!!!
I think tha those who are responsible for bringing Malta into such shambles should be made to pay and not, again, the ordinary citizen!!!
Malta ghanda bzon mandat gdid ghax dan huwa ferm il-boghod min da li gie mwieghed qabel l-elezzjoni min PN.Zmien ta asterita u se nonfqu €80 miljun fuq tejatru bla saqaf? il-Gvern mhux kapaci jmexxi. Il-Gvern ghandu jitlob lill membri Parlamentari biex fil-vaganzi tas sajf ma jithalsux u min hemm inkomplu.Hemm bzonn ninvestu fit turizmu, aktar incentivi biex ikolna aktar turisti. Malta mimlija turisti nofs il-problemi jkunu solvuti. Il-poplu ma jiflahx aktar.
Il-Gvern huwa ppreparat li wara ssajf bosta negozji se jghalqu u jfallu. inkluz skejjel.Is sur Fenech mhus saqajf irrid jghamel ma l-art imma widnejh
In effect Mr Minister, you should lower income tax and provide incentives so people spend more feeding business and the Gov gets money thru VAT. Instead you bury your head, increase bills for inefficient utility services when their is no need to and go charging into expensive projects. This is all done to make the rich richer. Who in actuality benefits from major projects? The small guy in the street or the rich hbieb tal hbieb contractors/chairmen who fatten their bank accounts?
Jien nahseb ahna ic-cittadini se nispiccaw nikluh il-bakkaljaw, b'xi salt taxxi godda.
Ghalfejn it-tax payers dejjem iridu jispiccaw ipattu ghan-nuqqasijiet ta' min suppost qed jiehu hsieb il-finanzi taghna?!
Erm why have the MPs been given such an increase in salaries?
Why the MEPs are paying less taxes then their voters?
Why don't the Ministers take a Pay cut if they are not doing there Jobs and they over paided to help the ecconomy . Ellection is still far away but people don't forget.
So why is the Government going to spend recklessly on a new parliament and a disastrous city gate?
The people want a better life and more money in their pockets Dr.Gonzi!
You can start with Student's Stipends Dear Minister.