Social partners give Budget guarded, mostly positive reaction

The Budget 2010 received a guarded but positive welcome by the social partnersthis evening, although employers voiced concern over the impact of the cost of living adjustment (COLA).

Joe Farrugia, Director-General of the Malta Employers' Association said the Budget was generally "positive and creative" and the main problem in the exercise was the COLA.

GWU General Secretary Tony Zarb said this was a moderate Budget. He welcomed the incentives given to industry and the fact that COLA had been given in full, but said the GWU was disappointed that the tax bands were not widened. He hoped that what was achieved would not be nullified by the new water and electricity tariffs.

Helga Ellul, president of the Chamber of Commerce and Industry said the government had, through the Budget, given encouraging signs to the economy. She welcomed the provisions on micro-financing, assistance to SMEs and the increased investment in job training schemes by the ETC, but admitted that COLA was a worrying factor as there were no mitigating effects said as flexibility. She also welcomed the fact that the tax departments would be working together and hoped that government refunds would be quicker.

MHRA President George Micallef said the Budget was positive with regard to investment in tourism and embellishment of Malta, particularly the investment in roads. He too expressed concern over COLA, noting that tourism was a labour intensive industry.

UHM General Secretary Gejtu Vella said this was a Budget of solidarity and economic stimulus which upheld stability, job creation, fiscal morality, inflation control, investment in education and health.

GRTU Director-General Vince Farrugia praised the government for the assistance being given to SMEs and the self-employed. He said the GRTU also wlecomed the investment being made in worker training.