Employers call for a Budget aimed at stimulating growth

The Malta Employers Association is calling on the government to ensure that the Budget is aimed at stimulating growth in those sectors of the economy which are still struggling to achieve pre-recession levels, and to increase the labour activity rate.

The latter, combined with continued investment in education is the best means of generating income and wealth, according to the MEA, and a way out of poverty to many.

The MEA is suggesting an increased investment in child care services and tax incentives/subsidies for affordable child care services at community level or at strategic locations. It also wants an extension of school opening hours to provide the option – possibly at a charge – for parents to leave their children to be looked after at school.

Employers are proposing that starting in 2011, payment for maternity leave by employers will be phased out over a period of three years, and that any additional maternity or paid parental leave that may be introduced or imposed on the labour market will be paid for by the government.

The MEA says the COLA increase of €1.16 will follow a year when employers had to award a COLA of €5.82, at a time when many were experiencing a drop in revenue and profitability due to the recessionary impact. It is calling on the government not to add any further costs to employment beyond the COLA for 2011.

In view of the probability that 2011 will see an acceleration of inflation due to the inflationary effects of the global recovery, the MEA is proposing a one-time welfare supplement of €78 (based on €1.5 per week) which will be awarded to families with a household income of less than €12,000 per annum.

The MEA says that job creation should be led by the private sector, and one of the ways in which fiscal targets can be met is through persistent efforts to reduce the number of persons in the public sector.

The Association believes that any discussions for a collective agreement in the public sector have to be conducted with specific manpower projections which will keep the payroll in control.

“The collective agreement should focus on developing the public sector into a lean, efficient machine that is committed to the growth of the private sector and to the general welfare of Maltese society. The best way to achieve this is to reduce the overall number of persons employed and widening wage differentials to reflect levels of responsibility and to incentivise efficiency. This will free funds to be channelled into better priorities, like health, education and infrastructure,” it says.

It argues that this Budget should analyse the procedures involved in tapping into EU and government funded schemes to minimise the bureaucratic burden involved.

It is also proposing a study to design and implement an “employabilty index” for courses at tertiary level. The index would rate courses in terms of employability and prospective earnings to guide students in their choice of career.

Regarding private schools, the MEA says the government should consider revising the tax incentive to persons sending their children to private schools so that it truly reflects the burden which the state is being relieved of.

The Budget for 201, the MEA says, should accelerate the efforts of previous Budgets to generate a green economy.

This is in itself a must in order to meet EU2020 criteria, but more importantly, this is a requirement to reduce our heavy dependency on fossil fuels, which is affecting the country’s competitiveness.

The MEA is repeating its calls for protection of legitimate business, and stressed the need to protect the interests of importers from parallel traders, “who may be bypassing customs procedures by bringing goods through the catamaran from Sicily”.

The association also urged the government to take action when tenders are awarded to employers who manage to win such tenders by giving their employees conditions of employment which go below the legal minimum. Minimum thresholds need to be set and to ensure that such thresholds are adhered to.