Alternattiva Demokratika
Rating: 6/10

There may be some good environmental incentives related to alternative energy in Budget 2012 but these are definitively not enough, according to Alternattiva Demokratika chairman Michael Briguglio.

Describing the Budget as a “mixed one”, Dr Briguglio said it included positive aspects like tax deductions for working parents and the extension of maternity leave, which AD has been proposing for the past years.

Incentives to use rundown properties were also positive. However, these should have been accompanied by a reversal of the extension of development zones.

“Although there were some good environmental incentives related to alternative energy, these are definitely not enough. We expected alternative energy to be the government’s priority, not just one item among many. This would have benefitted the environment, and more so the economy,” he said.

Dr Briguglio said Malta depended too much on oil – dirty fossil fuel – and if it kept postponing the problem, “we would keep paying more and more for energy consumption”.

AD wanted a national policy for alternative energy and not “just an incentive for some 400 families or the industry”, he said, adding that prioritising alternative energy would also create green jobs.

“We also believe property speculation should be taxed from the third vacant property onwards. This would act as an environmental and economical measure that would also generate revenue for the government,” he said.

AD was also disappointed the Budget did not tackle the minimum wage, insisting this accompanied by an increase in productivity should increase.

The party hoped the government’s positive predictions about the deficit were realistic ones, Dr Briguglio said.

In the meantime, AD issued a statement emphasising the importance of a sustainable Budget to curb the deficit in a context of global crisis.

“A worrying aspect is the fact that in some taxation measures the more one earns the greater the reduction in tax, when it should have been those with the lowest wages who should have benefited most,” it said.

Consolidation without shocks

Malta Chamber of Commerce, Enterprise and Industry
Rating: N/A

Budget 2012 promoted economic growth and the consolidation of public finances without creating economic shocks, according to the Malta Chamber of Commerce, Enterprise and Industry.

In its initial reaction, the chamber said this was important in the light of the turbulent international realities and in line with its objectives for the Budget.

It mentioned a number of measures which it said were aimed at enhancing the competitiveness of Malta’s major growth promoters, including the extension of the MicroInvest scheme, providing tax credits for productive investments, the creation of the new MicroGuarantee scheme and further improvement in private industrial zones.

The chamber also welcomed the allocation of €14.2 million in incentives to industry and the upgrading of Bulebel and Ħal Far Industrial zones, with an investment of €16.7 million.

“The chamber commends the an­nounced scheme allowing high-volume energy users to convert accumulated tax credits into grants to invest in solutions for energy-saving and energy generation from renewable sources,” it said, adding it awaited more details on its implementation.

With regard to the tourism sector, the Chamber praised the increase in the marketing budget of the Malta Tourism Authority to €36 million, €4.2 million in further embellishments on new projects and €10 million to help private operators for the improvement of tourist projects and marketing.

The chamber said it was disappointed with the manner in which the matter of maternity leave extension was raised abruptly during the final MCESD meeting preceding the Budget.

It said this proposal required serious evaluation as well as an in-depth discussion with all social partners prior to its implementation.

It said it was also disappointed that the country had wasted yet another opportunity to address the COLA formula. This is required to complement Malta’s competitiveness while being retained as an instrument to compensate workers for loss of disposable income due to inflation.

The chamber refused to rate the Budget.

A step back from the precipice

Chamber of Small and Medium Enterprises – GRTU
Rating: 7/10

Budget 2012 was a budget that steered the country away from the economic precipice, GRTU director general Vince Farrugia said.

“The end of the road for a country with a persistent deficit is the precipice – for 17 years, one government after the other has toyed around with the deficit and it is only now, under a specific and tight disciplinary process imposed by the European Commission, that we are finally driving towards a balanced budget within the next three to four years,” Mr Farrugia said.

This Budget was still projecting an increase of 7.4 per cent in public expenditure, which was worrying, he said. The GRTU would have preferred if the government had curtailed public expenditure rather than expand it.

“We are satisfied that a good chunk of expenditure is in the capital budget with a substantial 37 per cent increase on what was spent last year and includes a number of incentives for the private sector to increase its fixed capital formation,” he said.

GRTU was particularly satisfied that its main proposals were accepted – to include an extended loan guarantee for small businesses.

Mr Farrugia pointed out that the previous micro-credit scheme worked very well but was not sufficient to cover the major problems faced by most small businesses – access to bank loans and cash flow.

The Budget offered many creative start-up schemes that would help Malta continue its success story as a country which was growing as a knowledge-based economy, he said.

It had also made a number of proposals to incentivise the use of vacant property in Malta and Mr Farrugia regretted these were not all taken up. However, it was pleased the government was giving an extra push to property owners to put it on the market, to rent out or to put it up for sale through fiscal incentives.

The GRTU was also satisfied with the incentives drawn up for young families with children and that the government was increasing its efforts for people to become more productive – especially young people, women and the elderly.

“This is a Budget that sustains economic growth while striving to curtail the deficit,” Mr Farrugia said.

Gain for families and the elderly

Union Ħaddiema Magħqudin
Rating: 7/10

The Budget was a positive one which addressed those sectors which were important to improve Malta’s competitiveness, the Union Ħaddiema Magħqudin said.

It's important to keep deficit and national debt under control- Josef Vella

General secretary Josef Vella welcomed the measure aimed at addressing difficulties families faced and was even happier that the government accepted its main proposal – that of setting up an Active Labour Market Policy.

He said the union was satisfied with measures aimed at families, the elderly and job creation. He also praised the investment in childcare centres to help families achieve work-life balance.

He said the formation of a new tax band for couples with children, which was expected to affect 18,000 people, was also very positive as was the increase in funding for the Employment and Training Corporation to address unemployment through training.

The UĦM welcomed incentives for industries, especially the large companies, and measures to help small and medium enterprises.

Mr Vella said he was disappointed the Budget did not address the environment in a concrete manner and that the maternity leave increase was just an idea rather than something on which it was adamant, contrary to the impression given to social partners at the last MCESD meeting.

“We did not like this U-turn,” he said.

Mr Vella said the union was also pleased with a measure to address an injustice service pensioners had been suffering for several years.

With regard to inflation, Mr Vella said while he was pleased to see a plan for this to decrease to 2.1 per cent from 2.7 per cent, the Budget had no plan on how this was going to happen.

Turning to deficit and national debt, Mr Vella said while it was positive the government was addressing these two important issues, it was “now very important that we stick to our guns and keep them under control”.

Some decisions yet to be made

Confederation of Maltese Unions – Forum
Rating: 6/10

This Budget was a very “cautious” one and the confederation of unions was expecting certain decisions that were not taken, Forum president John Bencini said.

“It did not include any clear measures that would lead people to believe that the government is focusing on stimulating the economy,” Mr Bencini said.

The economy was going through a stagnant period and the government did not really focus on stimulating it, he said.

Turning to Air Malta, Mr Bencini said Forum, which represented a number of airline employees, was very worried about the situation, adding that the employees were recently told to “take it or leave it” because of pressure from the European Commission.

“This isn’t the way,” he said.

Describing the Budget as a “neutral” one, Mr Bencini, a former teacher, said he would have deducted points from Finance Minister Tonio Fenech’s speech because he often went out of point.

“We were expecting the government to reduce the burdens faced by the middle class and people living on the poverty line,” he said.

Even though there were a few changes in the income tax bands for parents, these would be a small help for them, he said.

On education, Mr Bencini said Forum highly appreciated the heavy investment made by the government in this Budget.

“Education is given its due importance by this government. After all it is one of the pillars of our society,” he said.

Mr Bencini expressed satisfaction at the government’s plans to open a special school for athletes that would allow children to focus on sports while learning.

Far from what was expected

General Workers’ Union
Rating: 3/10

Budget 2012 did not alleviate any of the hardships families faced, such as the utility tariffs, despite easing some of the burdens on the middle class, according to the General Workers’ Union.

In its initial reaction in a statement distributed while Finance Minister Tonio Fenech was still delivering his Budget speech, the GWU lambasted the government for not having the courage to decide on an extension of maternity leave. Instead, it left it up to social partners on the Malta Council for Economic and Social Development where it knew there was no agreement on the issue.

As it had done on Friday, following the last MCESD meeting on the Budget, the union complained that the government had given very little weight to the proposals it had made, with most not being taken up.

The Budget, it said, was silent on how the government intended addressing precarious work.

It also did not explain how it expected to increase revenue from social security by €46 million.

The GWU said it would issue its official reaction on Thursday.

The union’s pre-Budget proposals included a call for a reform of the cost-of-living-adjustment mechanism, which, it said, should be linked to the national average wage as calculated by the National Statistics Office.

In presenting the union’s proposals, union general secretary Tony Zarb said the COLA had to reflect inflation and rising electricity and water rates.

He also called for female self-employed entrepreneurs to be entitled to maternity leave and for the government to directly employ cleaners, care workers and security guards working for public entities which the union said were precarious jobs.

The GWU had also called on the government to negotiate a moratorium on house loan repayments for workers who lost their job or were forced to work reduced hours.

It suggested a comprehensive analysis of the state of Malta’s workforce and the preferential treatment of people over 65 in health care services.

Disappointment on maternity leave

National Council of Women
Rating: N/A

The National Council of Women yesterday expressed its disappointment that no agreement about measures to implement the extension of maternity leave was reached by the Malta Council for Economic and Social Development.

During the Budget speech, Finance Minister Tonio Fenech said the government would foot the bill for an additional four weeks of maternity leave spread over two years, however it still had to meet with the MCESD to decide on the best way to implement it.

“For months, the council has been negotiating with different stakeholders including the government, trade unions, the Malta Chamber of Commerce and the General Retailers and Traders Union to reach an agreement that takes into consideration the needs of both employers and working mothers during this difficult phase of the financial crisis. “Although a number of financial incentives for mothers have been introduced over the last years, maternity leave measures are crucial not least as they will open up opportunities for employment in the private sector for less than 4,000 mothers who give birth per year,” NCW President Grace Attard said.

Ms Attard said in its recommendations for Budget 2012, NCW proposed Employment and Training Corporation and European Social Fund schemes for the provision of temporary or supply workers, “which is a related bone of contention for employers, especially SMEs.”