A stable Budget – Chamber

The Malta Chamber of Commerce, Enterprise and Industry said it is encouraged by the fact that the 2012 Budget is aimed at promoting economic growth and consolidating public finances without creating economic shocks, namely no increases in tax and utility rates.

“This is important in the light of the turbulent international realities which German Chancellor Angela Merkel described as Europe’s toughest hour since WWII. This is also in line with the objectives for the Budget proposed by the Malta Chamber during consultations. In our opinion, this position is also in line with prioritising wealth generation,” the Chamber said.

The Chamber welcomed the measures aimed at enhancing the competitiveness of Malta’s major growth promoters such as the extension of the Micro Invest Scheme providing tax credits for productive investments, the creation of the new MicroGuarantee scheme, the fourth call for European Regional and Development Fund which will be launched to the tune of €8million and further improvement in private industrial zones.

“It is positive to note an allocation of €14.2 million in incentives to industry, the upgrading of the Bulebel and Hal Far Industrial zones, with an investment of €16.7 million and the investment of €30 million towards the BioMalta campus,” it said. The Chamber said it is encouraging to note that the authorities have accepted its recommendation to enter into further discussions about the service charge at industrial estates.

It also welcomed 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. The Chamber said it is encouraged to note the increase in the MTA’s marketing budget to €36 million, €4.2 million in further embellishments on new projects and €10 million to aid private operators for the improvement of tourist projects and marketing.

It said it noted the “positive” assistance schemes being offered to promote emerging areas such as the creative and digital gaming sectors.

However, the Chamber said it is disappointed with the manner in which the matter of maternity leave extension was raised abruptly during the final MCESD meeting preceding the Budget.

“The Malta Chamber believes that this proposal requires serious evaluation as well as an in-depth discussion with all social partners prior to its implementation,” it said. “With regards to encouraging female participation, the Malta Chamber believes in nationwide measures to support families achieve an enhanced work-life balance such as child-care centres and schools offering extended hours. The Malta Chamber notes further progress in this regard and warrants further steps forward including the adoption of banking of hours. Such nation-wide measures would significantly reduce the need for ‘patch-up’ solutions at company level such as maternity leave and career breaks,” it added.

The newly announced tax bands for working parents are also perceived by the Chamber as a step in the right direction.

The Chamber expressed its disappointment at the fact that the country has wasted yet another opportunity to address the COLA formula.

“This is required to complement Malta’s competitiveness position while being retained as an instrument to compensate workers for loss of disposable income due to inflation. To this end, as a matter of priority, it continues to insist that the formula used for calculation of COLA incorporates a measure of productivity as has been already agreed within the pertinent MCESD working group,” it pointed out.