Opposition leader Simon Busuttil in an initial reaction to the Budget said this evening that the speech was long in content, but short in substance.

He said that the Budget lacked a clear economic vision and was socially unjust as it failed to distribute wealth in a fair manner.

Dr Busuttil branded as "ridiculous" the 58 cents weekly wage increase and criticised the fact that not everyone would benefit from the €35 bonus, which he said was "inadequate" anyway.

At the same time a host of new taxes and increases in excise duties were being introduced which would leave people with less money in their pockets.

He said that in the Budget speech the government showed a lack of ideas to create jobs, boost the manufacturing sector and create new areas for economic activity.

Dr Busuttil said the drop in fuel prices still did not reflect the sharp decline in international oil prices. Gas prices had been frozen despite a similar drop in the international price. 

Students, he said, were insulted when they were given a stipend increase of just 2c per day, this when exam fees had risen sharply.

Dr Busuttil observed that the Finance Minister had felt the need to even announce the building of a footpath in Wied Iz-Zirrieq but he failed to give a deadline for the completion of the new power station, despite the prime minister's promise to have it completed within two years of the general election. 

Asked about his prediction that Malta would need a bailout under a Labour government, Dr Busuttil remarked that certain symptoms which had preceded financial crises in the countries which needed a bail out could also be found here, such as exaggerated public debt, falling exports, a drop in industrial production and a spike in civil service recruitment.

GWU SATISFIED

The GWU said this evening it was pleased that many of its proposals were included in the Budget.

It welcomed measures against precarious work and measures to boost the economy and create jobs.

Also welcome were the measures for persons with disability.

The GWU said it was pleased to note that despite the 58c cost of living increase, the government was taking measures to help the vulnerable sections of society.

It also welcomed the fact that the government deficit would fall to 1.6%; that the process of power tariff reductions would continue and measures would be taken to tackle those who abused of social benefits.

GRTU WELCOMES REMOVAL OF ECO-TAX

The GRTU Chamber of Small and Medium Enterprises welcomed the inclusion of budget measures it had proposed but said everything now depended on their effective and timely implementation.

It said it expected to be involved in the administration of these measures.

Among them, it said, were the removal of eco-contribution, tackling unfair competition and providing small and medium enterprises with access to finance.

The GRTU called for the revocation of increases in commercial vehicle licences introduced last year.

GOOD PRIORITIES

The Chamber of Commerce this evening welcomed the Budget's focus on fiscal consolidation and a reduction in welfare dependence, saying they were similar to its own priorities.

It said it had long been calling on the government to address the state of public finances by ensuring a fair and efficient enforcement of taxes and by addressing abuses in social benefit schemes.

The chamber welcomed efforts being made to rationalise the tax collection system while introducing incentives for individuals and companies.

Measures aimed at encouraging or requiring individuals to train themselves and accept jobs that offered fair financial reward should be considered positively.

Such measures, the chamber said, were conducive to a change in culture to seek productive work rather than rely on social benefits.

At the same time, the planned consultation process on school hours was welcome both in terms of providing support to working parents and in enhancing the overall schooling experience, the chamber said.

CHALLENGING YEAR AHEAD - MEA

The government has a challenging year ahead to reach its fiscal and economic targets, given the expenditure projections laid out in the national budget, the Malta Employers' Association said.

In its reaction to the Budget, it said the objective to achieve growth-friendly consolidation, with a stated target fiscal deficit of 1.6 per cent of GDP in 2015, depended heavily on the outcome of critical decisions in public transport, Air Malta and the generation of energy.

The government also faced an increased wage bill due to collective agreements as well as an expanding labour force in the public sector.

The projected injection to Air Malta, estimated at €40 million, together with the €30 million subsidy for public transport and additional €70 million to subsidise household and commercial energy rates, as well as the added pressure on expenditure on core services such as health and education, would certainly make fiscal consolidation a difficult task.

The MEA welcomed the cuts in energy rates for industry, which would relieve many businesses of excessive energy costs.

Yet, given the global scenario of plummeting oil prices, it was important not just to reduce the rates, but to position them at a level that make local enterprises competitive.

DOCTORS LAMENT LACK OF CONSULTATION

The Medical Association regretted that it was not consulted before various proposals were announced.

General Secretary Martin Balzan in interviews in the media said the association had its doubts about the level of funding to address problems such as hospital overcrowding.  

The association was concerned about the proposal for specialists, through a private company, to help in the reduction of hospital surgery waiting lists, in that this could be in breach of the collective agreement. 

On the management of Cospicua health centre by the private sector Dr Balzan said that on the basis of costs per patient, this idea would appear to cost more than the other health centres put together.  

MUT AGAINST CHANGING SCHOOL HOURS

The MUT said the Budget was generally balanced and  it agreed with proposals to boost the economy, but it disagreed that school hours should be changed, as the government was proposing in a White Paper to be issued next year. It said there were other alternatives, such as Club 3-16.

The time had come to improve transport, including school transport, and secondary school students should be given a pass to use public transport free of charge, as was done in many other countries. 

The union said the 10% increase in funding for education was insufficient, especially when 2.5% of this would go for wage increases and much would also go for teachers' sabbatical.

The union insisted that the schools needed to be better supported, financially and through resources, more so as 2,000 foreign pupils had joined the schools in the past months.

The union welcomed measures against truancy and tax evasion.

The union said it appeared there were not even enough funds to replace teachers' laptops, which were falling to bits

AD GENERALLY WELCOMES BUDGET

AD said the gradual weaning off social services to unemployed finding productive work or training was positive and the additional financial aid to parents with young children who workedwas commendable..

It said in an initial reaction to the Budget that the raise in maternity leave, in particular to self-employed mothers, was a good step forward.

“We, however, look forward to the minimum wage threshold being raised,” it said. It added that measures against precarious work and to alleviate poverty were also commendable.

iT also commended measures on persons with disability an the 15 per cent rebate to those investing in private pensions but said this was only meant for those who could afford such pensions.

“The government should have concentrated on second pillar pensions, which are shared by the government, the employer and the employee.”

It said that the ridiculous 58c cost of living increase did not reflect the real increase in the cost of living, which had been statistically distorted by the 25 per cent drop in energy tariffs.

AD welcomed the increase in direct taxation on potentially harmful products like cigarettes and spirits.

It asked what was happening at the new Delimara power station saying it was unacceptable that Malta would be buying energy at twice the present market price.

As for public transport, the public had to be informed of the terms of the agreement with Autobuses de Leon, AD said.

AD said that although the small financial incentive for bicycles and pedelecs was a good start investment in infrastructure was needed to make roads safe for these alternative means of transport.

GOZO BUSINESS CHAMBER

The Gozo Business Chamber said it viewed the 2015 Budget as a continuation to the previous budget and without any shocks to the economy while it was also trying to make work pay by controlling the abuse of social services.

"It is a budget which is very much pro-business by trying to decrease bureaucracy and increase more fair competition; the elimination of the Eco Tax is a case in point. The proposal for the setting up of a Development Bank is a step in the right direction to facilitate more access to finance to SME’s."

The GBC welcomed schemes by ETC for the job creation in Gozo.

"The GBC augurs that the studies on the permanent link between Gozo and Malta, a new fibre optic cable and that of a fixed wing runway in Gozo will be completed in a short period of time in order to have these projects brought to fruition as soon as possible."

It said its only disappointment the GBC has is in the increase in the fees for the licences for swimming pools and the increase in the tax on the price of cement.

DEVELOPERS SATISFIED

The Malta Developers Association welcomed the Budget, saying it confirmed that the government was giving the property market its due importance, while assuring a level playing field in this sector  by discouraging abuse.

The measures announced include two that were among the proposals made by the MDA:
• The introduction of an 8% withholding tax on the transfer of property instead of the existing different systems of taxation; and
• The extension of the concession to those who do not own property, and who are purchasing a property for the first time, to do so without paying stamp duty.

The MDA noted that the cost of construction would be affected by an increase in expenses since the construction industry was not spared the increase in indirect taxation, especially with yet another increase in the excise duty on cement.

FAA: RANDOM PROVISIONS ON THE ENVIRONMENT

Flimkien Ghal Ambjent Ahjar said the environmental provisions in this year’s budget were random, lacking in coherence and planning.

"They seem no more than a half-hearted effort to fill the total lack of environmental provisions in the draft budget – a Freudian slip revealing the lack of importance that this Government accords to the environment.

"Undertaking a study to evaluate the possibility of creating green belts around building zones may sound good on paper, but is so vague and remote as to be no more than a questionable promise, especially since changes in the ODZ policy actually encourage construction in the green belt. Similarly, it is hugely cynical to propose a law on Climate Change while failing to implement EU energy efficiency laws, granting permits for the destruction of trees and pouring storm-water into the sea," the environment NGO said.

It said provisions to reduce traffic congestion were more coherent, with the introduction of intelligent traffic management systems, the long-overdue staggering of school runs, incentivising car-pooling and the use of electrical bicycles as well as increasing harbour ferry destinations.

"The raising of daily fees for cranes should hopefully also contribute to diminishing street congestion."

Investment in heritage is essential to Malta’s identity and tourism sector. While the long-awaited restoration of the old Valletta market is welcome, it is hoped that money allocated to move the Monti does not serve to undermine the upgrading of the capital. No budget has been allocated to the restoration of Lower St Elmo and other important heritage buildings which continue to deteriorate.

The restoration of Argotti Botanic Garden was positive, however considering that Malta was the country with the least urban green recreational areas in the EU, the budget should have included an allocation for the creation of new parks, instead of which Malta was seeing the privatisation of existing public gardens like that of Ta’ Xbiex.

"Yet again Government failed to civil assist the voluntary sector by declaring it VAT-free and extending the tax rebate on donations to all registered voluntary associations," FAA said.

A WELL THOUGHT OUT BUDGET - MHRA

The 2015 budget offered some interesting challenges and sets benchmarks which if achieved would place the country among the best achievers in the EU, the Malta Hotels and Restaurants Association said.

It welcomed the ambitious targets set by government and assured the country that the tourism industry would continue to contribute its share towards achieving these objectives.

"MHRA are particularly pleased to see government implementing a strategy to get the people on benefits in work especially since it has been for some years that MHRA has raised the issue that whilst Malta has circa 7,000 people registering for employment, a the same time a large portion of employees working in the tourism as front liners are non-Maltese nationals.

"MHRA therefore supports government in its commitment to wean these people from the benefits system so as they can become productive thus not only reducing the weight of the benefits being paid but also become contributors to the economy," it said.

BUDGET FAILS TO ADDRESS SPECIFIC HEALTH ISSUES - MUMN

The Budget did not address specific health issues such as a bed shortage for the elderly sector and at Mater Dei Hospital, the Malta Union of Midwives and Nurses said.

The MUMN said the increase in the number of doctors in primary health announced by the Finance Ministry was not in line with practices and modules used by the European countries to enhance and improve primary care and community services.

The MUMN noted that health care services in Malta required an efficient team work of nurses to visit the elderly in their homes and supervise them to prevent readmissions to hospital.

Nurses could also offer community services to a wide range of patients, including through the introduction of the family health nurse.

More reactions at http://www.timesofmalta.com/budget

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