Budget 2015 introduced a lot of measures that stakeholders have been clamouring for over the past year or more. We asked some of those stakeholders to remind us why they wanted these changes and what else has struck them.

Measure: A skill card will be introduced for the construction industry, to be administered through MCAST and the ETC.

Stakeholder: Charles Buhagiar, executive chairman of the BICC.

To date most of the skills within the construction industry are unregulated. Hence if, for example, you need a decorator, you do not ask for his certificate but in most cases utilise the services of a person who has been recommended or one where you have seen examples of past work.

This situation is not tenable since it gives no assurance that the person required to carry out a particular task has the knowledge, expertise and experience to carry out the task successfully. BICC in collaboration with MCAST and ETC, therefore, proposed the introduction of skill cards to address this situation.

The bearer of the skill card will be certified as being competent to carry out certain tasks. The skill card will eliminate irresponsible persons within the industry who present themselves as capable of carrying out certain jobs when in fact they do not know how.

This initiative will also control the present unfair competition imposed by unregistered foreign workers to local skilled workers.

Measure: The eco-contribution will be phased out as white goods are migrated to the Waste Electrical and Electronic Equipment Directive.

Stakeholder: Abigail Mamo, CEO of the GRTU

GRTU has been lobbying incessantly for the removal of this tax and, therefore, it greatly welcomed the commitment given in Budget 2015. GRTU considers this to be a first important step to obtain a level playing field for all products currently falling under this tax. GRTU will be monitoring developments very closely and has already started speaking to the relevant ministries to ensure work on the issue starts immediately and that the GRTU is involved every step of the way.

Measure: Cruise ships will be able to open onboard casinos if they stay in Malta overnight.

Stakeholder: Stephen Xuereb, CEO of Valletta Cruise Port

We first proposed this four years ago. It is clearly beneficial for cruise liners to stay overnight. Apart from getting the revenue from the casino itself, they can also sell night excursions, which is another source of income.

Because Valletta is so close to the port, they do not sell as many excursions as they do in other destinations, so having something new to offer will encourage them to add Malta to their itineraries. Also, overnight stays would encourage passengers to consider eating out in Valletta itself or at the Valletta Waterfront, as it would make a great change from eating onboard.

It is also very good to waive the tax on the casino licence if the cruise ships also stay in Gozo as this will double the economic impact of their stay in Malta.

The only thing is that the measure has come too late to help bookings in 2015 but it could start to have an impact by 2016.

Measure: A new scheme will come up with the option of better leases for shops in Valletta which occupy government-owned premises.

Stakeholder: Abigail Mamo, CEO of the GRTU

This is another measure proposed by GRTU which we were pleased to see announced in the Budget. Valletta shops owned by government have a lease that currently is very limited and gives them low entitlement. The previous scheme attracted little interest and therefore GRTU, through its proposal, sought to address such shortcomings.

The ċens gives the titleholder collateral upon which he can take loans from commercial banks in order to improve the premises, grow his business and employ more staff, to mention but a few aspects. GRTU is already involved in discussions and will endeavour to make the scheme attractive and successful.

Measure: Tower cranes parked on roads will pay between €10 and €15 every day.

Stakeholder: Charles Buhagiar, executive chairman, BICC

This measure is meant to streamline payments which to date are collected by local councils from contractors who park their equipment for a long time in public areas, effectively hindering both pedestrian as well as vehicular traffic.

The rates applicable to date are very low as a consequence of which it is sometimes better for the contractor to leave his equipment parked on a public space rather than take it back to his own yard.

This measure is meant to address this situation, ensuring that con­trac­tors plan their work in such a manner as to minimise the time required to retain their equipment on public land and thus minimising the inconvenience caused to the public.

Measure: The regulation of real estate agents will be one of the proposals in a White Paper on the property sector.

Stakeholder: Chris Grech, chairman, Dhalia Group

The extension of exemptions for first-time buyers, as well as the tax exemption on division of property between co-owners, is a clear indication of the government’s commitment to the revival of the property industry.

Announcement of the regulation of the property sector is also a breath of fresh air. However, I do not understand why a White Paper is being proposed for the regulation of the real estate industry. Formal discussions between the regulatory bodies and the Federation of Estate Agents should suffice to conclude rules, regulations and the right policies. A White Paper will only lengthen this process, and is totally unnecessary.

The services that will be made available to businesses in the field of internationalisation will experience a quantum leap because, for the first time, they will draw on the joint forces of the Chamber and Malta Enterprise while being driven by people in business

Replacement of the capital gains tax with a final withholding tax, in practice reducing it from 12 per cent to between five and 10 per cent will also be of benefit to a number of property traders. However, there is a flaw which will need to be rectified in the final legal notice.

A substantial amount of traders who invested over seven or eight years ago, who are today selling at a loss, especially after years of paying bank interest, will still have to pay tax and are not covered by any exemption. I believe this is an issue that has been overlooked or not yet clarified.

Measure: Employment measures for Gozo.

Stakeholder: Michael Grech, president, Gozo Business Chamber

The budget had quite a few positive things for Gozo. The new law courts and the medical school will definitely be two important projects for Gozo in the coming year. We are also confident that the outcome of the studies for both the permanent link and the fixed wing air strip will be positive and that government will have these important projects started without any further delay.

Apart from these projects, we are also satisfied to see that out of the various schemes that the Chamber together with the Gozo Tourism Association, have put forward to Minister Evarist Bartolo, three have already been taken on board within this budget. These are:

1. An employer in Gozo who engages new employees, or who switches part time employment to full time employment, will benefit from a partial refund of social security contributions. This will amount to €1,000 for each additional full time employee.

2. Employees in the Gozitan tourism industry will be offered training sessions between the period of November and March, while the employer will receive a payment of €30 per day.

3. A grant amounting to €100 per month per student will be given to employers who engage students of ITS.

The above are just three suggestions which have already been taken on board. We are sure that more of the suggestions that we have put forward are also being considered once the ministry has evaluated them and found the way to implement them.

Measure: Trade Malta will be set up in partnership with the Malta Chamber.

Stakeholder: David Curmi, president, Malta Chamber of Commerce, Enterprise and Industry

The Malta Chamber welcomes the setting up of Trade Malta, an initiative that it is centrally involved in. The Malta Chamber believes that Trade Malta, as detailed in the Economic Vision for Malta 2014-2020 recommendation 32, will be of invaluable assistance to business enterprises, in increasing their export potential successfully.

The services that will be made available to businesses in the field of internationalisation will experience a quantum leap because, for the first time, they will draw on the joint forces of the Chamber and Malta Enterprise while being driven by people in business.

Hence, the Malta Chamber reiterates that this initiative, which is already materialising, is words in action of how the government can tap into the expertise of the private sector, in meaningful partnerships for the good of the involved sectors. The setting up of this joint venture signals a show of confidence in the role of the private sector and the Malta Chamber by government.

The Malta Chamber will endeavour, as it always has, to make such initiatives work for the economic growth and good of the country.

Measure: A number of schemes are being introduced to wean people off benefits and encourage them to find a job.

Stakeholder: Clyde Caruana, chairman, Employment and Training Corporation

Over the past months, the Employment and Training Corporation underwent a period of internal restructuring to become more efficient in its operation and services. The corporation plays an important role in the implementation of the National Employment Policy and now finds itself at the centre of several initiatives as presented in the budget for 2015.

As from next year the corporation will have a new electronic platform. These new digital tools will create a virtual labour market to help facilitate the interaction between employers and job seekers. In turn, this will also completely modernise the ETC registration system. Job matching will no longer be based solely on what the individual wants but ETC will also take into consideration the skills and abilities of the applicants.

Another important Budget 2015 initiative is the in-work benefit, which will continue to strengthen the concept of making work pay. This benefit will be given to those families in which both parents work, have low income (between €10,000 and €20,400) and have children up to 23 years old .

The working mother within this family unit would need to declare at least €3,000 revenue per year and these families will be entitled to a maximum of €1,000 per year per child. Single parents in employment with an income of between €6,600 and €15,000 will be entitled to a maximum of €1,200 per year per child.