The GRTU has been very clear about what it expects of the Budget for 2015. It has submitted very focused, sensible and responsible recommendations, which we want to see implemented without further delay.
The feedback we received from different ministers is very encouraging but now we need results.
It is not enough, for instance, to tell social partners to rest assured the government is taking the issue of unfair competition very seriously.
We want to see results and decisive action that addresses the problems we have been strongly highlighting, which have been driving bona fide Maltese enterprises out of business.
The GRTU is not requesting rash action but it is expecting the government to take courageous decisions and stand up for what it believes in. It expects the government to stop hiding behind the threat of EU infringements.
Should such accusations of infringement be made, the government is expected to fight them.
A year ago, the government promised us action in the Budget Speech but, so far, nothing has materialised.
The GRTU expects the government to take courageous decisions and stand up for what it believes in
Another priority proposal made by the GRTU was the total abolition of the eco tax. We want the government to keep its promise of avoiding putting honest businesses at a disadvantage. The status quo will no longer be tolerated. A sensible solution exists.
The GRTU suggested totally abolishing the eco tax and, instead, implement the WEEE Directive, which is very similar in scope to eco tax. The directive should be implemented in the same way it is applied in other member states to ensure a level playing field.
It is pertinent to note that Malta has already faced a number of infringements in relation to the WEEE Directive and leaving it on the shelf is no longer an option.
The GRTU has been given mixed signals on the issue and what appears to be holding the government back from total abolition is the €8 million that the exchequer derives from this tax.
This reasoning is both short-sighted and unfair and is in no way sufficient to retain such a senseless and discriminatory tax regime.
On the cost of finance, I am proud to say that an issue that was single-handedly spearheaded by the GRTU has risen to top priority.
Its concerns have been backed by the Central Bank of Malta and, at the last MCESD pre-Budget meeting, both the MHRA and the representatives of civil society called on the government to address excessive interest rates and charges in the next Budget.
The government promised us it would examine the situation, a year ago, and see whether there is room for corrective action.
We have so far been let down by our regulators – the MFSA and the MCCAA.
Even the regulators seem powerless when it comes to the banks.
The regulators are our only hope for justice. The GRTU, as the prime interested party, does not know what happened. A whole year has gone by without any evident results.
Last but not least, GRTU has called on the government to withdraw the increase imposed on commercial vehicle licences.
The increase was announced by the previous government in the Budget for 2009 and entered into force by the present government in the Budget for 2014.
Neither administration felt the need to consult the main stakeholders or carry an economic impact assessment to see how the increases in commercial licences, ranging from 33 per cent to 344 per cent will affect the private sector.
GRTU members have reported very negative effects and no one wants to assume responsibility.
The government can rest assured that if these fees are not withdrawn, I personally commit myself to ensure that we will take all the necessary action.
Paul Abela is president of the Chamber for Small and Medium Enterprises – GRTU