Employers want the Government to reduce income tax for middle-income families with children and introduce longer school hours to cater for working parents.

Government has to find ways to reduce expenditure

In its Budget wish list, the Malta Employers’ Association called for incentives to encourage more people to work and to promote mobility.

It said the Budget’s major focus should be fiscal consolidation and the sustainability of public finances rather than “political opportunism”.

“The Budget should send a message of commitment towards fiscal stability, one which does not raise people’s expectations unrealistically. The Government has to find ways to reduce expenditure to approach a balanced budget.”

The employers said that depending on the impact on tax revenue, income tax incentives similar to the ones introduced last year for married couples should be introduced to increase disposable income of families with children and earning a medium income.

They reiterated their stance that payment for all maternity leave should be the State’s responsibility, with the transition being made over a number of years. The employers were vociferous against increasing the maternity leave to 18 weeks from the present 14.

Malta, the association said, was one of a few countries where employers paid for maternity leave and this was also creating a disadvantage for women seeking employment.

It said child care should be made affordable to encourage stronger female participation.

The employers called for an active labour market policy, which is being advocated strongly by the Union Ħaddiema Magħqudin, saying this was one of the ways to see the economy grow.

The MEA also stressed the importance of doing business with Libya, saying there should be “a concerted effort” between the government and the social partners to establish contacts there.

“Although the political situation is still unstable, Malta stands to gain from laying the groundwork for economic cooperation between the two countries.

“Government should allocate the necessary resources to enable such contacts to be established.”

In another proposal, it called for the extension of green incentives for more households and businesses to invest in solar energy and reduce their burden on State-provided electricity.