Employers' representatives expected the budget to include a mix of measures to ensure that the manufacturing industry would be able to mitigate the additional burden brought about by the water and electricity tariffs.

In a joint statement, the Malta Chamber of Commerce and Enterprise and the Malta Federation of Industry spoke of a "complete absence" of measures aimed at reducing costs for enterprise during the global financial crisis.

They said they appreciate the fact that the government opted for a sustainable development approach in the difficult international economical situation and were pleased to note that some recommendations made during the pre-budget consultation were taken up.

While welcoming the various measures, the Chamber and the FOI said that, considering that the government aimed to turn Malta into a Centre of Excellence by 2015, "there was no mention of what existing as well as new growth sectors the government intends to target".

They welcomed investment measures announced in connection with infrastructural works, environmental projects, re-skilling, education and training, alternative energy projects and business incentives in a variety of sectors including small and medium enterprises and tourism.

They also welcomed the decision to reduce excise duty on spirits and alcopops as a step in the right direction, adding "it would have been preferable for the gap with nearby countries to be closed further".

Turning to the widening of the income tax bands, they said that, while this was positive in theory, it was marginal and will have a relatively minor effect on household saving and consumption given the increase in utility prices.