Low-income households should receive a one-off welfare payment of €78 from the government to anticipate the hardship caused by higher inflation next year, according to the Malta Employers’ Association.
In its Budget proposals presented yesterday, the association said the one-off benefit for households that earned less than €12,000 would enable them to fend off inflation caused by global economic recovery, which could raise the price of electricity and cereals.
In the wake of union claims that the proposed wage increase of €1.16 was not enough, the association urged government to stick to the cost-of-living mechanism and avoid adding more costs for employers.
The association is also suggesting that the government start shouldering the cost of maternity leave payments in the private sector. This measure should be phased in over a period of three years, starting from 2011.
In a brief analysis of the economy, the association welcomed the substantial growth in the first half of the year but urged cautious optimism.
“The economy is experiencing uneven growth, with recovery being far more acute in some sectors than others,” the association said, pointing out that this was a result of economic transformation which, however, risked creating frictional issues.
In such a “fragile environment” the Budget, the association said, should aim at stimulating growth in those sectors still struggling to achieve pre-recession levels.
The association said the strategy of job retention, advocated by all social partners during the recession, paid off and Malta had one of the lowest unemployment rates in the EU.
Among other proposals the association said it was necessary to encourage higher participation of women in the labour market through family-friendly measures that incentivised stronger attendance at work rather than to encourage them to stay away.
The association proposed higher investment in childcare services and tax incentives and subsidies for affordable childcare services at community level. It also proposed extending school opening hours, possibly at a charge, for parents to leave their children in school aftercare.
Extending family-friendly measures in the public sector, such as the five-year career break, to the private sector would be impractical and work against the employment of women, the association added.
Turning to the trade sector, the association reiterated its call for stricter controls on illegitimate importers who bring goods over from Sicily by catamaran, avoiding all customs procedures and creating unfair competition.
The association also suggested setting up minimum thresholds to ensure public tenders were not won by employers who competed unfairly by employing people on conditions that were below the legal minimum.
Green issues also crept into the Budget proposals with employers proposing a task force to look into the assembly, importation and infrastructure necessary to encourage the diffusion of electric vehicles.
The association proposed a rebate of three units for every unit generated by solar panels installed by households and businesses.
ksansone@timesofmalta.com