The consultation process leading to the publication of the pre-budget document is scheduled to start tomorrow with a business breakfast to discuss enterprise.
Last year, the pre-budget consultation took the form of a series of meetings with Prime Minister Lawrence Gonzi at Castille. This year, the consultation exercise will be spread on two business breakfasts and two seminars.
Finance Minister Tonio Fenech said the pre-budget document is expected to be released by the end of next month. The wide-ranging document has served to ease the usual anxiety in the run-up to the Budget Speech in Parliament.
The first business breakfast will be held tomorrow followed by a seminar on May 20 discussing sustainable localities. Another seminar on May 27 will discuss renewable energy and, finally, a business breakfast on better regulation will be held on June 5.
Mr Fenech explained that the government chose the four themes because they are "critical in addressing the needs the country is facing". They also fall within the three major pillars identified by the government: employment, education and the environment.
On the theme of tomorrow's business breakfast - enterprise - Mr Fenech said that a healthy enterprise is the key to a dynamic economy. Despite the adverse effects of the US economy and the price of oil and grain, the Maltese economy is doing well with a four per cent growth, low unemployment levels and positive business results.
With regard to the theme of the first seminar, which will discuss sustainable localities, Mr Fenech said this is an innovative concept that seeks to reduce the burden of business concentrated in specific areas.
He explained that the idea behind this concept is to discuss ways of how to attract potential businesses to non-traditional localities. At present, the majority of businesses are concentrated in Valletta and Sliema as well as Mosta, Birkirkara and Ħamrun. If businesses are more dispersed, the burden on the environment and traffic will be reduced considerably.
The second and final seminar will discuss the issue of renewable energy in line with the government's commitment to the environment. The price of oil has reached $122 per barrel with the possibility that it could soon climb to as much as $200 per barrel. Mr Fenech said that when the government set the water and electricity surcharge at 17 per cent, the price of a barrel of oil was just $45. This scenario gives rise to a number of challenges, mainly making more use of alternative sources of energy.
In the last event leading to the publication of the pre-budget document better regulation will be discussed. The shift from red tape to red carpet was the cliché used during the general election. Now, this has to be translated from words into action, Mr Fenech said.
Replying to a question by The Times on whether people should expect the revision of the car registration tax to be included in the pre-budget document, Mr Fenech said changes to this much-debated tax will be implemented "ideally before budget".
The government is presently concluding its workings on the changes to the car registration tax and will then start talks with the major stakeholders for changes to be implemented before the budget for 2009.
Asked on whether the promised tax cuts during the electoral campaign remain hanging in the balance, Mr Fenech followed in the footsteps of the Prime Minister in being non-committal about it. He said the issue had to be seen within the context of the negative international situation.
On the rise in the prices of several products, Mr Fenech said a Malta Council for Economic and Social Development meeting is scheduled for May 23 during which the government will make a presentation on the sources of inflation and solutions to the problem. He said a price monitoring exercise showed that the majority of prices did not increase after the expiry of price stability agreements signed with several importers in the run-up to the introduction of the euro.