Budget 2010 represents an important turning point. The economic downturn that has affected Malta as a result of the economic crises, has highlighted the urgency for Government to act to sustain employment and to encourage enterprise to restructure and meet the tougher competitive future that will result in the post recession period.

GRTU presented the Minister for Finance a well thought and balanced set of proposals. GRTU is therefore pleased Government gave utmost consideration to most of the proposals and strategies recommended by GRTU in GRTU’s pre-Budget proposals package.

Support to Enterprise

GRTU is satisfied that Government has voted a total of €80m for enterprise, and that the doors have now been opened to smaller and micro-enterprises in retail, sole-trading and crafts, to benefit also from new and extended funding schemes. Government through this support is meeting many of the concerns submitted on behalf of SMEs. GRTU has also welcomed very important commitments made by Government, following the European momentum, on the Small Business Act, the only once principle together with the think small first principle and Government’s plans to establish a one-stop-shop within Malta Enterprise.

COLA

GRTU understands Government’s step of adjudicating to employees the weekly €5.82 cost of living allowance and is satisfied that Government chose to also extend the full COLA increase to all pensioners.

The Locality

Budget 2010 takes on board a number of suggestions presented by GRTU that encourage the spread of tourism accommodation and the facilitating of back-office work in the local communities. GRTU welcomes Government’s proposals to cause the diversion of work and the extension of tourism support schemes to the localities.

GRTU would have however wanted to see some form of incentivisaton to developers to contribute in this way any invest their funds where the economy needs most.

Employment and Training

GRTU welcomes Government’s initiative in Budget 2010 in support of training of workers and employment initiatives.

Taxation

GRTU welcomes Government’s fiscal initiatives in Budget 2010 and the proposal to unify the Tax Authorities, expecting now a visible reduction in the bureaucracy that still over-burdens the administration of taxation systems in Malta. GRTU is particularly happy that Government has accepted GRTU’s proposal for a Tax-Payer’s Charter since it is high time that tax-payers are treated with the respect they deserve as the major source of financing for the whole Government bureaucracy. GRTU also happily welcomes its recommendation to remove the silly levy on credit cards.

GRTU however also expects Government to finally implement the promises made in previous budgets, to eliminate the necessity for micro-firms to submit audited accounts.

Competition and Price Stability

GRTU welcomes the new initiative to reform and upgrade the Office for Fair Trading (OFT).

Statistically there is no evidence whatsoever that the level of prices in Malta is effected in any way by trading cartels or the illicit practices of traders and retailers, yet the main efforts of the OFT and Consumer protection in Malta is in the useless accumulation of figures acquired and the extremely costly price watch and price collection exercises, which in practically all instances have led to no effect on the general level of prices in Malta.

GRTU strongly advises that the OFT spends its time and energy in identifying the bottle-necks that hinder the competitive structure of markets in Malta including the ports, the distribution network and the abuse of monopolies rather than the futile effort of pestering retailers and traders.

GRTU objects and will resist all efforts to have the OFT or Consumer protection indulge in the re-introduction of price controls, under the euphemistic phrase used in Budget 2010 of “Mandatory Price Impositions”. It is the prime role of Government to seek consensus from the social partners and avoid confrontation. GRTU will not accept any form of mandatory price impositions.

Health sector

GRTU is satisfied Government has accepted the commercial sector pressure and voted more money to curtail to the unacceptable late payment to medicine suppliers as is Government’s decision to add vote by almost another million Euro to the extension of the Pharmacy of Your Choice Scheme.

Environment

GRTU has been the prime mover to cause Government to transfer more of its waste management responsibility to private initiative and therefore welcomes Government’s long delayed decisions to introduce exemptions from the eco-contribution to all businessmen participating in waste management compliance schemes.

GRTU however regrets the hefty charges being imposed on members participating in schemes developed by the business community as. The charge being proposed by Government of €1000 every 6 months, for every enterprise participating in privately run not-for-profit waste management compliance schemes, is not only excessive but is sheer irresponsibility. The business community should not be made to pay for Government’s bureaucratic structure and inefficiencies over and above the €24M annually that business and consumers are paying to Government in the form of eco-contribution.

Registration Tax on Commercial Vehicles

GRTU strongly objects to the imposition of the new hefty registration fees on Eur II and III vehicles in stock, for sale or already in Malta, as car dealers with these vehicles on the market will not be able to sustain their operations feasibly. GRTU also objects to the introduction of increased road licenses on the enormous fleet of trucks and other commercial vehicles that do not subscribe to Eur IV standards.

Construction and Development

While GRTU is happy that Government has accepted its recommendation to extend the 5 year option period on property transfer final withholding tax of 12% to 7 years, an extra two years. GRTU is not satisfied that our full package of recommendations in support to the construction industry has been put aside by the Ministry of Finance.

GRTU strongly believes that MEPA is too big and over-powering for a country the size of Malta, and the bureaucracy too costly in relation to what MEPA does effectively achieve. It is therefore inconceivable and unacceptable to GRTU that the financial burden of running an institution as excessively large and costly as MEPA is now being thrown completely on the back of developers. GRTU is saddened at the attitude of Government towards developers.

Public Transport

As representatives of the self-employed community in Malta, GRTU urges Government to ensure a settlement is reached with private bus owners in Malta and Gozo who’s livelihood is being forsaken as a result of the introduction of Government’s transport reform.

Tourism

GRTU is pleased with the budget allocated to tourism, given the fact that the country is facing challenging and uncertain times. We are pleased that new routes will soon be announced which will hopefully attract a great deal of first time visitors to Malta. GRTU would have however liked to see a reduction in airport charges to encourage more airlines.

Utility Tariffs

GRTU appreciates Government’s decision to allow the public regulator to counteract to Enemalta’s pricing proposals. We acknowledge Government’s efforts to support households in their electricity consumption costs and the search by households and businesses for alternative energy sources. All schemes in support of alternative energy usage are welcome.

GRTU however does not understand why Government fails to accept the excessively increasing burden that enterprises with a high electricity content are made to carry every time electricity tariffs are increased. These enterprises should in many instances enjoy a differentiated lower tariff especially during the silent hours. These extra charges are most times transmitted to the consumer within the product price, thus making consumers carry a double burden of direct electricity tariff increases and also increases in cost of products and service as a result of electricity tariffs.

Conclusion

GRTU strongly believes that the economy can, with the right incentives, meet the recession challenge and be able to renovate and restructure and re-invest in new creativity and projects without the need to indulge in fancy financing as represented by an expansion of Budget deficits and public debt.

GRTU