www.independent.com.mt
The Malta Independent on Sunday • 17 October 2021
Budget 2022: a legacy for our children DR ROBERT ABELA
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n 2021, Malta is a prosperous country that prioritises the needs and aspirations of our society and is committed to improving the quality of life of our citizens, both of present and future generations. The COVID-19 pandemic was a watershed moment for us. I believe that on the one hand it led to a dramatic change in mentality, whilst at the same time it brought us back to our roots. It also set us off on a journey of self-discovery, making us question what we should really strive for as a country. In this spirit of reflection and analysis, an unprecedented breadth of consultation was carried out ahead of this year’s budget. We put ourselves in listening mode in an effort to understand better how and why our society’s aspirations had changed, and in parallel, become more familiar with how people want us to help them achieve their goals and aspirations. The answers we received from our wide-ranging consultation collectively pointed in one direction: families and businesses alike want a new prosperity. They want a better quality of life and a fairer
Maltese democracy started a hundred years ago when our forefathers had a vision of a nation they wanted to build for their children: a free and prosperous country able to survive on its own means, and capable of supporting its citizens in need. What they wanted to create was a sovereign nation in charge of its own present and future society that is just with every citizen of Malta. An economy that gives value to the environment and puts aesthetics and ethics at the very centre of the government’s priorities. They called for a united political class that looks forward and tackles challenges positively. Budget 2022 is aimed to deliver exactly this. It encompasses this vision to build a more dynamic and sustainable Malta. It includes the most generous package of social assistance ever presented by a Maltese government. It increases pensions, supplementary assistance and access to free medicines, whilst reducing further the tax burden on pensioners. A couple living on the minimum pension benefitted from increases of over €1,100 through the measures announced in this budget. If one looks at all the measures enacted during this legislature, this couple saw an increase of over €3,600 or 50% when compared to 2017. Government recognised the public’s demand to address homeownership and that is why Budget 2022 includes a comprehensive framework of schemes of equity
sharing, provision of deposits, assistance to get a mortgage, guarantees, affordable housing, and better access to social housing. We also remain committed to support all those who rent, having carried out bold reforms that achieved a fine balance between the rights and obligations of tenants and landlords. In just two legislatures, we transformed Malta from Europe’s laggard to one of the leading countries in terms of employment rates. It is now time for the next phase: a transformation of our skills so that we can be the leaders of tomorrow’s economy. This transformation will enable us to raise wages even further, without negatively impacting our nation’s competitiveness. In order to do this, we need to ensure our workforce is better prepared for future demands by increasing our investment in education. We have announced the most generous rise in university stipends, the largest ever spending on education, improved conditions for education professionals, and the modernisation of our educational facilities. Budget 2022 will help deliver a system that enriches our children’s holistic edu-
cation, and as a result, enhance our future economy and prosperity. Our economic success is based on making work pay. In Budget 2022 we continued to reward our hardworking citizens through another increase in the in-work benefit, a reduction in the tax on part-time and on overtime, and even more generous tax refunds, skewed towards those on the minimum wage. This year, those on the minimum wage will receive a boost of nearly €450 through our realistic Budget measures. Over a whole legislature, they will have become better off by nearly €3,500 or by 20%. To keep moving forward in the right direction, we need a stronger economy supported by better infrastructure. This is why we need our ambitious plans to improve Malta’s transport network and industrial infrastructure. This is why we are granting tax credits to firms that decide to invest part of their retained earnings in the coming two years. Budget 2022 clearly demonstrates that a better environment and good economic progress go hand in hand. The green transformation will be
the best economic opportunity of our generation with our children reaping the benefits of our success. Hence, the announcement of the largest green investment in our nation’s history. In waste-toenergy, in water treatment, in recycling, in afforestation, in electrification, in renewable energy, in greening our urban and industrial spaces. We have also taken the bold decision to make public transport free for residents of our country. For those who opt to buy a vacant property, a property in a UCA or a property with Maltese features, Budget 2022 introduces substantial benefits, including tax exemptions, direct grants of up to €30,000 and VAT refunds of up to €54,000. A hundred years since our first Parliament sitting, we must continue building on the vision of our forefathers by prioritising the lives and livelihoods of our citizens and strengthening our fair and well-resourced institutions that serve justice to all. We all want solidarity, equality of opportunity, prosperity, and sustainability to be at the heart of what we stand for as a country. A healthy nation built on work and enterprise that looks forward to the future with optimism. This is the Malta we want for our children. And this is what Budget 2022 will deliver. Robert Abela is Prime Minister of Malta
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The Malta Independent on Sunday • 17 October 2021
Showcasing results, planning ahead CARMELO ABELA
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his year, the directorate tasked with regulating industrial and employment relations, DIER, has had a very intense two years of work through Covid-19 besides other numerous initiatives. Amendments were made to the regulations governing national holidays; for public holidays, that fall on a Saturday or Sunday, to be added to the annual leave entitlement. Following consultation with the social partners, DIER has also set out proposals to increase paternity leave as well as provide payment for parental leave. This will be a major focus for this Ministry in 2022. Sectors that are associated with precarious work were given more attention with increased inspections. DIER is taking the necessary steps where irregularities were found.
Throughout 2020, the sectors falling under the responsibility of the Minister within the OPM had a busy year; primarily to enhance social dialogue and also to provide further support to workers Apart from work to reduce the anomalies that exist in the Wage Regulation Orders, a working group was also set up to lead a consultative process for labour laws to reflect the needs and lifestyle of today's society. MCESD remains the most vibrant forum for social dialogue in Malta. Apart from the innumerable meetings focused on Covid response – the Council has not side-lined other central debates including the National Reform Programme and the new EU funds package. The Research function at MCESD was given a fresh impetus with the engagement of researchers with expertise from different fields in a bid to give social partners a heads up on the topics to be discussed prior to Council meetings. This year, the working groups set up by MCESD pre-Budget, focussed on Environmental
Sustainability, Fairness, Productivity and Innovation, Fiscal Stability and Short-term Recovery Measures. The researchers’ reports were presented to the social partners and the Council aims to adopt this strategy in developing new proposals that will be presented to Cabinet in the future. Over the last months, PBS has embarked on a transformation process that has seen changes in the corporate structure, enhancement to the management team and reviews of the operating procedures and workflows. Such an approach is being taken to secure the remit and the relevancy of the local public service media for the years to come. The demands on the public service media are growing and changing with the way audiences consume the media. This is well crafted into PBS’
vision for the future. To support this vision PBS will launch a project that will see the upgrade of its facilities and resources. Such a project will include the revitalisation of Television House into a state-of-the-art facility with modern studios and all amenities required for media production and transmission by a public broadcaster. The second phase will be the building of a television stage with facilities for large scale productions, while the third phase will see the building of a multi-storey modern news centre with its own studios at the Malex site. Servizzi Ewropej f’Malta (SEM) is one of the main entities that helps our citizens and organisations to unlock EU funds. Voluntary organisations, government entities and local councils are now not only given a free and professional service when applying for EU funding, but also assisted in the implementation phase of such projects. Such projects are translated into tangible benefits including assistance to organisations that contribute greatly to the dissemination of culture within our communities, in the improvements of towns and villages by local councils, in exchanges of Maltese youth with other young Europeans and in strengthening skills, inclusivity and consumer rights. In the coming months SEM will focus on encouraging take up of the new EU budget for the period 2021-2027, from which
“Over the last months, PBS has embarked on a transformation process that has seen changes in the corporate structure, enhancement to the management team and reviews of the operating procedures and workflows.” Malta will be benefiting more than €2bn. The Privatisation Unit is gearing up for a challenging 2022. Apart from ongoing major projects, such as the Marsa Horse Racing Track, the PU will be responsible for the administration of the Concession for the Rights of the National Lottery. Next year promises to be another busy year for the entities in question. DIER, MCESD, PBS, SEM and the Privatisation Unit will therefore continue working to the benefit of all Maltese. From increasing rights to our workers, to a more accessible national broadcaster, as well as strengthened social dialogue, onwards and upwards is the only direction for these entities. Carmelo Abela is Minister in the Office of the Prime Minister.
Funding long-term change
W STEFAN ZRINZO AZZOPARDI
Last Monday, with the presentation in Parliament of Budget 2022, we revealed our goals and ambitions for a modern, sustainable and socially just Malta
e promised a Budget that would shape the sort of country we want to create for our children, and that is what we delivered. As parliamentary secretary for European Funds, it was particularly satisfying to finally share this comprehensive vision, which will in so many aspects be supported by European Union funding, achieved through careful planning and intense negotiations in Brussels. In fact, presentation of this Budget came just seven days after Malta’s Recovery and Resilience Plan received its final approval from the European Union Council of Ministers for Economic and Financial Affairs (Ecofin) for which I was present in Luxembourg. This ambitious plan, which includes 17 investment projects and 30 reforms, will be financed through a grant of about €320m of European Union funds. A substantial number of projects included in our Recovery and Resilience Plan feature in last week’s Budget speech. The coming seven years will enjoy the largest allocation in our history as EU Member States
– €2.27bn – which will be put to good use in a myriad of sectors and which will reach and impact the lives of thousands, as indicated during this week’s Budget speech. I was particularly pleased to observe the feedback on the allocation of EU funding towards the well-being of our society. The completion of a new hospital for acute psychiatric care will provide specialised, quality care to those in need and shows our commitment towards mental health. A new Blood Bank, which will not only collect donations, but also process and store stem cells and tissues, will also serve to elevate our health services. A happy, healthy society requires a pleasant environment. We know that the greening of our environment – and economy – can only occur through a collaborative effort with all players, public and private. We are providing businesses with strong incentives to go green and to prosper sustainably. The Budget is also nudging individuals to transition to cleaner modes of transport and energy, with considerable grants for electric or plug-in hybrid vehicles, and heavy investment in their
infrastructure, including the installation of charging points across the islands. It is also envisaged that a new landing facility will be built in St Paul’s Bay to encourage alternative use of transport. A new nearlycarbon neutral school will also be built in Msida. Government will also play its part in the necessary transition to a green and digital way of life. EU funding will also be assisting in the digitising of our maritime registry, which will be increasing our efficiency and boosting our reputation in this international sector. The shore-to-ship project, currently underway at the Grand Harbour, will now be extended to the Freeport, which will result in a literal breath of fresh air to Birżebbuġa’s residents and neighbouring towns. European Union funds will also be directed towards our
education system with the aim of reaching today’s young generation and encourage them to continue in their education pathway or else be trained in the new skills that a green and digital economy will require in the very near future. The importance of training, upskilling and re-skilling of our workforce was in fact a major theme in this year’s budget speech. Despite the challenges of the past year, government has delivered a comprehensive, social budget, which will sustain our communities for years to come. That is the mark of a truly social-democrat and progressive administration. Stefan Zrinzo Azzopardi is parliamentary secretary for European Funds at the Office of the Prime Minister
“A happy, healthy society requires a pleasant environment. We know that the greening of our environment – and economy – can only occur through a collaborative effort with all players, public and private”
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The Malta Independent on Sunday • 17 October 2021
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nstead, we presented a fiscal budget which above all sets the tone for a sustainable economic ambition that prioritises social progress, a tangible commitment to the wellbeing of our people. The ardent will to improve people’s lives The backdrop against which this budget was being prepared is indeed very particular. Our economy, just like every other economy in the world has faced the toughest financial strain since WWII. Energy and gas prices are skyrocketing. This is having a direct impact on electricity costs across Europe with some countries experiencing an increase of 166% compared to the average pre-pandemic electricity bill. Despite this economic scenario, this years’ budget is very far from the usual postcrisis austerity package. To the contrary, this is a budget which aims at tangibly improving the livelihoods of the most vulnerable cohorts of our society; our pensioners and lower income earners, persons with different abilities and those amongst us which inherently are more susceptible to the social and financial risks of an extraordinary economic shock of global proportions. The wellbeing of our people, particularly the hard-working families and their ambitions stand clearly at the core of this budgets’ objectives. Our Vision for a Greener Economic Model
To greener pastures MIRIAM DALLI Following a year of conscious but decisive spending aimed at protecting jobs and shielding our families from the worst economic effects of the pandemic the government could indeed have been justified to stop at presenting a tax-free socially oriented budget. We did the exact opposite. We presented a budget which provides a clear signal to all our economic operators: This is a budget that will help you invest, now more than ever, in a sustainable and greener economy and we are doing so because we want a more prosperous nation which delivers a better quality of life for all. Businesses will do well whilst doing good At this very sensitive juncture in Malta’s economic recovery we want to ensure that corporate investment is supported through effective fiscal measures. The reduction in the tax burden on reinvested
The budget presented last Monday went well beyond the vote-sensitive short-termism which one would expect form the last budget before an election. profits together with a wider accessibility of capital allowances will make this possible. Above all we want to incentivise cross-sectorial investment in sustainable projects and future-proof business models. We will be doing so by making it much easier for our SMEs to access funds for green projects and by being bolder in government sourced financial support for such ventures. The message is very clear: Just like we were an indispensable partner to our Business community during the pandemic, this government will be a solid and reliable companion to corporates and Family-businesses alike, as they transform their businesses. We want to do so because we want our businesses to prosper in an economy which needs to be more respectful of the environment and the social wellbeing of our communities. We will help our businesses to
do well whilst doing good. The ambition of changing mindsets When it comes to sustainability, this budget is clearly looking towards instilling a long-term change in mindsets and we are doing so through a very positive and proactive approach. Free public transportation combined with an increased financial assistance for converting one’s car into a non-emitting electric vehicle is a clear reflection of our strategy. We are doing so whilst shielding people from the inherent cost burden of higher electricity costs. Again, we are not stopping here. Because we are truly committed to achieve carbon neutrality and a better standard of living for our people, we will be helping our businesses to convert their own fleets towards cleaner vehicles. This is
our pragmatic but decisive approach towards bringing about positive change in the long-term. What a contrast from the Gonzi administration’s response to the financial crisis; queuing up for five bulbs whilst forcing people to pay higher utility bills. Our commitment to our children Undeniably, this was the greenest fiscal budget ever. The strong commitment to afforestation will literally reshape entire areas of our islands. This together with an unprecedented investment in our parks and green urban areas are perhaps the most visible proof of this commitment. Aggressively incentivising the acquisition, beautification and renovation of old property in UCAs will provide a much dose of rationality to the property market. Every single incentive in this budget is embedded in the idea of ensuring a better quality of life for all. We are doing so because we want a society which elevates the wellbeing of its people as its primary objective. We might disagree on some, or perhaps many issues, but we will all agree that our future generations deserve to have a greener, fairer and more prosperous country. This is the Malta I want for my children. Miriam Dalli is Minister for Energy, Enterprise and Sustainable Development
More equality, more innovation: a progressive agenda
OWEN BONNICI
Next year will be filled with more hard work towards the implementation of concrete measures which improve equality in our country and bolster research and innovation
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ere are the top 10 measures in the sector, which we will be implementing following the much-
needed financing obtained in the very positive budget which has been just read in Parliament. Gender-based violence: We are totally committed to eradicate gender-based violence and domestic violence. The Commission entrusted with this sector will bolster its awareness campaign on the sector, as well as perform research on aggressors in situations of domestic violence in order to better understand the psychological aspects of this very serious social challenge. IT accessibility for vulnerable persons: The pandemic showed how much ICT is essential in our contemporary life. The Foundation for IT Accessibility has been provided with considerable investment to improve the services it provides to vulnerable people and those with disabilities. Equality We need to keep winning the minds and hearts in the field of equality. The first priority in this sector will be the approval of two pending Bills which aim to strengthen equality in Malta. At the same time we will keep working on two important
initiatives: the Equality Mark certification for companies and the EU-funded Empowerment for Diversity project. No to racism In the last days we have launched a very ambitious National anti-Racism Strategy. Next year we will start implementing various muchneeded measures contained in this document. Also we will see that the I Belong programme, which is a concrete measure of intercultural inclusion for foreigners who live in Malta, is expanded. This is an important programme because it provides a teaching programme of Maltese, English and basic cultural orientation. Promoting LGBTIQ rights We are strong believers in the principle that people should be treated with full equality, independently of whom they love. We want to increase the services provided by government to the LGBTIQ community and push forward the processes relating to the LGBTIQ hub, which we want to launch. At the same time we will keep working on the Europride, which will take place in Malta in 24 months.
Human trafficking Human trafficking is a heinous crime and we want to strengthen the fight against this social scourge. We will build upon the intensive research undertaken in 2021 in order to construct a Strategy and Action plan, while promoting awareness. Gender mainstreaming efforts We will push forward genderbased policies and measures in all sectors with the aim of eliminating discrimination and achieving more equality. Responsible use of cannabis We will implement the 20point reform towards responsible use of cannabis as an important measure of harmreduction. A new authority will be established to regulate associations tasked with distributing, under strict rules, cannabis to members. We will also embark on educational and prevention campaigns, including one with FSWS. Research and innovation We believe that research and innovation is key to a successful economy. More funds have been made
available for this sector and as a consequence, we will be launching a new programme entitled Go to Market. This aims to achieve advanced technology levels with the aim of commercialization. At the same time, we will increase bilateral and multilateral relationships, including European partnership under Horizon Europe. Through the Horizon Support Measures scheme we will facilitate the participation of local researchers and entities for the obtainment of funds. We will also keep working on the much-needed Industrial Ph.D programme, which we have just launched, as well as investing in the Interactive Science Centre Esplora. That way we will be promoting both ends of the STEM journey, the younger generation, which is interested in getting to know more about science and those PH.D graduates, who have made it. We are committed to keep working hard for a more equitable and a more innovative Malta. Owen Bonnici is Minister for Equality, Research and Innovation
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The Malta Independent on Sunday • 17 October 2021
Budget 22: A case for strong leadership BYRON CAMILLERI
Parliament is back in full swing as the budget for the upcoming year was unveiled earlier this week setting out the government’s economic vision for the future
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he national budget is always a crucial time for two reasons. First, because it is the nation’s biggest fiscal exercise which steers the country
through a myriad of measures towards a better tomorrow. Second, because we have started to emerge from the shadow of coronavirus. Both beg the question: what sort of country do we want to leave for our children? The Budget 2022, as promised by the Prime Minister, truly looks like to the future in the sense that it implements measures aimed at fostering a better environment whilst resisting all the temptations to introduce taxes. Instead, it focused solely on reviving growth which was the need of the hour. The government chose to focus on pump-priming the economy, and it is well justified in the times we are living in. Against the backdrop of a fragile global economic recovery and in a world where global uncertainties still exist, this budget strikes the right balance between fiscal stability, social justice, sustainability, and investment. As a Labour minister, having a social budget is of utmost importance to me. I believe in helping the most vulnerable in our society, affordable housing initiatives and uplifting workers through a sound employment
“Our aim is to leave a Malta where owning a home is a feasible target for more people.” policy. From this point of view, this budget encompasses all these themes and truly reflects the priorities of the government and the people; that of social justice in a country that continues to create new opportunities in a better environment. Increases in pensions and supplementary aid form a crucial part of this Budget, together with access to more medicines, and more benefits to families having children with disabilities. Renewed investment in social accommodation will also lead to the lowest waiting list in history. Let’s face it, with increased economic growth many were finding it difficult to purchase their own property. Thanks to affordable housing initiatives such as the Equity Sharing scheme and New Hope, many were given the
opportunity to make this a reality. Our aim is to leave a Malta where owning a home is a feasible target for more people. Readers might ask, but what about the budget allocated for national security? Fair question, seeing that I am responsible for this sector. Once again, this budget places a hefty emphasis on our country’s security as the budget is six-times more than that which was earmarked in 2012 under a Nationalist administration. During the pandemic, we relied on our disciplined forces to keep us safe and now more than ever we need to ensure that they are well-equipped to face the challenges they deal with on a daily basis. This budget will allow us to keep investing in new technologies, more training and high-end equipment so as to help our officers be more effective and efficient. Other new initiatives include our plans to build a new rehabilitation centre in the Corradino Correctional Facility that will accommodate approximately 140 people. This is part of the Ministry’s holistic plan to bolster rehabilitation programmes. The new facility in Corradino would strengthen rehabilitation services through the employment of more medical, psychiatric, and social work professionals. On the other hand, we will keep investing in the Victim Support Agency for it to continue with its outreach programmes and offer hands on support services to victims of crime.
A Budget to celebrate success
ALEX MUSCAT
One of the most striking things about Budget 2022 is that Covid-19 has not knocked the country off course
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he measures announced were just as attractive as in previous years, with many winners. How was it possible to cut taxes and increase spending after suffering the effects of a pandemic? As the Prime Minister said, the answer lies in having a dynamic economy that creates more wealth. We were in a strong position before the
pandemic and we are bouncing back strongly. The Budget is built on solid social values. It rewards hard work and looks after the most vulnerable. It is progressive and futuristic, recognising the importance of a community and leaving nobody behind. The new 10% income tax rate will make part-time second jobs more rewarding, while annual tax refund cheques will now be for up to €140. There is extra help for low-income families while the extension of free childcare to evenings and weekends will help parents who work long shifts. A big headline measure was free public transport to all Maltese citizens. This will not only eradicate the daily cost of travelling by bus but help to reduce congestion on the roads and meet our climate change targets. And as we go green, the maximum grant on electric vehicles will increase too, from €9,000 to €12,000, with another 1,200 charging points on the way. A decent society looks after its elderly citizens. COLA alone would have delivered €1.75 a week more for pensioners but government has decided to go
further and make the increase to €5. More pensioners will be taken out of the tax net while anyone over 80 on supplementary allowance will get all their medicines for free. The investment figures are striking. Next year, government will spend €366m on education. This is 18% more than in 2021 and takes public investment in education to a level nearly two and a half times what it was in 2012. The figures are even more impressive in health care. In 2022, government will invest €897m in public health. This is 18% more than in 2021 and puts public investment in health at nearly three times what it was in 2012. Some creative measures can be seen in the area of housing. The financial rewards will be great for people to take dilapidated buildings and turn them into something beautiful. This includes a refund of VAT of up to €54,000 on the first €300,000 spent on renovation works. And there will be no stamp duty or capital gains tax on properties that have been vacant for seven years or more and meet other criteria. Firsttime buyers will continue to
have a tax break and there will be important investment in social housing to make sure everyone has a roof over their head. There are tax cuts for businesses which re-invest their profits. This will help sustain wealth creation and employment levels. More green spaces will add to the quality of life. Two of the most impressive projects are a large woodland at Marsascala, with 40,000 indigenous trees to be planted at the Inwadar National Park and transforming the Pace Grasso stadium in Paola into a 12,000 square metre community open space where 165 trees, 2,500 shrubs and 1,500 ornamental plants will be planted. One way of measuring how well we are doing is to check out what is happening elsewhere. Many countries are experiencing a sharp rise in energy costs. Here, electricity tariffs were cut by 25% nearly seven years ago and have been frozen since. And this Budget goes further, introducing a new system at ARMS, whereby consumers can save unused cheaper units to be used during periods of higher consumption.
Our work on immigration does not begin and end with the budget. This is a sector that needs constant attention and hard work since the situation can change at any minute. As part of the country’s immigration policies, the Government is committed to closing the Marsa Initial Reception Centre and regenerating the premises for it to be given back to the community. Our vision is to turn it into a community hub where local organisations and young people can frequent it and organize activities. In parallel, we are strengthening the returns unit which was set up earlier this year and led us to achieve a record number of deportations of failed of asylum seekers to their country of origin. Now more than ever, our country needs a competent Government, with a clear vision, and a united team that can deliver on its promises. Budget 22 has once again shown that the Labour Government is the country’s strongest political force which can deliver stability. We are a government that continues to fight poverty, social exclusion, social justice, civil rights and a better quality of life. With Prime Minister Robert Abela at the helm, this government can build the Malta we want to leave for our children. Byron Camilleri is Minister for Home Affairs, National Security and Law Enforcement
“Other countries are increasing taxes on income. Malta is cutting them. Some countries charge a wealth tax or annual property tax.” Other countries are increasing taxes on income. Malta is cutting them. Some countries charge a wealth tax or annual property tax. Malta has avoided them. Students in higher education elsewhere are facing rising fees. Here, not only are there no fees, but stipends are being increased by 10%. Adding to this, students working up to 25 hours per work shall also be entitled to a stipend. And when it comes to offering universal free childcare or free public transport, the list of those who can compete with Malta is very small indeed. In years past, we anticipated Budgets with dread. Under this Labour government every Budget has delivered benefits. Even Covid-19 could not derail the Malta success story. Alex Muscat is parliamentary secretary for Citizenship and Communities
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The Malta Independent on Sunday • 17 October 2021
‘There are staff shortages in every sector, not just teaching and nursing’ • “FATF GREY LISTING HAS NOT BEEN OVERLOOKED” • “GOVERNMENT WILL PAY MPT FOR FREE BUS SERVICES” • “FUNDS FOR NEW HOME BUYING SCHEMES WILL REPLACE PREVIOUS SCHEMES”
A push for upskilling workers, improved tax rates, a free public transportaton system and plenty of perks for home buyers. Dayna Camilleri Clarke met with Finance Minister CLYDE CARUANA after his budget speech on Monday, to discuss the new measures You have announced that the public transport as of next October would be free for everyone. How will the operator make money to be able to pay the wages? Annually the tal-linja cards generate approximately 15 million euros. The plan is the government will pay this sum as of October next year to Transport Malta. Tourists will still require to buy a ticket. I believe we will be the second country in Europe to offer a free public transportation system. It’s important to clarify this does not include any ferry services. The constituted bodies’ overall reactions were positive, particularly on social measures and others related to employment. But it was also pointed out that the Budget failed to address the concerns related to Malta’s greylisting by the Financial Action Task Force and the effects on the economy of the
Covid-19 pandemic. Don’t you think it is a legitimate criticism? I do not think this is a fair criticism, as a huge amount of work is being undertaken to turn around the FATF greylisting as soon as possible. It is not viable to go into great detail on every subject within the budget speech, but rest assured, we are working very hard to overturn the greylisting. It does not make any sense why we wouldn’t want to do so. Ultimately it is is in everyone’s best interest. You have announced a series of measures for first-time buyers and those renovating older UCA properties. Does this mean other previous schemes, such as the popular Irrestawra Darek will cease? Yes. Funds allocated to this new endeavour will now replace previous schemes such as the Irrestawra Darek, which saw homeowners claim up to 10,000 euros back on the restoration of the façade of their property.
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The Malta Independent on Sunday • 17 October 2021
Instead, from 12 October 2021, people who renovate such qualifying UCA properties will be given a grant on the value of the VAT paid up to a maximum of €54,000 for the first €300,000 spent on restoration and finishing expenses. Specific regulations will need to be followed, including that houses cannot be divided. The Budget speech had rather vague references to digitalisation incentives for the private sector. Is the government unwilling to invest more? It’s not that we are unwilling to invest in this area; more details will emerge in the coming months for specific support in these areas. MUMN have stated that the Budget does not address the shortage of nurses, and MUT noted that the Budget does not address the shortage of teachers. Do you agree? Unfortunately, there are staff
“I do not think this is a fair criticism, as a huge amount of work is being undertaken to turn around the FATF greylisting as soon as possible.” shortages across every sector and not just teaching and nursing. With regards to healthcare, work is being undertaken to recruit nurses from overseas. With education that isn’t possible, and MUT do not wish for that to happen, instead, we must support those who want to enter the profession locally Do you think it is a legitimate argument to say that this Budget has the characteristics of a preelection budget; increased expenditure, strengthening
the social safety net whilst softening the tax burden in certain aspects? I don’t believe this is a legitimate argument, in fact many entities have responded positively that the Budget has been a realistic one, and not fulfilling the cliché of a preelection budget. Chamber of SME’s stated, the Budget has failed to solve the issue of the below workingpoor. Do you agree? Many areas of the Budget will support the below working poor. Namely a huge investment into the National Employment Strategy, with a strong focus on upskilling our workforce. This was launched last week. I strongly believe we have to improve our productivity, and education is the key to social mobility. We know worker spends an average of 16 years in education in Malta, whereas in Ireland the average stands at 20 years, which means people enter the labour market with a
more extensive skill set. Figures from extensive research show the wide disparity between the income that people with a higher education level receive and those with low educational attainment. So, we want to ensure that we strengthen our workforce and that people also have a good quality of life. Last Sunday, in a story in The Malta Independent, the Association of the Catering Establishment pointed out that high costs are impacting restaurants. In what way will this Budget help them? High costs are inevitable within the European single market given the post-pandemic scenario, not just in Malta. Locally, support in the form of no increase in taxes and measures relating to energy saving will surely help all business owners. In addition, the Budget encourages more work through overtime and part-time, which will eventually
address the current human capital shortages the catering sector is facing. The in-work benefit is also a positive measure that assists the human capital issues within the sector. In fact the ACE (Association of Catering Establisments) stated they believe the Budget 2022 is a positive one that focuses on key priorities whilst ensuring environmental, educational and economic sustainability. The government has committed to an afforestation project in the Inwadar park that extends from Xghajra to Zonqor. How will this affect the land designated for AUM? Does the government still believe that land should be earmarked for Sadin-AUM? The site is a very large. There’s no reason why the two would overlap, and they are two very separate and different projects. I am not involved in these proposed discussions with government and AUM. I cannot say more than that.
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The Malta Independent on Sunday • 17 October 2021
A notable and substantial increase in funds allocated to the Justice and Governance Sector
EDWARD ZAMMIT LEWIS
Justice, Good Governance and Rule of Law, three important pillars, which were prioritised in the 2021 Budget, brought about a record of unpreceded reforms and amendments to the law.
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his week a total of €6.1m was allocated to the Justice sector for year 2022. This adds up to an increase of 45% from the
previous year, such funds shall be used to further invest in the justice sector. Through this year’s Budget we shall continue to prioritise good governance and rule of law, by doing so we shall instil more trust in our institutions, further the country’s economic growth and enhance Malta’s reputation abroad. The above is a living testimony that this government truly believes in these three fundamental principles: an efficient justice system, good governance and rule of law. Office of the Advocate of state €2m have been allocated to this Office to further strengthen and consolidate its importance. Additionally, €2.25m, a sum that can be interpreted as a total increase of 32% on the year 2021 was also allocated to this Office to further invest in its operations. Office of the Attorney General A significant increase of 78% has been allocated for the operation of this Office. Such funds shall be used to further equip this office with the necessary resources to address the current workload. This increase will ensure that the AG office is well resourced to tackle the in-
crease in workload, from an already activated programme assuring that all prosecution is to be conducted by the AG by not later than 2025. Permanent commission against corruption It is worth noting that following the reform implemented as part of the Venice Commission that altered the process through which members of this Board are appointed, government continued to invest in this commission. In the Budget for 2022, government will be allocating double the funds that were allocated in 2021; this continues to show that this government is actively committed to further combat corruption in our country. Court Services Agency (CSA) Efficiency and effectiveness in the Law Courts of Malta will continue to be a priority next year. A total increase of 20%, which amounts to €21.5m, will be allocated to CSA. Through this the Judiciary, professionals and service users shall continue to be supported and provided with a more efficient and effective service. In 2021 government started investing in a depilated building next to the main Court building.
A flourishing legacy
JULIA FARRUGIA PORTELLI
Since its very inception, there is no denying Labour in power has always, rightly and zealously, been associated with social achievement.
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hroughout modern Maltese history, all that other political powers wanted to deny, postpone or inhibit to keep the old Establishment happy was brought to fruition by intervening Labour
administrations over the decades. From a national insurance policy and free education to children’s welfare, jobs, minority rights and liberties, housing and State support to the vulnerable and persons with a disability, it has been an ongoing story of attainment. Not only was last Monday’s Budget for 2022 Malta’s most social budget ever, but it is also by far the strongest one for persons with a disability. With a budget of €50m it is sending a powerful message in favour of inclusion and quality of life for all. What makes it all the more unique, however, is the fact that the whole Budget package is bursting with other initiatives that target the environment and climate change as well as paving the way for sustained economic growth and a reduced deficit that has resulted from the massive and timely injections given to both the economy and the nation during a pandemic that has not yet given up its ghost. A quick look at Budget 2022’s social aspects should suffice in confirming government’s determined approach to a flourishing legacy. This Budget is not merely a hindsight view of past
achievements as one would normally ascribe to the term legacy, but the actual honing of a legacy that has the future in focus based on the success of the past. No idle exercise at sentimentality or nostalgia, but a stream of resolute objectives and serious ambitions backed by solid funds, facts and fortitude. The disability sector is a major beneficiary and certainly not by coincidence. A €5 increase in the allowance to children with a disability amounts to a half-amillion output annually, doubling the income they used to receive in 2013, and a €300 increase in the grant to carers of persons with a disability are two focal adjustments in the process of ensuring quality of life for all citizens. The Budget also provides for the payment of medical expenses due to invalidity in the case of infirm persons living with their parents, abetted by the removal of what used to be a mandatory means test with regard to assistance for severe disability and an enhanced scheme for exemptions and reductions in the acquisition of vehicles for persons with a disability.
This will be converted into a building that will house three new chambers and 25 additional. In 2022, a new courtroom is planned within the current court building through which it is estimated that every year there will be an increase of 5,180 hearings, equivalent to an increase of an approximate 4% in the number of hearings per year. Department of Justice The Department is now also responsible of the Office of Conduct and Criminal Records (Criminal Fees). In this regard all administrative processes related to certificates of conduct and criminal record shall be administered and accessed through digital means. Legal Aid Agency When compared to 2021, an additional €630,000 has been allocated to this Agency. We will continue to invest in legal aid to create a digital system where prospective clients can also apply online and that is accessible to all. Asset Recovery Bureau €500,000 has been allocated, an increase of 150% over the year 2021, to the Asset Recovery Bureau. Following the entry in force of
the Proceeds of Crime Act, an innovative piece of legislation, we shall continue to invest in the Asset Recovery Bureau by providing new technologies for the exchange, management and retrieval of information. We will continue to work on the ambitious project related to the construction of a state-of-the-art specialised building to host an asset tracking laboratory and to have adequate space for the preservation of confiscated assets. Notary to Government We shall continue to invest in the process of digitisation of all notarial acts, making it more accessible to all. A system to ensure that all public deeds and wills are recorded in the public register on time and that all relevant taxes collected by Notary Public are effectively paid to the relevant entities is also in the pipeline. The Robert Abela administration has succeeded in making unprecedented reforms and investments. The president of the Commission of the European Union, Ursula Von der Leyen praised Malta for this in her State of the Union Address. I shall remain committed to work tirelessly to further ameliorate the Justice sector in Malta. This is the government known for its reforms, Good Governance and Rights – this is the government of change. This is the government that through this Budget is forward looking; investing in Malta that we want to leave for future generations. Edward Zammit Lewis is Minister for Justice and Governance
“A €5 increase in the allowance to children with a disability amounts to a half-a-million output annually, doubling the income they used to receive in 2013, and a €300 increase in the grant to carers of persons with a disability are two focal adjustments in the process of ensuring quality of life for all citizens” Children with a disability in the birth-to-five-years age bracket will benefit from a scheme providing Occupational Therapy for those who need it, thus better and effectively consolidating the process of Early Intervention. There is also the investment in more schools setting up their own autism units and purchasing more braille machines. Further support to children with a disability is an investment in their postsecondary education through an extension of all services provided to them while they still attend compulsory education. Budget 2022’s social impetus is also reflected in the investment in a Community Hub for persons with a disability in the north of the country, where specialised training will be provided in connection with independent living. Also on track are extensions of the services of
psychologists to persons with a disability and their families, the purchase of drive-fromwheelchair vehicles and focussed training for driving tutors and the continuation of the INK project which caters for training and the provision of paid work experiences to persons with a disability. The Budget fiscally confirms the “New Hope” guarantee scheme recently announced by the Housing Authority in ascertaining an alternative life insurance policy to persons who, because of their disability or medical condition, were hitherto denied one and so could not become home owners. There is a wholesome sense of well-being in the 2022 Budget, beckoning the future as it turns a creditable legacy into a flourishing one. Julia Farrugia Portelli is Minister for Inclusion and Social Wellbeing
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The Malta Independent on Sunday • 17 October 2021
Budget 2022: The Malta our children deserve
A SILVIO SCHEMBRI
Budget 2022 represents everything that our proud and bold nation stands for; a nation which still manages to rise up stronger, regardless of the storm
visionary Budget with not only a generous social conscience at its core but one which drives our economy into reaching its full potential, regenerates its hard-hit sectors and ensures growth which exceeds pre-pandemic levels. While more traditional economic sectors will continue to be nurtured, fledgling economic niches must be bolstered, as these will ensure our success well into the future. Budget 2022 provides and complements our efforts towards a more robust digital economy. One of Malta’s most up-andcoming digital niches is undoubtedly the video games and esports sector. In order to achieve the goals of our vision and strategy and attract international development studios to Malta, investment
will be made in education, promotion, fiscal incentives (Video Game Grants) and the opening of an incubator to attract these studios to our country. We also believe that with the experience we have gained over the years in iGaming and through the new initiatives we have launched recently, Malta has the potential to become a key hub in this sector as well. Over the past few years Malta has experienced an unprecedented growth curve throughout all its economic sectors. While this has paved the way for businesses to flourish and provided families with an excellent quality of life, this rapid progress has not come without its set of unique challenges, especially those which are environmentallyrelated. Budget 2022 sets out to tackle such issues. To name just one, with the assistance of the Connecting Europe Facility (CEF) fund, Malta will also launch ship-to-shore energy for Malta Freeport, a project which will be launched from next year. Holistic investment remains the bulwark of all future development, but for this investment to take root, the practicalities need to be provided for. Dozens of attractive incentives (of which this government has launched several) could still not provide the actual, physical space for investment to grow and flourish.
The Malta we want for our artists and creatives
JOSÉ HERRERA
This week Finance Minister Clyde Caruana announced the last budget of this administration
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early the political message underpinning the measures foreseen for the year 2022 – The Malta we want for our children – has struck a chord with all stakeholder groups shaping our socio-economic fabric. After all, most political discourse that most countries are placing – nowadays more
than ever – is an increasing emphasis on safeguarding the prospects and well-being of both present and future generations. As stressed in this Budget, the country we want for our children is one in which honest hard-working citizens are surely bound to succeed. A social Malta that helps the most disadvantaged. A brave Malta that can stay the course, even during the worst of times. A Malta always capable of shining a light amidst the darkness by creating opportunities for everyone. This is the country we want to deliver to all those making a significant contribution to the betterment of society through their artistic endeavours. Make no mistake: it’s not that Malta’s progressive vision for the cultural sector has been unveiled only this week. Rather, throughout the years, Government has left a positive consequential impact on our cultural ecology. Back in 2017, we proposed a series of new measures to further sustain the professional prospects of our creatives and their cultural entities. Now that
“This is the country we want to deliver to all those making a significant contribution to the betterment of society through their artistic endeavours.”
this parliamentary term is coming to a close, we can say with confidence that we have truly delivered. To name but a few initiatives, we paid tribute to our National Poet Dun Karm Psaila by commissioning the translation of his major works into various foreign languages. In 2018 we celebrated Valletta as a European Capital of Culture and then – following the reassuring legacy of the Valletta 2018 Foundation – we established the Valletta Cultural Agency to continue bringing our capital’s cultural heritage closer to the people. We inaugurated the
This brings us quite neatly to the momentous €470m investment which will see the thorough modernisation of our country’s industrial areas. Through this massive investment, new industrial spaces will also be created, providing Malta with that “extra” competitive edge and appropriate locations to welcome new local and foreign investment. We shall also pursue with the completion of the Ta’ Qali Crafts Village, which will not only provide a modern environment for dozens of artisans after decades of neglect but will safeguard valuable craftsmanship, which is part and parcel of our traditional heritage. Budget 2022 will also continue to build on our drive to sustain our thriving aviation industry with the expansion of a LIMA Taxiway at the airport, which intends to accommodate larger aircraft, the larger and known as wide-bodied aircraft, simultaneously expanding the range of services on offer, attracting new customers, while creating quality jobs in the aviation industry. However, as Budget 2022 has rightly emphasised, intensive investment without providing the right skills to our workforce would defy its very purpose. As a government we will be collaborating with Maltese educational institutions to prepare students for industryrecognised certifications and
careers in emerging technologies through partnerships with international companies. We shall strive to upskill and provide the necessary tools for every individual within every sector of our economy, for we believe that our workforce is the main backbone of our economy. Budget 2022 pledges that as much as we have done during the height of a global pandemic, where we strived to safeguard businesses and the livelihood of our workers, we shall continue to relentlessly create opportunities and support valuable social mobility through numerous initiatives. The increase in stipends and pensions, the free public transport for all as well as the increase in the first-time property buyer grant, are simply a few budgetary measures in an endless list of benefits which aims to equitably distribute to all the wealth generated by our economy. Even more importantly, Budget 2022 does not burden Maltese citizens with any new taxes, hidden or otherwise, a far cry from post-Covid Budgets presented by our peers. Malta is now reaping the fruit of the shrewd decisions taken by this government, and I for one, am immensely proud of this journey, which has seen our country thrive like at no other time in its history.
Valletta Design Cluster, a space dedicated to design and creativity at the heart of our community. Recently, the Government has also stepped in to buy properties privately leased to band clubs facing the threat of eviction. We have set up a national choir and enhanced the wherewithal of the Malta Philharmonic Orchestra, especially during the pandemic. We also marked a grand return for the popular Festival Kanzunetta Maltija, Mużika Mużika. Also during these disruptive months, we have put in place a generous wage supplement scheme along with twenty-six other rescue packages to help artists make up for financial losses incurred during the pandemic. The budget for 2022 now intends to implement two further undertakings made in 2017. First of all, as from next year the income tax rate for artists will go down to 7.5%. Furthermore, for income tax purposes an averaging mechanism will be introduced to calculate full-time artists’ earnings – particularly those without regular work – over an average of three years. After the hard lessons we learned over these last months we all gathered that now it’s time to go the extra mile. For starters, a €1 million guarantee fund will be set up to assist independent producers and promoters with otherwise
irrecoverable financial losses incurred due to unforeseen restrictions on artistic events. On a similar note, the Government will also inject €2 million to strengthen the aid scheme already in place for seats that remain unsold due to such restrictions. Another €1 million will also be allotted for independent artistic projects under the realm of the Malta Arts Council. There’s no denying that this budget reiterates my Ministry’s commitment to continue boosting the recovery of this crucial sector. Actually, the Ministry’s vision for our cultural sector has always been in line with Government’s long-term foresight for a future Malta. A Malta with brave resilient creatives who just won’t give in, even in the face of prohibitive conditions such as this pandemic. A Malta with extensive cultural infrastructures where artists can make a decent living that does justice to their craft. Above all, a Malta with strong social measures and robust cultural entities that will never let them fall behind, come what may. Indeed, this is the Malta that we want to leave to our children and the Malta that we will keep on delivering to our current and future artists.
Silvio Schembri is Minister for the Economy and Industry
Dr José Herrera is Minister for the National Heritage, The Arts & Local Government
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JUSTYNE CARUANA
The budget presented last Monday in Parliament confirms this government’s commitment towards the education sector as a main pillar for economic growth
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verall, this budget focused on the immediate and long-term needs of our children in ways that will make a difference to their work prospects in the coming years. And by focusing on the long-term, as a Government, we are making sure that our country is indeed the country we
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he social narrative was conspicuous in each of the budgets. But never as much as in the budget speech outlining Government’s programmes for next year. Budget 2022 is fertile with a strong package of social measures and initiatives, which in terms of count and expenditure span are without precedent. Social partners have commented favourably, welcoming and commending the budget, with the GWU labelling it as socially bold. Media commentators have similarly been positive, describing the budget as realistic and courageous with the hallmarks of a stronger social safety net. That has certainly been the raison d’etre of our ministry in drawing up measured proposals aimed at bolstering our social fibre and addressing social exclusion. In doing so we took account of people’s feedback and suggestions. The lion’s share of our ministry’s 2022 outlay of €1.8 billion will go to fund social security benefits. These exceed €1.2 billion which compared to what was actually spent in 2012 represent an increase of nearly €430.5 million or 55%. Although over this period dependency on social assistance and unemployment benefits dropped appreciably, benefits have been generously increased and others have been added to the social infrastructure. Contributory and noncontributory pensioners have been the biggest beneficiaries, with the roll-out of enhanced
The Malta Independent on Sunday • 17 October 2021
Investing in our students and educators all want for our children’s future. Investing in education is a commitment by this legislature as education is a basic need for a society to thrive and work towards a new economic vision for Malta - in the long run, education leads us to a strong economy. This budget sees a vote of €797 million in recurrent and capital expenditure. This represents an increase of € 68 million. Whilst focus on education strategies is an on-going commitment, we will continue to invest in another important aspect of this important sector – the schools’ environment. With works going on to build, extend and modernise our schools, this budget also sees to more investment in educational infrastructure, including a much-
needed allocation to continue with the installation of airconditioning in classrooms. A Government who is also committed to continue improving our educators’ profession. The announcement last Monday that the status of the profession of educators will be further strengthened with the coming into force of the law governing the Profession of Educators was applauded by all. Educators will also benefit from mentoring programs for newly graduated teachers whilst the Ministry for Education will be investing in more refresher courses for educators. Back in 2013 this Government introduced the Free Childcare Scheme, an initiative which was promised in the Government’s Electoral Manifesto, whereby
Government provides free childcare services to parents who are in employment or are pursuing their education, with the aim to help families achieve a work/life balance. Continuing on the success of this scheme, which saw a significant increase in women continuing their work careers, or furthering their studies, this budget includes an initiative to enhance this scheme with an extension of opening hours, including opening on Saturday mornings. Students will be also seeing a 10% increase in their stipends, while ensuring that if they work up to a maximum of 25 hours a week, they will continue to be eligible for receiving stipends and maintenance grants. With these two measures we are investing in our students, an additional €5 million in the coming year. An investment of €1 million for students to sit for SEC exams at the same schools where they had their education is another measure which will be implemented following a successful pilot project initiated this scholastic year. This is a budget that emphasises the importance this Ministry gives to all students, with more investment in Apprenticeship Schemes to increase the number of students having placements with the private sector.
Testament to a socially conscious administration
MICHAEL FALZON rates since 2016. Married couples and single persons in receipt of minimum pensions were the first beneficiares in 2016 and 2017. Over these two years their pensions increased by €8.15 weekly. In the following years they joined other classes of pensioners – retirees, widows, invalid persons and old age persons – in benefitting from across-the-board increases which with the announced rise of €5 weekly next year will add up to a total of €25.25 weekly. The whole pension bill together with bonuses next year will shoot up to a record of more than €1 billion. Sizeable swathes of the pensioner population will not only draw the €5 weekly increase, but, through other measures, stand to additionally benefit from improved rates of up to €7.5 weekly. These will be triggered through adjustments in widows’ pensions and in the cost of living bonus through a roll-out
Government has been bullish with social measures over the past few years, rolling out measures in annual budgets aimed at promoting social activation and participation, reducing benefit dependency and poverty, and creating a better quality of life for young and old, families with children, pensioners, vulnerable persons and persons with disability of processes, over a number of years, aimed at establishing equivalence in survivors’ pensions and a level playing field in the award of the cost of living bonus among all pensioners. Another keynote measure on the agenda is the revision of the supplementary allowance payable to low-income pensioners, persons on social assistance and persons in employment who are either single or have no children under 16 years of age. As from January the measure will trigger an increase of up to €338 to €1,098 yearly for married couples and an increase of €260 to €598 yearly for single persons. About 29,000 persons will benefit from this
measure at a cost of €5.6m. Furthermore, recipients of this benefit who are 80 years and older will automatically be entitled to free medical care. Other improvements envisaged for older persons include increases in the Senior Citizens’ Grant and the Deficiency Contribution Bonus, with the top rates going up to €400 and €500 respectively. Families with children have also been a focal point particularly for those parents in employment who partake or could partake from the In-Work Benefit scheme. Married couples, single parents and single earner families with children under 23 years, with incomes below €26,000 or
The Ministry for Education has already invested around €10 million including European Funds to invest in all secondary schools labs. Further investment will be carried out to modernise 180 laboratories, equip them with modern equipment and upgrade the digital network in all state schools. Thus we will be upgrading the standards and deliver the highest level of education in STEM subjects Science, Technology, Engineering and Mathematics. Where our children are concerned, we commit ourselves to be there to assist them for all their needs. All State School will be allocated funds amounting to €10,000 a year to continue to invest in the well-being of our vulnerable students. Next year will see more schools having Autism Units in place; while Braille machines to enhance multisensory learning, will be available in schools. A campaign to raise more awareness for sign language learning, will be carried out. A healthy society is a society which gives priority to education. As the Minister responsible, I again pledge my commitment to see that this sector is given its due priority to benefit all our children and all future generations. Justyne Caruana is Minister for Education €35,000, will gain from an increase of €100 per child. At the same, through the widening of income thresholds married couples with incomes of up to €50,000 and single parents and single-earner households with incomes of up to €35,000 will now be entitled to a payment of €200 per child. Besides the current recipients of the In-Work Benefit, up to 7,000 other families could benefit through the broadening of thresholds. A sum of €12.5m has been set aside for the whole scheme next year. Labour has an enviable track record of initiatives aimed at supporting parents in the upbringing of their children. In addition to established family benefits, a child bonus was introduced last year to defray a family’s cost at childbirth or on the adoption of a child. Next year the bonus will increase by €100 to €400. The allowance payable families with children suffering from a physical or mental disability will next year go up to €1,560, which is practically double to what they were entitled to in 2013. These measures, together with others on the social agenda, are not the offerings of a spendthrift administration. But a tangible testament to a socially conscious and sensible administration which truly has at heart the wellbeing of pensioners, the aged, the vulnerable and families. Crucially, actions speak louder than words. Michael Falzon is Minister for Social Justice, and Solidarity, The Family and Children’s Rights
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The Malta Independent on Sunday • 17 October 2021
A future based on a green economy There is no more noble and more important duty than to ensure that our children inherit a country that is strong and healthy, that has a liveable community, social safety nets, opportunities for growth and functioning ecosystems. A country that they would want to live in, an environment they would be proud of
AARON FARRUGIA
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he theme of Budget 2022 has encompassed precisely this sentiment. And in order to achieve this, we cannot shy away from discussing the very real challenges that we face: financial limitations, our small size as a country, water scarcity, the sustainability of sectors such as construction. COVID-19 has had devastating impacts globally. Due to our resistant economy and the government’s impactful measures we have ensured that industry and businesses remain afloat and our residents
continue to enjoy a good quality of life, while government continues to address our country’s biggest challenges. We have said that a post-COVID recovery will be green, and this is clearly evidenced by this green budget. Going green does not mean tree-hugging, it doesn’t mean stopping development, but it also doesn’t mean ignoring the realities of our people who are crying out load for more green spaces, for more of mother nature. Going green means creating a balance between people’s need to grow and develop, to have comfortable homes, and to have access to nature-based recreational spaces where our children can appreciate the world as nature intended it not as man has fashioned it. Going green means giving nature the space to recreate itself, giving this wonderful miracle of life the chance to thrive. In Budget
2022 it was announced that Inwadar National Park will become the largest afforested area after Buskett, covering half a million square metres and with 52,000 trees. New urban green areas in Zabbar, Qormi, Hamrun, and Mosta through projects by GreenServ will become a reality and the regeneration of family parks and intensification of works on the National Park in Ta’ Qali will result in around 60,000 trees planted. The Environment and Resources Authority & Ambjent Malta will continue work on Management Plans on Natura 2000 sites; intensify the works on Comino, il-Magħluq ta’ Marsaskala, Victoria Lines, and Għadira s-Safra. As government we are fully cognisant that other crises are in full swing: climate change is threatening to cause widespread upheaval unless humanity addresses the much-
needed reduction in greenhouse gases emissions as well as the spiralling loss of biodiversity and damage to ecosystems and the environment that surrounds us. Climate action is clearly at the very top of the agenda with Budget 2022 including measures such as free public transport for all, home visits to vulnerable households to help them become more energyefficient, more assistance to NGOs and sports organisations to invest in energy-efficiency, establishment of funds so that more public buildings use solar energy, more investment to enable the use of fast ferry services on Malta. An existing grant to scrap polluting vehicles was raised by €1,000 in Gozo in a further effort to speed up the process to make this island carbon-neutral. Apart from this, the grant to purchase an electric or hybrid vehicle was increased by
€3,000. No registration tax and no road license will be needed for the first 5 years of a newly registered electric or hybrid car, 1,200 charging points for electric vehicles will be installed, and a new Malta Enterprise scheme will help firms convert to using electric vehicles. Our EV schemes are the most advantageous in the EU. A monitoring board will be set up to assess adherence to our Low Carbon Development Strategy. In the construction sector, an entire reform is underway. The newly-established Building and Construction Authority will address a number of issues including enforcement and regulation through new measures, some of which have already started to be implemented. Other budget measures which will serve to further improve the way we plan and build include a set of measures aimed to preserve Maltese heritage through incentives in the property market. There will be no stamp duty or capital gains tax on the sale of certain vacant properties, properties in UCAs or properties that have traditional Maltese features. Those purchasing certain vacant properties, properties in UCAs or properties that have traditional Maltese features can receive a VAT grant of up to €54,000. First-time buyers purchasing vacant properties, properties in UCAs or properties that have traditional Maltese features will also get a grant of €15,000, rising to €30,000 if the property is in Gozo. Apart from this, the Planning Authority will be launching an Aesthetics Policy which will guide our planning principles towards smarter, better-looking planning and construction which truly respects our islands’ topography and character. Traditional linear models of production and consumption have proven to have a devastating impact. A businessas-usual approach is no longer viable. We cannot continue consuming beyond the planet’s limits, and this means that our type of economy requires a significant shift. We are working to revolutionise the waste management sector and shift our economy to a circular one; Budget 2022 includes the €500 million investment in ECOHIVE, the largest investment into waste management our country has ever seen. This investment will work hand-in-hand with other recent reforms in this sector, including the Long-Term Waste Management strategy, to drive the country towards a circular economy with all waste streams being reutilised to their full potential, and move Malta away from over-reliance on landfilling, once and for all. Aaron Farrugia is the Minister for the Environment, Climate Change and Planning