Budget 2020 by The Malta Independent

The Malta Independent on Sunday | 20 October 2019

2020:

greenwash budget

Pandering to public opinion, lacking serious commitment to address the quality of life freefall

Gozo budget and green credentials

THE HIGHLIGHTS

ASTRID VELLA

MARCUS LAURI

CARUANA

BUDGET A

JUSTYNE

Supporting the vulnerable and needy, while ensuring sustainable economic growth JOSEF BUGEJA

Some steps in the right direction, long way to go DAVID XUEREB

The Malta Independent on Sunday | 20 October 2019

Budget 2020: the Budget 2020 was a virtual mosaic of fiscal measures, as it is every year, which treads the fine line between expectations and realities. verall, it is considered to have been a green yet prudent budget that raised few eyebrows one way or another. The good news for many is that there are no new taxes or tax increases this year. The ever controversial Cost of Living Adjustment was pegged at €3.49 and a €235.6 million budgetary surplus was achieved, with the finance minister specifying the government would have still reached a surplus, even without the passports sales of the Individual Investors Programme Here are all the highlights you need to know at a glance.

Workers • Additional day of leave to be given to all workers • Tax on overtime at 15% on first 100 hours • Third round of tax refunds of between €40 and €68 to be given to over 200,000 people

Cost of living • Additional bonus of €15 for single people, €35 for families to cover increase in cost of milk, bread • €300 grant for every newborn or child adopted, for around 4,000 families • Disabled people who cannot work will have pensions increased in line with minimum wage • Pensions to increase by €7 a week (inclusive of COLA) • Interest-free government loans for under 40s who cannot afford 10% de-

posit on property • First-time buyers scheme extended to properties worth up to €175,000. Benefit to increase to €6,500 • People with 25-year service pension can have their pension computed again on reaching pensionable age • Additional €13 million allocated to address past injustices • Supplementary allowances for low income pensioners increased to €150 euro per annum • Equal pay for equal work to be introduced in the private sector

Education • One-tablet-per-child scheme to be introduced at middle schools • Removal of VAT on educational and vocational training, including long distance learning • Maltese-language spellchecker being developed • Research and Innovation Hub at Barts Medical School to be inaugurated soon • €850 for students learning a foreign language abroad • Restoration of Cottonera Lines, Victoria Lines and Fort Ricasoli • Blockchain technology to be extended to institutions such as the University of Malta • Educators researching education, training in vocational, new training or private lesson providers will be exempted from VAT • €7 million for University of Malta and MCAST infrastructure, more appropriate facilities and modern laboratories • Funds to motivate academics to work on innovative research • New primary school to open in Qawra, works on new schools in Zejtun and on a hall for the Secondary School in Santa Lucija to continue, as well as preparations for primary schools in Msida and Victoria. • Guide on the weight of school bags for students following national study on weight of children and their bags • State schools to provide drinking water fountains • New affiliation agreement with the Institute of Tourism Studies (ITS) and Emirates Academy of Hospitality Management will be providing new initiative for ITS students • New youth work programme at the Mtahleb Corrective Centre for confidence and inclusion back into society • Closing the skills gap with creation of an Industry Education Hub • Educational Campaigns for students non drug abuse and other subjects • Financial scheme for Achievers, a voluntary organisation organising activi-

ties for children and youths in culture, music and sports

The environment • Bottle return scheme to start by end of year • Sale of single-use plastics to be banned by January 2021 • Up to €200,000 in grants for building contractors to buy quieter, cleaner machinery • Cheaper electricity for electric car owners • Initial preparations for roofing over part of Regional Road in Santa Venera underway • Afforestation projects for Comino, Buskett the Inwadar National Park and the Salina Park • ARMS to provide more speedy and reliable payment facilities • €2 million for Ta’ Qali National Park • National Trail Network to be developed • Subsidy scheme to help shops set up green corners • National strategy guiding Malta towards carbon neutrality by 2050 • Waste-to-Energy plant preparations continue • Environmental programmes and studies, including those to fine air-borne dust

Transport • Petrol stations to be equipped with charging points, LPG • Transport Safety Investigation Agency to be launched • More port ferry services for Cottonera, Marsaxlokk, Marsascala, St Paul’s Bay, St Julian’s and Mellieha in the pipeline • People over 75 years of age can use public transport for free • Marsa Junction project, with 3.5 kilometres of bike and pedestrian lanes to completed by year’s end • Santa Lucija roundabout tunnels to be completed this year, Central Link Proj-

ect works to steam ahead • Work on flyovers for Msida, the Msida Creek Project and the widening of Triq Sant’ Andrija plus four new tunnels for the Pembroke-St Julian’s Connections project to commence • First pedestrian bridges with ramps for cyclists to be built • Bicycles and peddle bicycles VAT refund scheme extended for another year • Car scrapping scheme to vary according to new vehicle’s pollution rate • €200 grant to convert cars from petrol to LPG • Countryside roads to be built from scratch

Gozo • €10 million spent on road infrastructure • Hondoq reverse osmosis modernised at a cost of €11 million • Gozo-Malta tunnel studies to conclude in coming months • Preparations of requirements for fourth Gozo ferry being carried out, tendering process to follow • Gozo-Malta tunnel studies to be concluded in the coming months • Investment in road infrastructure to continue, €10 million being spent, work on Triq l-Imgarr to will start next year • Work on new Park and Ride near Xewkija and on the Ghajnsielem Hub to start next year • Marsalforn and Xlendi master plans to be completed • Investment in greening measures and smart parking • Ghar Genduf aqueducts restoration to commence in 2020 • Economic growth in Gozo larger than Malta’s • Microsoft, Noovle, MCCA and MFSA offices opening in Gozo • Government to focus pay gap between Malta and Gozo • Film Fund for Gozo to attract new cinematographic productions • New fund for Gozo to become an attractive destination for conferences, meetings and other events The social sphere • Malta’s 92,000 pensioners will see their pensions increase by €7 per week including COLA • Disability, Invalidity pensions increase to reach national minimum wage • Equity Sharing Scheme expanded to those below 40 years of age • Student stipends to increase on a prorata basis • Employer social security fraud not to be tolerated • €200 increase in service pensions • €50 per year in supplementary help given to persons, mainly the elderly, with low incomes

The Malta Independent on Sunday | 20 October 2019

highlights • €300 will be given to around 30,000 people over 75 years of age • €350 to 18,000 people over 80 years of age who live in their homes or with relatives • Government Saving Bonds will be released once again • Final phase disability pensions reform to be completed • National invalidity pension will also increase to be equivalent to the national minimum wage • Grant for specialised equipment for persons with disability being capped at €1,000, up by €400 • Medical criteria for disability assistance be widened deaf or mute people when they turn 16 • Parents who stop working to care for children with rare diseases to see social security contributions covered for up to eight years • Fibromyalgia and Myalgic Encephalomyelitis (ME) to become part of list of conditions eligible for assistance • Benefits for social housing and affordable housing extended further Law and order • Cash payments over €10,000 will be not allowed for purchases of high-value items • Scanning process at Freeport to be replicated in Grand Harbour • Surplus would still be achieved without funds from IIP scheme • Maltese research to be carried out on fi-

nancial impact of domestic violence • Information Service Unit for better integration of irregular migrants • Integration Academy in the pipeline • Financial Organised Crimes Agency to be established to complementing Police’s Economic Crimes Unit • Seven-year Civil Protection Department program to meet increasing international standards and obligations – looking at human resources, new anti-seismic stations which and the purchase of modern vehicles with the latest technology, able to deal with high buildings, • CPD to have new maritime fleet, large water bowsers to eliminate dependency on private operators and a new Disaster Management System • Refurbishment at the prison and at Mount Carmel Hospital forensic unit, work carried out by the inmates, for which work they are paid • More vehicles to transport of prisoners to and from hospital, court, and other places as well as, and to modernise the fleet • The Psychology Unit to be strengthened, new programmes to minimise recidivism. • Specialised training for Probation and Parole Department to see new programme for young offenders • New law to be passed to ensure equality is a fundamental human right • Strategy and action plan for integration of equality between genders in several areas, including education, health, jus-

tice, work, financial independent, work balance, private and family life • Professional services, in the form of exit programs, will be made available for those persons who voluntarily seek help to leave prostitution • National strategy on human trafficking to be implemented over the next five years • Justice reform sees case backlog drop from 26,650 to 22,510 in six years • Separation of functions of the Attorney General into Office of the State Advocate and AG’s Office • Quicker justice with digital technology • Sophisticated equipment for Special Operations Unit, several infrastructural projects and a new patrol boat for the Armed Forces of Malta • Police Corp’s Investigations Department to get a new, modern building • New offices for Police prosecution section with aim of having prosecuting team separate from investigating team, as per Venice Commission recommendations

Culture • Discussions on a covered roof for Teatru Rjal to be undertaken • Investment in the conservation, restoration and modernisation of the historical National Bibliotheca to make it more accessible and attractive • Investment in the National Library to provide more interactive space to facilitate more inclusion and promote literacy • Further UNESCO initiatives to place Malta and Gozo better on the World Heritage map. • Investment in further in archaeological, exploration and archival research • Archival excavation to save what is left of the Neolithic temples at Xrobb LGhagin • Underwater Cultural Heritage to improve and document what lies beneath. • Important restoration work on the Cottonera Lines, Victoria Lines and Fort Ricasoli Continues on page 6

The Malta Independent on Sunday | 20 October 2019

A greenwash budget Astrid Vella

In recent years politicians have embraced environmental buzzwords, hence the Budget 2020 talked of the circular economy, turning carbon neutral, green businesses etc... owever when a document that dictates government policy for a year proposes halfbaked solutions for the smaller issues while rewarding construction, the most damaging sector, and skirting round very damaging issues for fear of offending sacred cows, it boils down to greenwash. Therefore while Flimkien għal Ambjent Aħjar (FAA) welcomes several proposals in the 2020 Budget, it maintains that seen holistically, the 2020 budget falls far short of ensuring a healthy and sustainable environment for all. Malta’s carbon emissions shot up by 28% since 2005 as a result of increased car use, yet the Budget insists that government will be announcing a date for

ending the importation of petrol and diesel cars next year! FAA welcomes the attempt to achieve cleaner air quality in Malta, however the installation of 200 charging points for electric cars and reduced electricity tariffs for home charging are distant measures when a great many don’t have garages and electric cars are still generally unaffordable. In the immediate term, increasing the tax on high-emission, high engine capacity cars could have subsidised incentives to purchase the more reasonably-priced hybrid cars, which are an excellent transition option to reduce pollution. Is the government reluctant to penalise the fast car fraternity? Extending free school transport to all students and free bus passes to citizens over 75 is a welcome incentive but falls far short of motivating the Maltese public towards public transport instead of private cars. Increasing the road network is not going to lead Malta towards a greener and healthier society yet the budget fails to strengthen public transport with a sound transport plan including small electric busses to provide frequent, clean and reliable transpot. Government owes it to the public to carry out a serious study to identify the overall cost of private car use. This will be an eye-opener, and may make individuals re-think their daily commute. More cars left at home will mean fewer cars on the road and more efficient public transport. Schemes to buy bicycles, scooters and pedelecs are to be extended, but such schemes can only be effective if the infrastructure for safe use of such transport is a priority, not

merely an afterthought once vehicular transport needs have been satisfied. Sea ferries from St Paul’s Bay, Marsascala, Marsaxlokk, St Julian’s and Mellieħa are needed, however they will only move small numbers and are very weather dependent. FAA asks if all ferry berthing rights will be been allocated to one company, like the monopoly in Valletta's harbours, eliminating options which make sea transport a more viable and attractive option. While the increase in cruise ships stopping at the Grand Harbour was quoted with pride, no real measures are being taken to curb the unhealthy air pollution belched by ships’ engines onto the residents of the highly-polluted Inner Harbour area. The budget fails to include measures to ensure construction quality or aesthetics, or to implement the 2012 EU requirement for energy-efficiency in all

new buildings. Incentives for solar panel batteries are dampened by the fact that many panels are being rendered useless, overshadowed by tall buildings. Yet instead of reining in over-development that is causing so many problems, the taxpayer is to subsidise the purchase of new construction machinery with grants of up to €200,000, while property purchases are again incentivised, sacrificing Malta's long-term well-being in order to enrich developers. A limited subsidy for NGO appeals against planning decisions is welcomed, but FAA maintains that in a transparent, well-governed planning system such appeals should be the exception to the rule, as opposed to the current situation where NGOs regularly have to appeal against abusive permits. FAA would welcome a strong drive toward enforcement and penalties against cowboy developers, so that NGOs do not need to

battle against a Planning Authority that fails to ensure a better environment for the islands’ residents. The elephant in the room remains the unregulated extraction of ground-water, which continues unabated, depleting our water table without any effort to eliminate the practice. The Budget refers to a plan to create a public garden in midair, over the Santa Venera tunnels exit, an extremely ambitious and costly project. Yet at a time when government is boasting of a budget surplus for the fifth year in a row, it ignores the 18,000 people who have petitioned for the government to buy back Manoel Island and to turn it into a wooded heritage park on the lines of Central Park – a healthgiving green oasis in an unbroken sea of traffic, cranes and development. Astrid Vella, Flimkien għal Ambjent Aħjar

The Malta Independent on Sunday | 20 October 2019

Budget 2020: the highlights ming pool to continue • Work on second phase of the Ta’ Kandja shooting complex to begin • Announcement on motorsports track in the pipeline • Education campaign promoting sports and the fight against the use of illegal substances • Family Adventure Park slated for Cottonera on disused land

Continued from page 3 Health • Investment in new outpatients building, regional centre in the north • New Primary Healthcare Centre in Gozo • More medicines on the government formula • Family Adventure Park in Cottonera • Investment outpatients building at Mater Dei Hospital, offering higher quality services and a more positive experience • Investment in robotic surgery, essential for certain types of procedures • Investment to be intensified in Primary Healthcare, offering specialised services closer to the community • Renovation of Mount Carmel Hospital to continue while a new acute psychiatric hospital will also be built • New emphasis on community mental healthcare. • New medicines for the treatment of heart conditions, blood circulation, cancer, skin diseases and rare diseases, among others • Programme to eradicate Hepatitis C to be stepped up • Investment in cancer treatment for new patient services and medicines, and a new Clinical Risk Management Unit • National vaccination schedule for infectious diseases to be extended • National Poison Centre to be opened for people exposed to chemicals and toxins • New policy on chronic diseases, physical activity, resilience to antibiotics and sexual health • Services for rape victims to be strengthened

Sport • Malta is preparing for the Small Nation Games to be held here 2023. Sports facilities, including a racetrack, and tennis, squash, weightlifting and handball facilities, will continue to be modernised for that aim • Work on an indoor pool at the Cottonera Sports Complex, Marsascala swim-

Tourism • Replacement of Air Malta fleet over the next five years • New tourism strategy in the making • Preparatory works on new air traffic control centre to continue • Pilot project on green infrastructure at industrial sites • Government seeking to attract drone sector to Malta • The Malta Air Traffic Services to continue investing in the latest airspace management technology • Airport runway and taxiways to be enlarged • Preparatory work on new Air Traffic Control Centre will continue. • Continuation of upgrading facilities at the Grand Harbour’s Pinto 4 and 5 docks and landing facilities at Lascaris Wharf for the cruise liner industry

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Industry • Malta Industrial Parks working on Public Private Partnership to accommodate small businesses in industrial clusters • Schemes to help start-ups extended • Pilot project on green infrastructure to promote installation of PV panels on the rooftops of factories • Old landfill in Marsa to be ‘land mined’ - changed into an industrial, sport and commercial zone Business • The Malta Development Bank negotiating guarantee schemes with more banks for SMEs • MDB consulting with private entities to

provide financing facilities for infrastructural projects with a social dimension Malta Stock Exchange to promote Green Bonds to incentivise projects that safeguard the environment and promote sustainable resources and clean energy New niche markets like Fintech, Regtech and Blockchain to be further explored. Investment in the field of Artificial Intelligence to attract more talent to Malta MITA to work to better strengthen cybersecurity Government looking to commercialise the space sector. consultative document to be published and will serve as the basis for a national strategy Number of measures to assist sectors such the digital arts, game programming and media production

Taxation • No new taxes or tax increases • From next year, VAT/PE numbers can be registered, deregistered or cancelled online, with instant validation • Pensioners will be able to stop paying their provisional taxes every three months, with the tax being deducted from their national pension

• Couples will be able to submit their tax accounts separately • Tax refunds will be issued within six months, not after a year • Malta Enterprise scheme to help businesses employ persons with disabilities

Agriculture and fisheries • Introduction of the Extension Services in agriculture and the Farm Advisory Service to be replicated for fisheries • Department for Agriculture and Fisheries to be restructured • Upgrading of the Hardstanding facility in Marsaxlokk • Restructuring works at the fish market to continue, with modern and more energy-efficient technologies • A plan for the regeneration and modernisation of the Pitkali [vegetable market] will be finalised next year • Government farm at Ghammieri to be converted into Centre for Agricultural Innovation and Research • first National Agricultural Fair to be held next spring. • Investment Aid for agricultural companies to continue • New aid scheme for agricultural and fisheries companies to become more innovative

The Malta Independent on Sunday | 20 October 2019

Pandering to public opinion, lacking serious commitment to address the quality of life freefall This year's budget may be summarised by the government philosophy that money can and should buy happiness. Under the impression that all of Malta and Gozo's woes and ills can be resolved by hard cash, Partit Demokratiku has the unpleasant duty of offering a rude awakening.

Marcus Lauri

Malta’s 2020 Budget is one which panders to public opinion, but which lacks serious commitment to address the causes of the freefall in quality of life for the Maltese. his government is all about façade and is very effective in manipulating public opinion. However, Budget after Budget still show that this government has no will and/or capacity to identify the problems which are affecting society and which grow deeper and more structural with every year that passes. This is a Budget which has thrown a little bit of money here and there as if to appease different categories and interest groups. But whereas a Budget should be one of the best tools a government has to create positive and lasting change and address the roots of society’s many challenges, here we have a cosmetic exercise in most part that is conducted mainly through an accounting exercise. The Labour government has missed, yet again, the opportunity to demonstrate that it understands our society and has a bold and positive vision and plan to better people’s lives fundamentally. Amongst pressing issues which this budget ignored are the degradation of our natural environment, the quality of the air we breathe and the sea around us, the never ending urban sprawl, the worsening situation for teachers and educators, the rising cost of basic necessities with more and more people struggling to make ends meet. This is more of the same from a government that only cares about economic growth, treating every person as a number. The increasing democratic deficit, the dysfunction of our institutions (and in many instances their contempt for the public) and the tarnished reputation Malta has adopted in terms of justice, transparency, accountability and freedom of the press are now established

hallmarks of this government. We note that a solitary mention of the concept of the Circular Economy in the budget is a mere and feeble attempt on public opinion, where Partit Demokratiku has been campaigning for both a transition of Malta’s economy to a circular one and the introduction of a Liveable Wage in various Press Releases. Taking one important aspect of this budget, clearly appealing to a particular interest group concerns the purchase of immovable property, the assistance being offered to people to buy their house favours the sellers, which means that this will keep the exorbitant prices up. The correct policy should attack the other end, aimed at

making the property owners want to sell, not the other way around. Measures such as a tax on vacant properties and fines for leaving buildings half-finished have not been introduced. This year's budget may be summarised by the government philosophy that money can and should buy happiness. Under the impression that all of Malta and Gozo's woes and ills can be resolved by hard cash, Partit Demokratiku has the unpleasant duty of offering a rude awakening. If one acknowledges that quality of life cannot be measured by GDP, then the government's budget is a Roman "Panem et Circenses"; a way to distract the crowd with bread and circuses.

The money which the government is making is ill gotten. It is a result of a gold rush, resulting from the abandonment of regulations and a lack of enforcement, especially when it comes to the environment and overdevelopment. Yet, our resources are finite, and abusing them means that once we have had our injection and our rush, we are in for a rude awakening and a terrible hangover. The Report on the Construction Industry and the Property Market in Malta by KPMG implied a slowdown in the construction sector, especially as regards luxury properties. The government responded by saying it was temporary, and yet, infinite growth is a myth, especially in a small island nation.

One must also question whether such growth in that sector is desirable, especially as the very same report warned against a possible decline in the quality of life, and lower purchasing power for the average citizen. This report comes as the Malta Food Bank Foundation warns that MCAST students are turning to food banks. European data also shows that just under 90,000 people in Malta are on the verge of falling into poverty or social exclusion. Therefore, while it is nice to hand out little financial bonuses while the government gives away public land, sells passports and gives free rein to corrupt businessmen, the truth may very well be that we are facing income inequality and the creation of a new class of out-of-touch elites, who think that they can solve any problem at all with money, while our heritage is traded away on the cheap, while our trees are chopped down and while we barely have any space left in our little island to give up in the name of this hungry economy, on an endless road to nowhere. Partit Demokratiku has long called for Malta to follow in the footsteps of New Zealand and adopt a "wellness index" in place of measuring the country's success by GDP alone. Partit Demokratiku wants to break the link where development is measured solely in terms of economic output and instead focus on a broader index that takes into account investment in education, health, environment and climate protection. Future budgets must reflect these priorities. Marcus Lauri, Partit Demokratiku

The Malta Independent on Sunday | 20 October 2019

Gozo budget and green credentials Justyne Caruana

“Don’t tell me what you value, show me your budget, and I’ll know you what you value.” – Joe Biden, former US Vice President he 2020 Budget presented by Finance Minister Professor Edward Scicluna this week is proof of the Labour Government’s ongoing commitment to empower, encourage and reward each and every citizen to reach greater economic heights. At the same time, wealth generated through entrepreneurship and innovation is being distributed with equity amongst all citizens, particularly the elderly and disadvantaged persons. It provides tangible solutions to environmental issues, strives to create a balance between work and leisure and is further proof of Labour’s longterm vision for a sustainable country that has the common good at heart.

Surplus and growth This budget will cost more than €5 billion and it will the third year running budget with no tax hikes whatsoever. It is also the fifth one projected a surplus while the debt-to-GDP ratio in 2020 will drop to 40.4%. This surplus does not take into consideration the finances gained from the IIP scheme and is expected to be over and above an expected economic growth that should reach 4.3% in real terms. The Labour Government’s successes are indeed phenomenal. Malta’s economic growth has doubled to €14 billion in the last seven years and unemployment has reached an historic record low placing Malta as the third most successful economy in the EU. Gozo’s budget Gozo is also benefitting from this economic boom. Minister Scicluna reiterated that Gozo has become a direct contributor to the national economy and is no longer considered to be a burden on the country’s finances. This is proof of the determination of the Gozo Ministry and the entrepreneurial spirit of us Gozitans. It shows that when given the tools, encouragement and opportunities, we come to the fore and succeed

beyond all expectations in everything that we set our minds to do. Our Prime Minister has made is clear that distribution of wealth needs to be sustainable and all those of goodwill will be rewarded for their hard work. The budget allocation for to the Gozo Ministry for 2020 is proof that hard work and the diligent sustainable use of public funds are well and truly deserving of a further injection of funds. From a total of €40.1 million in 2017, €56.8 in 2019 while the 2020 budget is allocating €67.4 million for Gozo - a substantial increase of 19% over last year. Job creation The list of incentives targeting Gozo is aimed at creating more jobs for Gozitans in Gozo by attracting new niches for increased economic activity. As an example, a fund has been set up for the coming year so that Gozo becomes a destination of excellence for conferences and international meetings. This measure aims at better utilisation of existing and upgraded amenities that can render the island as an ideal venue for international events. This follows the Film Fund introduced in last year’s budget, valorising further Gozo scenic environment and historic sites. All is meant to create more stable jobs in the hospitality and other sectors. We value the contribution given by the private sector and it will also continue to benefit from the Gozo Business Scheme and the Start-up tax credit for new and emerging SMEs will be further enhanced, thus encouraging more businesses to set up shop in Gozo. Permanent link It is also the aim of this Government to create a permanent link between the islands. This link will help Gozo’s economy flourish and will attract more Gozitan youths to work and

settle down on the island. The underwater tunnel will translate into increased economic activity, better wages and equal opportunities for Gozitans who otherwise, would have no option but to settle on the mainland or start a new life abroad. Last December, a pre-information notice was issued on the EU’s official journal and in the next few weeks the pre-qualification questionnaire for interested investors will also be launched. This questionnaire will stipulate necessary technical know-how and is aimed at investors and contractors who are interested in taking up this ambitious and ground-breaking mega-project.

This Governments’ commitment to tackle environmental issues seriously and long-term is top of the agenda. Malta has developed its Draft National Energy and Climate Plan (NECP) in line with the EU’s obligations and the Energy Union and Climate Action.

cars by providing electric bus transport and encouraging electric car, bicycle, scooter and motor cycle sharing. The Park and Ride facility at Ta’ Xhajma will reduce traffic to Mgarr Harbour and transport commuters from the Park and Ride to the Mgarr Passenger Terminal. The building will be green and self sustainable and will be complimented by a fully electric bus fleet. Another project part-financed by EMFF will see the fishing port area of Mgarr reorganized, upgraded and expanded and will address fishermen’s financial sustainability. More berthing space will reduce fuel wastage and improve fishermen’s flexibility and operational efficiency.

Infrastructure The 2020 budget will also include a €10 million allocation for road building and upgrades. A further €11 million from EU funds will go for the building of the reverse osmosis plant in Hondoq. Gozo will no longer need to rely on the submarine pipeline of Cirkewwa and it will ensure that the water table is not further depleted. The Nadur-Mgarr and the Victoria-Marsalforn roads will be built from scratch and ongoing works on 33 residential roads will be finalised by the end of 2020. A further 11 residential roads will also be reconstructed. A new health centre will be built in the next year and the St Joseph home for the elderly and people suffering from dementia will be completed. All these measures, are over and above the list of incentives given through this Budget on a national scale. They will be of great benefit for Gozitan families and businesses so that Gozo will continue to flourish. Labour is committed to create wealth on equal footing for all its citizens – Maltese and Gozitan alike – with one goal in mind – to prosper and advance as one whole nation.

Greening the Islands This week, I had the pleasure to address the Greening the Islands Conference in Palermo. This Conference discussed island dimensions of National Energy and Climate Plans (NECPs) and I explained the EcoGozo Strategy together with the green package announced in last Monday’s budget speech. This Governments’ commitment to tackle environmental issues seriously and long-term is top of the agenda. Malta has developed its Draft National Energy and Climate Plan (NECP) in line with the EU’s obligations and the Energy Union and Climate Action. The areas covered are energy security, internal energy market, energy efficiency, decarbonisation and research, innovation and competitiveness. The Ministry for Gozo is addressing emissions by being partners in the implementation of the 2025 Master Plan related to de-carbonising Gozo under the Sustainable Multimodal Intelligent Transport Hubs Project known as SMITH’s Project. This will identify and set up local transport hubs and is aimed at removing the need of private

Efficiency and sustainability My Ministry has also obtained EU funding to rehabilitate valleys and restore rubble walls across the island. This programme will create or restore dams to provide irrigation water for farmers and maintain or create new wild life habitats. It will also help mitigate soil erosion and restore natural water coursing hindered by debris and accumulated waste. The initial budget allocated for this initiative is €10 million and compliments the New Water Initiative that gives treated second class water free to farmers for irrigation purposes. The Government’s plans for an environmentally sustainable country are tangible and longterm. Indeed, this budget will bring us closer to our goal. It is my aim to transform Gozo into an ecologically friendly, clean and energy-efficient island. Gozo will serve as an example on how hard work, careful planning, determination and a diligent management of funds can create an ecologically sustainable country for the benefit of future generations.

The Malta Independent on Sunday | 20 October 2019

Supporting the vulnerable and needy, while ensuring sustainable economic growth Josef Bugeja

Once again this government has presented a fiscal budget that, while supports the most vulnerable and needy, it also ensures a sustainable economic growth, a fiscal surplus, and that the national debt will decrease to below 40% of the Gross Domestic Product without damaging our competitiveness.

he General Workers’ Union is of the opinion that this was a very positive budget that ensures social mobility, careful spending where needed and rewards those who work hard. The continued gradual implementation of its social measures can guarantee Malta’s economic competitiveness. We believe that while it helps those in need and encourage employees to work harder, it also guarantees further implementation of measures that are in line with the principles of social justice. Does this mean that all the social-measures and social benefits mentioned in this budget are enough to solve all the problems that we are facing in the world of work? Certainly not! We acknowledge the initial step to ensure equality between workers’ pay and working conditions in the private sector. The proposal to pay contract workers the same basic rate as their co-workers within the same workplace is a step in the right direction. We feel that the Government should have been bolder and enacted new legislation to ensure total parity both in pay and in working conditions. While ensuring the same basic pay, contract workers will still not receive access to scale progression, work related allowances, double pay when they work on Sunday, and all the other working condition that directly and unionised workers have! We already took the initiative to write to the Employment Relations Board to initiate formal

We feel that the Government should have been bolder and enacted new legislation to ensure total parity both in pay and in working conditions.

discussions on how we are to implement this proposal while continuing to argue in favour of total parity. We are willing to accept a gradual implementation of the proposal that is on an agreed time frame. This can be done, like we did when all social partners agreed to the gradual increase of the minimum wage, which was spread across a three-year process. If maintaining economic competitivity and sustainability is a concern, a gradual process of implementation is the solution. And it was also proven right with the gradual inclusion of an extra day of leave. In fact once again this was one of our proposals and the government accepted it but is implementing it on a number of years. We’ve always said that tackling precarious work would be a continuous journey because of new forms of employment and as the world of work evolves. In this regard as a Union we are calling for a review of Malta’s labour law and wage regulation orders so that

we would be in a position to halt new kinds of exploitation, or on the other hand, introduce new work conditions to reflect the current reality. Another GWU proposal which the Government accepted and intends to introduce is a reduction from 25% to 15% on the income tax on the first 100 hours of overtime. This measure will reward those who contribute to the organisational and national growth. This will motivates more workers’ to perform overtime. Once again, we welcome the increase in all contributory pensions and supplements. The introduction of eight years of national contributions to parents who take care of their children who suffer from severe diseases is another measure that sustains the most venerable. So is paying the minimum wage to all disabled persons who cannot work, paying the first three days of sick leave for those receiving chemotherapy through the national contribution and guaranteeing that no child whose one of his parents is in employment does not live in poverty. These and other social measures ensure that economic growth and social growth move hand in hand. And guaranteeing decent work also means that workers need to have an employment that pays well. Because of this, we see it as a very positive measure the VAT removal on educational services that are provided by accredited institutions. This measure will go a long way to incentivise workers to seek additional learning that can achieve personal development

at work. Education is always the key to have a workforce that is able to tackle future challenges. We are viewing this budget as an opportunity to establish a long-term plan on how to develop our urban and rural zones, improve Malta’s infrastructure especially in regard of essential utility services, and also a total conversion to the use of renewable energy both for domestic and industrial consumption. It is our opinion that a total conversion for renewable energy can provide an opportunity to create new industries and new work places in what is called the green economy. A localised ‘Green New Deal’ would provide an opportunity to generate output that is considered more valuable to our GDP. In this context, while we believe that investors should be given all the necessary assistance to create wealth and expand their business, we also believe that workers should have all the protection so that would not end up as collateral victims. Once again the GWU reiterate its call for a mandatory union membership. Malta’s Constitutional principles would be futile if the country's laws do not provide for an automatic guarantee to the right of union membership. Both political parties already agree with our proposal. Therefore Maltese workers are waiting for the political class in Parliament to fully implement the GWU’s proposal. Josef Bugeja, General Workers’ Union Secretary General

Some steps in the right direction, long way to go David Xuereb

The Malta Chamber terms the Budget for 2020 as a mixed bag. n fact, Malta’s foremost employer organization feels that while some steps in the right direction were made, these were not as bold as desired. In fact, it is safe to say that the Budget was very strong on elements of social nature, mild on issues related to the environmental but more could be done on the economic side of things. Government was sensitive to the requests and proposals of the Chamber on a number of matters, yet fell short of taking the opportunity to make a notable impact in certain areas that really require serious attention in the immediate term.

The Chamber appreciated the fact that Government refrained from introducing any surprise measures or new burdens on businesses. This has been an issue in the past, and the Chamber is pleased that Government has heeded the Chamber’s calls of once again, not surprising businesses at such a delicate time of year, to the detriment of business momentum. At the same time, in the light of Malta’s recent movement in the wrong direction in the World Economic Forum’s Global Competitiveness Index by two places, the Chamber expected more investment in resources to strengthen the shortcomings exposed, namely the soundness of institutions, skills, market structure and financial systems. The Chamber has consistently highlighted these shortcomings and continues to call for measures to ensure that key institutions in the island are adequately equipped and resourced with the right professional people to guide the country towards better competitiveness ranking required by Malta’s economic ambitions as a global player. The Chamber once again insists with Government, to prioritise Malta’s com-

petitiveness and enhance the country’s attractiveness to investors. Malta cannot afford to erode its inherent competitive advantage further and delay addressing fundamental aspects of competitiveness, in the interest of preserving its current success. With reference to specific sectors, the Chamber observed references to incentivising new sectors such as Tech, Aviation, Start-Ups and Video Game Development and eSports, as well as support to the manufacturing industry. However, the Chamber is compelled to note the addition of another day of vacation leave in lieu of public holidays falling on a weekend. In the light of the fact that this is the third day of additional leave being granted during this legislature, the Chamber reiterates its position that this will further intensify cost-competitive considerations for Maltese companies, which are increasing to levels of concern particularly to those economic sectors which are expanding at below-average pace. At the same time, the Chamber notes the introduction of a 15 per cent flat tax rate on the first 100 hours of overtime for those workers earning up to €20,000. Whilst this is regarded as a

step in the right direction, the Chamber looks forward to further “make-workpay” incentives to help alleviate the current shortage of labour and skills being faced by all employers on the island. Further to Chamber calls for reforms in Rent Laws and the Construction industry, the Chamber welcomed the announced tax incentive for construction companies to modernise their equipment. The Chamber also noted the support measures for people to move from rented to owned property and the extended exemption of duty on documents on the first €175,000 of the property value. Nevertheless, the Chamber expects further measures that strengthen the quality and reputation of the construction industry. Likewise, the Chamber expects the issues pertaining to Rent Laws to be addressed. In the coming days, the Chamber shall be seeking clarifications on a number of the measures and initiatives announced during the Budget speech as it will endeavour with further discussions with all stakeholders. Perit David Xuereb, President of the Malta Chamber