The Malta Independent 30 April 2024, Tuesday
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Ideas For debate

Malta Independent Saturday, 9 February 2008, 00:00 Last update: about 17 years ago

Granted. That a party in government comes up with what Prime Minister Lawrence Gonzi has described as an economic stimulus package on the second day of an election campaign does give the impression that it is a vote-catching exercise. But then, which party does not want to gain more votes?

Last Tuesday, Dr Gonzi unveiled a set of incentives aimed to reward people for working more and at the same time stimulating economic growth. Among them is a revision of the tax bands to reduce the maximum payable from 35 per cent to 25 per cent to people earning less than e60,000 a year and that working mothers will be granted a one-year tax amnesty for each of their children.

Why did the government wait for the election campaign to start before proposing such goodies?

In his answer, the Prime Minister explained that such proposals would build on the last two budgets, in which the government implemented a series of generous initiatives that have given the people more spending power and, as such, helped to boost the economy. The new package would be a continuation of what was given in the last two years, he said, adding that they did not come out of the blue but were a result of serious studying of the country’s recent progress.

While such proposals, if implemented, would be most welcome by the working population as they would mean more money for workers – the Prime Minister later said it has been calculated that some e46 million will remain in people’s pockets – and an encouragement for women to work, one has to make sure not to upset the improvement that Malta has registered in its control of the deficit, one of the criteria that were needed for Malta to be accepted in the eurozone.

Dr Gonzi’s proposals were welcomed with open arms by the constituted bodies, saying that they will be a boost to further economic growth. Some, including the Union Haddiema Maghqudin through its Secretary General Gejtu Vella, have warned the government to be careful so as not to take Malta back to the time when its deficit was going through the roof, but on the whole they accepted these proposals as being in the right direction.

Only perennial skeptics found complete fault with them and think they will lead to disaster.

What some fail to notice is that it is the outgoing government that is coming up with proposals that are generating a healthy debate. It is the government which is on the attack and coming up with the fresher ideas. It is the government which is forward-looking and thinking of how to improve the general well-being.

The Malta Labour Party has proposed nothing of the sort, preferring to say it will re-open negotiations on Malta’s package with the European Union and introducing a reception class in between kindergarten and primary schooling. Both proposals have been shot down as soon as they were made public.

Most constituted bodies were in the forefront to promote Malta’s membership in the European Union and do not want to return to the days when the issue was wide open and creating an uncertainty from which everyone suffered. With regard to the upheaval wanted by Labour in the education system, the Malta Union of Teachers slammed the idea as being a waste of time, apart from the other physical, logistical and financial problems that it would create.

What the Nationalist Party is suggesting is a set of measures that have been widely accepted as being beneficial for the working population and the economy in general. Fair enough, they will have to be adjusted and fine-tuned to suit the country’s needs, within the Malta Council for Economic and Social Development, before they are implemented. But these are the ideas that should be put forward for public analysis and debate.

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