The budget is in a week’s time, what should the people be expecting?

One of our key tasks is the preparation of proposals for the budget. We present three documents; one from the MCESD core group; one from the Gozo Regional Committee; and one from civil society. They are basically a compilation of the proposals made by social partners. Naturally, there are different interests and opinions, but I can say that in my experience I have found that these groups do not merely focus on their own niche, rather they are all suggesting things that are for the common good of the country.

For this upcoming budget, I believe that the general opinion is that there should be an emphasis on the question involving the rental market, which is affecting both the worker and the employer. Let’s use foreign workers as an example. Those who aren’t on a high wage either end up having to live in a flat with six other people or leave the country. In fact, you have about 40% of foreign workers on lower wages wholeave the country after three years. They’re sort saying “if I have problems in my country, and I have problems in this country, I would rather be at home.” Needless to say, we are eagerly waiting for the white paper on the subject, but I am informed something tangible is being presented in the budget.

The second focus, which is a recurrent theme every year, is the issue of poverty. When we talk about people who are living in poverty, which is actually quite low at the moment at around 0.3% to 0.6%, we are talking about relative poverty. Beyond unions, employers also agree that employees should not be suffering to make ends meet. Ultimately there have been a lot of suggestions to solve the matter.

With regards to Gozo, I think it mostly boils down to accessibility. They have had long-standing issues with this. Tourism is improving on the island but accessibility has remained the same. There was the promise of a fast ferry service, but that ended up in the courts. There are also issues with the lack of web connectivity to Gozo.

 

How many of MCESD’s proposals get accepted?

Right after the budget on Monday 22 October, we’ll have three more meetings involving the three documents we have produced. Here our consultants get what was announced in the budget and compare it with what was proposed. Here they’re split into three columns, one which involves those that were included, another which have been put on the table but have been partially accepted, and those which are completely rejected by the government. At the end of the day, MCESD is an advisory body.

I would say a third get approved; about half get pushed forward; the rest get rejected.

 

As you mentioned rent is becoming a serious issue, has MCESD examined the context in terms of locals?

Yes, it is definitely a big problem for the locals too. Unfortunately, economic wealth and a surplus do produce their own problems. We have a lot of families who are being driven out of their homes because of rising rental prices and a lack of protection. We are hoping that the white paper would solve this. There is not a proper system in place and certain landlords seem to do as they please, producing different contracts and different standards. We need to look at other countries like Germany where the tenants have been provided with certain protection, such as increases in rent being relative to the retail price index.

 

On relative poverty, what do you think can be introduced to effectively deal with the problem?

We are going to start discussing the introduction of a basic living income, which was proposed in the electoral manifesto. I have been given instructions to start looking into this and studying its potential introduction. Naturally, this will happen only after extensive consultation and analysis of its effects with experts. Currently, the idea is that of adopting a system which provides fiscal incentives to companies. This will be a radical change, but this is how you can solve relative poverty. The increases in the minimum wage are good, and the inclusion of a revision every four years is positive, but in my own personal opinion, a basic living income has been shown to work where it has been practiced.

 

Basic living income can be quite a divisive proposal; what is the general opinion on the subject, especially from the workers and employers unions?

As I said earlier, in my opinion, I am finding that these groups are no longer on the opposite sides of the debate, - at one point they even used to sit on opposite sides of the room! In five years, maybe one debate went a bit of control.

 

The government has been making strides in the field of Blockchain, with the Prime Minister regularly referencing artificial intelligence in his addresses. What is the MCESD’s stance on the matter?

We haven’t looked into it, but we have discussed it as a general subject. Personally, many social partners and stakeholders have insisted at the council that the country must begin looking at long-term strategies rather than focusing on short-term five-year manifesto-based policies according to the administration in power. The country needs to look forward given that it will not continue producing a surplus forever, so we need to ensure that our economy is strong and can withstand shocks. For example, with the gaming and financial services sector, which is 30% of GDP. Let’s say the EU decides to clamp down tax, we need to ensure that the country has other sectors to be resistant to any economic shocks, so the government’s intention to explore these industries is positive.

 

Traffic, as survey regularly show, is an issue greatly affecting the Maltese people.  Significant investment will be made through the €700m project and the creation of Infrastructure Malta. Do you think it is enough? And should more proposals be included?

What I can say is that in our council meetings the question surrounding traffic management has been discussed; we have even discussed the matter with Transport Minister Ian Borg. We presented a document written by experts in the field and our own consultants, which may annoy some people, but we cannot improve the situation without making sacrifices. I’m not talking about extreme measures or anything like that, but while the improvement in road infrastructure is taking place, these are only short-term solutions. We need to start looking into other modes of transport, potentially an underground.

 

The studies we have conducted show that traffic had serious financial consequences and is costing the economy more than €30 million a year due to many problems. Not to mention the questions surrounding what traffic does for stress levels.

This is why the MCESD has made sustainable development a primary focus. For example, even with foreign workers, questions need to be asked about how many people can this small country take? The government has said it needs thousands of more foreign workers, but we need to see where they are going to stay? Are there even enough places? There are people even renting out beds! These people will most likely also get a car, so this is also going to affect the traffic problem. There are certainly many advantages of introducing foreign workers, but we also need to ensure that development is sustainable.

Malta has dropped in the UN Sustainability ranking, which is serious. This is why we have been charged with the creation of a sustainability board. I want to make it clear that I want this board to be balanced, if not I will leave my position. If we want to take this seriously, we need to give a proper voice to experts in the field.

Something which the MCESD has focused on is sustainable development. How many people can this country take?  The government has been saying that it needs thousands more .

We are also looking to create a national productivity board, as stipulated by the EU, to see how the budget is being implemented.

 

So, what is the one thing you feel must be included in this year’s budget?

Definitely, for myself, issues surrounding rent is my number one priority. The second would be that I simply cannot accept that people are not making ends meet when we are doing well as a country. Listen, it should be clear that on the whole, the country is benefitting greatly from economic growth; but I come from a trade unionism background so I’m never happy. My heart will always be focused on the social aspect, which is why I am happy that the EU has even started discussing the social pillar, even though I think it should be the foundation.