Budget makes no reference to serious problems of the education sector - MUT

The Malta Union of Teacher has said that the budget is merely a continuation of the work done by the government in the education sector but made "no reference to the serious problems" facing the sector. 

In its initial reaction following the budget, the union noted positive measures in the 'My Journey' initiative, the strengthening of teaching foreign languages, and the studying of the link between secondary and post-secondary education. 

The mention to pedagogical training for educations; and the free payment of MATSEC examinations was also a positive step. 

However, the MUT expressed its dismayed that the budget failed to address the current shortage in the teaching sector. 

"The budget does not make any investment so children choose the educators profession and there is no reference to the assistance needed for non-state schools to continue providing a good service," the MUT said also noting its disappointment with the lack of measures ensuring better security at schools.

"The MUT hopes that there will be answers to these problems the detailed estimates and speeches by Ministry for Education and Employment."

 

The Budget is a reflection of robust economic performance but a longer term vision is Required - MEA

The Malta Employer's Association praised initiatives brought about robust economic performance but said that the budget indicated a lack of longer-term version, particularly in the terms of the labour market and education.

Lamenting that the budget "should have projected a more concrete vision for a sustainable economy", the MEA noted current pressures on wages due to labour shortages and the increase of leave days may result in a wage spiral as companies seek to shift costs on consumers, and thusly increase inflation, which is project to increase to 1.9% in 2019.

It also said that the 1-day increase was unnecessary, especially given that t Malta already has among the highest number of days of optional leave and public holiday

The MEA also cautioned against growth which is the result of a sudden increase in population, adding that this required a comprehensive strategy to cater for the socio-economic impact of such a phenomenon, including investment in the necessary physical and social infrastructure to make such growth sustainable, noting that the domestic labour market generates 3000 jobs per year while the demand is around 11,000. 

"One weakness of the budget is an insufficient emphasis on education. We desperately need to enhance skills to increase output per capita, rather than increasing the labour force," the MEA said.

On a positive note, the MEA did welcome the waste to energy initiative, the setting up of Tech MT, while adding that the Seed Investment Scheme and the idea of a Start-up Visa can be a good initiative to promote entrepreneurship. 

It also praised the measures proposed for the property market; while adding that there were " a number of good measures aimed at vulnerable groups, most notably pensioners."

"It remains to be seen whether these measures will improve the purchasing power and quality of life of this growing segment. The budget also seeks to spread a number of focused benefits that target low-income families. "

 

Chamber welcomes regulatory measures and plans for entrepreneurship 

The Chamber of Commerce has welcomed measures seeking to strengthen national structures and administrative units responsible for border controls and market surveillance, and praised the decision not introduce any new taxes adding that this was to the "advantage of business momentum."

The measures aimed at enhancing a national action plan for entrepreneurship, the creation of Tech MT, incentives for private pensions, and the work done in transport and infrastructure were also welcomed.

On education, the Chamber did praise that some measures were made to improve the skills within the labour market. 

The Chamber did express some disappointment with the extra day of leave introduced, adding that it was necessary to assess the newly announced conditions after consulting with users and providers. 

‘A reflection of economic success’ – GWU 

The General Workers Union (GWU) hailed the measures in the 2019 Budget as a “reflection of economic success”.

It continued by explaining that this is the ‘social justice’ kind of politics that allows an ever-growing economy to reach the citizen - measures that “leave more money in the pockets of the people.”

“The increase in pensions, strengthening of social benefits, increased benefits for the disabled, the increase in children’s’ allowance, extending the measure of public transport for students, the work-benefit for the disciplined forces, the extension of schemes for those who buy their first and second home, as well as measures designed to increase the amount of jobs in Gozo are all evidence of this economic expansion.”

The measures that are to be implemented are “in line with the requests” of the GWU, particular those that have to do with social housing and the rental market, which will serve as safeguards for those who rent. They are also satisfied that the government has, once again, kept its word and have not only added another leave day, but have also allocated finances to repair past injustices to the former dockers and police force.

“It is also encouraging that the Government is seeking further investment opportunities to ensure a level of high-quality life even for the future, despite gaining economic and financial success.”

The union also applauded advances in the digital sector with regards to the creation of TechMT, and the creation of a development center for eSports.

“The GWU therefore says that this was a positive budget that considers the developments taking place in our country. While watching today’s needs, strengthens the foundations for the future. Year after another the government is successful in reducing the impact on the national debt to gross domestic product.”

 

Budget addresses pockets of society, lacks long-term vision - UHM 

UHM – Voice of the Workers said the budget addresses certain pockets of society but lacks long-term economic vision.

It noted several positive measures, such as the pensions increase, the COLA, the additional day of leave, free MATSEC exams and free cancer medicine.

The union, however, said it was disappointed because a number of proposals it had put forward were not included in the budget.

The union had called for protection for workers’ salaries, adding that nothing was being done to improve the quality of jobs and income.

It also said it was against the Home Equity Release, because pensioners would have to sell their home to make up for a lack of pension money.

The union said the €400 million surplus was positive but said it would have expected the wealth to be distributed more equally. 

 

MDA’s reaction to Budget

The Malta Developers Association (MDA) considers the 2019 Budget announced yesterday as one that reflects the economic progress Malta is making and is a good effort towards ensuring that everyone benefits from this progress. MDA affirms its belief that the increase in the minimum wage should also reflect the country’s positive economic trend.

MDA notes with satisfaction that a number of incentives for property buyers that were introduced in the past on the suggestion of the MDA – such as those relating to first- and second-time buyers, property in UCA areas and in Gozo – are going to be continued.

Other new suggestions by the MDA have also been taken up by government, such as the need for incentivising privately owned parking facilities as well as incentivising landlords to make longer leases and other measures to ensure that there is a provision of affordable housing and affordable rents.

It also welcomes the new scheme that is intended to help those who are over 40 to be able to buy property by overcoming the difficulties that they face – because of their age – when acquiring a bank loan.

 

While the MDA’s reaction to the Budget is very positive, it regrets that Government has not adopted its suggestions regarding incentives for energy-saving measures in buildings and incentives to help contractors to buy new environment friendly equipment, rather than importing old, second-hand machinery that is usually a source of pollution.