AD’s deputy chairperson and Birkirkara local councillor Mario Mallia disapproved the lack of consultation which characterised this decision.

“It is a shame that the Local Councils’ Association was not even consulted before the ministry decided to cut their spending power. This lack of consultation shows a lack of respect for local democracy.

“These cuts hinder environmental and social initiatives at local level. In order to make a difference in people's life the social dimension of local government must be strengthened rather than weakened. The fact that the Ministry of Justice and Home Affairs is saying that half of announced cuts would consist of a withdrawal of the funds allocated for e-government projects demonstrates that these cuts would undermine the social role of local councils. Bridging the digital divide should be one of the priorities at local level.

“While local councils are duty bound to spend funds allocated by the government diligently, this decrease in funds will weaken local government. The government should also discuss with the local councils association a long term plan to make local government financially sustainable. This plan should also include innovative ways through which local councils would be empowered to raise funds. The introduction of fines for the infringement of environmental regulations, especially in the construction sector, and the application of the polluter pays principle at the local level should be considered.

“In the short term the government should consider that councils had already projected their goals for their financial year, which ends next March with the previous budget in mind and a reduction of five per cent would be detrimental. One should also consider that the increase of VAT from 15 per cent to 18 per cent also resulted in extra costs for local councils,” Mr Mallia said.