An MCESD meeting was called yesterday to discuss various topics – with the eco-tax one of the top priorities. Officials from the various groups, as well as Prime Minister Lawrence Gonzi, gave their comments to this newspaper after the meeting and expressed their views on what had been discussed.

Chamber of Small Business Enterprises (GRTU) Director General Vince Farrugia insisted that the new eco-tax would place an unsustainable burden on the cash flow of local entrepreneurs.

“This tax will place a new burden on the stocks businesses have at the moment which they simply cannot pay,” he said. “Just because we have talks with the government, but are still left with the headache of not knowing what exactly will be due from the businessman for stocks currently held, doesn’t mean anything.”

It is absurd to introduce a tax on the local business community in such a short time, said Mr Farrugia. “We are making two points with the government,” he explained. “The first is that government should postpone the tax’s introduction until 1 January, because it has not given enough lead time, and the second is that businesses should not be taxed on their present stocks, unless they are sold.

“As we did with levies, we are asking the government to postpone the tax’s introduction to a realistic date,then everyone will have the time needed to prepare for it. In this way, businesses will have time to get rid of their stocks and only start re-stocking after 1 January. It’s not fair to expect someone to pay a tax for which he hasn’t made the necessary projections.”

Asked by TMID if the comment: “they simply will not pay the tax” meant that they had a plan of action if government goes ahead with the tax as planned, Mr Farrugia said that it is not a question of action but rather, as indicated by surveys of the chamber’s members, that members simply do not have the funds available to hand over the money for this lightening tax.

The environment has been on the agenda for a long time, he said. It will not be the end of the world if the eco-tax is postponed for a few months. Anything that affects our competitiveness should first be agreed upon and then implemented.

General Workers’ Union secretary general Tony Zarb said that at last the government finally seems to understand that its attitude towards the social partners had to change and it is showing a new line of treatment.

“We made it clear that the eco-tax is going to burden workers and pensioners. The prime minister said that a solution may be found to ease the burden of this tax on this sector of society,” he said.

After listening to the social partners’ perspective at the meeting, Prime Minister Lawrence Gonzi said, “The issue is not whether or not the law will be passed, but rather when.”

He explained that discussions with organisations and economic operators are presently being held which can lead to an implementation methodology different to the one planned. This should mean that the impact of the law may be mitigated.

The prime minister said he could not commit himself to a date of implementation until the consultation process with those who will eventually implement the law is concluded.

The process of discussion was clarified, said Union Haddiema Maghqudin secretary general Gejtu Vella. “We once again addressed the need for a social pact to avoid the government working autonomously and burdening the workers. If a social pact is not reached, the government will continue to burden the people and therefore a social pact is the only way forward to a stable economy,” he concluded.