Over the last two years the government has adopted a new approach towards the budget. Whereas until a few years ago the public was kept in suspense until the big day, today there is a pre-budget document which is published for consultation.

In the last few days, consultation meetings have also been initiated with the general public so that the government receives feedback on its proposals.

As the title of the document implies (Securing our future), the government is proposing reforms that will address certain issues in the long term. In this document the government is not only addressing economic growth or fiscal responsibility but is proposing reforms to address social development.

One particular issue is the concept of making work pay. Much has been said about this, especially where women are concerned, but so far little has been done. Last year those women who returned to work after an absence of five years were exempted from paying tax during the first year in employment.

Although this was a step in the right direction, it was not enough. Malta is still far away from reaching the Lisbon Strategy, i.e. that by 2010 the rate of female employment is to go up to 60 per cent. Currently it is still approximately around 34 per cent.

Although many mention childcare as one of the major hurdles for women to overcome in order to remain in the workforce, making employment economically feasible may be a more important issue. A woman needs child care services for a relatively short period in her working life whereas economical feasibility is practically life-long.

In fact, it is common knowledge that although the participation of women in the labour market has stopped at 34 per cent, the rate of women working in the black economy is phenomenal. The reason for this being that it does not pay to work.

Until now, employees whose part-time work is their principle employment, pay a fixed rate in National Insurance contributions, which is over Lm5 a week, while those who are self-employed and earn more than Lm394 pay at a rate of over Lm9. Statistics show that women are the majority of employees whose part-time work is their main employment. Therefore the current situation is not encouraging women who need to work on a part-time basis, to remain in the labour market, especially those having young children or elderly parents.

This situation has a ripple effect as women are the ones who end up living below – or make it just above – the poverty line.

Given this reason, the government is proposing changing the current minimum National Insurance contribution to a proportional system such that the current system is changed, thus linking the contribution paid to the income earned. In this way, the government is putting into practice one of the priorities identified in the National Action Plan for Employment, that is, the concept of making work pay.

Another situation that the government is looking into is the recognition of married women working in family self-employed businesses. Self-employed persons cannot declare their spouse as working within their business so as to stop them from benefiting from a wider non-taxable income when both individuals declare their income separately.

However, while presenting inefficiencies in terms of gains to government revenue, this constraint is also posing a disadvantage to those women who spend a lifetime working in the family business and have nothing to show for it, not even a minimum pension when they retire.

By giving recognition to family members, who in the majority are the wives or daughters, it is hoped that this measure will encourage more part-time and full-time activity by women in the labour market.

With the proposals in this year’s pre-budget document, the PN in government is enhancing its belief in social justice and once again is putting the people at the centre of its policies. These proposals will definitely encourage more people to seek personal development. In the case of the strategy addressed at women in the labour market, I’m sure this will encourage more participation, thus ensuring a secure future for us women.

Michelle Mallia is president of the Nationalist Party Women’s Movement