The Malta Institute of Management (MIM) outlined its basic principle that the government should not compete with industry in areas where the private sector is already offering the service, as this militates against a level playing field.
In its response to the government’s pre-budget document, MIM said one example is education and training, an area in which MIM complains of discrimination against non-state funded organisations. For instance, government scholarships for Masters and Doctoral degrees are limited to students at the University of Malta, to the exclusion of other institutions. Furthermore, state-funded training institutions such as the OHSA, the ETC and MCAST create a situation of unfair competition. As such, MIM argues that the government should support and strengthen the non-governmental training industry, and not vice-versa.
The same also applies to gender equality. All initiatives should be undertaken by supporting existing non-governmental and private institutions, and inducing the creation of new private structures where necessary.
Regarding the Polluter Pays Principle, MIM expressed concern that the environment may be used as a feeble cover-up for taxation. Therefore, money generated from environmental taxation needs to be used solely for environmental purposes.
On the subject of taxation, the institute suggested that any revision of the tax bands should not be limited to one income group, but should be equitably spread over all groups. MIM also called for greater accountability, claiming that taxpayers should know what percentage of tax money goes towards education, health, roads, etc. On a more positive note, MIM praised as “brave” the government’s admission that the National Insurance system promotes the need for an undeclared economy, and is a deterrent for women to work part-time. The government’s proposed measure, MIM added, would not result in a large loss, as it would be offset by those who would seek employment, along with the regularisation of those who are currently working undeclared.
On energy, MIM questioned the wisdom of providing grants which “encourage and finance pollution”. Instead, the institute recommends support mechanisms to help families decrease energy consumption.
When it comes to pensions, MIM reiterated its position that it is against the introduction of the second pillar on a mandatory basis. However, it strongly supported the recognition of married women working in family self-employed businesses. MIM also called for the abolition of travel taxes, as well as the alignment of government working hours with those of the private industry.