Alternattiva Demokratika has described government’s pre-budget document as disappointing.
Chairperson Dr Harry Vassallo stated: “This document is very long on rhetoric but short on specific initiatives and commitments. It seems the government is either completely out-of-touch with people’s concerns, or is simply using this document to lower people’s expectations before the budget is announced. In either of these cases the government is making a mockery of the pre-budget exercise. Unlike the pre-budget document of last year, this one even fails to mention what the additional millions the government has available for next year’s budget are. Why all this secrecy?”
Green Party spokesperson on Finance and the Economy, Edward Fenech said, “It is simply impossible for us to give the thumbs-up to this pre-budget document, because it commits to nothing. A serious pre-budget document would state what the additional resources available to government are and then enlist the policy options available and the cost of these proposals. This pre-budget document does nothing of the sort. It is a long read with no conclusion.”
Mr Fenech added, “While we welcome the fact that our insistence during the last two years that the government should devote serious resources to those raising children seems to have been finally heard, the pre-budget document fails very miserably to meet people’s expectations and needs. Specifically, we had recommended a special child allowance of Lm160 per child and an increase in parental leave from 13 weeks to 26 weeks, with the increase to be paid by the government, as a flat weekly allowance of Lm70. What the pre-budget document is proposing is an unspecified change in children’s allowance and a miserable increase in maternity leave of just week.”
Mr Fenech then referred to the housing situation saying “the pre-budget document clearly demonstrates that the government has no intention of dealing courageously with the problems in this sector. On the one hand, and despite numerous promises of White Papers by Minister Cristina, nothing will be done about the rent laws. On the other hand, the government fails to acknowledge that the only sustainable and affordable solution to housing is having the right incentives in place to put to good use vacant property stock of over 40,000 units. Instead the pre-budget document talks about selective subsidies to the poor and nothing for the middle class. The winners in this policy vacuum are once again property hoarders and building contractors. In the proposals AD presented to the Prime Minister, it challenged the government to start awarding some compensation to those who have been suffering the injustices of the rent laws for six decades. The government has clearly ignored our challenge to the financial detriment of thousands who have been waiting for justice.”
“The pre-budget document dedicates just one sentence to the very critical problems we are facing because of the lack of a proper public transport. Instead there is talk of subsidizing hybrid cars. The lack of vision in this sphere is verging on complete blindness.
“Shockingly, there is no mention whatsoever of the electricity surcharge and its effect on the cost of living and disposable income. We have already expressed our disagreement with the Opposition’s proposal to arbitrarily halve the surcharge, as we deem this proposal both financially unaffordable and environmentally irresponsible. Alternatively we have proposed that the rate of surcharge should be varied according to consumption so that those making energy savings pay a lower percentage rate of surcharge, while those who make no effort to be efficient pay a higher rate of surcharge. This proposal is cost neutral for the government but they have not had the good sense to take up our proposal.”
“Remarkably, a 55 page-ending document devotes just two-and-a-half pages to tourism and does not propose anything concrete in this sector, In our proposals we identified that a major competitive disadvantage faced by the tourism sector is the high rate of VAT compared to certain competing destinations. The government cannot and should not continue ignoring this problem. We have suggested that the government introduces a reduced rate of VAT on restaurants and tourist services of 12 per cent, while stepping up inspections on VAT-evasion in this sector that are serious and put honest tax payers at an unfair disadvantage to the cheats. This proposal has been ignored. Instead the pre-budget document talks of blue flag beaches.”
“Then of course we have the customary rhetoric about Gozo, that Gozitans themselves have grown accustomed to ignore. There is no alternative economic vision for Gozo. Indeed the pre-budget document admits to the dependence on the island on the building industry. With this government, Gozo is locked in a downward spiral of political patronage, economic dependency on government employment and environmental degradation resulting from over-development.”
Dr Harry Vassallo concluded: “This pre-budget document fails to meet even the standard reached in last year’s exercise. The lack of vision and courage in this document is very serious. It comes as no surprise that the document has received such a lukewarm response from the social partners and civil society.