Although proposals were made on possible tax reforms, these will not be the main measures of this year’s budget – instead the principle theme of Budget 2008 will be closely linked to this year’s motto: Strengthening the Family (Familji fis-Sod), parliamentary secretary in the Finance Ministry Tonio Fenech said.

Mr Fenech was giving comments to the press after a meeting with members of the Malta Council for Economic and Social Development (MCESD) held yesterday afternoon.

He explained that, during the meeting, members of the MCESD and the government put forward their last proposals and the government discussed what the country can afford.

“Positive proposals were put forward – on the whole I can say that it was a very good meeting,” he said.

Mr Fenech said that the cost of living increase might be around Lm1.50 (EUR3.49) a week. “The government has prepared a report justifying this amount and this will presented later on,” he said.

Mr Fenech said that a final meeting will be held with the parliamentary group today before the final document is drawn up.

Another proposal that was discussed during the meeting was the reintroduction of compensation for public holidays that fall on a weekend.

“Both the General Workers Union and the Union Haddiema Maghqudin brought this up; however the government strongly believes that the country’s competitiveness should be kept in mind,” he said.

Malta has one of the highest rates of public holidays, he pointed out.

“We are not considering reintroducing compensation for public holidays – we need to keep the country’s competitiveness at its highest,” said Mr Fenech.

When asked about the social pact, the parliamentary secretary said that it was a pity that it was not signed as it would have made everyone’s life easier but he added that since one union did not sign it, the pact does not hold.

“This budget will help all those who have worked hard this past year,” he said.