Last week in getting down to business, Finance Minister Edward Scicluna read a rather long budget speech in Parliament.  This was immediately followed by a stage managed press conference addressed by the Prime Minister flanked by senior ministers, ministers, parliamentary secretaries and party officials in a large purposely built structure in St. George’s Square opposite Parliament.

Under the spotlight the Prime Minister answered questions posed by reporters and politely brushed aside inquisitive questions by others.  That evening could not have ended better. All was falling into place.  It was becoming late and the show had to come to an end.  Bright focused lights on the main stage were dimmed and within minutes switched off, microphones unplugged, people left in haste the auditorium while media reporters rushed to their respective offices to conclude their news reports with the latest comments and sound bites in time for publication.  

During the budget speech PL members of parliament clapped, thumped on their benches and cheered while PN members of parliament waited anxiously the details of the promised roadmap which had to shift Malta’s economic direction.     

At the end of the budget speech the promised change in direction was finally clearly spelt out. Nothing left to imagination or chance.  No change in direction was announced. Not even a cosmetic shift was introduced, in a nutshell the budget speech revealed that the new Government will continue to build on the sound and solid foundations set by the previous administration.   

After a day of activities full of hustle and bustle driving home in traffic free streets I played one of my favourite CD - Relax Daily B-Sides No 1 until unexpectedly I had to stop and queue in a single lane in a major road as some workers were setting a billboard promoting 2014 budget measures.

A few days after the budget speech there was no beating round the bush, former finance minister Mr TonioFenech credited Prof Edward Scicluna, Minister for Finance with six points out of ten when asked to rate the budget for 2014.  The budget for 2014 includes a wide range of measures 250 in all.  Albeit some are so insignificant that one can hardly notice any change while other measures are still under wraps and may need some time to be revealed to the general public. Hopefully we will have no surprises or different versions from the ones we have witnessed in the budget speech.  The devil is always in the detail. Let me take two issues which are not clear at all. The 25% reduction in the electricity bills PL promise to all households is now being changed to an average reduction of 25% to all households. This is significantly different. Additionally it is not as yet clear whether the 25% reduction will be worked out after the eco-reduction from the water and electricity family bills. Hope this will not turn into a play on words.

People flocked and switched their political allegiances in exchange for a reduction in their water and electricity bills. To be fair this was not the only issue which pushed people to switch to the other side of the fence.

Another budget measure which is not clear is the increase in road license.  It is not clear whether a €10.00 yearly increase is the applicable budget measure for all cars which will come into force next year.  

Going back to Fenech’s quick reply he also rated the Budget with two out of ten when the Budget is measured for the expected deliverables.  

Indeed irrespective of the political beliefs of any objective person the deliverables are the most significant characteristics derived from the budget measures. While most measures will achieve the desired effects other measures may need to be adjusted. The use of the stick in addition to the proposed carrot may become useful if budget measures particularly those intended to address the long term unemployed.  The measure which caters for workers who have been unemployed for more than two years is to be encouraged. On paper the measure should encourage unemployed workers to enter into the labour market.    

In reality, human nature being what it is, workers in employment receiving the minimum wage may find it difficult to work side by side a new colleague earning a the same wage in addition to social benefits for three consecutive years for coming into to world of work.

Workers on low wages may learn that earning a bounty financial social benefit for coming into the world of work may attract them to make use of this incentive too. The number of workers earning minimum wage and slightly higher wages is about 10,000 workers. This measure may need to be under constant scrutiny away from the hands of politically appointed persons. Unless we strike oil and thus can support a substantially increase in unemployment and as a result a higher unemployment benefit expenditure this measure must be monitored and gauged for effectiveness.   Making work pay is an objective which should find support and total commitment from all stakeholders but new employment opportunities and strategies remain at the very centre to reach this objective. 

I will not write much about the absurd budget proposal stating that Members of Parliament will receive their honoraria subject to attend House sittings. I dare add will this be applicable also to permanent secretaries, surgeons, consultants at Mater Dei and other public hospitals, chairpersons, Mr/Mrs Justice and Magistrates and many other senior posts?  Would they be expected to record their “in” and “out” time at their place of work also?  While I am certain that most of them work more than they are paid for our parliamentarians should not be treated with infantile measures.      

On a very serious issue Government continued to push for the unexpected out-of-pocket proposal to sell our citizenship for €650.000 to people who are not too keen to identify themselves with Malta publicly. Regretfully our Government is prepared to oblige to this request. The proposed tight procedures, checks and balances and due diligence processes could not be enough to sell our citizenship – Shiv Nair is a case in point.    

While it is understandable and how difficult it is to raise and balance public funds Government should not seek such an avenue to sustain economic growth.  Government should be capable to create and facilitate the right economic environment. The capabilities of foreign and local entrepreneurs large and small have been the backbone of our economic activity while workers have taken various challenges successfully during the past years without the previous Government ever opting to sell our citizenship. 

Although today parliament is expected to adopt the sale of our citizenship act Government is still in time to hold his horses.  A small commission should be set-up with the aim to prepare a white paper, in a defined period of time, following which the general public should be invited to express their views prior the Act is proposed again to the House for due consideration. Government should not ostensibly be blinded by a quick buck.

GejtuVella

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