The Nationalist party is proposing that the government should extend the wage Supplement until March and also called for a second set of COVID-19 vouchers to be issued, in their pre-budget proposals.

“The PN has a vision that puts people at the centre. Today, our country is in an economic crisis like most countries around the world but we have to be honest with ourselves and admit that it is not just because of the pandemic,” newly elected PN and Opposition leader Bernard Grech said during a press conference outlining the PN’s pre-budget proposals.

The PN believes that the PL government has built an economic model that is not stable as it is based on earning a quick buck. It is limited to mindless constructions and selling of passports which resulted in an overflow of foreigners who are then left unassisted once the government does not need their help any longer, Grech said.

“In our proposals, we are aiming at helping the people and businesses to increase the quality of life,” he said, starting with the extension of the wage supplement until at least March 2021.

He also thinks that there should be a revision of the VAT rate and economic measures that will cause a shift which people will benefit from; this crisis can be used as a template on which to build a new kind of economy, one that keeps future generations at the forefront.

PN Spokesperson for Finance Mario de Marco said that this proposal document consists of 100 ideas which are based on 5 pillars; diversification and innovation, digitalisation, education, a circular green economy, government as governance.

Additionally, de Marco explained that these proposals were not invented by the party alone as they also include proposals that have been put forward by stakeholders who were present for the press conference as well.

Economic Recovery

The PN would like to see the wage supplement to be extended to all sectors rather than being limited to Annex A and B and remain available until at least March of next year. The government should make sure to inform businesses from a number of months before as they need to plan ahead, de Marco added.

On a different note, the PN suggested for the government to introduce a buy-in of public procurement system to replace the wage supplement. This would entail the government releasing a list of products and services it needs which people can apply for so that it can generate revenue while helping workers. Each person would have a cap of how many services they can apply for depending on their salary.

The PN would also like to see a second set of COVID-19 vouchers and for bank moratorium to be extended by a further 6 months. Businesses should also have the option to carry on their tax dues into the next year so that they can settle their taxes more easily through better liquidity.

Investment in Core Sectors

The PN pointed out that the tourism, manufacturing, financial services, construction, agriculture, culture and creativity, and media and journalism sectors are vital in Malta’s economy.

It suggested that the salaries of people working in culture and creativity should be revised and schemes and funds for new projects, as well as incentives for digital infrastructure, should be introduced in this sector.

With regards to media and journalism, the PN proposed grants to media houses based on the number of employees which can be used for non-commercial journalistic ventures.

Embracing the future of the economy

The PN believes that start-ups who have digital or eco-related components should be given a €1,500 grant from the state, while self-employed should get a 50/50 tax credit for digital investment.

It also called for better incentives for female entrepreneurship and also promote local content creation by reducing VAT to zero.

Greening the economy

The government should look into launching a tariff scheme for solar farms and provide a subsidy for reconstituted rubble to avoid excessive dumping. Additionally, it should promote telework so as to reduce traffic and emissions.

The PN also made proposals aimed at generating quality employment and an inclusive economy which would ensure equal opportunities for everyone.

It also called for the procurement of a specific strategy for Gozo which is based on agriculture, domestic and international tourism, digitalisation and green economy. “This cannot happen until we better the methods of transportation both sea and air,” Grech said.