The launch of pilot four-day work week projects, the reopening of trade schools, and bonuses for frontliners of the Covid-19 pandemic were among some 230 pre-budget proposals put forward by the MCESD on Tuesday.

The proposals – which traced back to seven distinct elements – were presented to Finance Minister Clyde Caruana and Minister within the Office of the Prime Minister Carmelo Abela at a meeting on Tuesday.

The Malta Council for Economic and Social Development (MCESD) brings together unions and constituted bodies from across the country who represent different sectors and industries.

MCESD chair James Pearsall said that the council had continued to research, through its working groups, proposals for the country to move forward, and said that these had been based on long-term concepts such as the Sustainable Development Goals (SDGs).

“There are two connotations which I think we need to follow: that we need economic development not economic growth, and that we need sustainable prosperity,” Pearsall said.

The MCESD’s proposals were drawn up in the context of the Covid-19 pandemic and the ensuing recovery period, along with other realities such as the FATF’s greylisting of Malta and discussions on international tax harmonisation.

The MCESD said that they wanted “an economy that works for people and planet” and which is based on competitive sustainability. 

Close to 230 proposals were in fact compiled and presented, proposals which span both the national interest and which narrow down to industry-specific interests as well.

The plan for growth presented by the council centre on 7 elements of capital: Economic, Human, Social, Institutional, Environmental, Urban, and Cultural.

The MCESD said that there has to be an overarching sectoral analysis to determine how the economy should be restructured for increased resilience, with the emphasis being placed on value-adding the tourism sector, the manufacturing sector, improving regulation on the short-term rental market, and focusing on Gozo.

Supporting tourism, as per the proposals, should come through, amongst other things, the relaxation of restrictions, the emphasis on attracting high-spending tourists, the eradication of unlicensed operators, and renewed focus on a workforce strategy for the sector.

On taxation, they said that greater focus must be given to compliance and to fighting things like money laundering and tax evasion, while there also has to be a reduction in tax to sustain recovery, through things like tax benefits for reinvested profits.

The MCESD also called for further financial assistance on sick leave and a review of quarantine leave, along with faster disbursement of grants and incentives.

From an environmental perspective, they proposed amongst other things, to incentivise sustainable dwellings with clean and renewable energy, to incentivise and support the use of public transport and green transport, and to subside transport for workers so that employers can organise group transport.

From a human capital perspective, one of the proposals put forward is the reopening of trade schools and increasing financial assistance for the provision of training for employees.  Family friendly measures such as an increase in maternity leave and specific paternity leave, an increase in emergency leave, and pilot projects on a four-day work week were also proposed.

They also called for the enforcement of a 40-hour week instead of a 48-hour week in sectors such as transport, and for a reform to the Community Workers Scheme to ensure better employability.  A skills audit across the government sector and the secondment of unproductive labour to the private sector is another proposal.

To ensure a healthy workforce, they also called for the incentivisation of semi-professional sports, gym memberships, and health saloons, and investment in a new mental health hospital.

From a social perspective, they called for a bonus to frontliners who had a role during Covid-19 and vouchers for utility bills and a reduction in the said bills, along with a revision of the COLA, and increased measures for a better functioning housing market which would include a fund for third parties suffering damages as a result of construction irregularities.

Turning to institutions, the MCESD proposed amongst other things, increased training for the judiciary, an academy for the diplomatic corps, and increased reforms to political parties, along with a centralised due diligence body which stream lines the use of digital tools for law enforcement.

They also called for the liberalisation of the energy market and tighter control on transparency in public procurement.

From an urban – or Anthropic – perspective, they called for the ‘greenification’ of areas through woods and urban gardens, the upkeep and cleanliness of touristic areas, and the development of attractions such as those which are underwater in order to promote Malta as a high-end destination.

From a cultural perspective, they called for incentives to the NGO sector, a specific budget for the civil society committee within the MCESD, and deregistering NGOs from the Malta Business Registry.

In comments before the presentation, Minister within the Office of the Prime Minister Carmelo Abela said that the budget is an exercise which is not just about numbers, and is a process which the government needs to use to achieve its medium and long-term goals.

He said that the aspirations for the upcoming budget are to continue economic growth and wealth creation and to then split the resultant wealth in the best way possible.  He said that the government will be following international direction, particularly on digitalisation and on the green economy.

Following the presentation, Finance Minister Clyde Caruana said that the MCESD had presented a number of “most valid proposals” but sounded a warning that the country’s resources are “what they are” owing to the effects of the Covid-19 pandemic.

He said that the decisions taken throughout the pandemic from an economic perspective were more aggressive and decisive than in other countries, which meant that the labour market had been safeguarded.

The upcoming budget, Caruana said, will focus on three things: improving the quality of life of the Maltese people, giving the required push to develop a quality-based economy, and consolidating the government’s finances.

He said that there needs to be responsibility so that the deficit is decreased, and so that it can be ensured that there are the resources required for the country to cope with any other unexpected event.