Economic stability a priority in next Budget - Fenech

Finance and Economic Affairs Minister Tonio Fenech this morning underlined the government's intention to safeguard economic stability in an increasingly volatile global scenario when he launched the first public consultation meeting ahead of the Budget 2009.

He told an audience made up mostly of the social partners at a business breakfast that Malta had a diversified and productive economy and the government wanted to ensure stability through its action programme which would include business incentives, skills training and an improved public service, among other areas.

He said that while imported inflation was difficult to control, it was important to control secondary inflation because of its direct impact on the various components of the economy. The government had foreseen rising inflation and in the last budget reduced income tax and raised children's allowance to ease the impact of inflation on purchasing power.

He said that the economy had to date been able to withstand the international downturn, with exports and tourism both having seen growth in the first two months of the year.

Referring to fresh calls for a social pact, Mr Fenech argued that one could not propose a quick fix, homogeneous solution, because different sectors of the economy had different needs. What was important was that the social partners tackled each sector according to its needs and proposed solutions accordingly, since what was good for financial services, for example, might not be good for manufacturing industry, or tourism.

He also spoke on the need for a fresh look at the taxation regime, especially to deter tax evasion.

Among suggestions made from those present, Pierre Fava, president of the Malta Employers' Association said Malta was suffering a skills shortage in various sectors and the government needed to regularize the importation of foreign labour.

GRTU president Paul Abela was skeptical about a social pact and said political parties should stay out of that process.

Entrepreneur Anglu Xuereb called for departmental heads to be given more elbow room so as to cut bureaucracy while Ray Cassar, a representative of the cooperatives sector, called for the creation of an institution to provide market intelligence for small businesses seeking export growth.

Comments

c busuttil (on 9/5/08)

Please allow me to gate crash this morning's business breakfast with social partners who discussed, among other things, the next Budget. Some skills are glaringly out-of-stock because the appropriate courses are not offered in Malta. As a result, some of us have to send our children overseas to pursue a career of their choice, at much personal sacrifice and without any financial assistance. The next Budget should at least shoulder the education expenses (which are now lower thanks to our membership of the EU) just like students attending local institutions. And they also recieve a stipend. Our children who are constrained to study abroad are entitled to the same financial support. It is unjust to continue to discriminate. And why are tax concessions allowed to parents who educate their children in private schools but not to those opting for a foreign education? It would be appreciated if the Finance Minister would meet families in this position. My particulars are available through the TOM.