Malta's middle class is in for a pleasant surprise, according to the prime minister, as the government is planning to announce "the biggest tax cut in the country's history" in October's budget.
In an interview on the PL's radio station on Sunday, Robert Abela said the measure will especially benefit the middle class through better tax rates. He said tax bands will be widened in a way that incentivises this growing cohort of people.
"We're envisaging the biggest tax cut that was ever granted in the history of our country that will be announced in the budget," he said.
He did not elaborate but said he would be mentioning the budget a few other times during the interview as he was excited about what the government had to offer come October.
"We wanted to target the middle class to support it and encourage it, seeing it is so hard-working and motivated to improve."
Most people nowadays feel they form part of the middle class, he said, which is a testament to Labour's economic achievement.
But the lower class will not be sidelined, he added.
"If we're really proud of being socialists we must continue to offer the greatest support to the lower class," he said.
Abela also said the food prices scheme Stabbiltà will remain in place for as long as needed, and so will energy, fuel, cereal and animal feed subsidies.
He also indicated that other schemes, such as that offered to first-time home buyers, will also be retained, saying the government needed to work a lot to shoulder these burdens and relieve families from them.
Foreign healthcare workers yes, couriers and drivers no
He also weighed in on the foreign worker situation, saying a Jobplus labour market profiling study revealed which sectors need to be supported with more foreign workers and which are saturated.
"There are sectors like healthcare in which we need foreign labour to complement local staff, but other sectors are saturated. There are enough foreign workers in them," he said.
"Two of these sectors are food couriers and Y-plate drivers. That's why we implemented measures to stop employers from bringing in any more of these workers, despite the complaints of some employers who were bringing in many more workers than were needed."
The government is not eliminating these services, he clarified, but the excess number of people and vehicles is not a good thing either.
Not just that, he added. Investigations revealed the sector was rife with abuse. Workers were being exploited at every stage, in their accommodation, in their salaries and working conditions. And the exploitation was stark in those temping agencies that registered a high turnover of workers.
"The moment these foreign workers enter our country we must treat them with dignity and give them good working conditions, because high turnover is not an option anymore," he said.
Tables and chairs
Abela was asked about an incident this week in which an ambulance found tables and chairs obstructing its path in a Valletta street. He said it was understandable for businesses to try to maximise their profits, but not at the expense of pedestrians or emergency vehicles.
"Lately we intensified enforcement on excess tables and chairs in public spaces. We are first issuing warnings to those businesses who are not sticking to the parameters of their concessions," he said.
"Most businesses are respecting that warning. The few who ignore it face enforcement. Thirdly, we follow up, to ensure everyone is respecting their concession over time."
And this also applies to the construction sector and sound levels in bars, he added. It's ultimately an issue of balance between economic growth and citizens' needs.
96% of graduates find jobs immediately
Abela also said that part of the government's plan to prioritise quality over quantity in the economy includes investing more in industries that innovate, especially those that employ few but high-skilled workers.
"About 96% of our graduates find a quality job immediately, essentially everyone. It's the highest rate in the EU," he said.
"We also want to invest in startups. These are often young people who have a dream and start it out in their home, and then venture out in new technologies and innovation."
'Impressed' with interest in PL election
As the deadline for submissions for the PL's top posts closed during the interview, Abela said he was impressed by how many people showed interest in joining the party in its top positions.
"We're managing to renew and strengthen ourselves while we're in government. When you're in governemnt and you're winning elections you're often tempted to think that you don't need to change. But we're not doing that," he said.
He also congratulated Alex Agius Saliba and Ian Borg on their nominations, both of whom are set to become the party's two new deputy leaders, replacing Daniel Micallef and Chris Fearne.