Updated 6.40pm with UPE's reaction
Most of the social partners appeared to be generally happy with the budget in their initial reactions late on Monday, but the Malta Union of Teachers slammed it for failing to tackle glaring problems in the sector.
Opposition leader Bernard Grech said it lacked vision and credibility, more so since a third of the budget measures for this year were not implemented by the government.
The General Workers' Union labelled the budget as ‘socially bold and courageous.’ It praised the budget for including measures improving the quality of life, particularly for workers.
Greylisting and greening
The UĦM Voice of the Workers, whilst also praising the budget’s social benefits, complained that there was little emphasis on long-term economic vision. The government had also failed to explain how it would restore Malta's reputation after its greylisting as a financial jurisdiction by the Financial Action Task Force.
The Malta Chamber of SMEs also noted the government’s failure to mention the negative effects of grey listing. It praised the budget for leaving more money in people’s pockets and encouraging work and investment but also said the budget ignored the way how greylisting was affecting the backbone of the economy.
Support for the private sector, and no new costs
The Chamber, like many others, also praised plans for a free bus service, electrification of vehicles and sustainability of buildings, saying this showed a ‘clear commitment aimed at making Malta a cleaner and more attractive country for locals and tourists alike’.
The Malta Chamber of Commerce welcomed the fact that the budget would not place any further burdens or costs on the private sector . It also praised the government for planning to introduce and fund a new mechanism over and above the COLA (Cost of Living Adjustment) to assist vulnerable families when inflation is high.
Yet, the Chamber said, the budget failed to effectively address measures aimed at the recovery of the sectors worst hit by the pandemic, such as tourism.
The Malta Hotels and Restaurant Association (MHRA) on the other hand saw measures which it said would support the tourism and hospitality sector.
It said measures, such as the extension of the free childcare service, free public transport, and training opportunities to address skill gaps would support the sector.
A boost for the arts
When it comes to the arts, The Malta Entertainment Industry and Arts Association (MEIA) welcomed the measures, which include guarantee schemes for productions and reduced tax for artists. It said it was pleased to see the government taking on its recommendations.
ADPD Party pointed out contradictions in the budget speech.
The party said it was good that the government was investing in an afforestation project in Marsascala, but it was ironic that it also planned to convert Marsascala bay into a yacht marina. It was good to to plan investment in industrial areas, but it did not make sense for a car racetrack to take up space in Hal Far at the industrial zone..
It also highlighted how the government failed to address the issue of the minimum wage, pointing out how studies showed the minimum wage must be increased.
Government failed to consult, and it shows - teachers
The Malta Union of Teachers rained down on the budget, saying that, yet again, educators were left out and the challenges teachers face were ignored.
The MUT said the government had failed to consult it, and it showed in the way the sector's major problems were ignored, not least the teacher shortage.
“One would have expected it to at least be recognised as a problem with a plan for the coming years,” the union said.
In another statement, the Union of Professional Educators said the budget overlooks educators.
Beyond the customary empty political rhetoric, educators will not experience any real improvement in their salaries or working conditions, it said.
It added that the budget fails to address in any way the massive shortage of educators the country is currently experiencing. In practical terms, this means educators are going to continue to be stretched to the limit to make up for the lack of human resources in the sector.
Association of Catering Establishments The ACE feels that the Budget announced by the Minister for Finance, Clyde Caruana is a positive one which stimulates discussion and consultation for the implementation of further measures in the months to come.
The Association of Catering Establishments welcomed various parts of the budget notably the increase in pensions and students' stipends which will positively impact on the catering sector.
It said the Budget 2022 encourages more work through overtime and part-time which will eventually address in part the current human capital shortages the catering sector is facing. The in-work benefit is also a positive measure that assists the human capital issues within the sector. Nevertheless, the ACE said, more action is required in order to address the problem as well as to ensure the government reaches its tourism sector targets.
The Malta Diabetes Association observed that the government has announced that Continuous Glucose Monitoring devices (CGMs) will "gradually be extended" for youths aged 17 years to 21 years. It said it was very disappointed that its calls to the health authorities to have CGMs introduced for all persons living with type 1 diabetes, irrespective of age, were not considered.
Developers are happy
The Malta Developers' Association said the government recognised the importance of the development and construction industry by renewing the schemes related to the purchase of property, including first and second-time buyers’ schemes, that were also originally proposed by the MDA in the previous legislature.
The MDA said it has been stressing for years that incentives should be provided for the investor to consider already built, derelict and vacant properties and help in restoring them whist promoting the Maltese character and tradition. Therefore, the incentive of tax relief on the sale and purchase of vacant or UCA or traditional style property along with grants for those who do so when buying their first home, was being well received.
MDA also welcomed the tax incentives for the restorers of these types of buildings with a grant on the value of VAT paid up to a maximum of €54,000 for the first €300,000 in costs of restoration and refining of these properties.
The association regretted that its proposals to incentivise sales and the purchase of properties with the highest environmental standards and the gradual shift to carbon neutrality had not found their place in the budget.
Measures should lead to independent living -CRPD
The Commission for the Rights of Persons with Disability said it had had an important role in bringing forward the proposals which were accepted as measures for Budget 2022.
These needed to lead to independent living through the removal of social and economic barriers and with the necessary assistance.
Gozo Chamber welcomes Budget
The Gozo Business Chamber said on Tuesday that since the budget is adopting a horizontal approach it is important that all social services that are being delineated in the budget, including the services for people with disabilities, are also offered in Gozo as well.
This, it said, includes the work of the “Foundation for Affordable Accommodation”.
Gozo faced specific challenges in the housing market caused by an emphasis in these past years on the development of land into blocks of apartments targeted mainly for Maltese residents buying a second home in Gozo.
This caused a rise in the price of property for first-time buyers. Such trends on a regional dimension needed to be examined and catered for, the chamber said.
Other measures that required a regional emphasis included the alignment of skills to the green economy and the census of skills for workers.
The chamber noted that the budget does not delineate any significant investment in the industrial estate in Gozo.
It called for consideration of the replacement of the Gozo Channel ferries into hybrid ferries in the coming years. The electrification of the port in Gozo should also be an important project which would fit within the overall direction of making Gozo carbon neutral prior to Malta.
The Chamber reiterates its commitment to the permanent link between Gozo and Malta, and that work on this project should continue during 2022.
It welcomed several budget measures including the removal of the capital gains tax and the duty on the purchase of properties that have been built for more than 20 years and have been vacant for more than seven, properties in Urban Conservation Areas, and new properties built according to traditional and typical Maltese architectural styles. Another positive measure was the grant being given to buyers of such property.
More should be done at the prisons - KNŻ
The Kunsill Nazzjonali Żgħażagħ also welcomed the Budget measures but said they lacked a link towards solving the existing problems in the respective sector.
One example was the free public transport for all residents. Although this was a positive measure, the ticket price had not been the main reason for the public’s resistance to using public transport so the concern on the service’s efficiency should be adequately addressed.
The youths said any development in contrasting sectors should be balanced. Construction, for example, should be linked to environmental protection.
The council also said that in spite of recent revelations, the Budget failed to address the situation at the prisons.
Although funds were allocated to improve the services given to prisoners, there was a lot to be done from a correctional aspect.
Car importers
The grant increases and measures to encourage conversion to electric cars are welcome but not enough to encourage conversion, the car importers association said.
It said that, as in Europe, most of the cars sold in Malta are used imported cars. So this market should be safeguarded and protected if the government really intended to see the national fleet change to electric.