Budget welcomed by some, criticised by others

A variety of organisations yesterday issued mixed reactions to the budget.

The Malta Institute of Management said the budget needed to be seen in a wider context than the budget speech itself.

It appreciated that the increases in water and electricity rates were due to the increase in fuel costs but said they could have been better absorbed if inefficiencies at Enemalta and other government agencies and departments had been brought under control.

The institute said it was particularly concerned with the "apparent discriminatory capping" that the government had introduced in favour of certain business sectors and not others.

In spite of the capping, the utility rate increase would have a negative impact, it said.

It agreed with the government that tourism was a primary pillar in the Maltese economy. It pointed out, however, that there were indications that the five-star tourism niche might not be appropriate for Malta.

It urged the government to create the appropriate structures to put Air Malta in a position to mitigate the effects that low-cost airlines might have and encourage all low-cost airlines to operate to Malta.

The Malta Union of Teachers commented positively on the fact that the education sector had been given "the attention it deserves".

It noted that the total expenditure for education was to be of Lm108 million, a substantial increase on the amount voted in the previous budget. This would help Malta move closer to the Lisbon Strategy targets.

The union expressed satisfaction that a National Commission for Higher Education was to be set up. Big reforms in the education sector were forecast and discussions were currently underway between the Education Ministry and the MUT.

The Assocjazzjoni Hwienet Wied il-Ghajn (the association of Marsascala shop owners) said that with the increase in the surcharge on water and electricity, the total expenses of certain shops were set to increase by 11 per cent, excluding the stipulated wage increases.

Complaining of discrimination, the association argued that capping on electricity bills should have been introduced for shop owners as well.

The budget, it lamented, contained no plan to embellish Marsascala or maintain the promenade.

The Forum Zghazagh Laburisti (the Labour youth forum) described the budget as bereft of ideas. It contained no concrete proposals on tackling unemployment or the lack of competitiveness, which were problems, it said, being faced by young people.

The Prime Minister had failed to say how new job opportunities would be created to absorb youths who were ending up unemployed, the forum added.