The Malta Employers Association (MEA) presented its proposals for the forthcoming Budget to the Leader of the Opposition and various Shadow Cabinet ministers.
MEA President Joanne Bondin said that the core purpose of the National Budget was to ensure the judicious use of public fundscontributed by the taxpayer for the benefit of the entire nation.Cases of misuse and mismanagement of public funds resultedfurther limitations of resources available for recurrent and capitalexpenditure across several areas not least, healthcare, electricity infrastructure, sewage systems, research and innovation (R&I) projects at the University, and social benefits.
Ms Bondin said that private employers are expected to carry thecost of certain social measures which, by definition, should fallunder the responsibility of the State. These include maternity leaveentitlement; the first three days of every episode of employee sickleave; penalties in lieu of employing persons with disabilities; andplans to fund family friendly measures in the coming years.
On his part, the MEA Director General highlighted the mainproposals included in the position paper put forward by theAssociation. He said that the country needed to climb up the valuechain while considering the carrying capacity of all sectors.
This required strategic focus and investment in quality, skills, andtechnology. Incentives should be directed towards sectors thatcontribute to this goal, encouraging businesses to innovate andcreate high-value products and services.Mr Borg said that the MEA acknowledged the benefits of reducingtax burdens on middle-income workers but warned that this couldhave unwanted inflationary effects.
The MEA, he said,recommended a study to ensure that the measure will not result inlower tax revenues in an excessive deficit scenario and at a timewhen the country needs to sustain continued investment inessential infrastructure.Affiliated to the International Organisation of Employers (I.O.E.), SGI Europe and BUSINESSMED.
In its proposals, the MEA emphasised that Malta needs acomprehensive plan to maximize the value of its human resources.This can be achieved through the adoption of new technologies,such as AI and automation in new and traditional sectors, as wellas by strengthening career guidance structures and adapting to anaging workforce. In terms of the latter, measures should includeremoving fiscal anomalies, providing incentives to adapt workenvironments, and enhancing education and training opportunities.
With regards to long-term capital expenditure, the MEA said thatthis should focus on essential infrastructure, including energysupply and distribution, water resource management, the upgradingof drainage networks and a multi-modal transport infrastructureincluding intelligent traffic-management systems.
Construction activities should be redirected towards strengthening Malta’sinfrastructure rather than building for speculation purposes, it concluded.
