|
The DIVERGENT positions of the social partners are so distant to each that a ‘Social Pact’ is considered very unlikely to materialise. None of the representatives on the MCESD have been informed of the precise fiscal measures to be taken in the upcoming budget and are unaware of the finer details related to new tax burdens. The level of taxation naturally remains the issue that concerns most of the parties involved.
Many have been told that on the Saturday before the budget - which is due on 24 November - they will be presented with a final draft of the budget. Some interpreted this as a sign that they are not trusted.
One member was less paranoid and simply said, he does not believe that the government has decided on the fiscal steps that will be included.
One member on the MCESD told MaltaToday; “We are too far apart to agree, I cannot see a ‘Social Pact’ coming together and I think we should stop talking about this pact.”
Another member, who lamented the ‘imposition’ of secrecy during the debates, said the government had not informed them of the fiscal measures that will be taken.
He also said there was little in the way of example when it came to government.
“How can I go back to my members and ask for sacrifices when the Prime Ministers is boasting about a revival in our economy.”
There appears to be consensus among all the parties at MCESD level to oppose tax increases. The unions continue to talk of a government that does not lead by example and the employers, importers and traders are hitting back at bureaucracy and unnecessary red tape. The unions are calling for more tax compliance but the other side is calling for restraint.
Most of the meetings have been chaired by Tonio Fenech, the PM’s junior minister who has been praised for his grasp of financial matters.
This is the first budget to be presented by Prime Minister Lawrence Gonzi who is also the finance minister and comes at a time when the general economic outlook appears depressed with little or no investment.
|
