Chamber of Commerce says Budget did not address cost burdens for industry

The Chamber expressed disappointment that the COLA mechanism had not been addressed. "The Chamber insisted that the mechanism needed updating to ensure that COLA would complement Malta’s competitiveness whilst compensating workers for loss of disposable income through inflation," the Chamber said in a statement.

The Chamber voiced trepidation on the increased accommodation tax, which will exert ramifications on the price sensitive segment of tourism which Malta depends upon.

On a positive note, the Chamber announced support for the training of workers who earn low incomes as it could increase the skills and profiles of people who may be interested but could not afford training in terms of time and money.

“More labour flexibility measures such as banking of hours to help the employer and worker plan ahead and as a means to ascertain jobs in times of weaker demand.”

The Chamber welcomed the “Gateway to Export” programme that provides assistance and treaining to companies to enhance their opportunity to export, however “the €1 million allocated in the Budget to this programme cannot be interpreted as a firm commitment to stimulate export-led growth.”

The Chamber also welcomed initiatives taken in favour of scrapping old cars for new more efficient ones, describing incentives as “another step in the right direction.” However it said it was perturbed by the increase in excise duties on fuels that are bound to affect various industries such as tourism, manufacturing, transport, import and distribution.

The Chamber also expressed disappointment with announcements made in terms of better regulation, which fail to address serious issues being encountered by the business community such as half-days, electronic IDs for corporate users and delays encountered at MEPA and the Law Courts. 

"There has been no significant improvement in legislative burdens for small enterprises ever since promises of an “SME Test” were first made. The Malta Chamber augurs that similar pledges in relation to future legislation results in notable improvements."

It welcomed what it called a "sustained budget" of €9 million for Malta Enterprise with which the Chamber works very closely.  "Nevertheless, Chamber members have complained vociferously in the past months over delays encountered in the evaluation of ERDF schemes which should have been adjudicated in August.  Similarly, it is unacceptable that last year’s announced measure to provide microcredits for SMEs has so far not been implemented."

"Refunds of Eco-Contribution are conspicuous by their absence. A final resolution to this matter was promised for this Budget, particularly as bona fide operators are now further owed refunds for the latter part of 2010 when an Eco-Contribution Exemptions legal  notice was published but not implemented."