State of the Maltese Economy. Time to Take A Pill.

[Gladiator]

Gonzi’s economy is bright as experts see darkness Malta Today, July 12, 2005, Kurt Sansone

The Prime Minister still manages to exude optimism when talking about the economy even if statistics pointing towards shrinking growth for the first quarter of the year have raised serious concerns among leading economists and the GRTU.
Reassured by the fact that economic performance is on par with that of other faltering European economies, Prime Minister Lawrence Gonzi attributes lower receipts from income tax and national insurance, which economists say are signs of a retracting economy, to a cash flow problem.
The Prime Minister yesterday admitted that government’s drive to reduce the deficit was having an impact on economic growth but refuted claims made by former MCESD Chairman Prof. Edward Scicluna and the executive of the Chamber of Small Medium Enterprises (GRTU) this week that government was simply concentrating its efforts on the deficit and ignoring the wider economic picture.
Speaking at the monthly prime minister’s press briefing, Gonzi insisted economic statistics had to be analysed carefully. “We looked at the drop in national insurance contributions and it transpires there are a number of companies that have withheld payment. We will be recouping these arrears in the months to come. The problem is related to the companies’ cash flow,” Gonzi explained.
He also said the budget for this year contained proposals to stimulate the economy apart from fiscal measures to control the deficit. “The whole package announced in the budget shows we want to incentivise and generate economic activity. It is not true we are concentrating, at all costs, on reducing the deficit and ignoring the rest,” Gonzi rebutted.
The Prime Minister is confident that investment in education and decisions such as the identification of the site for a golf course in Ghajn Tuffieha, will help to stimulate economic growth.
But if Gonzi is cautiously optimistic about economic prospects for the rest of the year, his outlook is not shared by Prof. Edward Scicluna.
The former MCESD chairman, in an interview with The Malta Financial and Business Times on Wednesday, was uncompromising in his overview of the economy.
“When you look at the economy’s performance over the last five years you realise it is currently experiencing one of the longest, though admittedly not the deepest, recessions ever endured since the Second World War,” Scicluna said.
He added: “We need to have economic indications, which when interpreted by an economist, will lead the person to say ‘OK the recession is now behind us’. At the moment there is no such indication.”
Scicluna also challenged the commonly held perception that the international economy was all gloom and doom, contributing to Malta’s worsening situation. “We should challenge this notion about the international economy doing badly. Some euro zone countries are doing badly but not all EU countries are doing badly, especially the new member states like Malta. Some of them are really doing well,” Scicluna said.
The former MCESD chairman also lambasted government’s decision to peg the Maltese Lira to the Euro at a fixed exchange rate upon joining ERM II insisting it was “the worst economic advice government could have had.”
But the Prime Minister yesterday was not fazed by the criticism. “I respect Prof. Scicluna’s opinion but it is contradicted completely by foreign credit rating agencies and the EU Commission, which have commended government for taking the bold step. These institutions are considering ERM II membership as a positive indication of government’s resolve to tackle the deficit and put the economy on a sound footing,” Gonzi responded.
The Prime Minister however, failed to make reference to the central issue at stake – the decision to peg the Lira at a fixed rate rather than utilise the 15 per cent fluctuation band allowed by ERMII, which would have allowed the country to better absorb economic shocks from abroad.
As for Prof. Scicluna’s assertion that the country was passing through one of the longest recessions since 1945, Gonzi once again expressed disagreement. “Malta has an open economy that depends on how foreign economies perform, particularly the European economy. Even if statistics may provide a bleak picture for particular periods of the year these have to be analysed since our economy is very seasonal,” the Prime Minister said.
But on Friday, the executive council of the Chamber for Small and Medium Enterprises (GRTU) joined Prof. Scicluna in expressing deep concern at the worsening economic situation. The GRTU criticised government for lacking an economic policy.
“Today the MCESD is a talking shop seeing one minister after another touching on the economy in a piecemeal fashion as if nobody was responsible for its overall management,” the GRTU statement said.
Calling on parliament to discuss the state of the economy with urgency, the GRTU insisted the reports it had from every sector it represented except construction, indicated a very pessimistic outlook for the future.
“Government is wrong to continue tightening the noose, with the sole intention of reducing the deficit and ignoring the negative impact such a drive is having on the Maltese economy. GDP figures show the economy is shrinking and no clear measure is being taken to stop the downward rhythm so that the economy would start to grow again,” the GRTU executive said.
The GRTU asked the parliamentarians to discuss the economy before the summer recess because the country needed “to stop dreaming and instead start working.”
“The country urgently needs a new economic strategy that inspires trust, the GRTU executive insisted.

Wait, Il-Fredu has a plan. Stay tuned. Malta Marida, Medicina Il-Fredu!:D

[Cikku]

Time to take a pill ?? What pill ?? A reality pill ?? THAT'S TOO LATE I think. Maybe you mean a cyanide pill ??!!

:confused:

[Gladiator]

Time to take a pill ?? What pill ?? A reality pill ?? THAT'S TOO LATE I think. Maybe you mean a cyanide pill ??!!

:confused:

Cikku, u le you don't have to kill the patient. There is or I should rather say there are remedies.:eek:

Like cutting spending and programs and subsidies on everything. Reduce personal taxes and a reduction of 3% on Vat. But impose property tax on all buildings!

[Cikku]

Gladiator please ! Remember, we are talking about Malta and in particular the Nationalists, known for their urge to overspend not make cuts ! Cuts they may make, but in YOUR benefits !

What other taxes you want on property ?? If somebody inherits a house he is going to pay 35% tax, you want they introduce the poll tax too ?? Don't give them any ideas man !!

:mad:

[Gladiator]

Gladiator please ! Remember, we are talking about Malta and in particular the Nationalists, known for their urge to overspend not make cuts ! Cuts they may make, but in YOUR benefits !

What other taxes you want on property ?? If somebody inherits a house he is going to pay 35% tax, you want they introduce the poll tax too ?? Don't give them any ideas man !!

:mad:

As I have mentioned in the above post Cikku. The property tax will eventually be introduced by hook or by crook. AD is trying to change the rent laws. If the property tax is introduced then the inheritance tax has to go.

I don't think I am giving them any ideas Cikku. The IMF will give them some very soon!:eek:

[Marco Polo]

why IMF??????

malta's debt is not jew owned, it is mainly local. if the gov defaults it is locals who will suffer. loads of government bonds out there to pay!

[Gladiator]

why IMF??????

malta's debt is not jew owned, it is mainly local. if the gov defaults it is locals who will suffer. loads of government bonds out there to pay!

If the Malta Government defaults (God forbids), then the Maltese will not buy its bonds. The country has to function, where is the government going to have the cash to function? The IMF is the last resort.

The IMF will give you the money, but on their terms! And you wouldn't want to see or hear their terms!:eek:

[Artist]

Economy in recession

Edward Scicluna, Tal-Qroqq.

I was astounded with utter disbelief to hear the president of the Malta Employers' Association, as quoted in several newspapers yesterday, trying to gag economists practising their sole profession, that of evaluating the economy, with the threat of "partisan commentary". Let the witch hunt begin!

For the record, the interview which appeared in a financial weekly newspaper quoted me rightly as referring to the economy currently "passing through one of the longest, though not its deepest (meaning not its worst), recessions ever endured since World War II". This is based on facts not opinions. Economists declare technically that an economy is in recession when it experiences two consecutive quarters of contraction in its output.

According to the NSO, since 2000 we had contractions in the last quarter of that year followed by another in the first quarter of the following year. This phenomenon was repeated in 2001, 2002 and 2003. In 2004 we had zero growth in the last quarter followed by a fall in the first quarter of this year. Yes, unfortunately we are not yet out of recession. Should we gloat about it? Of course not. But we should certainly do something about it.

My interview was a very positive assessment of what I think are the factors contributing to this malaise and my recommendations as to what should be done about it.

[Artist]

Prof. Scicluna warns against witch-hunting economists by MARK MICALLEF

Malta Independent online



Economists should be left to do their job, which is to analyse and comment on the economy, without the fear of witch hunting and labelling, Professor Edward Scicluna told The Malta Independent yesterday, in reaction to comments made by Malta Employers Association Presi-dent Arthur Muscat on Wednesday.

Mr Muscat, replying to questions by TMID, just before a meeting with the Union Haddiema Maghqudin, said that economists should steer clear of partisan commentary, making obvious reference to a negative economic outlook given by Prof. Scicluna to a financial paper a few weeks ago.

“I was astounded and in utter disbelief when I read the MEA president’s comments as quoted in several newspapers this (yesterday) morning, trying to gag economists when practicing their sole profession – that of evaluating the economy,” commented Prof Scicluna. “Let the witch hunt begin,” he added sarcastically.

Prof. Scicluna was quoted as saying that the economy is currently going through one of the longest, though not its deepest (meaning not its worst) recession since the second world war. He reaffirmed this statement, but added that the comment is based on fact and not on opinion.

Economists declare technically that an economy is in recession when it experiences a two consecutive quarters contraction in its output. According to the NSO, since 2000 Malta saw a contraction in the last quarter followed by another in the first quarter of the following year. The phenomenon was repeated in 2001, 2002 and 2003. In 2004 no growth was registered in the last quarter followed by another fall in the first quarter of this year, he pointed out, justifying his use of the term ‘recession’.

“Yes, unfortunately we are not yet out of recession. Should we be happy? Of course not, but we should certainly do something about it,” he insisted. “My interview was a very positive assessment of what I think are the factors contributing to this malaise and my recommendations as to what should be done about it.”

[Florian Geyer]

the truth hurts.fools stumbling blindly in the dark

[Artist]

State of denial by Alfred Mifsud

Malta Independent on Sunday



Just as soon as we had travelled the long road and achieved political consensus on Malta’s EU membership, public support for the EU as measured by Eurostat among the Maltese public is rated one of the lowest in the new member States. Why?

My best bet is that we joined the EU for the wrong reasons. We joined the EU for the prestige and for the funds, wrongly assuming that it could be an easy solution to our economic ills, which would be magically solved as the EU would owe us a living.

Now we are finding out that it just does not work that way and we are disappointed that no one really owes us a living. And for all the opportunities which EU membership presents, nothing changes the simple fact that we have to solve our own problems, and that it is up to us to grasp the opportunities.

I was not enthusiastic about EU membership because I was dismayed by the misrepresentation that was being sold to the electorate. I always argued that should we find the self-discipline to do what we have to do, the sort of discipline that the Swiss seem well endowed with, we could do just as well or even better outside the EU. On the other hand if we continue to miss this self-discipline, as we very clearly are, then EU membership was plausible, not so much for the funds or for the prestige, but at least for the discipline it would impose on us to save us from ourselves.

It is time for the great majority of us to abandon the state of denial and accept that we are simply not earning our way in the world, that we are just bumping along the bottom while everybody around us are overtaking us – some walking and others running or sprinting ahead of us.

The government seems bent on cultivating and spearheading this state of denial. All economic data shows a dismal picture. We have had no real growth during the four-year period 2001–2004, so the real GDP of 2004 was at the same level as that in 2000. Furthermore, it is clear that in the composition of our GDP the two productive sectors of manufacturing and tourism have actually contracted and the slack was taken by financial services and real estate. How long real estate can continue to pump the economy forward is questionable, given the stellar prices property has reached and the consequential abundance of residential development in the pipeline.

Data for the first quarter GDP for 2005 shows a further real contraction. Latest data for government budget position up to May 2005 shows deterioration rather than an improvement over last year, in spite of a substantial increase of grants revenue from the EU and the Italian protocol.

The revenue side of government finances shows disquieting slowdown in all ordinary fiscal headings with the exception of VAT, which, in comparison to last year, was enjoying better flows from the rise in VAT rate from 15 per cent to 18 per cent effective 1 January 2004 (the comparative revenue for 2004 has its reporting origin backdated to 2003 with the lower VAT rate).

Whichever way you look at it, we have a chronic economic jam at a time when world economy is experiencing substantial growth. This is not the mid-seventies or early eighties when the whole world was in chronic recession. It is not the early nineties when high interest rates to iron out chronic inflation slumped economic growth in most developed economies.

This is a time when economists are speaking of goldilocks economics. Where there is good growth rate varying from nine per cent in China and parts of Asia, four per cent in the US and two per cent in Europe, but without giving rise to undue inflation expectations making low interest rates apparently sustainable in the long term. It is the best international scenario we could reasonably hope for.

http://217.145.4.56/ind/images/articleimages/alfredmifsud.jpg Yet we seem locked up in a vicious circle of inflation, stagnant economy and fiscal deficits. It is quite a moot point whether one calls this a recession or not. What’s in a name?

What matters is that we have deficits and inflation without any growth. If recession is too offensive a term for some of us then they can call it stagflation or slowdown, but this will not change the substance – we are falling behind; we are the last of the pack; we are not operating anywhere near our true potential level.

Quite often, economists and columnists like yours truly try to alert the public conscience to the true state of affairs we are in.

The state of denial is so ingrained that our political leaders, rather than acknowledge the problem and work out a consensus-based plan on how to address the problem, as the Irish did so successfully when they were in our same position in the early 1990s, they try to belittle economists who dutifully point out the undue length of our shallow recession.

Our politicians seem happy that our recession has been shallow though long, and care little that our global competitors left their shallow recession behind more than two years ago.

But the state of denial is by no means restricted to our politicians. The president of the Malta Employers Association (MEA) should know more than most the dismal state of our economic performance. The only reason why we have no double-digit unemployment is due to the under-employment we have spread across the whole public sector.

Yet rather than build on what serious economists not on the government’s payroll are telling us, the MEA president accused such economists of playing political games.

Are our corporate leaders in such a state of denial that they have not even learned that before one can solve a problem one at least has to accept its existence?



www.alfredmifsud.com

[Gladiator]

Good article. Pointed to all the reasons why Malta is in this economic state.

Main point is that the leadership is in a state of denial! Why?

What is going to shake this administration and grab the bull from its horns and wrestle it to the ground and do some fundamental changes in the government, and cut taxes and spending as I have previously mentioned?:confused:

[Admin]

Good article. Pointed to all the reasons why Malta is in this economic state.

Main point is that the leadership is in a state of denial! Why?

What is going to shake this administration and grab the bull from its horns and wrestle it to the ground and do some fundamental changes in the government, and cut taxes and spending as I have previously mentioned?:confused:

VM/IE in parliament, that's what!

[Gladiator]

VM/IE in parliament, that's what!

hehehehe I am still waiting for Il-Fredu's economic revival document. I wonder when will it come out? hehehe I heard recently through the Maltese media that the MLP can't make their mortage payments on their HQ at Mile End!:D

Can anyone imagine a party which wants to be in government and can't even handle their finances? They need to borrow another 100,000 from BOV.

Il-hamar imexxi lil sidu.:eek:

[Artist]

Timeshare 'cowboys' reined in

Times of Malta

Ariadne Massa (amassa@timesofmalta.com)

http://www.timesofmalta.com/core/images/spacer.gifhttp://www.timesofmalta.com/images/20050725_loc_03.jpg

http://www.timesofmalta.com/core/images/spacer.gifTimeshare touts have restrained their "devious" tactics after the Tourism Ministry gave them five days to "clean up their act or else get off the road".

Tourism Minister Francis Zammit Dimech has warned that the next time the unacceptable behaviour resurfaces the government will enact the necessary regulations to prohibit the street promotion of timeshare in whatever format.

"Our warning has definitely led to the desired result and the behaviour of outside promotional contacts (OPCs) has improved. We will be monitoring the situation to ensure the situation does not get out of hand again," he said when contacted.

The unacceptable behaviour of OPCs who pester tourists has made the headlines several times. Did Dr Zammit Dimech truly believe the situation has been resolved?

"I think that for the moment things are under control. However, I agree this is not a permanent solution. In the long term we must find a more acceptable way of selling timeshare, such as setting up booths, to avoid loitering," he admitted.

Dr Zammit Dimech said that once summer was over he would broach the matter with the timeshare association to discuss the best way forward.

"While the present civil atmosphere is maintained we will continue as is for the remaining summer months. Once the peak season is over we can talk about a more long-term solution," he added.

Dr Zammit Dimech last week felt the need to take a stand after the ministry received a deluge of complaints on the "devious" tactics adopted by OPCs from harassed tourists and shop owners.

The situation had reached intolerable proportions and Qawra, Bugibba and the promenade in Sliema had been transformed into "cowboy land".

Tourists wrote or called in complaining of having their path "literally blocked" by timeshare touts who didn't know how to take no for an answer and who "insult and call us names" when their offer is refused.

Dr Zammit Dimech had called an urgent meeting with Malta Tourism Authority executive chairman Romwald Lungaro-Mifsud and MTA enforcement directorate head Frank Farrugia to take a stand.

A letter was sent to timeshare marketing companies to eliminate the behaviour demonstrated by OPCs.

"Last Monday, Mr Lungaro-Mifsud received a request from the timeshare association for an urgent meeting, where the association committed itself to work towards a more acceptable situation. We welcomed the fact that the association took remedial action," he said.

On Tuesday the association held a meeting for OPCs where it made it clear that their behaviour was no longer tenable. It also made them sign a form that showed they understood Malta's laws and regulations.

"We have also agreed to increase the presence of enforcement officers to retain greater control," Dr Zammit Dimech added.

[Artist]

Survey reveals Malta's attractions to investors

Times of Malta

Malta's stability and social environment are major attractions for investment, 95 per cent of the respondents in a survey on Malta's competitiveness carried out by Ernst & Young Malta said.

Ninety per cent felt Malta enjoys a clear and stable political, legislative and administrative environment.

The survey - Discovering Malta - was produced with the help of Ernst & Young in Paris.

Eighty per cent of the respondents considered the country's labour costs favourable and labour laws flexible, particularly with regard to hiring, termination and duration of work. Another attraction is the quality of life and the state of Malta's telecommunications structure, while 75 per cent considered the island's entry into the EU a plus.

"Our survey suggests Malta has attractions of its own that may or may not be much different from those in other countries.

"What needs to happen is for these attractions to become consistently better known by potential investors," Mario Galea, Ernst & Young Malta's managing partner said.

These results were announced during an annual World Investment Conference in La Baule, France earlier this month.

Parliamentary Secretary for Finance Tonio Fenech addressed the conference and described Malta's attractions, particularly to small and medium companies, as hugely accessible, adding that the country offers a great opportunity for companies seeking to invest in the Mediterranean.

Also making the case for Malta was a strong Maltese team which included Philip Micallef, Malta Enterprise CEO and Ronald Attard, from Ernst & Young in Malta.

James Turley, chairman and CEO of Ernst & Young told the 600 participants that Europe is still the most attractive destination in the world and this was due to its flexibility and the diversity of its markets.

"Knowledge is a key factor drawing investors to Europe," Mr Turley told participants.

"In the last five years, economies in Central and Eastern Europe were transformed from low cost workshops into markets with huge potential," he added.

"We are seeing a similar pattern emerge in China, Russia, India and Brazil - countries which in the next five years will become increasingly innovative and will present a real challenge to the more developed markets."

[Gladiator]

Yeah, I don't see them falling on eachother these so called investors coming to Malta?The new EU East European memebers got all or most of the investment in 2005, while Malta got a big fat zero!

[Artist]

Thoughts on the labour market - employment

Times of Malta

Lawrence Zammit

Last week's contribution focused on developments on the labour market with particular reference to unemployment aspects, as evidenced through a range of data published by the National Statistics Office. This week's contribution focuses on employment aspects.

Obviously, they are the two sides of the same coin - unemployment being the negative aspect and employment (job creation) being the positive aspect. From the perspective of unemployment, one is noting a fall in those actively seeking gainful employment; but there are pockets in the population that are likely to experience unemployment to a greater extent than the rest.

The latest Labour Force Survey immediately shows some interesting developments.

The number of persons aged over 15 years increased by over 1,000 between the first quarter of 2004 and the first quarter of this year. This mirrors the drop in unemployment. However, whereas the number of males in employment decreased by just under 1,300, the number of females in employment increased by over 2,300.

Again, this is consistent with the trend that has been noticeable for the last few years. The participation of women in the labour force continues to increase, with 2,500 more females in the space of one year. The employment rate among females (that is the number of females in employment as a percentage of the total number of females aged 15 to 64 years) has increased from 32.8 to 34.5 per cent.

However, the number of males in the labour force is decreasing, probably as a result of voluntary redundancy schemes in public sector organisations. This possible development is corroborated by the fact that the drop in the number of employed males was more pronounced among those aged 45 to 54 years. The employment rate among males decreased over a 12- month period from 75.7 to 74.5 per cent.

The Labour Force Survey also evidences the fact that the increase in employment has essentially been in the area of part-time employment, while the number of persons in full-time employment dropped marginally. The Labour Force Survey is based on a sample, while the statistics sourced from the Employment and Training Corporation is based on administrative data on full-time gainfully occupied persons.

According to the ETC, the number of gainfully occupied persons increased by just over 350 persons during the 12 months ending in December 2004. The number of males in full-time employment remained fairly static while the number of females in full-time employment increased.

Data is also provided by the NSO on developments in employment in various segments of the economy. This is provided either in the form of indices or in the form of number of persons employed.

These developments provide essentially an insight into short-term trends in the economy. In fact, the short-term monthly indicators published for the month of April this year show that the employment index for what the NSO terms as the Main Industrial Groupings increased marginally over March 2005, but increased by 3.4 per cent over April 2004.

The wholesale and retail trade and other services indicators show that the employment index in the transport and telecommunication segments registered a drop in the first quarter of this year compared to the first quarter of last year. The same happened in the wholesale trade and in the segment covering computer and related activities.

The employment index in the retail trade, hotels and restaurants, the motor trade and other business activities registered an increase. Looking at the manufacturing sector, one notes a marginal drop in employment at the end of March 2005 when compared to the end of March 2004. However, most segments maintained a fairly static position during these 12 months and it is only in the food and beverages segment that there was a noticeable drop that impacted on the total figure.

Another piece of information about employment that could be derived from NSO data was about temporary contracts. Of those that were in employment in December 2004, 3.6 per cent held a temporary work contract. This compares to 3.9 per cent in 2002 and 3.2 per cent in 2003.

Temporary contracts are more likely to be available in the services sector, are more likely to be related to part time jobs and are more likely to be found among single persons and females. In terms of age, 32 per cent of persons in employment are aged less than 30, 60 per cent are aged 30 to 55 and the remaining eight per cent are aged over 55. There has not been much of a change compared to a year earlier.

What is significant is that females are present in the labour market to a greater extent among persons aged less than 30. Moreover, persons aged less than 30 are more likely to be employed in the manufacturing sector, in the wholesale and retail sector and in the hotels and restaurants sector. Altogether these three sectors make up 54 per cent of employed persons aged less than 30 compared to just 38 per cent of employed persons aged 30 to 55.

What does this brief assessment say about the developments in the labour market? It is very evident that overall the economy is still very capable at creating jobs, irrespective of talk about the recession or otherwise. And, as a former Prime Minister once said, the critical objective for our economy is to keep on creating jobs.

It is also evident that the economic restructuring has now got in gear and therefore certain segments of the economy, although remaining in existence, shall not create new jobs.

There is also an evident gender disparity which is closing, even if not as fast some would wish. What is important is that the younger, fresh resources now joining the labour market, are diverted to more productive sectors of the economy. And this seems to be happening.

So overall assessment is definitely very positive and it is no mean feat that Malta has managed to continue creating jobs in the private sector at a time when we experienced an international economic slowdown. It is proof once more, as if further proof was ever needed, of the resilience of the Maltese economy.

[Artist]

Id-dejn jizdied b’aktar minn Lm66 miljun
l-orizzont.com
Sa l-ahhar ta’ Gunju li ghadda d-dejn tal-Gvern kien jammonta ghal Lm1,399,200,000, jigifieri biljun u kwazi erba’ mitt miljun, meta sa l-ahhar ta’ Gunju 2004 id-dejn kien ta’ Lm1,333,000,000. Dan ifisser li f’sena d-dejn tal-Gvern zdied b’hamsa fil-mija, jew ahjar Lm66,200,000.

Statistika mahruga mill-Ufficcju Nazzjonali ta’ l-Istatistika turi li d-dejn li kellu l-Gvern sa l-ahhar ta’ Gunju li ghadda jinkludi Lm27.4 miljun dejn tal-Malta Drydocks u l-Malta Shipbuilding li l-Gvern ghalaq u flokhom waqqaf il-Malta Shipyards Limited.

Id-dhul tal-Gvern fl-ewwel sitt xhur ta’ din is-sena kien jammonta ghal Lm376.1 miljun, jigifieri 41.8 fil-mija ta’ l-ammont li l-Gvern qed jikkalkula li se jdahhal matul din is-sena. Mqabbel ma’ sena ilu, il-Gvern dahhal Lm40.2 miljun aktar f’dan il-perjodu jew ahjar 12 fil-mija aktar.

Fl-istess waqt, il-Gvern hareg Lm470.9 miljun, zieda ta’ Lm37.6 miljun mill-ammont ta’ flus li hareg bejn Jannar u Gunju 2004. Dan ifisser zieda ta’ 8.7 fil-mija fuq sena ilu meta l-Gvern kien hareg Lm433.3 miljun.

Id-differenza, jew zbilanc, bejn id-dhul u l-hrug tal-Gvern fl-ewwel sitt xhur ta’ din is-sena kien jammonta ghal Lm94.8 miljun meta dik ta’ sena ilu kienet tlahhaq is-Lm97.4 miljun.

L-istatistika turi wkoll li bejn Jannar u Gunju 2005 il-Gvern issellef Lm76.5 miljun mill-pajjiz stess meta fl-istess perjodu matul l-2004 is-self lokali kien ta’ Lm46.3 miljun. Din is-sena l-Gvern ma ssellifx minn barra.

Iz-zieda ta’ Lm40.2 miljun fid-dhul tal-Gvern kienet dovuta l-aktar ghaz-zieda ta’ Lm13.1 miljun mill-VAT, Lm1.9 miljun mid-dazju u SISA, Lm6.8 miljun fi dhul mid-dipartimenti tieghu u Lm20.4 miljun f’ghotjiet mill-UE fost ohrajn. Min-naha l-ohra kien hemm tnaqqis ta’ Lm4.2 miljun fid-dhul tieghu mill-Bank Centrali u ta’ Lm4.6 miljun mil-licenzji, taxxi u multi.

Meta mqabbel ma’ sena ilu, in-nefqa tal-Gvern (eskluz hlas ghad-dejn pubbliku) zdiedet bi Lm17.8 miljun, jew 5.1 fil-mija, minn Lm349.3 miljun ghal Lm367 miljun.

Fir-rigward tal-pagi mhallsa sa’ l-ahhar ta’ Gunju dawn kienu jammonta ghal Lm93.2 miljun u kienu jiffurmaw l-44.9 fil-mija tal-Lm207 miljun li l-Gvern alloka ghall-pagi tal-haddiema tieghu ghal din is-sena. Bejn Jannar u Gunju 2004 il-Gvern kien hareg Lm93 miljun f’pagi. Dan ifisser li f’sena il-pagi ghall-haddiema tal-Gvern zdiedu b’Lm200,000.

Bhala spejjez rikorretni dawn lahqu t-Lm18.1 miljun meta fl-ewwel sitt xhur tas-sena li ghaddiet kienu jammonta ghal Lm28.5 miljun. Dan ifisser tnaqqis ta’ Lm10.3 miljun, jew 36.3 fil-mija li skond l-Ufficcju Nazzjonali ta’ l-Istatistika kien dovut ghal bdil fil-mod kif il-Gvern qed ihallas ghall-medicini u materjal relatat mas-sahha.

Spejjez ohra lahhqu l-Lm217 miljun meta fl-istess perjodu sena ilu kienu telghu ghal Lm187.4 miljun. Din iz-zieda ta’ Lm29.6 miljun kienet dovuta l-aktar ghal zidiet ta’ Lm6.6 miljun f’beneficcji socjali, Lm9.8 miljun relatati ma’ l-UE, Lm1.5 miljun f’iffinanzjar ta’ l-iskejjel tal-Knisja, Lm1.2 miljun f’sussidji fuq ikel, Lm1.8 miljun fid-dwal tat-toroq u Lm8.2 miljun f’medicini u oggetti relatati mas-sahha.

Min-naha l-ohra l-Gvern naqqas l-ispiza tieghu fi hlasijiet ta’ kumpens b’Lm6.6 miljun li kienet dovuta ghall-fatt li fl-2004 hareg din is-somma f’kumpens ghaz-zieda fir-rata tal-VAT.

Fl-ewwel sitt xhur ta’ din is-sena l-Gvern naqqas is-sussidji lill-kumpaniji tieghu b’Lm1.6 miljun. Dan ifisser li minn Lm40 miljun is-sena li ghaddiet is-sussidji bejn Jannar u Gunju 2005 kienu ta’ Lm38.4 miljun.

Fir-rigward ta’ l-interessi fuq id-dejn pubbliku, din is-sena dawn zdiedu b’Lm1.7 miljun minn Lm35.6 miljun fl-ewwel sitt xhur tas-sena li ghaddiet ghal Lm37.2 miljun fl-ewwel sitt xhur ta’ din is-sena.

Bhala spiza kapitali din zdiedet bi Lm18.2 miljun, minn Lm48.5 miljun bejn Jannar u Gunju 2004 ghal Lm66.6 miljun bejn Jannar u Gunju 2005. Din iz-zieda kienet dovuta minhabba zidiet minn diversi ministeri. Dak tal-Finanzi nefaq Lm27.1 miljun aktar, l-aktar minhabba l-Isptar Mater Dei, dak ta’ l-Ambjent u Affarijiet Rurali nefaq Lm2.8 miljun aktar, dak ghall-Izvilup Urban u Toroq nefaq Lm5.8 miljun izjed u l-Ufficcju tal-Prim Ministru li hareg Lm1 miljun aktar minn sena ilu.

Min-naha l-ohra l-Ministeru tas-Sahha, Anzjani u Kura fil-Kommunità nefaq Lm17.1 miljun inqas u dan kien relatat ma’ l-Isptar Mater Dei fejn jidher li s-somma marret fuq il-Ministeru tal-Finanzi.

[Artist]

Sidien li tilfu l-boxxla minn Adrian Vassallo

l-orizzont.com



Il-Parlament jinsab aggornat ghall-btala tas-Sajf, izda l-Ministri, bhal issa, qeghdin jibdew jaghmlu s-somon, u jhejju ruhhom ghall-budget ghas-sena d-diehla.

L-Imsiehba Socjali – ewlenin fosthom il-Unions u l-Ghaqdiet tas-Sidien u n-Negozjanti – jibdew jahsbu, minn kmieni, biex jaghmlu s-suggerimenti taghhom fil-hin.

L-Ghaqda tas-Sidien – dik maghrufa bhala il-Malta Employers’ Association – kienet minn ta’ quddiem. Sawret dokument bil-proposti taghha u perrcithom fuq il-gurnali.

L-aktar li jmisshom jiznu l-proposti li ressqet l-Ghaqda tas-Sidien huma l-haddiema – u mhux il-Gvern.

Il-Malta Employers Association tqis li “mhux ghaqli” li l-Gvern ikompli jaghti z-zieda awtomatika ghall-gholi tal-hajja f’kull budget. Tqis li z-zidiet ghandhom ikunu marbutin ma’ zieda fil-produttività. U tkompli tghid li din iz-zieda ghandha tinghata biss lil min qieghed fuq paga minima.

Din l-Ghaqda tas-Sidien tmur hafna aktar ’il boghod minn hekk. Kella l-wicc tipproponi li l-Gvern ghandu jikkonsidra tnaqqis ta’ beneficcji ghal min hu qieghed u bla xoghol. F’dokument ta’ madwar 2,400 kelma, ma ssibx proposta wahda biex is-sidien igorru parti mill-piz.

Ma pproponewx, per ezempju, ‘windfall tax’ – taxxa ta’ darba – fuq il-banek li, bhal daz-zmien, qeghdin jirrumblaw fil-miljuni ta’ profitti.

Ma pproponewx xi taxxa fuq il-vilel jew fuq is-‘swmming pools’. L-anqas fuq “ il-konsum vulgari”, dak maghruf bhala ‘ostentatious consumption’ , per ezempju fuq jottijiet, karozzi lussuzi u djamanti!

L-allat ta’ dawn in-nies huma l-profitt u s-suq. Isallu quddiem dawn l-allat foloz u lesti jaharqu lill-haddiema fuq l-artal tas-sagrificcju, qisna ghadna nghixu fiz-zminijiet imdallma, meta s-setghana kienu jistmaw liz-zghir aghar mid-dubbien.

Illum, qeghdin fil-bidu tas Seklu Wiehed u Ghoxrin . Iz-zminijiet m’ghadhomx li kienu. Il-haddiem sar konxju mid-dinjità u d-drittijiet tieghu, u mhux lakemm tisraqlu minn idejh dak li kiseb, specjalment meta int m’intix lest iggor parti mill-piz.

Bhala tabib, xoghli jwassalni, kuljum, fid-djar ta’ familji ta’ haddiema, li qeghdin jaqghu lura bis-sighat. Hemm familji li tilfu x-xoghol, u m’ghandhomx ghaxja ta’ lejla, hlief dak li jinghataw f’forma ta’ beneficcji socjali. L-gholi tal-hajja qieghed ikompli jfarrakhom.

U issa, meta n-nixfa fis-suq qed tikkarga, u t-theddida ghall-impiegi qeghda, kull ma tmur, issir aktar fil-qrib, jigu certi sidien (jien zgur li mhux kollha huma ta’ bixra xierfa) li jridu jcahhdu z-zieda ta’ l-gholi tal-hajja u jnaqqsu r-rata tal-beneficcji tal-haddiema qeghda.

Proposti sfaccati ta’ din ix-xorta, fic-cirkustanzi li ghaddejjin minnhom, x’aktarx jistiednu instabilità fil-qasam tax-xoghol. Min jaghmilhom, qieghed jistieden l-inkwiet, forsi minghajr ma jrid, u zgur ghax ma ghandu ebda idea ta’ diplomazija u tattika, fejn jidhlu r-relazzjonijiet industrijali.

Dawn il-proposti jaghtu prova, u juru kemm huwa difficli li, f’pajjizna, jkun hawn Patt Socjali bejn l-Imsiehba Socjali, meta hawn nies b’din il-mentalità jigru mas-saqajn.

F’socjeta demokratika d-dritt ta’ assocjazzjoni – sew ghall-haddiema kif ukoll ghas-sidien – huwa sagrosant.

Izda d-demokrazija tiehu n-nifs u taghti l-hajja meta l-arja tkun hielsa minn tniggiz li jivvelena, flok jaghti s-sahha, lir-relazzjonijiet industrijali u socjali.

Id-dinja harget mill-Medju Evu mijiet ta’ snin ilu – izda, hawn Malta, ghad hawn min ghadu jahseb li ghandu dritt divin li jghaffeg id-drittijiet li l-haddiem kiseb bil-gharaq ta’ demmu.

U, sadanittant, ghadna ma smajna ebda vuci tiddefendi lill- haddiema f’isem il-gustizzja socjali, la mill-qasam tal-Knisja u anqas minn unions, hlief il-GWU. F’pajjizna, is-Samaritani ma ssibhomx b’nemes ! Ghalija, u ghal min jahseb u jirrifletti, dan hu skandlu akbar minn dak li johrog mill proposti tal-Malta Employers’ Association.

Il-haddiem, li digà sofra hafna griehi, qieghed jigi msawwat fid-dawl tax-xemx. U, min imissu juri hniena, donnu qieghed idawwar wiccu n-naha l-ohra, u jibqa’ ghaddej. Is-sentiment Nisrani ghandu jwassal biex, kull min hu onest, jaghdab, u jirvella kontra l-ingustizzja.

[Artist]

Almost 1,000 illegal workers traced in five months

The Times

No fewer than 979 irregularly employed persons were nabbed by the Employment and Training Corporation in the first five months of this year.

This means that every day, nearly seven people are found working or registering illegally for work.

A total of 231 people were struck off the employment register either after being found working while registering for work or for failing to respond to ETC services or interviews.

Another 348 people interviewed were signing on as unemployed while 52 had no employment history.

A total of 147 were performing undeclared part-time work and another 124 were not traced back, mostly due to the provision of details that were false. Eleven people were under the age of 16.

The ETC passes information on cases of foreigners flouting the law to the Commissioner of Police. However, ETC inspectors take immediate action whenever illegally employed foreigners are found working during their inspections. There were 30 such cases.

The ETC pointed out that since May harsher penalties are being imposed on people found to be working while registering as unemployed.

A person found to be working while registering will be re-eligible for registering only if he works without interruption for six whole months.

In the case of the other infringements, the ETC fines and takes action against employers for not forwarding the engagement form of employees to the ETC.

As regards illegally employed foreigners, stricter and harsher action will be taken following the concessionary period in August, the ETC said.

[Gladiator]

Sidien li tilfu l-boxxla minn Adrian Vassallo

l-orizzont.com



Il-Parlament jinsab aggornat ghall-btala tas-Sajf, izda l-Ministri, bhal issa, qeghdin jibdew jaghmlu s-somon, u jhejju ruhhom ghall-budget ghas-sena d-diehla.

L-Imsiehba Socjali – ewlenin fosthom il-Unions u l-Ghaqdiet tas-Sidien u n-Negozjanti – jibdew jahsbu, minn kmieni, biex jaghmlu s-suggerimenti taghhom fil-hin.

L-Ghaqda tas-Sidien – dik maghrufa bhala il-Malta Employers’ Association – kienet minn ta’ quddiem. Sawret dokument bil-proposti taghha u perrcithom fuq il-gurnali.

L-aktar li jmisshom jiznu l-proposti li ressqet l-Ghaqda tas-Sidien huma l-haddiema – u mhux il-Gvern.

Il-Malta Employers Association tqis li “mhux ghaqli” li l-Gvern ikompli jaghti z-zieda awtomatika ghall-gholi tal-hajja f’kull budget. Tqis li z-zidiet ghandhom ikunu marbutin ma’ zieda fil-produttività. U tkompli tghid li din iz-zieda ghandha tinghata biss lil min qieghed fuq paga minima.

Din l-Ghaqda tas-Sidien tmur hafna aktar ’il boghod minn hekk. Kella l-wicc tipproponi li l-Gvern ghandu jikkonsidra tnaqqis ta’ beneficcji ghal min hu qieghed u bla xoghol. F’dokument ta’ madwar 2,400 kelma, ma ssibx proposta wahda biex is-sidien igorru parti mill-piz.

Ma pproponewx, per ezempju, ‘windfall tax’ – taxxa ta’ darba – fuq il-banek li, bhal daz-zmien, qeghdin jirrumblaw fil-miljuni ta’ profitti.

Ma pproponewx xi taxxa fuq il-vilel jew fuq is-‘swmming pools’. L-anqas fuq “ il-konsum vulgari”, dak maghruf bhala ‘ostentatious consumption’ , per ezempju fuq jottijiet, karozzi lussuzi u djamanti!

L-allat ta’ dawn in-nies huma l-profitt u s-suq. Isallu quddiem dawn l-allat foloz u lesti jaharqu lill-haddiema fuq l-artal tas-sagrificcju, qisna ghadna nghixu fiz-zminijiet imdallma, meta s-setghana kienu jistmaw liz-zghir aghar mid-dubbien.

Illum, qeghdin fil-bidu tas Seklu Wiehed u Ghoxrin . Iz-zminijiet m’ghadhomx li kienu. Il-haddiem sar konxju mid-dinjità u d-drittijiet tieghu, u mhux lakemm tisraqlu minn idejh dak li kiseb, specjalment meta int m’intix lest iggor parti mill-piz.

Bhala tabib, xoghli jwassalni, kuljum, fid-djar ta’ familji ta’ haddiema, li qeghdin jaqghu lura bis-sighat. Hemm familji li tilfu x-xoghol, u m’ghandhomx ghaxja ta’ lejla, hlief dak li jinghataw f’forma ta’ beneficcji socjali. L-gholi tal-hajja qieghed ikompli jfarrakhom.

U issa, meta n-nixfa fis-suq qed tikkarga, u t-theddida ghall-impiegi qeghda, kull ma tmur, issir aktar fil-qrib, jigu certi sidien (jien zgur li mhux kollha huma ta’ bixra xierfa) li jridu jcahhdu z-zieda ta’ l-gholi tal-hajja u jnaqqsu r-rata tal-beneficcji tal-haddiema qeghda.

Proposti sfaccati ta’ din ix-xorta, fic-cirkustanzi li ghaddejjin minnhom, x’aktarx jistiednu instabilità fil-qasam tax-xoghol. Min jaghmilhom, qieghed jistieden l-inkwiet, forsi minghajr ma jrid, u zgur ghax ma ghandu ebda idea ta’ diplomazija u tattika, fejn jidhlu r-relazzjonijiet industrijali.

Dawn il-proposti jaghtu prova, u juru kemm huwa difficli li, f’pajjizna, jkun hawn Patt Socjali bejn l-Imsiehba Socjali, meta hawn nies b’din il-mentalità jigru mas-saqajn.

F’socjeta demokratika d-dritt ta’ assocjazzjoni – sew ghall-haddiema kif ukoll ghas-sidien – huwa sagrosant.

Izda d-demokrazija tiehu n-nifs u taghti l-hajja meta l-arja tkun hielsa minn tniggiz li jivvelena, flok jaghti s-sahha, lir-relazzjonijiet industrijali u socjali.

Id-dinja harget mill-Medju Evu mijiet ta’ snin ilu – izda, hawn Malta, ghad hawn min ghadu jahseb li ghandu dritt divin li jghaffeg id-drittijiet li l-haddiem kiseb bil-gharaq ta’ demmu.

U, sadanittant, ghadna ma smajna ebda vuci tiddefendi lill- haddiema f’isem il-gustizzja socjali, la mill-qasam tal-Knisja u anqas minn unions, hlief il-GWU. F’pajjizna, is-Samaritani ma ssibhomx b’nemes ! Ghalija, u ghal min jahseb u jirrifletti, dan hu skandlu akbar minn dak li johrog mill proposti tal-Malta Employers’ Association.

Il-haddiem, li digà sofra hafna griehi, qieghed jigi msawwat fid-dawl tax-xemx. U, min imissu juri hniena, donnu qieghed idawwar wiccu n-naha l-ohra, u jibqa’ ghaddej. Is-sentiment Nisrani ghandu jwassal biex, kull min hu onest, jaghdab, u jirvella kontra l-ingustizzja.

L'Artist din risposta lil Sur Vassallo. hehehe flima zmien ghix dan?

Editorial - Times of Malta, August 9, 2005

GWU falling behind the times

What is it that makes the General Workers' Union jittery practically every summer? This summer is no exception as it has given the government until today to discuss its demand for alternative employment for workers now serving their notice at the government printing firm Interprint. The union has warned that if the government fails to do this, it would call nationwide action.

The country has now become so used to the kind of threats the GWU dishes out from time to time that it has almost become immune to them, with many addressing the union's own famous slogan of Issa daqshekk (Enough is enough) to the union itself. The union's latest stand, which essentially boils down to a blanket demand for the government to take on workers found redundant in companies it owns or controls, has been overwhelmingly seen as unreasonable and highly counter-productive.

Just at a time when the administration is making such a serious effort to streamline the service, a goal that has eluded so many administrations in the past, including Labour, in comes the GWU pressing the government to do just the opposite, that is, taking on workers when there is no need for them. The real issue now is not over the fate of the Interprint workers who have not accepted to take the termination package but over what should be regarded as the "non-principle" which the GWU is so valiantly fighting for this summer.

Judging by the overall reaction to the GWU's stand in the case of the Interprint workers, most analysts in the country today agree that the biggest problem facing the union is its own frame of mind. The union is fossilised in the past, moulded in an outmoded thinking and attitude that hark back to the times when it was fused to the Malta Labour Party.

Unlike other organisations that have moved with the times, the GWU appears to be finding it hard to remove its political shackles. It still freely resorts to inflammatory language, wrongly assuming perhaps that this enhances its militant streak and helps keep its membership strength intact. But does this really work today? Is this what its members really want? The truth, as seen by many, is that the union has become anachronistic.

Militant union delegates may well impress the leadership with their enthusiastic response to threats but silent union members in so many places of work are not all that amused, even if they too take part in public demonstrations of support, irrespective of whether or not they do this out of their own free will or simply because they may fear provoking the wrath of their union shop steward if they do not.

In this context, it would be interesting too to find out the real strength of the trade unions today. Yes, the figures are published in the annual returns of the registrar of trade unions but how well audited are the membership figures?

Calling nationwide action and taking members to the streets if the government does not give in to its threat by today will not help the situation at all. In fact, if the GWU were to be so unwise as to ignore all the calls for common sense made so far by so many, it would do great harm to the cause of its own members and of the rest of the workers in the country. Would that correspond to its role of a general workers' union? Hardly.

Minn ghandu ragun?

[Artist]

Never ending story

Malta Independent

Industrial stability has already suffered a wobble this summer with the General Workers’ Union threatening a national strike, and things have been further compounded with the Public Transport Association also threatening a strike.

The GWU of course has threatened nationwide industrial action if the government fails to call a meeting on what it has termed a “guillotine policy” whereby the authorities terminate employment of surplus works in companies that are in the process of being restructured. The deadline is today, 11 August, so one will have to wait and see what is in the pipeline. The government on the other hand contends that it has no such policy and is offering to take on surplus workers and also honour termination benefit agreements.

Yet now, merely days before the start of talks between the Malta Transport Authority and the Public Transport Association, we have heard yet more rumblings. The association has threatened to strike over a subsidy offer by government at Lm1.1 million. The association claims that it needs an additional Lm600,000 to allow it to function as it does at present. This is similar to what happened a few summers ago when the PTA threatened strike action over the same issues – subsidies.

However, the government is proposing reforms that will make better use of Malta’s buses, proposing lengthening of some serviced routes as well as totally changing others. This will be implemented along with removing a day-in-day-out system which is causing varied problems to the system. One must of course bear in mind that bus owners make additional money through private trips. It is estimated that European buses carry an average of 120,000 passengers per year, yet Maltese buses carry only 60,000 – half that amount.

Of course, it is also peak season, with vast amount of tourists in Malta. If the buses were to call a strike, it would have a knock-on effect in other areas. Tourists will not travel and will therefore not spend money in different parts of the island. It is bad enough that we still have a rotten public transport service. Drivers’ manners leave a lot to be desired, one must have small denominations or they get a mouthful of abuse and unfortunately, there are still drivers who cheat people out of money. It still happens. And yet the government is pushing ahead with a package to try and revamp the sector – and what happens in return? Demands for subsidies and threats of industrial action. Of course, one must also bear in mind that the government paid out huge subsidies to get drivers to dispose of the old wrecks that used to serve as a poor imitation of buses in order to get new ones.

What is perhaps the strangest thing in this issue is that the PTA seems to be shooting itself in the foot. An agreement was reached last year which stipulated that reforms to the sector were to be implemented, although nothing was concrete. That same agreements stipulates that if the ADT and the PTA do not reach agreement within 90 days, then the authorities would be free to search for an alternative service provider. One wonders whether that might be the kick up the behind that our public transport needs to start offering a reliable, good, polite, friendly and efficient service that one can find anywhere else in Europe. If reforms are made properly, however, we are sure that bus takings would increase further, increasing the PTA’s turnover and in turn reducing the need for subsidies. This was in fact, the government’s plan in the first place.

[Artist]

No to new taxes – yes to new tariffs by Alfred Mifsud

Malta Independent online



http://217.145.4.56/ind/images/articleimages/Alfred%20Mifsud.jpg In this strange country, one finds it difficult to call things by their real name. It is almost impossible to comment objectively on anything political (and what is not political here?) without being conveniently misquoted or half-quoted.

Take the piece I wrote in the Sunday sister of this paper regarding the pre-Budget document 2006-2010 issued by government to enrich our pool-side reading during this hot August.

In a nutshell, I wrote that the document per se makes not only interesting reading but adopts many of the ideas I have repeatedly professed in my writings, including those featured in this column. I did, however, express great reservations on government’s ability and determination to execute what it was itself proposing, as it was generally painful stuff – the sort of measures governments normally take in the first half of a legislature hoping to reap the popularity benefits when elections start getting visible on the horizon.

I emphasised that reports alone would get us nowhere and that we need focused action to do what we have to do before more damage is done to the economy. “Reports are as easy to write as measures are hard to take,” I stated verbatim.

The PN media eulogised my appreciation of the general orientation of the report without reference to my apprehension over government’s ability to translate words into action. If the government thinks that writing positive reports can solve our economic problems, then it is completely off target.

As each day passes, my doubts as to government’s determination to translate its own plan into action grow. And with good reason. And not just one reason – let me give you three.

Firstly, in the report itself, government seriously under-estimates, or purposely understates, the severity of the economic problem we have. It seems that government is happy with our anaemic growth performance, which has left the 2004 GDP at the same real level of the 2000 GDP. How else could one interpret the following excerpt from the Report?

“The Maltese economy, although still suffering from a certain amount of slack, is still performing creditably. The resilience of our manufacturing enterprises, the improvements in our tourism sector, the increased momentum in construction and agriculture and the improved levels of activity in our financial and other services sectors are increasing employment opportunities and drops in the number of unemployed persons. This resilience gives room for optimism in our country’s future. Our country is working and is managing to create wealth.”

If only it were so! If we are increasing employment without registering economic growth, then our efficiency per capita is deteriorating and we are losing our international competitiveness. Hardly a source of optimism for the future! If government cannot make a serious diagnosis of the state we are in and what brought us to it, it does not augur well for its ability to guide us to greener economic pastures.

Secondly, government is already being conditioned by its own fortunes for the next election, which in all probability is a little over two years from now. How else can one interpret the laughable uttering by the parliamentary secretary that at the next budget there will be no new taxes, as government’s budgetary position is improving beyond expectations?

It is only natural that government’s budgetary position should be improving beyond expectations because the government has benefited from substantial revenue from the Investment Registration Scheme that was not included at the budget stage. But this is a one-off revenue item that will not recur, so the underlying trend in government finances is still a cause for concern.

But what does “no new taxes” mean? Does it also mean no new tariffs, charges, levies, rates, contributions or whatever other gentler names revenue-raising measures are often given in order to avoid the tax word? Hardly! Pages 76-78 of the Report are already indicating that government needs to raise Lm20 million annually to fill the gap in financing the health sector. Unless reports are written purely for the sake of being written, the parliamentary secretary should stop telling us half-truths. No new taxes, maybe, but surely he cannot remain credible and give similar assurances regarding taxes by other names.

Lastly, my doubts are based on the fact that government has totally ruled out an exchange rate adjustment. Of the 10 measures I had recommend to engineer an economic turnaround, the exchange rate adjustment was the last measure in the pack. My argument was that if the nine preceding measures were adopted, the 10th exchange adjustment measure becomes an optional. But whereas without the exchange rate adjustment the other measures would take several years to produce positive results, with the exchange measure included in the pack the time for the cure package to prove effective could be shortened to between 18 to 24 months.

Now, of all the commodities that politicians have, time is the scarcest. They need to keep the electorate on board to ensure that they can deliver the economic bacon without losing their tenure in office. They need to deliver results fast. Time is rarely on their side. The last time a government was forced to seek re-election when it could only show the two years of pain without the ensuing gain was the Labour government in 1998. They lost office even though they could fairly claim that they were trying to solve problems inherited from preceding governments.

When politicians say they prefer to choose the long hard road, and promise to start on it two years before the election, I can be permitted a wry smile. Also when they promise no new taxes.

www.alfredmifsud.com

[Artist]

Malta’s Potemkin Syndrome by J.G. Vassallo

Malta Independent online



The lethargic summer months seem to sanctify the somnolence of Mediterranean politics. In an island where time often stands still, and inertia is next of kin to paralysis, politicians, who struggle in defence of the status quo, long for a nap before going on holiday.

When they come back, they will be fit enough to man the dam that holds back the tide of progress.

Many a reader is likely to be taken aback by the foregoing, and will doubtless make a personal assessment of this affirmation. The proof of the pudding is in the eating,

The point I am trying to make is that, over time, Maltese party politics has been transformed into an exercise in sleight of hand and the electorate is involved in a game of Chinese mirrors. It is promised the earth plus pie in the sky. It is assured that the economy is steadily moving in the right direction. Electoral inebriation, stimulated at the right time, reaches such a pitch that unkept promises are forgotten, and new ones are introduced to sustain morale.

Ten years ago, at the end of a hot July, I tried to take the measure of this game of political illusion. Writing in this same newspaper, I described how the electorate had been taken for a long, long ride by the Maltese “Potemkin Syndrome”



Potemkin Villages

Grigory Alexandrovich Potemkin (1739-1791) served Empress Catherine the Great of Russia in a number of capacities – as minister, counsellor, administrator and friend.

So concerned was he for her happiness, and also perhaps for his personal image, that he arranged for the empress to hear only good news from her subjects. He also wanted her to be pleased with his stewardship, obviously to make sure that his schemes would be officially endorsed.

He is reputed to have built phony pleasant villages along routes travelled by the empress. He saw to it that the villages where the empress had to stop were stocked with “happy” peasants.

Potemkin achieved certain immortality, thanks to his original device. The term “Potemkin village” has been assimilated into the language of political science to denote artificially contrived displays, where guile succeeds with the help of artificiality or even a degree of deception.

The temptation to build Potemkin villages has prevailed in a number of countries, including our own. The deception can come from governments and their agencies, as well as non-government quarters. Shakespeare summed it all up in Hamlet: “One may smile, and smile, and be a villain’.



Maltese Potemkin Constellation

Ten years ago, I pin-pointed various local Potemkin Villages which had served their purpose by l995. Some of them are still disfiguring our landscape, like ghosts from an ugly past. One of them is the old Chambray project, initially entrusted to an Italian-Malta Government enterprise, handed over to a Maltese quadrumvirate, and, subsequently, to Gozitan interests. It is still awaiting realisation.

Another Potemkin exercise on a grand scale was the Renzo Piano plan for the approaches to Valletta. It was touted as a million-liri project, designed to change the face of our capital city. Princely fees are said to have been spent so that a reputable local architect could undertake preliminary spadework. The Renzo Piano “village” seems to have vanished into thin air.

The remains of the former Royal Opera House stand, like an abandoned bride, at the entrance of our capital city, more than half a century after the end of World War Two. It embarrasses, even shames, the string of politicians who repeatedly undertook to restore it to its former glory, or at least to replace it .

The Planning Authority is proving to be yet another major star in the Maltese Potemkin constellation.

The Authority built its own head offices to cause a permanent scar on the aesthetics of the Floriana outer fortifications. The ceaseless wonders attributed to Mepa have been at the centre of national frustration and the focus of massive popular complaint, for which there seems to be no solution.

The so-called “reform” of the public transport service has been dangled before the eyes of the electorate in a succession of moves, by a succession of public entities – all of which took the nature of a cross between a public agency and a quango

Several fare increases have been authorised during the past 17 years, against solemn promises that the service would be improved.

The bus owners took the fare increases as well as some subsidies – but the service leaves much to be desired on many routes. The travelling public had been paying through the nose and has, in return, been taken for the proverbial ride. If one considers the intolerable overcrowding, the deplorable manners of many (but by no means all) the driving personnel and the inefficiency of meeting demand at peak hours, there is much to be desired, particularly in the light of Malta’s aspirations as an international tourist destination.



Maltese Incarnation

Perhaps the incarnation of Prince Potemkin in Malta is the Malta Civil Service. It has made big claims about modernisation and reform but the millions invested in revised pay scales have not been matched by all-round efficiency and productivity.

Although there has been time enough to send top civil servants for university training, there has been no tangible input at managerial level.

As a result, the country has operated by guess and by god, relying on hunches and calculations, plenty of rhetoric, at times, enhanced by Ministerial whims.

The machinery to collect arrears of revenue has been in a shambles and is showing no evidence of marked improvement. The government owes millions of liri to owners of expropriated property, to importers and contractors and never seems to learn to mend its ways.

But Ministers continue to be singularly adept at doing a Potemkin at the snap of their fingers. They publish glossy reports galore, and any number of annual reports, basking in the knowledge that they will be applauded by “happy peasants”, anxious to find favour with the empress.



That’s how the status quo prevails.

The more Potemkin villages

The more will time stand still

The more there is stagnation

The more there is frustration

Until the bluff is called.



jgv@onvol.net

[Artist]

Il-Prim jghid mod u l-poplu mod iehorGavin Gulia (editorial@kullhadd.com)

Kullhadd.com



Il-pajjiZ ghandu problema bil-Prim Ministru li ghandna. Ghaliex ghandna Prim Ministru li huwa maqtugh kompletament minn dak kollu li jhoss u jghid il-poplu. Jekk il-poplu jghid ajma ara li ser issib lil Gonzi jghid ahh xi pjacir.

Dan l-ahhar kont qieghed nigri minn negozju ghall-iehor nipprova nghin lil kostitwent tieghi jfittex impjieg. Dan ghandu 47 sena, mizzewweg b'zewg itfal ghadhom l-iskola w l-mara ma tahdimx. Ghadu kemm tilef hobzu ghaliex il-fabbrika fejn kien qieghed jahdem naqsulha l-ordnijiet u waddbet ’il barra lilu w xi erba’ haddiema ohrajn. Fejn hu z-zmien meta n-nazjonalisti kienu jiftahru li l-impjiegi jigru wara n-nies? Issa spiccajna biex mitt ruh jigru wara l-istess impjieg.

Zort mill-inqas sitt stabbilimenti kummercjali f'jumejn u fl-eqqel tas-sajf meta suppost it-turizmu jcaqlaq xi ftit ir-rota kulhadd jghidlek li l-business tieghu ghaddej minn zminijiet tassew difficli, li flus fl-idejn m'hawnx u li hadd mhu jaghmel ordnijiet. Ghal li jista’ jkun jehdulek id-dettalji tal-persuna li tkun qeghda tfittex l-impjieg u jghidulek li jekk ikollhom bzonn jibaghtu ghalik.

Bejni w bejn ruhi nghid min jaf kemm hi twila l-lista ta' nies li marru qabli w ghadhom jistennew biex jibaghtu ghalihom. Il-verità hi li ma jibaghtu ghal hadd ghaliex il-prospetti ta' l-ekonomija ghall-gejjieni huma hziena hafna.

Dawn in-negozjanti imbaghad ikellmuni bla kantunieri u jifthu qalbhom mieghi. Jghidu li l-Prim Ministru biss qieghed jghid li l-ekonomija hija tajba u meta jisimghuh jghid li kollox miexi fuq ir-rubini jisthajjlu qeghdin jghixu f'dinja ohra. Hemm min qieghed jordna lill-impjegati taghhom jiehdu l-leave ghaliex xoghol m'ghandhomx. Hemm min ibiegh l-airconditioners u jghidlek li waqt il-Fiera spicca biex biegh tlett airconditioners biss.

Sahansitra anki l-GRTU qeghda titkellem b'mod ghal kollox differenti mill-Prim Ministru. L-ewwel talbu lil-Parlament isejjah dibattitu dwar il-qaghda ta' l-ekonomija biex naqblu fuq pjan ekonomiku serju li johrog lil pajjizna minn dawn il-problemi. Imbaghad il-GRTU wissiet lill-Gvern li meta n-negozjant ikun minn taht m'ghandux ikompli jigi msawwat. U m'ghandix ghalfejn nirrepeti dak kollu li qal l-Professur Edward Scicluna dwar ir-ricessjoni rampanti li dahal fiha pajjizna. Izda Gonzi jichad kollox anki s-sewwa maghruf basta jipprova jaghti l-impressjoni li ghandna l-aqwa Gvern li qatt kellu pajjizna mill-Indipendenza 'l hawn!

Il-Prim Ministru huwa maqtugh ghal kollox mill-poplu Malti w Ghawdxi. Kumbinazzjoni dan l-artiklu qieghed niktbu minn Ghawdex. Huwa car li l-gzira Ghawdxija ghaddejja minn zmien difficli ukoll ghaliex qajla ghadhom jitilghu l-Maltin biex iqattghu l-vaganzi tal-festi ta' Santa Marija.

Sinjali taz-zminijiet. Izda forsi Gonzi ghadu ma ntebahx!

[Artist]

RPI falls by 0.8% in July

Malta Independent online

In July, the Retail Prices Index fell by 0.83 per cent to 105.77 from 106.65 in the previous month, the National Statistics Office reported yesterday.

The Food Items Index was down by 1.73 per cent to 102.12 from 103.92 in June as a result of average price reductions in fresh fish, fresh fruit, unprocessed potatoes and vegetables.

Price increases were registered for frozen meat and prepared and processed meat.

At 114.95, the Beverages and Tobacco Index was 0.46 per cent higher than in June.

Higher average prices were recorded in respect of non-alcoholic and served non-alcoholic beverages.

The Clothing and Footwear Index was down by 13.21 per cent to 82.50 from 95.06 in June. Average price falls were recorded in respect of a range of clothing and items of footwear due to seasonal sales.

The Housing Index rose by 0.22 per cent to 111.81 from 111.57, due to price increases for plastering materials, cement rendering, electrical equipment and miscellaneous articles.

The Household Equipment and House Maintenance Cost Index rose by 0.07 per cent to 103.65 from 103.58 in the previous month. This increase was the result of higher price for household appliances.

Higher average prices for motor cars, fuel, telephones and telephone services and air transport services resulted in the Transport and Communication Index rising by 2.02 per cent to 110.38 from 108.19 in June.

The Personal Care and Health Index fell to 111.48, a drop of 0.30 per cent from the previous month. Lower average prices for therapeutic appliances and equipment and hygienic articles/toilet preparations/make-up articles were registered.

However, higher average prices for medicines were recorded.

The Recreation and Culture Index registered an increase of 0.05 per cent to 101.62 from 101.57 in the previous month. Higher average price increases were recorded for audio-visual equipment, while lower prices for sports equipment were registered.

Increases in the average cost of jewellery, watches and clocks, non-durable household goods and insurance resulted in a net increase of 0.46 per cent to 115.14 in the Other Goods and Services Index.

Number of unemployed falls by 1,000 At the end of July 2005, a total of 7,091 unemployed people were registering for work under Part 1 and Part 2 of the unemployment register, the National Statistics Office reported yesterday.

Of these, 5,500 or 77.6 per cent were men and 1,591 or 22.4 per cent were women.

The number of registered unemployed rose by 161 over the preceding month. On an annual basis, there was a fall of 1,040 on the unemployment register.

The number of new registrants under Part 1 of the unemployment register amounted to 404 in July 2005.

The age distribution of the given statistics indicates that, among those registering for work as at the end of July 2005, there were 3,008 people (42.4 per cent) who were under 30 years of age.

The latter who, in the given month, were registering under Part 1 amounted to 39.8 per cent; whereas those on Part 2 amounted to 63.7 per cent within their respective register.

Further analysis of the age variable indicates that in July 2005, there were 1,918 people (1,602 men and 316 women) aged 45 and over registering for work.

In the month under review, there were 2,935 people (1,997 men and 938 women) who have been registering for work for less than 20 weeks. In addition to this, there were 2,726 people (2,381 men and 345 women) who have been registering for work for 53 weeks and over.

Men and women tend to differ in the type of occupation they are seeking while they are unemployed.

The figures for July 2005 indicate that the most common occupations being sought by men are connected to trades and elementary work. Women, on the other hand, tend to looking more for clerical and service work.



Unemployment rates for January 2005

The unemployment rate for January 2005 stood at 5.6 per cent of the labour supply.

The rate for men was 6.3 per cent and that for women was 3.9 per cent.

In January 2005, the long-term unemployment rate stood at 2.1 per cent, whereas the unemployment rate those aged 45 years and over stood at 4.4 per cent during the same month.

The unemployment rate among young people was 8.1 per cent. The rate of unemployment among males under the age of 25 was 9.7 per cent, while that of females was 6 per cent.

[Artist]

False competition and cooking the books by Alfred Mifsud

Malta Independent online



There is no place like Malta. It is the only place on earth where competition works to disadvantage the consumer rather than to provide more value for money.

The first lesson in economics is that competition is healthy. It brings efficiency in allocation of resources and consequently packs value in the final product or service as suppliers compete to win consumers’ custom.

Where competition is absent the consumer will have to take whatever is on offer at the price the monopolist decides. Having total control over the market the monopolist supplier has no commercial pressure either to improve his product or to price it competitively. Profit margins are huge and suppliers laugh all the way to the bank.

Many remember the times in the early 1980s when colour TVs were exclusively distributed by a private monopoly that was literally given a legal right to extort money from consumers’ pockets. The introduction of competition there worked wonders as it was true competition. The consumer was given a choice to buy the same or similar products from a multitude of suppliers who started falling over themselves to improve efficiency in acquisition, distribution, sales, credit terms and after sales service to ensure that they could sell their stock at a profitable price even though margins were much tighter. Often what was lost in the margin was gained in volume as the low prices enticed more consumers to buy the second, third or fourth TV for their home, something which was beyond their reach under the previous monopoly supply rules.

Moving closer to our times, many will remember the high mobile rates we used to pay when Vodafone had all the market to itself. The arrival of the second supplier offering a competitive product lowered mobile rates considerably and a sudden explosion in the use of mobile telephony, which left both the old and the new supplier sufficiently

profitable through deeper market penetration. Everybody was happy, but most of all the consumer who benefited from true competition.

So the second economics lesson one learns quite early in his O level studies is that competition will only benefit the consumer if it is true and genuine. If competition is not true, if cartels are created, or if artificial barriers are set up to block the working of true competition, the benefits never cascade down to the consumer. Quite often the consumer is rendered worse-off under the new pseudo competitive regime than under the former plain vanilla monopoly.

Imagine what would have happened if rather than giving Go Mobile a licence to compete with Vodafone across the whole market spectrum, competition was introduced by giving Vodafone the right to install their mobile network in one half of Malta with Go Mobile installing their network in the other half.

Such false competition, rather than working to the advantage of the consumer, would have worked against him/her as mobile users would have been constrained to buy both services in order to have access to the whole country.

This example seems so unreal; it is laughable. No government or regulator in their right senses would allow competition to work so perversely against the consumer.

But this is exactly what seems to be happening with the false competition coming on stream for paid TV services. Until recently we had one monopoly supplier Melita Cable. The service had all the hallmarks of a supplier not subject to commercial competitive pressures. Because of the high cost of their services, many consumers just booked the reception package, which was the cheapest and provides only free-to-air stations without the reception problems of home antenna systems.

Consumers looked forward to the day when the opening up of the market demanded by EU membership rules and the advancement of Digital Terrestrial technology could buy them a better service at a cheaper price. But because our Regulators forgot that they are there to protect the consumers rather than the suppliers, the false competition brought in for paid TV services will add to the consumers’ pain rather than remove it.

Up to the last football season I could watch most English and Italian leagues matches through Melita, the then monopoly supplier. For this new football season, if I want to watch the English league fixtures I have to have Melita Cable and to watch the Italian league fixture I have to have the services of the new DT TV supplier Multiplus.

Rather then compel both suppliers to share the rights and then compete for patronage through price and service quality, the regulator allowed the operators to split the rights forcing football fanatics to buy and pay for both services. This is false competition that extorts money from consumers’ pockets rather than deliver enhanced value. If this is competition give me a monopoly anytime.

But the syndrome of let’s

pretend is all pervading in our economy. Let’s pretend we have competition in pay TV services when in reality the measures taken work against not in favour of the consumers.

Now we seem about to play a let’s pretend game with our national debt by creating the illusion that it is being reduced when in reality everything remains the same. The let’s pretend agent there is called securitisation – a modern high tech financial term for the old fashioned “cooking the books”.

Securitisation is normally used in the financial world when banks want to get assets off their books in order to respect capital constraints without hindering growth. So it is quite normal for financial institutions with large consumer credit assets on their books (credit card dues, consumer loans, mortgages) to package these products through securitisation and float them on the market where savers, often institutional like insurance companies and pension funds, buy these products directly thus reversing the intermediation role initially performed by the banks in coming between savers and borrowers.

The government is now proposing to use the securitisation method to sell its property assets (retaining the right of buy back) and income streams to raise lump sums in order to reduce the public debt to within euro rules.

If this let’s pretend scheme is hard to believe, please read pages 49, 58 and 59 of the 2006-2010 Pre-Budget Document that government took so much credit and that I liked so much without mentioning my clearly professed doubt on government’s own willingness to put into practice. I bet you this. Of all the proposals in the said document, the securitisation will be one of the few that will actually come into being, in full honour to the well ingrained let’s pretend syndrome.



www.alfredmifsud.com

[Artist]

Social security spending up six per cent

The government's expenditure on social security benefits during the first six months of this year took up 53.3 per cent of the annual budgeted forecast of Lm211.6 million.

During the same period last year, the government's outlay amounted to Lm106.1 million, making up 51.1 per cent of the actual total expenditure on social security benefits in 2004.

Total expenditure on social security benefits during the first six months of this year increased by Lm6.6 million to Lm112.7 million, an increase of 6.3 per cent over the same period last year, the National Statistics Office said yesterday.

Expenditure on retirement pensions, the main component of contributory benefits, increased by Lm3.6 million, mainly due to increased spending of Lm3.1 million for the two-thirds pension.

This increase was brought about by a net increase in the number of beneficiaries.

Other increases in the contributory benefits category were reported in the national minimum invalidity pension (+Lm0.4 million) and in the survivor's (in respect of widowhood) pension which went up by Lm0.5 million.

On the other hand, declines were observed in unemployment benefits (-Lm0.1 million), and in the special unemployment benefits (-Lm0.1 million), while the outlay in sickness benefits went up by Lm0.1 million.

During the same period, non-contributory benefits increased by Lm1.2 million (Lm0.6 million increase in both the first and second quarter), or 4.6 per cent, and amounted to Lm29.8 million.

Social assistance, which is money paid to heads of households who are either unemployed or seeking employment and whose relative financial means fall below the benchmarks established by the Social Security Act, added Lm0.9 million.

Increases were also recorded on benefits relating to old age (+Lm0.3 million), to disability allowance (+Lm0.2 million) and to medical assistance (+Lm0.3 million).

These in part compensated for a reduction of Lm0.4 million in children 's allowances.

[Artist]

Friday Wisdom: Living contradictions by Alfred Mifsud

http://217.145.4.56/ind/images/articleimages/Alfred%20Mifsud.jpg Regular readers of my column probably judge that I am nagging too much about the broad chasm between flowery intentions expressed in nicely bound reports and hard reality.

I can’t help it, as the gap between intentions and reality is getting offensively wide. The government seems to know what it wishes. It has no idea of how to make it happen. But it expects our congratulations purely for cleverly expressing its wishes and has no absorption capacity for criticism about its inability to work out a plan on how to realise them. So criticism in this sense is generally ignored and where it hurts so much that it cannot be ignored, the message gets sidelined as the messenger suffers derogatory innuendos.

The Prime Minister, in one of his recent press conferences, had no kind words for columnists like yours truly. The offence of folk like me is having no inhibitions at being critical, citing facts and figures, and showing aversion to being impressed by vain wishes. My judgement is based on hard reality.

So you can imagine my surprise at receiving a personalised letter from the Prime Minister enclosing a copy of the A Better Quality of Life – 2006-2010 Pre Budget Document. I had already publicly expressed my views on the said document which was available from the government’s website. I hardly needed another copy. But in his covering letter, the Prime Minister told me that:

“We want to discuss with you the choices that will guarantee a future of excellence for you and your children. Government’s decision to publish the Pre-Budget Consultation Document was prompted by the firm belief that your contribution will help us prepare a better budget. Your company’s commitment is decisive for Malta to excel.”

What a living contradiction! Being criticised in public and congratulated in private irritates me. Sending me personal letters extracted from most impersonal computer data-bases reinforces my suspicion that the government is more interested in pretending that it means to do something rather than in actually doing it.

If this were a new government that could disclaim responsibility for the problems we need to address, than the approach could make sense. But for goodness sake, this is a government that has been in office since May 1987 when East Germany was still communist and the Berlin Wall was standing tall as hard evidence of the failure of communism which was soon to come.

My commitment has been there without interruption. What is missing is the government’s own commitment to address the problems at their source and to desist from the shameful practice of pretending to solve problems by writing a cheque from public funds leading to further taxation and debt, in the process gaining for itself political patronage at the expense of tomorrow’s well-being.

Let’s take another contemporary example of how the government has no idea of where it is going and is wrapping itself in contradictions. The Malta Tourism Authority (MTA) is conducting a broad-based

re-branding of the Malta tourist product. The exercise will take several months to conclude and will cost much, much more than a cup of coffee. This is a much-needed overdue exercise. We cannot continue to make false claims that back-fire when we do not deliver what we promise.

We cannot offer sea and sand as if we were the Maldives when tourists here will have difficulty in finding a free square metre at our scarce sandy beaches. However, we can and should promote our uniqueness, our being so near and yet so different. Our smallness which enables tourists to see in less than one week what in other countries would take several weeks. Our varied and rich history, our bastions, our churches and our village traditions – festas and fireworks included. Our versatility in meeting the different scene locations required by creative film directors. Our ability to speak and teach various languages. Our beautiful and historic harbours and the magic scenery of Gozo and Comino. We need to build an aura around our pre-historic monuments and around sites linked to mythology and famous legends.

Yet while we are trying to re-brand ourselves on who we really are and what makes us different from competitors, in the same breath the government is proceeding with plans to deface us by going for golf courses which can sit comfortably in Dublin or Surrey but can hardly be a distinctive feature of a Mediterranean sun-drenched island. What goes for St Patrick and St George does not necessarily go for St Paul.

If we cannot be led with clear determination and sense of direction, we will continue to spread our resources all across the board with conflicting pressures from different directions forcing us to continue running on the spot.

www.alfredmifsud.com

[Marco Polo]

so if we read between the lines we find that the government budget for social security has doubled in one year.

The little increases in spending that are mentioned in the article do not add up to Lm 105.5 million increase in the budget from the year before.

where has the money been spent? any answers mr african?

[Marco Polo]

alfred mifsud seems to understand what malta can offer as a tourist destination

[Semper Sapiens]

alfred mifsud seems to understand what malta can offer as a tourist destination

Unfortunately, as you comment, Mifsud only "seems" to understand tourism. In reality, he has hardly any experience of the tourist market.

The MTA is moreover just a tool in the hands of the respective Minister of Tourism.

Tourism is an industry, which in present times requires the principle of "hire and fire".

The majority of MTA employees are practically on par with civil servants and possibly share same professional motivation.

[Artist]

so if we read between the lines we find that the government budget for social security has doubled in one year.

The little increases in spending that are mentioned in the article do not add up to Lm 105.5 million increase in the budget from the year before.

where has the money been spent? any answers mr african?

Bejn 8 u 10 miljuni fuq l-immigranti llegali.
Irid ihallas id-dejn u l-imghax fuqu.
Ghadu qed jonfoq aktar milli jdahhal.
L-investiment barrani mhux gej, anzi kumpaniji qed jitilqu minn Malta.
It-turizmu sejjer lura.
L-investiment lokali stagna.
L-ekonomija mhiex tikber.
Qieghed ibiegh l-assi kollha tal-pajjiz biex ikun fuq il-binarji biex idahhal il-Euro.
Fuq il-karta jaf ikun fuq il-binarji. Imma realment meta tanalizza kollox tintebah
li qed jaghti t-trab bit-tapit.

[Marco Polo]

Bejn 8 u 10 miljuni fuq l-immigranti llegali.
Irid ihallas id-dejn u l-imghax fuqu.
Ghadu qed jonfoq aktar milli jdahhal.
L-investiment barrani mhux gej, anzi kumpaniji qed jitilqu minn Malta.
It-turizmu sejjer lura.
L-investiment lokali stagna.
L-ekonomija mhiex tikber.
Qieghed ibiegh l-assi kollha tal-pajjiz biex ikun fuq il-binarji biex idahhal il-Euro.
Fuq il-karta jaf ikun fuq il-binarji. Imma realment meta tanalizza kollox tintebah
li qed jaghti t-trab bit-tapit.


I think the article highlights far more than 10 million. where is all the rest of the money that isn't accounted for? immigrants are claiming social benefits too! Lets hope that not everyone who reads the times is a zombie and can see the huge gap.

[Artist]

Lm71 miljun ohra f’dejn ghall-Gvern

l-orizzont.com



Ghalkemm matul il-perjodu ta’ bejn Jannar u Lulju ta’ din is-sena ma rrikorra ghall-ebda self barrani, il-Gvern rega’ ghazel li jissellef mhux inqas minn Lm76,500,000 minn sorsi lokali. Dan wassal biex sa l-ahhar ta’ Lulju, id-dejn pendenti tal-Gvern centrali tela’ ghal Lm1,388,600,000, jigifieri Lm71,600,000 aktar milli kien fl-istess xahar tas-sena l-ohra. Minbarra hekk, l-imghaxijiet imhallsin biex dan id-dejn ikun isservizzjat, fl-ewwel seba’ xhur tas-sena zdiedu bi Lm800,000 ghal Lm42,800,000.

Mill-figuri ppubblikati mill-Ufficcju Nazzjonali ta’ l-Istatistika dwar il-finanzi tal-Gvern jirrizulta li fl-ewwel seba’ xhur ta’ din is-sena, id-dhul rikorrenti tal-Gvern ammonta ghal Lm445,700,000, jigifieri zieda ta’ Lm48,100,000 jew 12.1% aktar milli kien dahhal fl-istess perjodu tas-sena l-ohra.

Fl-istess waqt, l-ispiza totali tal-Gvern zdiedet b’Lm31,700,000 jew 6.2% ghal Lm545,000,000. Dan kien ifisser li d-differenza bejn id-dhul u n-nefqa tal-Gvern ammontat ghal Lm99,300,000 jew Lm16,400,000 inqas mis-sena l-ohra.

Iz-zieda ta’ Lm48.1 miljun fid-dhul rikorrenti matul l-ewwel seba’ xhur ta’ din is-sena kienet rizultat ta’ zieda rregistrata fil-Value Added Tax (+Lm16.2 miljun), Dazju u Sisa (+Lm3.3 miljun), tariffi ta’ l-ufficcju (+Lm12.3 miljun), ghotjiet (+Lm18.6 miljun), Sigurtà Socjali (+Lm1.5 miljun) u dhul iehor (+Lm7.2 miljun). Min-naha l-ohra gie rregistrat tnaqqis fid-dhul mill-Bank Centrali ta’ Malta (-Lm4.2 miljun) u mill-hlas tal-licenzji, taxxi u multi (-Lm8.4 miljun).

Meta mqabbla ma’ l-istess perjodu tas-sena l-ohra, l-ispiza rikorrenti – minbarra l-hlas ta’ l-imghaxijiet fuq id-dejn tal-Gvern centrali – zdiedet bi Lm22.1 miljun jew 5.4% – minn Lm407.4 miljun ghal Lm429.4 miljun.

Mill-istatistika ppubblikata jirrizulta wkoll li bejn Jannar u Lulju ta’ din is-sena, l-ispiza kapitali ammontat ghal Lm72,700,000 – zieda ta’ Lm8.9 miljun jew 13.9% meta mqabbla ma’ dik li saret is-sena l-ohra.

[Artist]

Malta Independent online












Increased taxes responsible for rise in government income – MLP The Nationalist’s government’s policy is based on increasing taxes and the latest statistics of government finances show that the government is breaking its promise of moving Malta’s economy forward without any more taxes, said Malta Labour Party deputy leader Charles Mangion.

In a statement issued yesterday, Dr Mangion claimed that the government finances between January and July 2005 show that Malta is falling behind in its economic development and the increase registered in government income is only due to the rise in VAT from 15 per cent to 18 per cent, not to an increase in consumption.

“Malta is the country developing at the slowest rate,” said Dr Mangion. He claimed that Maltese families are laden with taxes and this reduces consumption and contributes to “economic slowdown”.

The Labour MP said this argument was further reinforced by the weak earnings from income tax and national insurance tax, especially considering the government had expected to register a four per cent increase in this area and only succeeded in achieving a rise of one per cent.

Furthermore, Dr Mangion said that in contrast to this, the government expenditure increased by 5.4 per cent. He noted that the figures of the outgoings did not include the Lm9 million the government owes medical suppliers, but its income included the Lm5 million from the Investment Repatriation Scheme.

“From these calculations, one can find that the state of government finances is much worse than the figures published claimed,” said Dr Mangion. He said “the government is going against a promise made prior to the budget and now it is caught up within its own cheap propaganda.”

“The promise of solid finances was a lie that now the Maltese people are having to pay for,” the MLP deputy leader continued, adding that the standard of living and welfare state are slowly being whittled away.

Dr Mangion concluded that the MLP’s document for economic and social regeneration stresses the importance of the collective effort needed to bring about economic development, new investment and a secure education system, together with the protection of the welfare state.

[Artist]

Ma rridux persuna wahda qeghda – il-Ministru Censu Galeaminn Owen Galea

l-orizzont.com



Il-Ministru tal-Kompetittività u Komunikazzjoni Censu Galea qal il-bierah li l-ghan tal-Gvern fir-rigward ta’ l-Agenda ta’ Lisbona hu li ma jkunx hemm persuna wahda ma tahdimx. Censu Galea qal dan meta kien qieghed iniedi t-tieni stadju ta’ konsultazzjoni pubblika dwar il-Programm Nazzjonali ta’ Riforma 2005-2008. l-orizzont staqsa l-Ministru jekk tfasslitx mira mill-gvern biex jonqsu l-persuni qeghda minn fuq ir-registru tal-qghad fis-snin li gejjien fid-dawl ta’ l-ghanijiet iffissati fl-Agenda ta’ Lisbona. Il-Ministru qal li l-ghan tal-gvern hu li ma jkun hemm lanqas persuna wahda tirregistra. Minkejja din ix-xorta ta’ stqarrija li ndrat sew mill-Ministri tal-gvern, l-ghadd ta’ persuni qeghda tul dawn l-ahhar snin, baqghu dejjem qrib it-8,000.

Matul din il-konferenza stampa l-Ministru Galea ammetta li pajjizna jinsab lura fl-oqsma tar-ricerka, zvilupp u innovazzjoni meta mqabbel ma’ pajjizi ohrajn ta’ l-UE. Fl-ahhar statistika mahruga mill-UE irrizulta li pajjizna investa 0.2 fil-mija biss tal-Prodott Gross Domestiku. Il-mira Ewropea f’dawn l-oqsma hi ta’ tlieta fil-mija. Minkejja dan, il-Ministru jinsab ottimist li fl-istatistika li jmiss pajjizna se jmur ahjar. Dan ghax skond hu saru bosta inizjattivi mis-settur privat, mill-Uni-versità u xi kultant mill-gvern li ma ttehidtx rendikont taghhom.

Il-Ministru qal ukoll li fiz-zmien qasir il-Gvern mistenni jiehu decizjoni dwar il-Kunsill Malti ghall-Ixjenza u t-Teknologija bil-ghan li jkun stabbilit jekk dan il-kunsill jibdiex jaqa’ taht l-Università ta’ Malta jew il-Malta Enterprise. Did-decizjoni kellha tittiehed tmien xhur ilu!

Mistoqsi kif seta’ l-gvern jaghmel il-pjanijiet tieghu ghal bejn l-2007 u l-2013 meta l-budget ta’ l-UE jinsab iffrizat, il-Ministru b’mod generali stqarr li l-gvern ma jistax joqghod jistenna u sostna li l-istati membri jridu jilhqu qbil bil-fors dwar din il-kwistjoni fl-iqsar zmien.

Dwar interventi urgenti li hemm bzonn jittiehdu fil-budget li jmiss, il-Ministru qal li l-mizura tal-budget ma jinkixfux kmieni u sostna li f’dan l-istadju ghadu kmieni biex wiehed ilissen inizjattivi partikolari.

Intant il-Ministru qal li d-dokument imniedi l-bierah se jindirizza l-kompetittività ta’ Malta fid-dawl ta’ l-Agenda ta’ Lisbona li fasslet l-Unjoni Ewropea fl-2000 u li kienet riveduta fl-2004. Fir-revizjoni li saret fl-2004 intwera li l-progress kien batut u mhux bizzejjed biex jintlahqu l-miri sa’ l-2010.

F’Marzu ta’ l-2005, l-Istrategija ta’ Lisbona regghet tnediet mill-gdid. Kienet imsejsa fuq ghadd ta’ elementi centrali dwar tkabbir u impjiegi. Hawnhekk, il-Kummissjoni Ewropea talbet lill-Istati Membri biex ihejju Programm Nazzjonali ta’ Riforma (PNR) sal-15 ta’ Ottubru.

Il-htiega ta’ l-abbozz hu li titfassal strategija li twassal ghal tkabbir ekonomiku. Dan biex tikkontribwixxi ghall-ghanijiet ta’ l-UE, jigifieri li l-Ewropa ssir l-iktar blokk kompetittiv fid-dinja u li jitkattru l-impjiegi.

Il-Ministru qal li l-konsultazzjoni bdiet mill-bierah u se tintemm fit-23 ta’ Settembru 2005. Qal li l-konsultazzjoni trid issir fil-livelli kollha, ma’ l-ishab socjali u entitajiet tal-gvern.

Matul dan il-perjodu ta’ konsultazzjoni, il-Management Efficiency Unit li tqabbad mill-Ministeru biex jiehu sehem dan id-dokument, se jkollu laqghat ma’ l-imsiehba socjali u s-socjetà civili. Qal li l-fehmiet li se jir- cievu se jigu analizzati u ezaminati biex wara jkunu jistghu jiddahhlu fl-abboz finali tad-dokument. Qabel mad-dokument jintbaghat lill-Kummissjoni Ewropea irid jigi approvat mill-Kabinett.

[Artist]

It-taxxi u mhux it-tkabbir ekonomiku li qeghdin
izidu d-dhul tal-gvern – Charles Mangion

l-orizzont.com



L-istatistika ppubblikata dwar il-finanzi tal-gvern bejn Jannar u Lulju ta’ din is-sena tikkonferma li l-politika tal-Gvern Nazzjonalista hija bbazata fuq zieda fit-taxxi u t-tariffi. Il-Gvern m' hux jirnexxielu jsahhah il-qaghda finanzjarja tieghu permezz tat-tkabbir ekonomiku. “Dan qieghed iwassal biex pajjizna jaqa’ lura fit-tkabbir ekonomiku, tant li huwa l-aktar pajjiz li qed jizviluppa b’rata baxxa fost il-pajjizi godda ta’ l-Unjoni Ewropea”, qal id-Deputat Mexxej Laburista ghall-Affarijiet tal-Parlament u Kelliem Ewlieni ghall-Finanzi u Affarijiet Ekonomici, Dr Charles Mangion.

Huwa spjega li z-zieda rregistrata mill-gvern fid-dhul tieghu gejja mit-taxxa tal-VAT. Dan huwa dovut mhux minhabba li l-konsum kiber, imma biss bhala rizultat ta’ zieda fir-rata tal-VAT minn 15 fil-mija ghal 18 fil-mija. Dan kien ifisser zieda fil-piz tat-taxxa ta’ 20 fil-mija. Aktar minn hekk, peress li r-rata ta’ inflazzjoni hija ta’ 2.8 fil-mija, id-dhul mill-VAT hija taxxa marbuta mal-prezzijiet tal-konsum, zdied b’dik li tissejjah ‘inflation tax’.

Dawn iz-zewg fatturi jikkonfermaw li bil-politika tieghu, il-Gvern Nazzjonalista qieghed dejjem jghaffeg lill-familji Maltin u Ghawdxin b‘piz akbar ta’ taxxa. Dan qed inaqqas il-konsum u jikkontribwixxi lejn ‘slowdown’ ekonomiku.

Ikompli jkun ikkonfermat dan mid-dhul dghajjef irregistrat mill-income tax u mill-bolla. Flimkien, dawn iz-zewg sorsi ta‘ dhul, irregistraw zieda ta‘ Lm2.1 miljun, jigifieri 1 fil-mija biss. Il-gvern, fil-Budget, kien qed jipprogetta zieda ta‘ 4 fil-mija ghal matul is-sena 2005 minn dawn iz-zewg sorsi ta’ dhul. Dan jixhed is-sitwazzjoni dghajfa ta‘ l-impjiegi f’pajjizna, u zieda li tirrifletti biss il-piz tat-taxxa tal-haddiema fuq zieda li jkunu hadu, inkluz zieda fl-gholi tal-hajja.

Dwar l-ispiza rikorrenti, in-Nutar Mangion qal li wiehed isib li din zdiedet b’5.4 fil-mija, zieda li hija wisq akbar miz-zieda fil-GDP (tkabbir ekonomiku) li f‘termini nominali zdied biss bz1 fil-mija u f’termini reali naqas matul l-ewwel nofs tas-sena 2005. Ta’ min jghid ukoll li d-dhul tal-gvern jinkludi dhul ta’ darba ta‘ madwar Lm5 miljun mill-iskema ta’ registrazzjoni ta’ investiment barra l-pajjiz – Investment Repatriation Scheme, u l-ispiza tieghu ma tinkludix id-dejn li ghandu l-gvern ma’ min jissuplixxi l-medicini li jilhaq aktar minn Lm9 miljuni.

“Jekk wiehed ikollu jinkludi dawn il-kalkoli jsib li l-qaghda finanzjarja tal-gvern, minkejja zieda qawwija fil-piz ta’ taxxi hija aktar hazina u mweghra minn dik murija fil-figuri ppubblikati” spjega d-Deputat Mexxej Laburista.

Huwa kompla jghid li l-figuri finanzjarji tal-gvern jikkonfermaw il-maqlub tal-politika dikjarata tal-gvern stess. Fid-dokumenti ta’ qabel il-budget, il-gvern stqarr li l-ekonomija ghandha tinghata spinta biex tikber u mhux jizdied il-piz tat-taxxi. Il-figuri ta’ l-istess gvern izda jikkonfermaw li Gvern Nazzjonalista miexi bil-maqlub ta’ dak li wieghed.

“Gvern Nazzjonalista jinsab maqbud fil-propaganda rhisa tieghu stess. Il-weghda ta’ finanzi fis-sod ma kienet xejn ghajr gidba. Gidba li qed ihallas ghaliha l-poplu Malti u Ghawdxi li qed jara l-livell ta‘ l-ghixien tieghu jitnaqqas, u l-harsien socjali (welfare) jitmermer bil-mod il-mod” qal in-Nutar Mangion.

Huwa temm jghid li d-dokument Laburista ghall-Qawmien Ekonomiku u Socjali jishaq fuq il-bzonn li l-isforzi kollettivi jridu jkunu fuq it-tkabbir ekonomiku, investiment gdid fl-oqsma ekonomici li ghandna u f’ohrajn godda u tishih tas-sistema edukattiva biex tkun aktar adattata ghall-isfidi ta’ llum. Ma’ dan il-Partit Laburista jinsisti li l-harsien socjali, cioè l-welfare state, ghandu jibqa’ jkun sostnut u mhares biex hadd ma jkun emarginat.

[Gladiator]

Huwa temm jghid li d-dokument Laburista ghall-Qawmien Ekonomiku u Socjali jishaq fuq il-bzonn li l-isforzi kollettivi jridu jkunu fuq it-tkabbir ekonomiku, investiment gdid fl-oqsma ekonomici li ghandna u f’ohrajn godda u tishih tas-sistema edukattiva biex tkun aktar adattata ghall-isfidi ta’ llum. Ma’ dan il-Partit Laburista jinsisti li l-harsien socjali, cioè l-welfare state, ghandu jibqa’ jkun sostnut u mhares biex hadd ma jkun emarginat.

Sur Mangion u kif se taghamlu dan kollu? Kif? Ghid kif, muhx paroli biss? Stena lol Senta dejjem kienet il frazi Laburista!

Zmien mitluf fil paroli u dokumenti vojta u bla sens, li johorgu mill Mile End.:eek:

[Artist]

Drops in manufacturing sales, investment

The Times of Malta

Total sales by manufacturing enterprises in the second quarter this year dropped by Lm11.7 million, or 4.7 per cent, to Lm239.4 million from Lm251.1 million a year earlier, the National Statistics Office said yesterday.

The net total manufacturing sales amounted to Lm458.2 million, registering a drop of Lm47.7 million when compared with Lm505.9 million for the same months of 2004.

Investment in the manufacturing industry in the first six months of this year added up to Lm23.6 million, a net decrease of Lm6.8 million when compared to Lm30.4 million registered for the same period last year.

[Artist]

L-impjiegi fil-manifattura naqsu b'aktar minn 1,200

Kullhadd.com

ID-DEPUTAT Laburista Chris Agius, Kelliem Ewlieni dwar l-Industrija u Investimenti Pubblici, qal li l-informazzjoni li giet ipprezentata mill-Ufficcju Nazzjonali ta’ l-iStatistika dwar kif mar il-qasam tal-manifattura fit-tieni kwart tas-sena, juri kif dan is-settur baqa’ ghaddej minn perjodu negattiv u li d-diffikultajiet li ilu jhabbat wiccu maghhom ghadhom qeghdin jippersistu.

Fi stqarrija ghall-istampa, Chris Agius zvela li f’sentejn l-impjiegi fil-qasam tal-manifattur naqas b’aktar minn 1,200.

Dan johrog mill-figuri ta’ l-Ufficcju Nazzjonali ta’ l-iStatistika li juri li f’Gunju 2003, in-numru ta’ impjegati fil-qasam tal-manifattura kien 1,277 aktar minn dak li kien hemm f’Gunju li ghadda.

Fl-istqarrija tieghu, Chris Agius qal li l-bejgh li kellu l-qasam tal-manifattura bejn April u Gunju li ghadda, huwa Lm11.7 miljuni inqas minn dak li sehh fl-istess perjodu sena qabel.

Kienu hafna s-setturi differenti li jiffurmaw dan il-qasam li esperjenzaw tnaqqis, fosthom dak tal-manifattura ta’ l-apparat ghat-TV, radju u telekomunikazzjoni. It-tnaqqs hawn kien ta’ Lm29.9 miljuni.

Chris Agius innota li anke l-bejgh tul l-ewwel sitt xhur tas-sena kien hemm tnaqqis ta’ Lm47.7 miljuni.

Meta rrifera ghall-impjiegi generali fil-qasam tal-manifattura, Chris Agius qal sa Gunju kien hemm tnaqqis ta’ 288 impjieg, komparat mal-istess perjodu tas-sena l-ohra.

Chris Agius qal li l-istess xejra negattiva kienet registrata f’dak li ghandu x’jaqsam mal-investiment li sar fl-istess qasam.

Chris Agius qal li ghalemm fit-tieni kwart ta’ din is-sena, kien hemm kwazi l-istess ammont ta’ investiment li kien sar fl-istess perjodu sena qabel, ma jistax jinghad l-istess ghal dak li sehh tul l-ewwel sitt xhur tas-sena.

Hawnhekk it-tnaqqis kien ta’ Lm6.8 miljun meta mqabbel ma’ sena ilu.

Quddiem dawn ir-rizultati, qal Chris Agius, il-Gvern bilfors li jrid jara x’hemm bzonn li jsir biex dan is-sors importanti ghall-ekonomija jissahhah u mhux jidghajjef.

Chris Agius qal li l-Oppozizzjoni Laburista hija konxja tal-problemi kbar li ghaddej minnhom il-qasam tal-manifattura, u ghalhekk fid-dokument li approvat il-Konferenza Generali tal-Partit Laburista, "Il-Pjan ta’ Qawmien Ekonomiku u Socjali", l-industrija tal-manifattura inghatat importanza kbira.

Chris Agius qal li l-Partit Laburist jemmen li l-incentivi ezistenti m’humiex ikunu attraenti bizzejjed, u ghalhekk il-Partit Laburista elenka numru ta’ incentivi li se jkunu mmirati biex minnbarra li "nhajjru investiment gdid, inkomplu nghinu dawk ezistenti biex mhux biss jibqghu joperaw, imma possibbilment izidu l-produzzjoni taghhom" temm jghid Chris Agius, fl-istqarrija tieghu.

Il-problemi fil-qasam tal-manifattura komplew johorgu aktar fil-berah mill-istharrig tal-Federazzjoni ta’ l-Industrija ghax-xahar ta’ Lulju.

Skond dan l-istharrig, l-industrija lokali qieghda tistenna tnaqqis fl-ordinijiet u fil-bejgh taghha fix-xhur li gejjin, waqt li f’Lulju li ghadda, l-istocks ta’ prodotti lesti kien deskritt bhala aktar min-normal.

[Artist]

"Il-biedja f'qaghda dizastruza"

kullhadd.com



http://www.kullhadd.com.mt/images/articleimages/4Sep05/Bidwi.jpg

Korrispondent ta’ gurnal tal-PN jghid li Ghawdex sar dezert

KORRISPONDENT tal-gurnal tal-Partit Nazzjonalista "In-Nazzjon", Francis Mizzi, f’artiklu pubblikat fil-harga tal-bierah qal li l-biedja f’pajjizna tinsab f’qaghda dizastruza.

Waqt li qal li l-biedja bhalissa ghaddejja mill-aghar theddida fl-istorja tul il-meded kollha ta’ snin, Francis Mizzi zied jghid li jekk m’ahniex se niehdu hsiebha minn din is-sena stess, se nitilfu l-qaleb u l-gbejna.

Francis Mizzi qal li l-bdiewa Maltin u Ghawdxin ma kinux imhejjija ghall-invazjoni ta’ prodotti agrikoli barranin wara d-dhul ta’ Malta fl-Unjoni Ewropea.

Francis Mizzi qal li dalwaqt se nitilfu ghal kollox l-ambjent rurali, li f’Ghawdex digà intilef.

Ma jistax ikun, kiteb il-korrispondent ta’ "In-Nazzjon" li wara Santa Marija ma nindagawx serjament x’sejjer hazin ferm f’dan il-qasam.

"Il-qaghda prezenti hi wahda dizastruza ghall-ahhar, minkejja kull ftahir u ppumpjar ta’ miljuni kbar ta’ liri f’dan ir-rigward. Il-marda qieghda fl-gheruq. Bl-ebda kosmetici m’ahna se nfejqu lill-agrikoltura f’Malta".

B’referenza ghal Ghawdex, Francis Mizzi qal li Ghawdex dan is-sajf sar dezert ghax id-dehra "tal-gardin ta’ dari, tant pittoresk l-aktar fis-sajf...kollu sigar tal-frott, ghelieqi kbar ihaddru b’ucuh kbar ta’ tadam u kull xorta ta’ dulliegh u bettieh, l-aktar tax-xitwa" spiccat ghal kollox.

Francis Mizzi jsemmi l-ftahir ta’ xi hadd f’Ghawdex li wahdu jigbor 60 fil-mija tat-12,000 tunnellata ta’ tadam li jipprocessa kull sena, u li 99 fil-mija tieghu hu kollu lokali.

"Kieku dan kien minnu, kieku tssew li llum, Ghawdex genna, mhux art li tbikkik", kiteb Francis Mizzi.

Huwa zied jghid li f’Malta ghad baqa’ inhawi fejn il-bdiewa baqghu aggressivi u ma jaqtghu qalbhom minn xejn.

Izda b’din id-daqqa ta’ harta li qeghdin jiehdu din is-sena, ferm aktar mis-sajf l-iehor, "ghandi nahseb li ma jkunux jifilhu aktar" qal Francis Mizzi, li zied jghid li l-bdiewa bil-kemm qed idahhlu haqq l-ispejjez kbar li ta’ kull sena qeghdin joghlew m’oghla s-smewiet.

"Imbilli jkabbru l-patata u l-bettieh...jekk lanqas gabilhom dan l-ahhar erba’/hames centezmi kull kilo", kiteb Francis Mizzi.

Francis Mizzi fl-artiklu tieghu qal l-ambjent huwa taparsi wiehed mit-tliet plieri tal-Partit Nazzjonalista fil-gvern, prezentement.

Huwa qal li tajjeb li qed insebbhu l-ambjenti kollha ta’ madwarna. Dawk li nghaddu minnhom ta’ kuljum. Izda ma jistax ikun li nibqghu naraw il-gardinagg kbir kbir Malti jaqa’ f’bicciet.

Fi tmiem l-artiklu tieghu, Francis Mizzi qal li f’Ghawdex ghandna mera cara din is-sena ta’ x’jista’ jigri anke hawn Malta.

"Meta se nqumu? Irqadna wisq," qal Francis Mizzi li zied jghid li nehtiegu nibdew nahdmu flimkien fuq pjan nazzjonali.

[Artist]

Chinese textiles dispute

The Times of Malta

Malta agrees with EU compromise proposal

Ivan Camilleri in Brussels

http://www.timesofmalta.com/images/20050905_loc_06.jpgChinese shoppers check out bargain sweaters and jackets at a clothes store in Shanghai yesterday. The European Union is hopeful of reaching an agreement with China that would release millions of Chinese trousers, t-shirts, pullovers and other items that are blocked at EU borders, European Commission President Jose Manuel Barroso said yesterday.



Over 37,000 clothing items imported from China and presently being held by Customs in Malta could be released by mid-September if a proposal made by the European Commission last week finds the approval of all the 25 member states.

Technical consultations between member states continued over the weekend in order to try to find a compromise before an EU-China summit being held in Beijing today.

On his arrival in the Chinese capital yesterday, the President of the European Commission, Josè Manuel Durao Barroso, said he hoped a deal to unblock the "impasse" would be struck.

"The goods will not be held up for a moment longer than we can avoid," he promised.

Brussels and Beijing were both strongly committed to an agreement reached last June which, he said, created a breathing space to slow down a dramatic burst in Chinese exports to Europe following the abolition of global textile quotas on January 1.

"It is not a return to the system of quotas of the past. We are not turning the clock back," Mr Barroso said. "We believe the agreement is a robust, measured response to European and Chinese needs to manage a transitional period to smooth this change."

But he said neither the EU nor China had anticipated the flood of garments that was unleashed by the June 10 deal as buyers and sellers rushed to get garments in "under the wire".

"The agreement has some implementation problems caused by the sudden and unexpected arrival of pre-contracted goods in the first month of the agreement which, frankly, overwhelmed administrative arrangements," he admitted.

Commission sources told The Times that during a meeting held between representatives of the 25 governments and Trade Commissioner Peter Mandelson, Malta agreed that the temporary proposal being tabled by the Commission is acceptable.

However, certain countries still have to be persuaded about this. These include major textile producers such as France, Portugal and Italy.

The sources said Mr Mandelson's proposal aims at solving the current situation by increasing the quotas of Chinese textiles that can be imported into the EU for the current year whilst cutting by the same amount the quotas for 2006 and 2007.

About 75 million garments, including sweaters, trousers, blouses, T-shirts, bras and tons of flax yarn, are being held in European ports because they exceed an EU quota imposed in June to protect European manufacturers.

The backlog stems from goods that were already in transit when the June accord was struck but also from a surge in orders immediately after the deal was announced. The agreement came into effect on July 12.

A few days ago, a senior Malta Customs official told The Times that import licences for Chinese textiles were stopped since June. All cargo will be released as soon as an EU deal is struck.

[Marco Polo]

the eu will capitulate. this is a dance.

[Artist]

For better or for worse?

The Times of Malta

Joe Vella Bonnici

The government's preoccupation with the outlook of our economy, especially the likely negative impact from ever-higher oil prices, comes across very clearly in the recent published pre-budget document meant to cover 2006-2010.

In the circumstances referred to in the first part of this article (August 23), the only options available to the government are to seek to increase its revenue by speeding up the privatisation process and to cut its expenditure. Both of these measures are double-edged.

There is little doubt that privatisation, while providing important financial resources for the government to control its fiscal deficit, is also obliterating our country's asset base.

The document rightly points out that foreign direct investment by itself will not propel Malta to a higher level of economic activity. So what will?

The document once again fails to indicate the way forward. To my mind we should be following Singapore's example. This country, rating among the most competitive in the world, has been economically successful by spurring its public corporations, such as the Port of Singapore Authority and Singapore Airlines, to become world class players. We keep selling everything Maltese by the pound.

Also, privatisation should not be the means through which we buy our way into the euro. Sooner or later reality will catch up with us. This is what the Italians did and they now have to pay the price.

Similarly, cutting government spending will further dampen local economic growth. Over the years we built an economy which is too dependent on such expenditure. In particular, a significant amount of public spending goes, directly or indirectly, for the remuneration of public employees. Any cuts in this respect will inevitably affect the purchasing power of about one third of local households.

The government now says it is committed to "... reposition the capital and human resources of the public sector". The document claims there is need to render public administration more productive and cost effective. "Much has been attained. Yet much needs to be done." Such an important statement is left hanging in mid-air. Where have we been really successful? Where have we failed why? What should we now be doing differently? Why are we having to restructure key public institutions that were restructured only a few years back? Where has accountability gone?

For sure, enhancing national productivity inevitably entails improving the productivity of the public sector. The idea is not new. In the 1990s, we had the Management Systems Unit. Now we have the Management Efficiency Unit. The basic issue, of course, remains how to push public employees into the private sector. Recent events at Sea Malta show that even here the government has now had a change of mind.

Gone are the promises that public sector employees are guaranteed a job for life. How the government can justify to treat employees differently from those, among others, at Malta Development Corporation, PBS Ltd, the freeport and the shipyards I do not know. Over these last few years, employees in these entities were all offered alternative jobs within the public sector or attractive termination packages. Surely, our decision-makers realised that their policy was not sustainable. Who has been talking about transparency?

The document's declared mission is outlined as being " ...to ensure that each and everyone, whatever the talent, can contribute to economic growth". Fine words indeed.

And yet, almost 18 months after losing their job, a number of public sector employees are still getting paid for staying at home.

Cutting expenditure could also end up starving key institutions such as Malta Enterprise and the Malta Tourism Authority; institutions from important financial resources that could paralyse their operations. This is acknowledged by the document itself, when it speaks of a " ...balancing act between introducing policy objectives directed towards stimulating economic activity and enhancing productivity while reducing the fiscal deficit".

The document also points out that if the government wants to cut its expenditure it will have to act fast on such issues as stipends, free medicine and children's allowances.

The document adds that " ...the old formulae for economic development in Malta... are losing their relevance today and will be completely obsolete tomorrow". Unfortunately, the document does not offer any concrete new formula. It does not indicate what we have to change, to unlearn. It fails to project a clear understanding of the new dynamics of economic development and competitiveness.

There is talk about the search for excellence. "Excellence must permeate the essence of what to do across every sector of our life". This is in itself recommendable but seems to be out of sync with the realities of an economy that is struggling just to remain competitive.

The idea of clusters too finds its way into the document. For some reason these are kept separate from the key target industrial sectors. Mention is made of the role of research and development and innovation in fostering economic development. However, this seems to be just cut and paste from some EU document rather than the logical conclusion of an in-depth study of the needs of our enterprises.

A venture capital fund is to be relaunched. Yet no mention is made of what has happened to the Lm1 million that were allocated to set up such a fund some three budgets ago. And in what way will this fund be different from all the previous failed attempts. Similarly, the document projects the introduction of a national vocational qualification framework. As far as I know, work in this area had been going on for years. What has been the outcome? Why was this work stopped?

Regretfully, gauging from what is happening around us, this document promises much more than it can ever deliver over the indicated timeframe. It is more concerned with form than substance. Just like the billboard campaigns.

The road to economic regeneration and increased prosperity for all our society is full of potholes and demands a better effort. Maybe, as with the roads, the EU or some foreign government will give us a helping hand.

fms18@maltanet.net (http://www.timesofmalta.com/core/<a%20href%20=''%20class='bn'%20target%20=%20'_blank'>mailto:fms18@maltanet.net</a>)

[Gladiator]

http://www.timesofmalta.com/core/article.php?id=198571


On the Malta Times of Malta.

September 8, 2005

Ratings agency applauds attempts to curb deficit.

By none other than Herman Grech!

[D.P.R.K.]

The maltese economy is finished :-

New hotels are being built .......... in Tunisia, that is.

New waiters are being employed ............. Eastern europeans of course.

New establishments are being opened. Factories? No. Auto dealers? Yes.

[D.P.R.K.]

taxxi
taxxi
taxxi
taxxi
taxxi
taxxi
....... sinjal li intom konsumaturi kbar !!


Per ezempju jien naf wiehed li qatt ma wehel taxxa wahda.
Tafu min hu ? Il-kelb tieghi.

[Marco Polo]

taxxi
taxxi
taxxi
taxxi
taxxi
taxxi
....... sinjal li intom konsumaturi kbar !!


Per ezempju jien naf wiehed li qatt ma wehel taxxa wahda.
Tafu min hu ? Il-kelb tieghi.




nope.

VAT on dog food

[Hawk]

According to Gonzi's prediction the economy should by now be flourishing after reducing our annual leave in the so-called social pact.

Prosit ghalik Gonzadamus.

[Marco Polo]

actually numerous economists worked it out that the reduction in vacation time would lead to less productivity. I am sure that many more people took sick leave to make up for their reduction in holidays.

But the LAWYER in ECONOMISTS clothing (Gonzo the Great) knows best.

According to Gonzi's prediction the economy should by now be flourishing after reducing our annual leave in the so-called social pact.

Prosit ghalik Gonzadamus.

[Niccolo]

I forgot the exact figures, but Gonzi calculated that 4 days reduction in leave would boost our economy by something like 2%. If a real calculator is used, the mathematical increase in working hours would be something more like 0.4%.

So gonzi doesn't know any maths.

He also doesn't know any psychology. If ppl percieve that their leave is being reduced injustly, they will make up for it - by taking sick leave!

Have a look at last Monday's Times Of Malta front page story (http://www.timesofmalta.com/core/article.php?id=198982):


Sickness certificates up seven per cent

Steve Mallia (smallia@timesofmalta.com)

Doctors have issued almost 9,000 more sickness certificates in the first six months of this year than in the same period last year, according to figures obtained by The Times.

Just under 129,000 sickness certificates were issued between January and June compared with 120,046 in the same period last year, a 7.5 per cent rise.

Almost half of the sickness certificates this year, 59,774, have been issued to public sector, corporation and bank employees.

The highest number of medical certificates, 24,358, was issued in January, while the lowest, 16,543, was recorded in June. The first few months of the year tend to be the worst since the influenza virus affects the general population while the figure rises again in the last three months of the year.

Medical certificates are issued and signed by doctors on the first day of the medical examination, though the Department of Social Security pays the sickness benefit from the fourth day of certified sickness.

Eighteen months ago, the Social Security Department sent warning letters to 200 doctors for issuing an excessive number of sickness certificates to certain patients for the same condition. One particular doctor was found to have issued more than 3,500 sickness certificates in eight months.

The Employment and Training Corporation had also decided to take action after coming across several cases of sickness certificates being issued without just cause to people registering as unemployed.

Most private companies and the public sector make use of company doctors who call on employees to confirm the medical reports issued by the family doctors and health centres. The department verifies, or otherwise, extended sick leave applications through a medical panel and has a Benefit Fraud Directorate that investigates suspected abuse.

Meanwhile, 655 Invalidity Pension applications were submitted in the first six months of this year. There was a total of 1,323 such applications last year.

[D.P.R.K.]

By reducing vacation leave Gonzi did not augment any productivity. The reason is not the Abuse of Sick Leave but the fact that workers used to carry out many secret jobs during their "vacation". It is what we call "black economy" (the real blood-pump of Malta's economy!)

Secret jobs are:
car repair
painting and refurbishments
plumbing
ploughing
ice cream vending
and even secret taxi-cabbing (i.e. using their own car) !!

[Marco Polo]

smaller government is needed.

[D.P.R.K.]

smaller government is needed.

Less bureaucracy
Less constaints

More initiative
More (controlled) liberty
More energy to those who are willing to work and produce, and not to those who just want to thicken their pockets.

[Lancelot]

Well may I add that if the new appointed government (in the nearby future) won't be investing on:

A) Youth

B) Environment

C) Tourism

Malta will have to blow its ship's blast blower signaling abandon ship!

[Gladiator]

Less bureaucracy
Less constaints

More initiative
More (controlled) liberty


More energy to those who are willing to work and produce, and not to those who just want to thicken their pockets.








Now you are talking like a true capitalist!:D

[malsey]

Gonzi trid tkun biex kull haga li ma taghmilx sens taghmila. il bravu qal jekk inehhu 4 days leave jitla il gdp!!!./ biex jitla il gdp trid tizdied id domanda ghall prodotti li tipproduci. Malta l exports naqsu 15% voldiri din kienet mossa zejda. anzi minn ihaddem hafna nies seta kecca xi 4 bis sahha ta gonzi. minn ghandu 100 haddiem u gonzi nehhulu 4 leave jfisser li gie b surplus ta 400 gurnata xoghol. x jaghmel la ma tizdidx id domanda, jkecci il haddiema, jew inaqqas overtime.

Prosit gonzi tal vizjoni

[Artist]

Crucial economic decisions needed

The Times of Malta

Manuel Borda

Last week Malta celebrated the 41st anniversary of its independence. Full sovereignty entails complete responsibility not only for a country's political future but also the sustainability of its economic viability.

The Prime Minister at the time, Dr George Borg Olivier, assumed all these responsibilities. Despite adverse economic reports, particularly on the presumed very high unemployment following independence, and against the general advice of his close collaborators, he strongly believed that that was Malta's breakthrough even in the economic field.

Primarily, his strategy was twofold. He wanted to accelerate the momentum of expansion in the tourism sector because he firmly believed that our country had a lot to offer besides climate, sun and sea. In addition, he wanted to develop labour-intensive industries to absorb the unemployment created by the UK services rundown.

The ultimate consideration in these two economic activities was that Malta could obtain foreign currency to pay for its import needs. He doggedly went about how to ensure that his plans should be achieved. The practice of relying on economic development plans, the first of which was published in 1959, was continued.

Though Borg Olivier was harshly criticised, everyone has to admit that he laid the foundation for Malta's economic future. In fact, the administrations that followed his continued to expand on these two major activities that he initiated. He did not have enough time to look further into the services sector.

The governments that followed set up two important transport and communication companies to cater for Malta's needs; and in some other cases, existing departments were turned into public companies owned by Government; but the financial services sector came into being decades after Borg Olivier had left office.

Perhaps it is time for Malta to consider that Borg Olivier should be remembered not only for his political achievements but also for his contribution to Malta's economic development.

He single-handedly forged and moulded our future when all around him were scared to face the apparently bleak future that was presumed to be Malta's destiny. His political opponents, though outwardly preferring independence to integration, were not so sure. Reports have since come to light that they had made contacts on a possible political union with Italy as a way of overcoming our economic problems.

Borg Olivier's two economic pillars have not been nurtured as they should have been to ensure consistent development and growth. Tourism is today a problem area. Other countries, like Cyprus, which were lagging far behind Malta's development in tourism in the Eighties, have surpassed our performance and are reaping the benefits.

The reasons for this change in fortunes may be many; but the underlying consideration is certainly that, over the years, the decisions taken by Malta have not been fine-tuned to future development needs. It is Malta's characteristic weakness to give greater attention to short-term situations, thereby not attaching enough importance to the potential way the tourist market environment was changing.

Sandy Pokras, in her book Systematic Problem-solving and Decision-making, states: "The biggest problem-solving mistake is dealing with the symptoms of a problem rather than its root causes. Sometimes even the experts do not find the fundamental reason for the problem right away. When symptoms are treated, first-aid decisions are made. Then symptoms reappear, or new ones emerge, and the same old problem returns."

These same elements of concurrent symptoms of the problem appear also in the manufacturing and industrial sector. Malta has never succeeded in correcting its trade imbalance. Income from exports has never been enough to cover the costs of its imports. Apologists for this prevailing situation refer to Malta's lack of natural resources.

Finding excuses to absolve shortcomings will never solve problems. If other countries, facing nearly the same difficulties and shortcomings, have overcome their obstacles, should not Malta do likewise?

Admittedly, laws were enacted and institutions set up to cater for the island's manufacturing and industrial needs. Clearly, these have not attracted enough foreign direct investment to achieve the semblance of any trade balance. Malta has been plagued with this stigma and has never been able to obliterate it. And there is no light at the end of the tunnel.

The obvious question is: why have we been unable to expand our export potential more than our import needs? The logical conclusion is that this question was never tackled and so it could not have been answered.

Today, problems are compounded because of the intense competition that exists in this global village. China, because of its low labour costs, has been able to undercut all competition since its arrival on the manufacturing and industrial scene.

The US and major EU manufacturing and industrial plants have realised that they cannot compete with this new emerging economic engine. The next best thing they thought of was to relocate their firms in China and then sell their wares worldwide from there. Malta's imports from China are increasing too. A number of government departments are attending to their needs by making low-cost purchases of Chinese imports.

Does that mean that the death knell is tolling for Malta's manufacturing and industry? It all depends on the way we tackle the problems facing this sector. For a long time now Malta has depended on the output of a single firm to achieve a respectable level of exports. It is surprising that our inability to have more firms producing substantial goods for export has been so evident. The reason may be that we have never faced and tackled the real problems and we ended up with a "first-aid decision", to borrow a phrase from Pokras.

We cannot wait for solutions to fall into our lap. Policymakers have to engineer solutions; they have the means at their disposal to discover the appropriate ways, and to formulate new plans and new strategies to tackle this serious problem that threatens the continued decline in our manufacturing and industrial base. The approach has to be multifaceted.

Education is of extreme importance. Malta has to give birth to a greater number of people with entrepreneurial flair and skills, people prepared to risk and discover innovative ways to do things, to find new niches and markets to sell our goods. But these clichés have been heard before.

The underlying difficulty is how we are going to arrive at such an ideal situation. We should produce fewer people depending on what is found in books and more with really developed minds; men and women who are able to think, define problems, point out causes and provide alternative approaches to come up with intelligent solutions. It's the power of mind that helps one reach a safe haven.

Equally important is studying statistical data pertaining to other countries. The objective is to discover other countries' needs and investigate whether Malta can provide them. Many industrialised countries have higher labour costs; in this respect we can compete and be able to provide their needs if we can select the right goods to produce. Our geographical position should help us tackle Southern Europe and North Africa.

It is a pity to have so many advantages ready for the picking and yet we are still unaware of their significance and importance. Instead, we are focusing our attention to locate day-to-day symptoms that arise. Borg Olivier proved that he had imagination, great foresight and perceived that long-term solutions would minimise Malta's economic worries.

May this independence anniversary propel us to make the crucial economic decisions that are sorely needed and serve as solid foundations for future economic growth.

Dr Borda is an economist specialising in the economic development of small states.

[Artist]

World Tourism Day celebrated in Malta: MHRA concerned about future of industry by Gerald Fenech

Malta independent online



http://217.145.4.56/ind/images/articleimages/28septmhra2.jpg Malta joined the rest of the world in marking World Tourism Day with a variety of activities organised by the government and the private sector.

In a number of messages and statements, various stakeholders commented on the industry’s importance to the country’s economy while others warned that with the outlook for the coming months not as good as expected, the government had to do everything in its power to keep the sector on its feet.

The activities started yesterday morning with Tourism Minister Francis Zammit Dimech touring a number of hotels and establishments, starting with the Victoria Hotel in Sliema, followed by the Westin Dragonara and Caeser’s in St Julian’s.

The minister said that annual income from tourism in the past 10 years had risen from Lm232.8 million in 1995 to Lm269.1 million in 2004. He emphasised the importance of giving quality service in all sectors.

Dr Zammit Dimech also visited a clean-up activity by Malta Tourism Authority employees at Moyniham House in St George’s Bay and called on the public to be more aware of the environment and not to litter capriciously. He warned that the government would be handing out stringent penalties to those caught littering.

During a visit to Rabat, he was presented with a tourist map of the area by mayor Frank Fabri.

In an address to the nation yesterday evening, entitled Transport and travel are the backbone of tourism, the minister said World Tourism Day coincided with the anniversary of the adoption of the statute of the World Organisation of Tourism in 1970. He said that in 1950, world tourism had reached the 20 million mark but it was estimated that by 2020 this will have grown to a

staggering 1.6 billion tourists.

Reflecting on the progress Malta has made in the industry over the past 40 years, Dr Zammit Dimech said the tourism industry accounted for 28 per cent of the total number of people employed. In 2005 and 2006, he said, five new hotels will open their doors, increasing bed capacity by 1,844.

Focusing on the proposed reforms in the sector, the minister spoke about the restructuring process currently being carried out at the Malta Tourism Authority. He said the re-branding exercise was well under way and that the inter-ministerial committee on tourism had been having regular meetings. The cleaning exercise undertaken by the MTA in collaboration with various local councils had cost around Lm75,000.

Transport was an important and vital element for the tourism sector, said Dr Zammit Dimech, and he stressed that a diversified airline market was needed. He pointed out that tourism also provided foreign exchange, adding that everyone must pull together so that the industry can gain in strength for the

benefit of the country.

Yesterday afternoon, Heritage Malta launched a new system of audio guides at the Palace Armoury in Valletta.

Dr Zammit Dimech said the upgrading of the country’s cultural and historical sites was very important because this niche market attracted over 200,000 visitors a year.

Work at the Armoury was in line with similar projects at the Tarxien Hypogeum and in the Domus Romana in Rabat. He said Mnajdra, Hagar Qim and Ggantija prehistoric temples were next in line for upgrading and embellishment.

The private sector marked World Tourism Day with a variety of activities.

Malta International Airport, the MHRA, Bank of Valletta, Farsons and Marsovin welcomed tourists arriving in Malta yesterday with a welcoming drink and snacks.

MHRA president Justin Zammit Tabona said the idea was to provide tourists with a special welcome. For example, BOV waived charges on foreign exchange transactions, while Marsovin and Farsons provided wine and other drinks.

In a statement issued yesterday, opposition spokesmen for tourism and hotels Evarist Bartolo and Joe Cuschieri said World Tourism Day was being celebrated when the industry was passing through a difficult period.

They said the government was creating difficulties for those working in the industry because it had increase taxation and introduced further costs. These were forcing some operators to close their doors.

Mr Bartolo and Mr Cuschieri argued that, following the closure of a number of hotels and establishments, employment levels in the sector were the same as they were in 2000. Many employees, they added, had had to resort to part-time work, contract employment and low wages.

The MHRA is also concerned that the outlook for the winter months is not that good, and it urged the authorities to speed up the re-branding exercise and the restructuring at MTA.

Speaking to The Malta Independent, Mr Zammit Tabona said that World Tourism Day was an important occasion when the country has to remember that there are many other destinations tourists can visit, hence the need to continue providing an excellent level of service throughout the year.

“We should be looking after the tourists who come here in a proper manner so that when they go back to their home country, they will tell their family and friends what a beautiful place Malta is and, hopefully, encourage them to come over,” he said.

The outlook for the coming months is not encouraging, he said.

“The outlook for the winter months is, unfortunately, not as good as last year and I really urge the authorities to get on with their exercise of re-branding Malta and with restructuring the Malta Tourism Authority. We should not be looking at CHOGM as a life-saver, because the winter months are a challenge if we really want the industry to get off the ground,” said Mr Zammit Tabona.

In a statement released yesterday, the GRTU reiterated that tourism was a key element in the Maltese economy. It called on the government to reach agreement with low-cost airlines so that everyone could benefit from their presence.

[Artist]

MEA calls for 6% reduction in public service employment by David Lindsay

The Malta Employers’ Association yesterday called on the government to reduce public sector employment by six per cent over the coming five years in a bid to lower the government’s wage bill and to release surplus employment for the private sector.

The proposal is one of many detailed yesterday by the MEA in its combined analysis of the government’s pre-budgetary For a Better Quality of Life (BOQL) document and its National Reform Programme (NRP).

They must also be prepared to undergo retraining which might take up long periods of time.

“Fundamental changes have to be made by the political parties and social partners vis-à-vis the local economy, and time must not be wasted bickering over stupid things such as an extra four days of leave,” said Dr Gatt.

He mentioned the Malta Drydocks as an example – “it makes sense to keep it open as long as it is making a profit. It is useless to keep pouring money into it, instead of using it to retrain people to work in a knowledge economy.”

Malta is capable of being a discreet player in the world’s economy but not a leading one, because of its limited financial and human resources.

“Unless foreign investors are ready to pour huge amounts of money into Malta, we can never become a leader in research and development.”

He argued that many countries had successfully retrained people who had been in the same profession for 40 years to work in a knowledge economy, and Malta had no excuse.

“We have to admit that the manufacturing industry in Malta will have to close at one point – I don’t see why we are the only country which can’t retrain our employees.”

[Gladiator]

It's about time too. Wakie wakie, Malta. Hemm I had suggested 5% decrease in the public sector. This man came out up with 6%. It makes sense

[Gladiator]

heheheh, less Government, less taxes. Part Due. What I have been saying all a long!:D




Lira-euro pegging

Call for more flexibility

Times of Malta, October 11, 2005

The Federation of Industry is calling on the government to allow more flexibility in the lira's pegging to the euro as a way to dampen the "shocks" Malta is being subjected to by the international economy.

A position paper, prepared by economist Edward Scicluna for the FOI, was launched yesterday during a press conference which was also addressed by FOI president Adrian Bajada and director general Wilfred Kennely.

The government pegged the lira to the euro as part of the process that will lead to the eventual adoption of the single European currency. The lira was pegged at a fixed rate as opposed to leaving a band within which it could oscillate allowing flexibility. Some economists, among them Prof. Scicluna himself, had immediately pointed out that the decision to have a fixed pegging may not have been wise.

In his report, adopted by the FOI, Prof. Scicluna is calling on the government to reconsider introducing a narrow band, which, he emphasised, could help the economy take the shocks coming from abroad by way of oil price hikes, for example.

Prof. Scicluna believes the Maltese economy is proving not to be resilient in the present circumstances. Data for the past five years reveal a roller-coaster pattern, Prof. Scicluna pointed out, saying that while there were positive results registered in certain periods, these were soon neutralised by negative phases often ushered in by something like rises in the price of oil or a negative period for tourism.

The situation would be understandable if the scenario was shared internationally but that is not the case. On the contrary, he added, other countries, even developed ones with high wages, are doing well.

The problem with the Maltese economy is that the country has a high cost of production without having a corresponding output rate. What the economy is managing to produce with the resources invested is simply not enough and certainly much less than the rates of other countries, like Ireland, that have higher wage costs but produce more, he emphasised.

In short, the country is losing its competitiveness.

The situation, among other things, was brought about by a wave of taxes, introduced to make good for a growing public expenditure which results from a number of inefficiencies in the economy, most notably in the public service. The taxes, Prof. Scicluna explained, raised the rate of inflation which, in turn, caused workers to ask for wage rises. The wages increased without a corresponding increase in output and all this led to Malta's products and services generally becoming costlier when compared with those of other countries.

The solutions provided in the government's pre-budget document, Prof. Scicluna added, are good but they have to be implemented. The introduction of a band which allows more flexibility in the lira's pegging to the euro is one in a series of recommendations the FOI is making.

Mr Bajada insisted on the need for a social pact to be discussed again. However, Prof. Scicluna emphasised, the first step in this direction would be for the government to give a clear picture of what is going on. "We are not happy with the diagnostic check of the economy in the government's document. I don't think it gives a clear picture of the economy."

Mr Bajada concurred.

The government's document falls short of describing the full extent of the problems facing the economy and unless this is done, the people can hardly be expected to back reforms, Prof. Scicluna added.

A social pact should be based on a clear understanding of where the country stands at the moment and were it plans to be once the reforms are in place. Workers should be given a clear picture if they are asked to make sacrifices, Prof. Scicluna insisted, after he was prompted by one of the journalists.

The government's efforts to curb the deficit now must be complemented with a reform in the public sector, in the pensions system and also the health and social services, he added. The government must not only manage to achieve the deficit targets but also bring the public debt down.

When asked whether he agreed with a reduction in taxes, Prof. Scicluna said this would have to be preceded or accompanied by a reform in the public sector.

As explained, taxes were introduced to make good for the bloating in public spending and this is partly due to inefficiencies in the public sector, he said. Any cut in taxes would have to follow the same pattern in reverse, which is to first reduce pubic expenditure and then reduce taxes or at least reduce them simultaneously, he concluded.


Gonzi should take a course in Economics 101.

[Lowellian]

The state of the country's econmy had been precarious since 1996 and from there on it acted rapidly as a black hole. Waste of money due to bad planning and lack of investment in terms of positive attributes. These were the name of the game for this Goverment which is composed of deficient amateurish politicians. In my humble opinion one cannot invest in a 5 star hotel when statistics project the reduction of tourists in a period of time, one cannot invest in a Golf Course when we can invest in other resources and can be cheaper with a resulting wider profit! Our country doesn't afford politicians who wanted to join the EU for financial relief to mend temporarily the economic holes and environmental blunders! Our country doesn't deserve politican traitors who are cruel with US (Maltese) and sweet and leniant to aliens from Africa, who prostituted our island and culture and now our race! I always beleived that away from this partisan mediocre stuff there shall always be the Zarathustra of the land. In Malta the Zarathustra is none other than Norman Lowell! The one who standed up from majority - mediocrity, tapped his cane and imposed his views based upon facts, knowledge and truth! Norman Lowell can give his views and ideas regarding the economy in the near future during the budget fever. Our Zarathustra demonstrated in Credo - A Book for the Very Few, how the capitalistic economy functions and its positive aspect vis-a-vis the positive/negative aspects of other economies, that failed or are in the verge of failing. This will be an occasion where our Leader shows how flexibile he is from politics to culture, from arts to economics! Every aspect is the snowballing effect.

Ave Fratelli e Sorelle in questa Battaglia! Ave Norman Lowell!

[etoile noir]

i would have sympathised with this man .... in fact i did until i read the part about him spending lm100 every weekend on "entertainment"! what sort of entertainment is he into? quite frankly with people like this writing these kind of letters to the papers, no wonder this government raises taxes and charges with no regard whatsoever to the rest of us.

how many of you people can afford to spend 100 quid every weekend - and complain about it too? the mind boggles :confused:

Coping with the cost of living - source (http://www.timesofmalta.com/core/article.php?id=204205)

Mr Aidan Xuereb, Xemxija.

http://www.timesofmalta.com/core/images/spacer.gifhttp://www.timesofmalta.com/images/20051030_let_04.jpg

http://www.timesofmalta.com/core/images/spacer.gif
Here is a simple table showing average monthly expenses for a single person. The expenses add up to nearly Lm700.

Considering that the average wage in Malta for an employed person is approximately Lm500/600 gross (before tax and NI are deducted), may I know how Government expects people to live, let alone live a decent life?

These expenses do not include things like going on holiday or buying gifts.

[etoile noir]

PS ..... i think i have it all wrong on that aidan xuereb .... it looks like he spends lm100 monthly on entertainment, which means he spends circa lm25 every weekend.

apologies to aidan, whoever you are. *oops*

[Cikku]

how many of you people can afford to spend 100 quid every weekend - and complain about it too? the mind boggles -- EN

To me it is ridiculous too - but please note that the Lm100 IS PER MONTH, i.e.. Lm25 per w/e. Still high if he has so much commitments !

:confused:

[Cikku]

Ostra now you had to correct EN !

OK, just ignore my post people !

[malsey]

Its all the bloody truth. Its super expensive Malta, and gonzi says biex int tghix ahjar. Traitor.

Look at this letter sent to the times of afrika by a gonzi lover.

Gonzi is the right man

Ms Lina Caruana, Tarxien.

European union membership is already having its desired effects and resulting in some changes. So far we have been stuck in a political impasse where the electorate maintained the same allegiance to one party or another with some floating voters who decided which party was to govern.

In the current situation we are now facing a new political reality. The drawing up of real, effective policies have become important in the eyes of the electorate because they are not likely to vote out of loyalty any more.

No political party now can afford to implement policies just to please some category of the electorate. The party in government must think ahead and beyond uninformed activists pushing one way or another.

The prime minister's role is a difficult one as he has to face both the political reality and the phasing out of the loyalty syndrome. We are at a crossroads and we need a firm hand in managing the balance required to ensure the country is capable of maintaining the socio-economic stability essential for progress.

At risk of losing popularity because of unpopular policies, the prime minister is the right man at the helm. He is performing a difficult role which is not easily understood at face value but which should be greatly appreciated because it has an emancipatory function which could lift us out of the present political impasse successfully.

[Lowellian]

Ms Lina Cauchi from Tarxien - Lecchi Scarpe ta' Gonzi. Maybe she suffers from dementia.....

[Gladiator]

Guys your cost of living is still cheaper compared to some countries.

Average take home pay per every other Thursdays. $1900.00
Mortgage or rent $800.00
Hydro per month $57.00
Telephone $45.00
Cable TV $43.00... Basic no porn channels.
Internet $44.00
Groceries per wk. $100.00 for 3 persons.
No Car, so Public Trans. Pass $100.00
Life Insurance $37.00
Dog food $50.00
Son's pocket money $300.00 per month.
Friday Dine out $60.00 x 2 persons
misc. $50.00
Entertainment, me and the dog & a Muffin $5.00

Bear in mind that utilities are taxed 7% GST same as VAT, which are not included.

[Cikku]

Guys your cost of living is still cheaper compared to some countries.

EHE ?? MA NAFX TA !!

CAD$ = approx 3.3 to the Lm ok. So you get in YOUR HANDS approx Lm575 per 15 days, or Lm1151 PER MONTH ! Can you please tell me which average worker gets that in Malta ???

If you are interested I will give you an approximate breakdoen (LIKE I HAVE, BUT MENTAL !! ) of my MONTHLY EXPENSES TA GUSTUZ !

Average take home pay per every other Thursdays. $1900.00
Mortgage or rent $800.00
Hydro per month $57.00
Telephone $45.00
Cable TV $43.00... Basic no porn channels.
Internet $44.00
Groceries per wk. $100.00 for 3 persons.
No Car, so Public Trans. Pass $100.00
Life Insurance $37.00 -- MINE ONLY Lm47 PER MONTH
Dog food $50.00 -- wife's department
Son's pocket money $300.00 per month. -- over that now
Friday Dine out $60.00 x 2 persons i.e approx Lm20. Go get a DECENT meal for 2 in Malta which costs you less than TWICE that much !
misc. $50.00
Entertainment, me and the dog & a Muffin $5.00

Bear in mind that utilities are taxed 7% GST same as VAT, which are not included. HUX !? and in malta 18% FOR NOW !!

:confused:

[etoile noir]

ghidlu cikku!
cost of living here is very expensive gladiator. and remember, here salaries are a miserable joke. even the ex ussr people get paid better than we do

as for that aidan who wrote to the times, i agree with cikku that with his monthly expenses - mortage, car repayments, etc. - he is living beyond his means. and its pretty obvious that he is single, with no wife and especially no children to support.

[umberto]

he has no choice. he is paying for money squandering and indifference.

[Gladiator]

he has no choice. he is paying for money squandering and indifference.

Waite till he starts seeing grey hair. Like me.:eek:

Cikku, I am not your average worker. Our Minimum wage is $7.00 per hour. Even at ten dollars an hour won't give you a decent standard of living, in Toronto.

Also you are paying too much for your life insurance. Is it Term or Whole life?

A coffe at Starbucks is $1.65 small. A brand new 4 door car $26,000 - $30,000
Car Insurance per month: $230
Petrol 90c per liter. Sometimes it gose up to $1.25 per liter.

Average home in the city core, $355,000.00 Property taxes average, $4000.00 per year.

Bottle of Whisky $30.00, Vodka - 26oz. Filandia, $29.00. 24 case of beer $25.00. At the strip joint $6.00 per bottle. Bottle of Merlot red wine, French $11.00

Men's suites buy one and get the other free. $900.00 Burger and fries at Macdonalds $6.00 Big meal is $7.00

My Friday Dine out, it's a small Bistro-Bar. Chicken wings, caesar's salad, and soda water. Plus tips and taxes.

[Cikku]

Gladiator @ CAD$1900 a fortnight you sure aren't the "average" worker and not even the middle type either !

A minimum wage earner gets a max of CAD$800 per fortnight for an 8 hour day 5 day week, i.e. NOT even half your earnings.

Sorry, I sort of cheated a bit on my insurance, it is term AND participation with profits, but still insurance in Malta is a RIP-OFF !

How long is it since you have been to Malta man ??? You say a coffee at Starbucks is Lm0.50. Check if you can get a good coffee like at Starbucks for less than Lm1 in Malta !

Cars, another highway robbery ! I bet the Maltese would be glad to pay Lm9000 for a 4 door decent car.

The car Insurance is on the high side but you are talking about Toronto. I bet in less "conspicuous" lesser-risk small cities it is much less. This is like saying US$230 for NY and US$100 for Minnesota. In Malta it DOESN'T work like that. You have one rate and when you claim you get sweet fuck all !

Petrol, again cheaper than in Malta.

A Lm100,000 "average home" in the city core is peanuts compared to Malta ! Here one must establish what an "average" home is. To me an average home has to have at least 2 bathrooms, 3 bedrooms, large kitchen. sittting/dining room, study etc.

Again, the spirits are approx the same prices as Malta.

E ! Men's suit buy one get one free. Jew forsi itik il-hanut ukoll hux !

Burgers, cheaper than Malta man too !

Enjoy your bistro meal man, it's still cheap compared to Malta ! However beware of the BIRD FLU with the chicken wings !!!

NOW FOR THE CRUNCH ! I compared your prices with ours, shall we be fair and honest and compare WAGES ?? Forget it, I respect you too much and I don't want to give you a depression man !

;)

[Gladiator]

Malta became 'poorer' last year

Times of Malta, December 23, 2005

During its first year of accession to the EU (May-December 2004) Malta's economy grew poorer when compared to the EU average, according to Eurostat, the statistical office of the EU.

The new figures show that whereas Malta's GDP per capita in purchasing power standard (PPS) stood at 72 per cent of the EU average in 2003, it went down to 69 per last year.

The PPS is an artificial currency unit used by the EU to calculate on a level playing field the strength of EU economies in member states. It reflects differences in national price levels that are not taken into account by exchange rates. This unit allows meaningful volume comparisons of economic indicators between countries.

Contacted by The Times, a spokesman for Eurostat said that "as the GDP growth of Malta in 2003/2004 was lower than the total of the EU 25, Malta's relative position in relation to the average of the EU decreased".

The spokesman said that the 2003/2004 annual GDP growth of Malta was only 0.1 per cent whereas the GDP growth rate for all the 25 member states of the EU was 2.4 per cent.

Malta was the only new EU member state that saw a decline of its economic strength when compared to the EU average. However, when all the 25 member states are taken into consideration, Malta was not the exception as even stronger economies such as France and Italy experienced a similar decline.

The Eurostat figures show that the strongest economy in the EU remains that of Luxembourg with a PPS of more than twice the EU average in 2004. The Grand Duchy is followed by Ireland, the Netherlands, Austria, Denmark, Belgium and Sweden. The poorest EU member state is Latvia with an economy of just below 45 per cent of the EU average.

Malta has the third strongest economy of the 10 new member states. Only Cyprus and Slovenia registered stronger economies.

hehehehe ara ghal fejn morna nigru gol L-Ewropa?

[etoile noir]

like we need the times to tell us all that we have less money in our pockets! what a bunch of idiots :rolleyes:

shops are empty, people wander around looking for the cheapest bargains to give xmas presents, restaurants have no bookings for xmas eve and new year's eve .... and the times decides to let us know that the maltese are broke.

oh well, for a change they're telling it like it is!

[rodolfo]

This administration (whom I supported) have choked the middle class and practically eradicated the small amount of black marker an economy needs to survive. This is the problem. Civil servants have raped our country and unfortunately some of the ministers in power are just plain idiots. Thing is "what is the alternative?"

PNs best bet of winning the election is for Alfred Sant to stay there. I admire the man, he is genuinely one of the very few cultured people in that sorry excuse for a parliament. Unfortunately he has shown time and again that he aint no politician. He is someone who would be great for President....

[Cikku]

Malta became 'poorer' last year

Times of Malta, December 23, 2005

HELLO ??!! WAKEY WAKEY !! ANYBODY HOME ??!!

:confused: :eek: :confused:

[Gladiator]

This administration (whom I supported) have choked the middle class and practically eradicated the small amount of black marker an economy needs to survive. This is the problem. Civil servants have raped our country and unfortunately some of the ministers in power are just plain idiots. Thing is "what is the alternative?"

PNs best bet of winning the election is for Alfred Sant to stay there. I admire the man, he is genuinely one of the very few cultured people in that sorry excuse for a parliament. Unfortunately he has shown time and again that he aint no politician. He is someone who would be great for President....

Rodolfo, why blame the civil service employees? They do what their employer tells them to do. And that's the people like Gonzu who happens to be a Prime Minister while at the same time he runs the economy to the ground with his taxes!

As for Il-Fredu, his Harvard University education, looks like it didn't rub off his shoulders. He still thinks like a 19th century Socialist and he still is and remain so.
Miskin ta dak irid ipaxxi lil ta madwaru u il-Jurasic Park tal GWU.

[rodolfo]

Trust me dude. Civil servants (ok not all but the majority) is one of Malta's major cancers eating out in a very discreet way. They are the ones who really have the power. Forget the ministers........

[argo]

If in doubt about the way the civil service operates, watch the series "Yes Minister". What an eye-opener.

This species of crawling creatures form the buffer between politicans and reality. They insulate the inhabitants of the ivory towers from the muck in the gutter.

[Artist]

Will the economy recover in 2006?

Malta Independent online
by leo brincat

http://217.145.4.56/ind/images/articleimages/leo.jpg Regardless of one’s political viewpoints, the question on most people’s minds is whether the economy will recover or not throughout 2006.

If Thomas Friedman argued that “the world is flat” in his latest best-seller, which also happens to be a brief history of the 21st century, all those who have experienced 2005 have realised that our economy has remained relatively flat too, compared to other EU countries, particularly those who acceded together with us in May 2004.

When Parliament reconvenes next week, we will have an opportunity to assess how the capital gains measure will impact on the property market, as a result of the fudged formula government has come up with. What we will have to take stock of, is whether the said market will remain as buoyant as it has been these last few years – the only segment of the economy that has done so – or if it will follow the trail of other downers like tourism and manufacturing.

Prospects for tourism show that January-February are expected to be one of the worst these last couple of years. The signing of new allocation contracts have been equally on the low side from market reports that came to my attention.

The problem with Malta is that it is too expensive for the kind of tourist it happens to be attracting, while at the same time its product is not dovetailed with the requirements of the particular niche it seems to be targeting. Greater emphasis on conference and incentive travel might do the trick to a certain extent, but it takes more than branding to make us more attractive than other Mediterranean destinations.

While watching TV over the Christmas season, I was particularly struck by the short 30-second advert the Cyprus tourist authorities have been running on British television. Without hardly any commentary at all, they are projecting their island as a destination for all seasons – something elementary which we have failed to do so far.

Manufacturing-wise, it is rather ironic that after all the talk by the Investments Minister about the dim prospects which the textiles and clothing sector has in Malta, the only investment worthy of note which we seem to have managed to attract to our shores in recent months has been a jeans factory – no matter how state-of-the-art its production methods and techniques might happen to be! This does not mean that this is not welcome news, particularly for a sizeable number of redundant Denim employees, but it surely goes against the grain of the strategy the ministry claimed to be pursuing.



Will the much vaunted port reform deliver the much hyped but desired results – or will it be merely used as a pretext to edge out the GWU and to stifle one of its main sources of income?

And what about pensions? Although I will argue the case – as your correspondent Marisa Micallef deftly did a few a weeks back – that the government should not rush headlong on this issue – we are still at the stage where the government has still failed to make the pensions reform commission’s findings its own conclusions and recommendations.

One thing this government has to sort out without further undue delay is its privatisation policy. Each privatisation has had its own hick-ups, generated by lack of transparency – or in some cases by the wrong choice of partner. Let us hope that we will not have the same sour experiences when it comes to the remaining jewels in the crown that happen to be Maltacom and the Bank of Valletta.

Unless we attain a certain level of economic growth, our rampant inflation will continue to eat away at chunks of the national economy.

This government does not seem to have learnt the lesson that John Naisbitt, author of Megatrends had expounded upon at length in his Global Paradox, which argued that the bigger the world economy the more powerful its smallest players.

The other day, an independent financial/ economic correspondent in another section of the local press, argued that rather than digging up excuses, we should be taking a good and hard look at what is making the economies of such new EU entrants as Slovenia, Estonia and Latvia tick.

We will not resolve the problem by merely exchanging trade missions. What we need are on-the-spot assessments by people who can carry out a SWOT analysis at a glance, particularly by gauging these small but vibrant economies’ respective strengths and weaknesses.

Even though the IT sector has been a relatively good performer, there is still much to learn from countries like Estonia, which have the highest IT penetration in the EU, on both a qualitative and quantitative level.

As for the shipyards, let us sincerely hope that they will make it by 2008 to avoid the EU guillotine. Alfred Sant could have picked a better word when he said : “inbazwru ir-regoli tal-UE”, but I think deep down in our hearts, we are all for any politician who has enough clout to exercise a high degree of flexibility when applying and implementing the EU rules of the game. Nevertheless, I am sure that I will be instantly dismissed as a Sant apologist for having argued this way. I have already experienced such flack in a recent Times editorial, which seems to have missed completely the main thrust of my two recent contributions to its columns.

I did not quote Naisbitt at random. Although more than 10 years have passed since he wrote his best-seller, he was forward looking enough in 1994 to realise two things.

– That the more universal we become, the more tribal we act – in the sense that new dynamic countries and economies find themselves emerging as time goes by.

– While on the other hand, he classified China as the test case of his Global Paradox, in the sense that while central planning got it nowhere, now the individual entrepreneurs of China are swiftly moving in the direction of becoming the world’s largest economy.

Which brings us to our entrepreneurial class in Malta.

Without belittling the numerous young and upwardly mobile energetic entrepreneurial class that is emerging on the island, the real all-rounders of the ilk of Albert Mizzi, Sonny Borg and the Zahras are nowhere to be found. You might find them among their offspring, but that is where it all ends – which is a pity because the Maltese were born traders and the spirit of entrepreneurship should be driving us forward, with the government serving merely as a catalyst and facilitator, rather than as a creator of new bureaucracies.

I was astonished the other day, when attending a reception by a section of the local business community, to be told how badly run certain private companies that recently ran into financial difficulties happen to be.

While I still believe that in its majority, the private sector has more than a lesson or two to teach the public sector, it is a pity to learn that even in the corporate sector there are still many who have failed to adapt to the new global environment and who tend to feel overwhelmed by the awesome mix of opportunities and challenges which the future presents.

I am sure that the budgetary measures which still need to be legislated upon – as of next week – will give us yet another opportunity to discuss and probe the state of the economy.

Let us just hope that the debate will reach a certain level of maturity and extend itself way beyond the type of buzz words and cliché-ridden statements that are making ordinary Maltese voters feel so disillusioned about politics in general and Maltese (and Gozitan) politicians in particular.



A library with a difference

May I take up some space to praise the efforts of the young crop of activists such as Malcolm Dimech, who are making sure that village Labour Party clubs – like that of San Gwann – start getting their act together. It was not just symbolic of them and fitting that they recently opened a library dedicated to that defenceless and innocent political martyr Karen Grech. But having attended the opening ceremony, I was impressed by the number of titles they already have – ranging from political tracts to Maltese literature, and specialised scientific books to fiction of all kinds, including that of a pulpish nature. I have joined other people in contributing some of my treasured possessions to them as I believe in their cause. That’s what village political clubs should be there for, rather than merely as a pretext for playing cards or guzzling down pints of imported beer!



email : leo.brincat@gov.mt



Leo Brincat is the main opposition spokesperson on Foreign Affairs and IT.

[Gladiator]

Sur Leo Brincat, the Maltese waiter to the Libyan Government and an old Socialist fart.

The only way the Maltese economy is going to move in 2006 is down. There is only one solution and that is for the government to scrap all the taxes and cut public spending and programs.

No need to read fancy books written by people who the Maltese never heard of and you don't have to be a rocket scienctist.

[Dawnbringer]

It's either that or the Maltese will be terribly annoyed to say the least.

:mad: :mad: :mad:

Sur Leo Brincat, the Maltese waiter to the Libyan Government and a old Socialist fart.

The only way the Maltese economy is going to move in 2006 is down. There is only one solution and that is for the government to scrap all the taxes and cut public spending and programs.

No need to read fancy books written by people who the Maltese never heard of and you don't have to be a rocket scienctist.