19 - 25 July 2001

Labour government will not add more burdens

A new Labour government will not add more burden on the lower classes to solve the fiscal problems in the country. Neither will it decrease its social expenditure, shadow minister on economy and finance Leo Brincat said yesterday.
Speaking during the presentation of a document on the economic and fiscal policy of the Labour Party, he said the document was not an electoral manifesto.
Mr Brincat said the main aim of the Malta Labour Party was to create wealth and distribute it fairly.
“The deficit has to be solved by using public resources in a better manner while making sure that the economy grows. The tax collection should also be more efficient,” he said.
He said the fiscal policies of the Malta Labour Party would be based on social conscience. “A Labour government would not introduce unjust taxes on Maltese families. The Nationalist government is always introducing new taxes which are not encouraging employment and investment. They are also threatening the social services. The Labour government would stop the practice of introducing new taxes outside the budget.”
Mr Brincat said that instead of the tax compliance unit, a Labour government would add more resources to the department of Inland Revenue so that it could combat tax evasion.
Speaking on VAT, Mr Brincat said the MLP at this stage will continue to monitor the situation and see how the system works. “This will be done in view of the fact that the Nationalist government has already committed itself to new amendments so that the VAT legislation conforms to the EU. The MLP must monitor the impact on consumers and businesses and especially on SMEs. The Labour Party will make its position known prior to the next election,” he said.
Turning to privatisation, Mr Brincat said this had to take place gradually and according to a plan drawn up with the Malta Council for Economic and Social Development. In the current circumstances, privatisation would be limited to 40 per cent in areas where there are natural monopolies.
In other areas, the government will consider further privatisation and strategic partnerships. Discussions will not be limited to just one partner but all options will be examined.
The Labour document also speaks about the Drydocks and Gozo. On the Drydocks, Mr Brincat said that under a Labour government there will be no threat of closure. He added that if subsidies are reduced, this will be done in agreement with all interested parties to ensure that performance is not hindered while such an exercise is taking place.