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Chamber of Commerce urges speedier pensions and COLA reform
More women needed in labour market, Chamber says and calls for extended school-hours.
The Chamber of Commerce said wage indexation should be increased to productivity.
The Chamber of Commerce said it has been encouraged by renewed pressures on the Maltese government to ensure public finances are kept sustainable by keeping under control age-related costs and linking the COLA to productivity gains.
"The communication mentions a number of urgent reforms the country needs to implement which include measures related to the country's fiscal consolidation, sustainability of pensions, early school leavers, increasing female participation in the labour market and energy," the Chamber said.
The European Commission has warned that Malta remains at high risk to sustain public finances, due to an increase in spending on pensions and other age-related costs such as healthcare that will exceed the EU average considerably and urged the government to raise the retirement age.
"A very low activity rate of older workers, including of older women; a relatively low exit age; and recourse to early retirement schemes add to the scope of the challenge," the Commission said, noting that the government has yet to announce its position on the introduction of new pillars to the pension system.
The Chamber said it has spoken consistently about urgent pending reforms in pensions. "It is no secret that the Pay-As-You-Go (PAYG) system is unsustainable because the first-tier adjustments are only short-term measures which need to be at least supplemented by a voluntary third pillar."
The Chamber called for more enforcement on tax evasion, and to reform the Cost Of Living Allowance to productivity as well as inflation. "We are disappointed to note that despite the several discussions at MCESD level, this has not materialized," the Chamber said.
The Chamber also agreed that the ratio of youngsters leaving school at the age of 16 or before needs to be addressed. Over a third of the future workforce still opts against pursuing further education. "We feel the authorities must go a step further to entice more women to enter the labour market through further tax incentives, accessible and affordable childcare facilities and the extension of school hours."
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really, do you feel that there is a need to have more women in labour market????
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Business leaders should use their clout to force Government's hand to run its business as efficiently as they expect their employees and themselves to be. But it is easier to hound COLA and pensions. Why don't you offer Government employees sabbaticals within your businesses and show them how things should be done. Then we might get this country moving into the 21 Century. I am sure the total tax needed to be collected would decrease, not because of evasion but because national productivity would soar.
