[WATCH] Labour pledge free childcare to push mothers into labour market
Labour leader claims €3.1 million proposal addresses shortcomings pointed out by credit rating agencies.
Labour leader Joseph Muscat has announced a €3.1 million project to introduce free childcare for single and married parents on full-time employment, which he says will push more women into the labour market.
Muscat said a new Labour government will create a private-public partnership with childcare centres that will generate 500 new jobs in childcare over the next five years.
He also said the proposal, which will cost €3.1 million in the first year, will generate a clawback on new taxation revenues from the creation of new jobs and the entry of 2,500 women into the labour market over and above current projections, over the next five years.
"We will address shortcomings pointed out by Standard & Poor's, namely the low level of participation of women in the Maltese labour market," Muscat said, referring to Thursday's downgrade of the sovereign credit rating to BBB+.
Muscat said mothers will still benefit from tax reductions they currently enjoy to re-enter the labour market.
Muscat even claimed the outlay will eventually decrease. "It is a modest outlay considering the benefits there are. When €4 million was spent on the offices of Malta Enterprise, you can see how modest the spend is.
The free childcare will be for parents, single and married, who are in full-time employment for children under three. But the scheme will be eventually extended pro-rata for part-time workers.
Muscat has also pledged a 25% reduction in bureaucracy, in a review to be conducted by a specially appointed commissioner who will take stock of government administrative procedures.