I’d almost apologise for not commenting on the budget but then again there is not much to comment about nowadays. Reactions to the budget could have been predicted much before Tonio Fenech opened his mouth and in any case J’accuse has never professed to be an expert in matters economical. Reactions to the budget on social networks served to prove that the critical mass of our voting population have been overfed clichés so many times that they are quite capable of spouting them back when requested “budget responsabbli” must have clinched the winning vote for the ayes. On Labour’s side, the realbudget.com gimmick turned out to be simply the yawn inducing assessment of what was not there. How else can you explain Labour’s obstinate refusal to factor, ever so slightly, the EU economic scenario into the context?
One of the most intriguing part of the budget is the increase in VAT on tourism to 7%. While the private sector began its whinge fest about how this would destroy the tourism industry nobody seemed to be aware of the fact that the European tourist industry is folding upon itself. Thomas Cook, one of the largest tour operators has recently communicated to its partners that it will be unilaterally deciding not to pay 5% of what it had promised. It was an offer they could not refuse for in the industry, the bulk provided by Cook is enough of an incentive for the receivers to hang on to Cook notwithstanding its bullying ways.
For a country that claims to be heavily dependent on tourism we seem to be surprisingly slow on adapting to the European mood and insist on depending on what we deem to be the veritable gold mine of mass supply from the likes of Birmingham, Manchester and Luton. Air Malta’s reaction to the budget was to downsize the number of flights to and from the UK – with the impact that 38,000 beds will not be filled come next summer.
Malta’s absence from hot deal sites that cater for DIY tourists from all over the world and the reluctance to explore new routes to the more stable parts of Europe really have me flummoxed.
Another point that has me even more confused is our inability to cater for the pension bomb more directly. Luxembourg has just calculated that the current rate of 14% of the population will change to 1 in every four persons being a pensioner over the next 50 years. I am sure Malta is not far behind on that ratio. While our current crop of politicians have proven diligent enough to steer the cake clear from the poorlands of the economic crisis, both government and opposition seem too tied to short-term gains (in the opposition case it is short-term fantasies coupled with irresponsible planning) to have an eye on the big picture.
Still. You reap what you sow don’t you. Remember that next time you vote PLPN.
Related articles
- Thomas Cook faces legal threats (bbc.co.uk)
- Thomas Cook warns of UK job cuts (telegraph.co.uk)
- Thomas Cook warns on weak UK economy as profits tumble (independent.co.uk)
One reply on “Budgetary Woes”
Well, retirement age has been raised (admittedly not quickly enough) four years before the French and with far less strikes. And it was so matter-of-fact you didn’t notice.