At the launch of the Partit Nazzjonalista’s pre-Budget document on Friday, Malta Chamber Director General Kevin J. Borg said that while the the Opposition’s proposals for the upcoming year mirrored several arguments made by the Malta Chamber, it was felt that it needed to further clarify its position with respect to dealing with inflation of costs related to employment.
In fact Mr Borg said that the Chamber had its reservations about the Opposition’s arguments about the issue of the ever increasing cost of labour. Salaries were increasing mainly due to the general shortage of labour, compounded by the extension of leave allowances which were in turn inflating the costs of employment beyond productivity gains. This was seen by the Chamber as detrimental to the country’s chances of maintaining its current economic success.
On behalf of the Chamber, Mr Borg warned that these were directly impacting businesses’ competitiveness, especially those sectors which were competing on the international market. “Increased labour costs have by far become the number one challenge for most businesses operating in Malta” he said.
Mr Borg said that the Chamber agreed with the Opposition’s objective to start looking at the sustainability of the country’s economic growth, while assuring a better quality of life for all.