AD asks whether Government is aware of the low-inflation phenomenon which is hindering EU’s economic growth and what are its plans to counteract it. Eurostat’s figures show that four EU members are already experiencing deflation: Greece, Bulgaria, Cyprus and Ireland.

Alternattiva Demokratika Chairperson, Prof. Arnold Cassola, said: “Inflation in Malta fell drastically from 1.8% in March 2013 to a record low 0.5% in November 2013. This phenomenon is also experienced in the EU with a reported average inflation of 0.7%. Malta imports and exports fell by 17% and 20% respectively during the first eight months of 2013 compared with the same period in 2012.

“This clearly shows the drastic decline in domestic and foreign consumption and can create havoc with public and private efforts to repay debts and risks bringing reasonable consumer demand to a halt. Uncontrolled consumption of goods is bad, but consumption of cultural services, online services etc. is beneficial and needs to be encouraged. The decrease in overall consumption is having an effect on manufacturing companies: Four manufacturing companies in Malta are considering lay-offs or offering reduced hours due to lack in demand.”

Prof. Cassola concluded: “AD urges the Government to disclose its plans of how it intends to counteract the effects of low-inflation, considering that Budget 2014 is forecasting a drastic increase in total Income Tax, Value-Added Tax, Licenses and is lacking in plans of how to attract new decently-paid jobs. This is highly contradictory and the Government must face reality and be honest with the nation.”

…

AD tistaqsi jekk il-Gvern jafx bil-fenomenu ta’ inflazzjoni baxxa li qed ifixkel it-tkabbir ekonomiku u xi pjanijiet għandu biex jindirizza din il-problema. Il–figuri tal-Eurostat juru li erba’ stati membri diġa qegħdin jesperjenzaw diflazzjoni: Il-Greċja, il-Bulgarija, Ċipru u l-Irlanda.

Iċ-Chairperson ta’ Alternattiva Demokratika, Prof. Arnold Cassola, qal: “L-inflazzjoni f’Malta niżlet f’daqqa minn 1.8% f’Marzu tal-2013 għall-figura baxxa ta’ 0.5% f’Novembru tal-2013. Dan il-fenomenu qiegħed jinħass ukoll fl-Ewropa b’inflazzjoni medja ta’ 0.7% skont kif ġie irrapurtat. L-importazzjoni u l-esportazzjoni minn Malta naqsu bi 17% u 20% rispettivament fl-ewwel tmien xhur tal-2013 ikkumparat mal-istess perjodu fl-2012.

“Dan juri ċar li t-tnaqqis drastiku fil-konsum domestiku u barrani jista’ jħarbat kull sforz kemm pubbliku kif ukoll privat biex jitħallsu lura d-djun u jġib ir-riskju li tieqaf għal kollox id-domanda għall-konsum raġonevoli. Il-konsum ta’ prodotti bla kontroll huwa ħazin, imma l-konsum ta’ servizzi kulturali, servizzi online, eċċ, huwa tajjeb u għandu jiċi inkoraġġit. Dan qed ikollu effett fuq kumpaniji tal-manifattura: Erba’ kumpaniji tal-manifattura f’Malta qed jikkunsidraw li jnaqqsu l-ħaddiema jew qed joffru ħinijiet ta’ xogħol imqassra minħabba t-tnaqqis fid-domanda.”

Prof. Cassola temm jgħid: “AD tħeġġeġ lill-Gvern biex jiżvela l-pjanijiet tiegħu ta’ kif biħsiebu jagħmel tajjeb għall-effetti tal-inflazzjoni baxxa, peress li l-Budget tal-2014 qed ibassar żieda fid-dħul totali mit-taxxi, dħul mill-VAT u liċenzji imma m’għandux pjanijiet biex jattira impiegi ġodda b’pagi diċenti. Din hija xiħaġa kontradittorja u l-Gvern tajjeb li jaffaċċja r-realta` u jkun onest mal-poplu.”