A statement from Unite the Union:

Unite the Union has welcomed this year’s budget announced by Chief Minister Fabian Picardo in Parliament last week.

Unite the Union is fully aware and conscious of the disastrous economic situation that the vast majority of European Countries are going through, because of the strict austerity measures being implemented as a consequence of the present International economic crisis.

In most of these Countries there is hardly any economic growth. Unemployment is at its highest which includes unprecedented figures of youth unemployment. Salaries are being frozen or even reduced and pensionable age being increased.

Unite the Union firmly believes that in view of the International crisis affecting many Countries, that it is in our interest to have a planned economy, that takes the necessary measures to avert the problems that might arise from such a crisis.

For this we suggest the creation of an economic forum composed of the different political parties, the Business community and Unite the Union with a view of giving an economic direction to Gibraltar’s finances, that will help us survive should there be a down-turn in our economic scenario.

In spite of all this negative background to the present International economic situation, we can all agree to successfully welcome all of the following points that concerns Unite in this year’s budget.

These are as follows,

Maternity Grants increased by 50% from £400 to £600

Death Grants increased by 50% from £400 to £600

New Senior Citizens ten year debentures introduced by the Gibraltar Savings Bank at 5% for National residents

Minimum wage going up from £ 5.70 to £ 6.00.

This increase carries a special connotation with it, as in 2011 budget presented by the previous Government administration, the minimum wage was raised from £5.00 to £ 5.40. This could have been perceived to cover for the two year period, as in 2010, the minimum wage had not been raised at all.

Unite welcomes the fact that the present Government has raised 30 pence to reach the £ 6.00 barrier, also that the present Government are increasing it on a yearly basis.

 Civil Service Pay – will go up by 2.9% from 1^st August 2013.

This forms part of the last pay increase from the 3 year deal negotiated by the former Government administration for all Public Service Workers, and which the present Government Administration has honoured.

Unite look forward as a responsible Trades Union to negotiate with Government, a similar deal for the future in order to allow all Public Sector Workers enjoy a pay increase, despite the present world wide economic crisis.

Death in service will go up from 2 times to 10 times salary under the new commutation rules for officers covered by the pensions act.

Unite emphasises the increase from 2 to 3 years for those who are not covered by this Act, as Unite has been pursuing its introduction since it was introduced in UK early last year.

For those tax payers under the allowance based system, the rate for taxable income ranging from £ 4.001 to £ 16,000 will be reduced to 30% to 24 %.

All tax payers under the allowance based system with earnings of £10.000 or less will not be required to pay tax at all.

The nursery school allowance is increased from £2,000 to £3,000 per child.

Blind person allowance increased from £ 627 to £3,000

Disabled Individuals Allowance increased from £ 2,724 to £ 5,000

Single Parent family allowance increased from £ 2,632 to £3,000

Personal allowance from £ 2,632 to £3,000

The fact that Social Security contributions, Electricity and Water charges will not see an increase this year is most welcomed.

Old age pensions will also be increased. Although this is not strictly a budget measure, it will be increased by the rate increase of the Retail Price Index. Unite would welcome that this be in retrospection as from 1^st April 2013.

This year’s budget has been perceived as being specially geared to benefit the most vulnerable members in our society.

However, Unite requests that next year’s budget on tax reductions, be also aimed to benefit everyone who are on gross income based system, which at the end of the day, are the vast majority of tax payers.