Govt in pump-priming move
Home improvements, bikes, farm machines in incentive scheme
19 March, 15:29
(ANSA) - Rome, March 19 - Silvio Berlusconi's government on
Friday came up with a pump-priming scheme aimed at stoking the
economy in a bid to fight the lingering recession.The 420-million-euro package contained 300 million in incentives including 'green' home improvements and cleaner motorbikes.
It will also enable farmers and building firms to get cheaper equipment, Industry Minister Claudio Scajola said.
There will also be money to revamp ports, provide aid to the aeronautical industry, and a voucher plan for young people to get broadband Internet, he said.
The decree authorising the incentives is effective immediately and the scheme will swing into action on April 6, Scajola said, promising that it was the shot-in-the-arm the economy needed.
"The recovery is slow and intermittent. The aim of the decree is to sustain it to reach the government's growth target of 1-1.2% this year," he said.
Berlusconi pointed out that the scheme would cut through red tape to enable homeowners to make improvements without going through lengthy authorisation procedures.
"As long as it's within the norms, you'll be able to do it.
Our motto is, Everyone should be boss in their homes".
The premier dismissed opposition claims that the government was not doing enough to help the economy.
"Contrary to what the opposition says, we are totally aware that the crisis is continuing and that it is global. But we are realists and we say that our country is feeling it less than other European countries".
"We are emerging from the crisis, not extremely quickly, but certainly," Berlusconi said.
He vowed to leave "no one without work".
Most of the funds, 216 million euros, were allocated to stimulate sales for motorbikes, including electric and hybrid models, home appliances and modular kitchens, energy-saving homes, alternative energy inverters and marine engines.
Another 71 million euros were earmarked for the acquisition of farm and construction vehicles and machinery, while 13 million euros were budgeted for advertising and marketing.
There is also an additional fund of 80 million euros to relaunch Italy's ports, Transport Minister Altero Matteoli said.
Last year's incentives were primarily for 'green' automobiles, the so-called 'cash-for-clunkers' initiatives, but also applied to appliances and motorbikes.
Scajola said the new incentives would not cover cars to keep that market from being "drugged".
The new incentive decree also included measures to combat tax evasion by moving assets abroad.
Economy Minister Giulio Tremonti said that, because the scheme is funded primarily by recouped taxes, "it will have a positive, not a negative effect" on the state's balance sheet.
'WRONG MOVES, STUNT' SAY OPPOSITION.
Italy's centre-left opposition was critical, saying the scheme contained the wrong measures and claiming it was a headline-grabbing move ahead of March 28-29 regional elections where polls say the opposition is gaining.
Pierluigi Bersani of the largest opposition group, the Democratic Party, said: "I don't think these are the things that are needed".
He called for more action on "innovation, the structural problems of small firms, research and internationalisation".
Bersani slammed the decree as allocating funds equivalent to "one eighth" of the money spent to save bankrupt national airline Alitalia. Antonio Borghesi of the Italy of Values party said: "It's just smoke and mirrors, nothing more than an electoral stunt".
Consumer protection lobbies Adusbef and Federconsumatori dismissed the decree as "wholly insignificant" while a farmers' union, CIA, said: "incentives to buy farm machinery are all well and good but because of a collapse in earnings not many farmers are in a position to make innovative investments".







