Call for public sector downsizing

The Malta Employers' Association (MEA) yesterday called on the government to make the public sector more efficient, through a planned and phased reduction in extra manpower, and for control of expenditure in order to address the fiscal deficit.

During a meeting with Censu Galea, the Minister for Competitiveness and Communications, MEA representatives discussed the economic situation and ways in which Malta can become more competitive.

Association president Arthur Muscat explained the position adopted by the MEA on issues affecting the country's competitiveness. He mentioned the report submitted by the association to the Malta Council for Economic and Social Development - Generating Productive Employment - a National Priority - and highlighted the need for the government to cut inefficient expenditure and implement the necessary reforms to make the country competitive.

Port reform was definitely a priority, he said, and the country also needed a coherent wages policy to make its labour costs attractive to foreign investors.

Mr Muscat said the government's expenditure should focus on what is affordable. For example, with respect to student stipends, the issue was not whether they were desirable or not but whether the country could afford them and whether there were more important priorities on which to spend Lm10 million a year, even within the educational sector.