GRTU calls for House debate on the economy

The G.R.T.U. Chamber for Small and Medium Sized Enterprises yesterday called for an urgent parliamentary debate on the state of the economy.

The GRTU executive said it was concerned at the way the economy had stagnated and how GDP figures showed negative growth. It said all the GRTU sections, other than property development, were reporting a negative situation and pessimism for the future.

The association complained that Malta did not have a post-EU accession strategy.

"The lack of an economic strategy, which inspires confidence, is leading many Maltese entrepreneurs to seriously consider whether to continue to invest in Malta," the GRTU said.

The Malta Council for Economic and Social Development lost control of the situation when it failed to agree a social pact, and it was now simply watching one minister after another grapple with a piece of the economy, without anyone being responsible for the economy as a whole, it said.

The government was making a serious mistake when it continued to focus solely on the budget deficit, imposing more burdens which were proving detrimental to the economy.

The two sides of the House should study the situation objectively before the summer recess and agree on measures to put the country back on the right track.

The GRTU yesterday also published a letter it sent to the chairman of the Malta Resources Authority urging it, as the energy regulator, to declare what action it had taken to safeguard the interests of economic operators in view of rising fuel prices.

It said the repeated increase in fuel prices, especially diesel, was having a "drastic negative impact" on the economy and on inflation.

The GRTU said the regulator should insist on an impact assessment before condoning fuel price increases.

"The perception of economic operators in Malta is that the increases are being imposed as if the energy regulator does not exist." It said it would not tolerate a situation where the regulator become just another part of the state apparatus.