It pains me when I encounter the anti-business mentality that is present within certain spheres of our society and within sectors of our economy. It pains me when some laud this destructive mentality which seems to take root. I feel hurt because we tend to forget, when we shouldn't, what an important role commercial activity plays in our country and how it was this commercial activity that lifted us out of the socialist government-controlled economy we used to have and created today's dynamic, entrepreneurial, growing economy.

Malta's prosperity can be attributed to business and to the people in business for as the business community flourishes, the additional economic activity it generates reverberates across the whole of the economy, enhancing the nation's wealth and its standard of living. It is through this belief in the commercial sector that consecutive Nationalist governments have brought about strong periods of commercial growth.

Nationalist-led governments have, through the years, managed to give the commercial sector a specific role; being itself the motivator and mover behind a developing country. We have come a long way. We can still go further but we must understand that what is being done today is necessary for this vision of growth in the future. Through the reforms, political breakthroughs and investment being made today, our country will be able to secure increases in the supply of goods and services and improvements in the supply capacity of the country in the years to come.

Experience has shown that it was indeed consecutive Nationalist governments that invested in the future productive capacity and in the business activity of the country. The reduction in the marginal income tax rates and in the corporate tax rates from 65 per cent to 35 per cent, the introduction of trade liberalisation, substantial investment in capital programmes, privatisation, Central Bank independence, the introduction of VAT as an alternative to direct taxation, accession to the European Union and industrial restructuring through the introduction of new tax incentives were all supply side policies taken by Nationalist governments to create a friendlier business environment. Such policies were aimed at improving the proper functioning of markets in order to overcome the additional costs Malta faced.

It is now evident that such policies do indeed generate entrepreneurship and economic effort, which, in turn, create new job opportunities. These influence positively not only the entrepreneurs themselves but also all those who come into contact with such businesses. Employees through the creation of jobs; consumers and suppliers through an increase in consumer choices, competitive prices and better quality and the general community as a widespread business boom represents a net gain to the country. This gain can be seen in an immediate and direct way in increased tax revenue, employment, or reduction in unemployment benefits, and in an indirect way in an increase in national production. Society also gains from an increase in confidence and this leads to a gain in competitive ability in later years.

A buoyant Maltese commercial sector, which includes both traders and consumers, represents the roots of a Nationalist government and let no one forget that these roots were planted after radical changes that needed to be made to the then outdated socialist practices and socialist public mentality. It may be a case of déjà vu, but we are presently going through similar reforms to change and upgrade a public mentality. What was good in the past has nowadays become obsolete or no longer suitable for the global competitive environment that Malta is part of.

Thanks to the investments made in supplying capability, resources, state of the art technology, infrastructure, road networks, an information technology society, a better educated and healthy society and a sustainable social policy, this Nationalist government is once again making sure our country is prepared to face the challenges lying ahead of it. Time will once again prove us right.

A government is meant to govern. Decisions have to be made, responsibilities have to be shouldered. In doing so, the government must ensure that the impact on business activity and the people is balanced so that the burden may be shared equally. In this way the commercial activity will not suffer disproportionately. It is by doing so that the economic realties and challenges of the present can be addressed and solutions found. It is useless to grumble and criticise if we are not prepared to do something about the situation. Today's decisions will influence the future. As shown in the past, good decisions made today with a supply side consideration will help ensure future long-term economic sustainability.

Mr Vassallo is Parliamentary Secretary at the Ministry for Competitiveness and Communication.

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