Government to fast-track SMEs

By the end of June, the government should be able to complete an internal exercise consisting of the scrutiny of hundreds of laws, legal notices and regulations related to businesses and will then start a process of amending and/or repealing unnecessary rules in order to make life easier for the evolution of small and medium enterprises (SMEs).

The original proposal was made by the Prime Minister during talks with the Chamber of Small and Medium Enterprises - GRTU earlier this year. All government ministries have already compiled dossiers on the state of play of laws, legal notices and regulations falling under their respective portfolios and submitted them to the Office of the Prime Minister. Sources said the revamp will start being implemented in the second half of the year.

"We are determined to offer business in Malta a red carpet treatment instead of red tape as we realise that growth in our economy depends on SMEs," Prime Minister Lawrence Gonzi told a press conference following the conclusion of an EU summit in Brussels focusing on growth and jobs.

The Prime Minister said the GRTU was asked to send a representative to coordinate the exercise with the government but it chose not to nominate anybody as it found it difficult to find the right person for the job. However, he added, the government is carrying on with the exercise and will be consulting all the interested parties before moving on to the actual changes needed.

Dr Gonzi described the summit as a very important step for the EU to take stock of the current economic scenario and plan concrete measures to boost its economy.

He said that Malta was already given clearance by the European Commission on its National Reform Programme for growth and jobs.

"We are determined to meet the targets we have set until 2008 to create more jobs, to provide the opportunity to ease women's entry into the labour market, to invest more in research and development and to better our education standards. These are not easy targets to achieve in a short span of time but we are determined to deliver what we proposed. These measures will make our economy more attractive for foreign investment and will bring a better quality of life to our citizens."

The Prime Minister said that progress has already been achieved in some sectors particularly in education. Referring to an analysis of the number of youths choosing to continue studying after completing compulsory schooling, Dr Gonzi said that over the past four years Malta registered a 10 per cent increase - the largest rise in the entire EU.

"This does not mean we have met our targets, far from it, but our progress is very satisfactory."

The EU summit also focused on the need for an integrated policy on energy.

Dr Gonzi said that while Malta agreed with this approach, there are certain limitations as to the implementation of renewable energy policies due to the small size of the island. He said that when the final discussions on an EU energy policy are held, probably next year, Malta will have to make sure the EU gives special attention to the specificities of the island's dimensions.

Both Foreign Affairs Minister Michael Frendo and the Parliamentary Secretary for Finance Tonio Fenech, who accompanied the Prime Minister during the summit, took part in separate meetings with their counterparts.

Illegal immigration was tackled by EU foreign ministers with Dr Frendo emphasising the need for sub-Saharan countries to be invited to an EU-Africa meeting in June to discuss illegal immigration. He said the revival of the EU Constitution was also discussed with foreign ministers agreeing on a specific meeting before the next EU summit in June to plan the way forward.

Key targets agreed at EU summit

¤Creation of six million new jobs over the three-year period 2005-2007.

¤All member states to report this autumn on the measures taken to implement their National Reform Programmes for jobs and growth.

¤Implementation of actions to reach an overall R&D investment of three per cent of GDP by 2010. Malta to reach 0.75 per cent of GDP.

¤Member states to establish, by 2007, a one-stop-shop for SMEs.

¤Member states to introduce measures to reduce the average time for setting up a business, especially an SME, with the objective of being able to do this within one week anywhere in the EU by the end of 2007.

¤Start-up fees for business to be reduced and the recruitment of a first employee should not involve more than one public administration point.

¤Member states to reduce early school leaving to 10 per cent and to ensure that at least 85 per cent of 22-year-olds should have completed upper secondary education by 2010.

¤By the end of 2007 every young person who has left school and is unemployed should be offered a job, apprenticeship, additional training or some other employability measure within six months and within no more than four months by 2010.

¤Establishment by the EU of a Globalisation Fund in 2007 to provide additional support for workers made redundant as a result of major structural changes in world trade patterns.

¤Commission to submit an Action Plan on Energy Efficiency by mid-2006.