Editorial

There appears to be no end to the number of reports, surveys and plans being issued nowadays. In a way, this reflects a vibrant society, but it does sometimes look as if the country is overdoing it, particularly when considering that action over the recommendations made does not usually match intentions or plans. The latest report, in draft form, is that called Action Plan For the Renewal Of Industry, drawn up by the Labour Party.

The report is a mixture of good sense, points that have been made many times in other reports and a great deal of rhetoric, peppered with an abundance of platitudes. Purposely or not, the report projects the impression that the compilers are pioneering new thinking in industry when in fact they are not. It presupposes that the government has neglected the manufacturing industry when the situation shows otherwise.

Only three years ago, the government had come out with a document called Prosperity In Change - The Way Forward, which outlined its vision of the island's future industrial development and established policy guidelines. But Labour does not appear to be all that interested in government documents and, every time it comes out with its own plans or reports, it acts as if it is breaking new ground.

Take, for instance, the issue of the gradual erosion of competitiveness, a matter that has been of so much concern to industry for so long now. In Labour's view, one of the reasons for this was the exaggerated and unnecessary burdens created by the government. Labour feels these burdens, and expenses, should be analysed so that, within six months, measures are proposed for their reduction or elimination. Within six months? Is not Labour aware already of what has been pushing up the cost of labour in Malta?

Industry has been complaining about excessive port charges, for example, for many years now. Wage rises unrelated to productivity have also raised the cost of the local product, making the effort to compete with low-cost countries even more difficult than in the past. Yes, the country can go for the making of goods having a higher value-added content, and this is what is being done, but the transition to this kind of manufacturing does not come about overnight.

Moving up the ladder in manufacturing industry is in fact the road Malta should continue to explore with even greater determination than it has been doing so far. But, then, if Labour agrees with this, as it does, it should not make political capital out of the closure of firms that do no longer fit into the pattern of manufacturing industry the country is trying to establish. One does not promote confidence in the future of the manufacturing industry by expecting firms that are no longer competitive to stay on, as the MLP indirectly seems to believe.

There is nothing wrong with the proposal made in the party's draft plan for the setting up of a permanent task force to propose improvements in the incentives given for the promotion of new investment. If the legislation that is meant to promote new investment needs reform, it should be taken in hand without undue delay as the competition for new investment is getting fiercer all the time.

Ironically, though, the draft plan comes only a short time after the announcement of a plan for the setting up of an IT village at Ricasoli by a Dubai-based company. True, the country can do with a higher dose of direct foreign investment, but contrary to what Labour says, the situation is not stagnant.