Injustices entrepreneurs face

Azzjoni Nazzjonali's political manifesto, which will be published after the approval of the national budget, will be radical. However, it will also be a fair one, aimed at giving a much-needed shot in the arm to the private sector. Our manifesto will be based on the principles of sovereignty, commitment/transparency (seriousness) and justice.

Our proposals demand that there is transparency in the allocation of public tenders and a more mature approach to the allocation of applications for government services. Every businessman is to be given the same opportunities. We cannot tolerate preferential treatment or the application of different decisions to similar submissions. The list is long. Just mention Mepa and the issues are never ending. And what about local councils? Ever since these have been politicised, a lot of discrimination has taken place. Regrettably, decisions change depending on the political leanings of the applicant.

This has to stop. Our country belongs to every citizen and everyone has the same rights.

Excessive bureaucracy is stifling the entrepreneur's business initiatives. We believe that, in order to take certain decisions, especially those of a technical nature, the ministers concerned need to understand their subject matter and make the right decisions without undue delay. Undue delay creates unnecessary bureaucracy which, in turn, demotivates entrepreneurs and creates barriers to business.

The government needs to appreciate the fact that the main driving force behind the Maltese economy is the private sector. It is thus the government's responsibility to create the necessary structures to ensure that the private sector does not need to wait months, or years, for decisions to be taken. Right or wrong, a decision needs to be taken without undue delay.

Our country needs a One Stop Shop Centre for businesses that sees to the major needs of the business sector. This centre will have trained personnel who will be able to assist all those who wish to open up a business or to assist in problems relating to the public sector.

The businessman is spending far too much time running from one department to another in order to have his requirements seen to. Many of these get discouraged and abandon their plans. Others see ways and means of exploiting loopholes in the law and others end up moaning at the minister's desk. If their political leanings are similar, they then stand a good chance of having their needs seen to so that a potential vote will not be lost. Yet, if their political colour is different, then it will be well nigh impossible. This is absurd! Every entrepreneur, irrespective of who he is, is to be given, within the limits of law and regulations, the support to promote every initiative. We believe the government should lend its support to creative and innovative projects as this is what ultimately generates competition and ensures progress in our economy.

Azzjoni Nazzjonali believes that the private sector is better equipped than the public sector to promote and develop projects. It is for this reason that we believe that, wherever possible, the government should enter into a joint venture with the private sector on schemes known as PPP (Public Private Partnership) or BOT (Build, Operate and Transfer) as well as other similar schemes.

The principal aim is for the government to develop a plan where land or an existing government enterprise under specific conditions is passed on to the private sector for capital injection with a view of growing or reorganising the business for a number of years. After that time, the business would then be passed back to the government. This would mean that what was once a loss-making or no profit-making organisation would be turned around by the private sector.

The private sector would, however, need to be convinced that its capital investment would have been repaid, leaving a decent profit. In this way, both sides take advantage of a win-win situation. It is with pride that I declare that the concept of PPP was introduced by me some 10 years ago when I was an FOI council member and after I was re-appointed chairman of one of the boards within BICC. After five years of constant presentations to the ministers concerned, the government adopted the PPP principle on four projects. A classic example is the Valletta Waterfront and the cruise and ferry terminals. This area was derelict. The berths for the cruise liners were inadequate and the whole enterprise managed badly. After a call for international tenders, the consortium (where I was the promoter and one of the major shareholders) that eventually won the contract invested more than Lm12 million (nearly '28 million) into the project. The consortium developed and embellished Pinto Stores, ameliorated the entire infrastructure where the cruise liners berth and the whole area was transformed to complement our beautiful harbour for the benefit of our country and all tourists.

The result: The government is now receiving rent far in excess of what it used to receive from the previous operation. Furthermore, this rent is now also directly related to the volume of the business transacted, income generated even if not a single lira was invested.

The private sector, on the other hand, invested in a high-quality project which left decent returns.

A further result of this project was a twofold increase in the tourist arrivals in the form of cruise and ferry passengers which continues to grow from year-to-year.

More businesses providing this sector with its services are reaping fruits from this investment.

This is a clear example of a successful project based on a win-win solution. The same can be said for the Cottonera Waterfront. Azzjoni Nazzjonali will indeed insist on this PPP concept! Azzjoni Nazzjonali firmly believes that it has the required practical experience in the private sector to understand what is needed to solve the problems being faced by entrepreneurs. We reiterate that we are willing to work with the other political parties so that together we can develop a plan of action without any further delay for the benefit of the whole private sector.

The country belongs to us all and not just to half the population. We cannot afford to have Malta divided into two. We have to be more mature and do away with nepotism and the culture of "friends of friends". Let us work together for the benefit of all.

We Maltese have the skills to develop business opportunities, even though we do not have raw materials. We are firm believers that together we can make our Malta a jewel in the Mediterranean.

Mr Xuereb is deputy leader of Azzjoni Nazzjonali.