Vince Farrugia, director general, Malta Chamber of Small and Medium Enterprises
The first Gonzi in government had a specific aim: Delivery on EU membership and fulfilling the commitments of the PN electoral program. The second Gonzi government is different. Dr Gonzi is his own man elected with a clear mandate on a programme designed by him. His style, his commitments, his strategies will dominate.
I do not imagine anyone in Cabinet, however strong, would stray from Dr Gonzi's method. This government must be based on dialogue, consultation and agreed decisions. GRTU feels satisfied with this. I personally have worked closely with Lawrence Gonzi and I am confident this will truly be his government.
1. Make the European Union a reality for all Maltese
Today the EU is essentially made up of ministers, politicians, state bureaucrats, the few preferred consultants and the figli di papà who travel to EU conferences and make money on new contracts. But the majority of Maltese are just a non-participating audience. People see the billboards and hear the propaganda but hardly feel it. Over the next five years, Dr Gonzi must bring the EU home to the Maltese.
2. Bring the localities to life and maximise our tourism potential
The local councils have been a success. But government does not really have a policy for the localities. Elements such as planning, the Employment and Training Corporation, business and social services... All must form part of a government policy for the localities. We can generate more work, create more employment opportunities and ease the pressure on the major employment centres. If we succeed in getting back-office work to Malta from Australia why should we not send back-office work from Valletta to the localities? Why do so many people waste so much time and money on travel when they can have work brought to their locality?
Malta's tourism strategy is a hodge-podge of ideas. It is still based on the old concept that tourists go only to specialised tourist areas and seek accommodation in three, four-or five-star hotels. Malta joined a market of 460 million people, most of whom travel cheaply on short-breaks and look for low-cost accommodation. Malta can service twice the volume of tourists we cater for today if we re-invent our product and encourage more and varied accommodation by extending it to the localities. Most can be induced to offer numerous beds on a bed- and-breakfast or bed-only accommodation. Through an agreed plan, most localities can benefit from increased wealth generation.
3. MCESD reactivated
After the enthusiasm generated during the Social Contract discussion, the Malta Council for Social and Economic Development reverted to its standard semi-dormant state. Four years after joining the EU, the model which prevails in Europe, the one where social partners are structurally involved in consultation issues of an economic, social or civic nature, is still not activated in Malta. We hear so much about our failure to meet the Lisbon Strategy criteria. We hear so much about Malta's stability program for 2007-2010. But where is the discussion?
4. Mepa coming clean
So the Prime Minister is now responsible for the Malta Environmental and Planning Authority. The Pullicino Orlando/Mistra disco and the Safi supermarket issues have highlighted what was already an open secret: Mepa is not functioning at acceptable levels. A really serious reform based on thorough rethinking is needed. Cabinet should invite lateral thinking expert Edward Debono to guide us to a logical solution. MEPA is illogical.
5. Administrative reform
Most important, however, is the question of administration. The whole administrative set-up is wrong. It has to be re-engineered to service our more demanding needs, especially those requiring a quick response. The present public regulations set-up is a waste of money.
The central mechanism needs to be rethought. To do this, government must be bold. If it fails to be bold now, tomorrow will be too late.
Joe Farrugia, director general, Malta Employers' Association
The Malta Employers' Association issued a memorandum to political parties that laid out general principles and concrete recommendations for government to act upon in the next five years.
1. Fiscal consolidation
One of the major proposals was that regarding fiscal consolidation. MEA agrees with the target set by the Prime Minister to aim for a balanced budget by 2010. If the government intends to reduce taxation, this can only be achieved through sustained real GDP growth in the region of 4 per cent in the coming years, provided that government also manages to curtail recurrent expenditure through better efficiency and management of public sector resources.
2. Enhanced social dialogue
For the country to face the challenges ahead, the social dialogue process needs to be enhanced to embrace ideas from a wider spectrum of social partners and civil society. The role of the MCESD will be essential in the consultation process that is necessary to stimulate constructive interaction between the social partners and parliament. Political parties should set an example by abandoning their confrontational attitude and engage in a mature debate that truly works in the national interest.
3. Further increase in FDI
Malta's economic and social prosperity depends on improving its competitiveness and in retaining its stable industrial relations, to be a magnet for foreign direct investment. This will lead to the creation of more value-added employment opportunities for an expanding labour force. In spite of adverse international conditions that loom on the horizon - the economic slowdown in the US, rising oil and grain prices, among others - there are still opportunities that can be exploited to our advantage. The Smart City project can be a catalyst that will attract other investment to Malta and also generate positive spin-offs in other sectors such as tourism.
4. Optimisation of human resources
Certainly another priority is the optimisation of the human resource in Malta to match the current and projected demand for diversified skills by employers. This can be achieved through a mix of policies which encourage more persons of all age groups to learn new skills and upgrade old ones, and which result in a higher female participation and also in a longer working life. It is expected that the number of foreign workers in Malta will increase in the coming years and the bureaucracy to employ foreign employees, even third country nationals, needs to be reduced.
5. Environmental issues
One cannot lose sight of environmental issues and the need to strike a delicate balance between economic development and environmental conservation - for a better quality of life and also long-term economic sustainability.
In the coming years, Malta should work to reduce its current dependency on fossil fuels and divert its supply of energy to alternative sources. There should also be stronger educational campaigns to encourage better participation in environmental initiatives such as waste separation and recycling.
The first Gonzi in government had a specific aim: Delivery on EU membership and fulfilling the commitments of the PN electoral program. The second Gonzi government is different. Dr Gonzi is his own man elected with a clear mandate on a programme designed by him. His style, his commitments, his strategies will dominate.
I do not imagine anyone in Cabinet, however strong, would stray from Dr Gonzi's method. This government must be based on dialogue, consultation and agreed decisions. GRTU feels satisfied with this. I personally have worked closely with Lawrence Gonzi and I am confident this will truly be his government.
1. Make the European Union a reality for all Maltese
Today the EU is essentially made up of ministers, politicians, state bureaucrats, the few preferred consultants and the figli di papà who travel to EU conferences and make money on new contracts. But the majority of Maltese are just a non-participating audience. People see the billboards and hear the propaganda but hardly feel it. Over the next five years, Dr Gonzi must bring the EU home to the Maltese.
2. Bring the localities to life and maximise our tourism potential
The local councils have been a success. But government does not really have a policy for the localities. Elements such as planning, the Employment and Training Corporation, business and social services... All must form part of a government policy for the localities. We can generate more work, create more employment opportunities and ease the pressure on the major employment centres. If we succeed in getting back-office work to Malta from Australia why should we not send back-office work from Valletta to the localities? Why do so many people waste so much time and money on travel when they can have work brought to their locality?
Malta's tourism strategy is a hodge-podge of ideas. It is still based on the old concept that tourists go only to specialised tourist areas and seek accommodation in three, four-or five-star hotels. Malta joined a market of 460 million people, most of whom travel cheaply on short-breaks and look for low-cost accommodation. Malta can service twice the volume of tourists we cater for today if we re-invent our product and encourage more and varied accommodation by extending it to the localities. Most can be induced to offer numerous beds on a bed- and-breakfast or bed-only accommodation. Through an agreed plan, most localities can benefit from increased wealth generation.
3. MCESD reactivated
After the enthusiasm generated during the Social Contract discussion, the Malta Council for Social and Economic Development reverted to its standard semi-dormant state. Four years after joining the EU, the model which prevails in Europe, the one where social partners are structurally involved in consultation issues of an economic, social or civic nature, is still not activated in Malta. We hear so much about our failure to meet the Lisbon Strategy criteria. We hear so much about Malta's stability program for 2007-2010. But where is the discussion?
4. Mepa coming clean
So the Prime Minister is now responsible for the Malta Environmental and Planning Authority. The Pullicino Orlando/Mistra disco and the Safi supermarket issues have highlighted what was already an open secret: Mepa is not functioning at acceptable levels. A really serious reform based on thorough rethinking is needed. Cabinet should invite lateral thinking expert Edward Debono to guide us to a logical solution. MEPA is illogical.
5. Administrative reform
Most important, however, is the question of administration. The whole administrative set-up is wrong. It has to be re-engineered to service our more demanding needs, especially those requiring a quick response. The present public regulations set-up is a waste of money.
The central mechanism needs to be rethought. To do this, government must be bold. If it fails to be bold now, tomorrow will be too late.
Joe Farrugia, director general, Malta Employers' Association
The Malta Employers' Association issued a memorandum to political parties that laid out general principles and concrete recommendations for government to act upon in the next five years.
1. Fiscal consolidation
One of the major proposals was that regarding fiscal consolidation. MEA agrees with the target set by the Prime Minister to aim for a balanced budget by 2010. If the government intends to reduce taxation, this can only be achieved through sustained real GDP growth in the region of 4 per cent in the coming years, provided that government also manages to curtail recurrent expenditure through better efficiency and management of public sector resources.
2. Enhanced social dialogue
For the country to face the challenges ahead, the social dialogue process needs to be enhanced to embrace ideas from a wider spectrum of social partners and civil society. The role of the MCESD will be essential in the consultation process that is necessary to stimulate constructive interaction between the social partners and parliament. Political parties should set an example by abandoning their confrontational attitude and engage in a mature debate that truly works in the national interest.
3. Further increase in FDI
Malta's economic and social prosperity depends on improving its competitiveness and in retaining its stable industrial relations, to be a magnet for foreign direct investment. This will lead to the creation of more value-added employment opportunities for an expanding labour force. In spite of adverse international conditions that loom on the horizon - the economic slowdown in the US, rising oil and grain prices, among others - there are still opportunities that can be exploited to our advantage. The Smart City project can be a catalyst that will attract other investment to Malta and also generate positive spin-offs in other sectors such as tourism.
4. Optimisation of human resources
Certainly another priority is the optimisation of the human resource in Malta to match the current and projected demand for diversified skills by employers. This can be achieved through a mix of policies which encourage more persons of all age groups to learn new skills and upgrade old ones, and which result in a higher female participation and also in a longer working life. It is expected that the number of foreign workers in Malta will increase in the coming years and the bureaucracy to employ foreign employees, even third country nationals, needs to be reduced.
5. Environmental issues
One cannot lose sight of environmental issues and the need to strike a delicate balance between economic development and environmental conservation - for a better quality of life and also long-term economic sustainability.
In the coming years, Malta should work to reduce its current dependency on fossil fuels and divert its supply of energy to alternative sources. There should also be stronger educational campaigns to encourage better participation in environmental initiatives such as waste separation and recycling.