Seeking comfort in one chamber
To call the forthcoming merger between the Chamber of Commerce and Enterprise and the Federation of Industry "history in the making for private enterprise", as it was described on Saturday, is to resort to a little bit of hyperbole. History is made of...
To call the forthcoming merger between the Chamber of Commerce and Enterprise and the Federation of Industry "history in the making for private enterprise", as it was described on Saturday, is to resort to a little bit of hyperbole. History is made of somewhat sterner stuff.
Moreover the two organisations were already united decades ago, before leading elements in the industry section within the old Chamber of Commerce felt that a completely separate body was called for to represent industry. Nevertheless, the finally approved decision to merge the two bodies does make a lot of sense.
There will no longer be a dispersal of the talents within the commerce and industry sectors which are prepared to step forward to take on the task to represent their colleagues in the sector. While good human resources are scarce in all sectors of economic activity, those willing to set themselves up to the risk of being pilloried by dissatisfied members now and then are scarcer still.
In addition, it is true that the unified organisation, because it can pool human resources also at the backroom level, should make stronger analysis of the economic situation and, where necessary, submissions that will carry more weight with government and stakeholders since it would eliminate fragmentation.
The current Chamber president said during a news conference announcing approval for the merger on Saturday that "the authorities cannot ignore the opinion of such a strong proportion of business people, industrialists and investors - local and foreign alike".
In point of fact the two organisations have been structuring themselves to be able to bend the ear of the authorities with sensible representations for a long time now. Forty years ago the then senior vice-president of the Chamber of Commerce, the stalwart Barclays banker Louis E. Galea, felt the institution should upgrade its capabilities to be able to make more technical analysis and representations.
The Chamber hired me to set up a research unit. My first task was to take a close look at the tourism sector, then still in its infancy. I came out with a study titled The Development of Tourism in Malta. It contained some prescription based on considerable description. The Chamber submitted it to the authorities as a contribution towards a deeper examination of what needed to be done to expand tourism in that early period following the sharp rundown of military services in Malta.
Soon enough efforts to try to concretise a formal cooperative relationship with the Federation of Industries were advanced in the form of a joint consultative council between the two. I was asked to prepare a study on industry to parallel that on the development of tourism. I did so and when the draft was discussed by the consultative council I could see directly why there were two separate organisations.
The Federation side insisted that more emphasis should be laid in the study on the need to protect local industry. The representatives of the Chamber, which was always in favour of free trade, resisted the pressure.
It was not easy to bring the two sides together. I bore the brunt of the heated discussion, following which I went to the Malta Television studio to chair a live discussion programme in a series I was then involved in.
In the moments of preparation for the filming my mind wandered back to the heated confrontation of a while earlier. When the lights blazed on and the producer signalled me to start I was totally off cue and, for the first and only time in my life, I froze before the cameras. Efforts to bring my study of the development of industry to consensual agreement did not freeze as well. The completed study was endorsed by the two sides and also submitted to the authorities as an input into formulation of national policy.
Attempts to make the two sides converge went on unabated. They took a long time to conceive fusion without aborting it well before delivery. Successful delivery has now been achieved. It is more than timely. Malta's role in the EU and unfolding global events demand that scarce resources are utilised as efficiently as possible.
Over the years both the Federation and the Chamber sought expert economic advice on various issues, not least in the run-up to EU membership. To this day they generally had separate advisers. Now they can show much better focus. The Chamber chairman was right when he said that the merger also presented an opportunity to become more effective both locally and on the European stage.
I was happy to read that the new organisation will continue to be housed in the Chamber's Republic Street building. It is a graceful landmark and, not least with the structural extensions made over the years, very functional too. It is also right that the merged organisation will be manned by the combined permanent staff of both entities. They will have accumulated a wealth of knowledge and experience, which can now be put to improved use.
It remains to be seen how the government will retain the combined weight of chamber and FOI representation on national boards and entities, such as the Malta Council for Economic and Social Development. As one single entity the "new" Chamber may be expected to have single representation, like its peers on the various councils where the government invites representation.
The Federation president indicated a main reason why old hatchets could be buried and a new basis for cooperation established. He said that local industries, now established, have to compete on the open market, and new economic sectors have sprung up. "It was becoming very evident that these new industries did not have a natural home in either of the organisations as originally set up," he said.
It will take time to see to what extent the unified Chamber will function better than two separate units. The new structure will be divided into three economic groups: manufacturers, importers, distributors and retailers. A new group - service operators - will include the financial sector, ICT and other service sectors.
New times and the change they bring require new structures. The Chamber should be one of them, while recognising the need for further change within in the light of experience.
Moreover the two organisations were already united decades ago, before leading elements in the industry section within the old Chamber of Commerce felt that a completely separate body was called for to represent industry. Nevertheless, the finally approved decision to merge the two bodies does make a lot of sense.
There will no longer be a dispersal of the talents within the commerce and industry sectors which are prepared to step forward to take on the task to represent their colleagues in the sector. While good human resources are scarce in all sectors of economic activity, those willing to set themselves up to the risk of being pilloried by dissatisfied members now and then are scarcer still.
In addition, it is true that the unified organisation, because it can pool human resources also at the backroom level, should make stronger analysis of the economic situation and, where necessary, submissions that will carry more weight with government and stakeholders since it would eliminate fragmentation.
The current Chamber president said during a news conference announcing approval for the merger on Saturday that "the authorities cannot ignore the opinion of such a strong proportion of business people, industrialists and investors - local and foreign alike".
In point of fact the two organisations have been structuring themselves to be able to bend the ear of the authorities with sensible representations for a long time now. Forty years ago the then senior vice-president of the Chamber of Commerce, the stalwart Barclays banker Louis E. Galea, felt the institution should upgrade its capabilities to be able to make more technical analysis and representations.
The Chamber hired me to set up a research unit. My first task was to take a close look at the tourism sector, then still in its infancy. I came out with a study titled The Development of Tourism in Malta. It contained some prescription based on considerable description. The Chamber submitted it to the authorities as a contribution towards a deeper examination of what needed to be done to expand tourism in that early period following the sharp rundown of military services in Malta.
Soon enough efforts to try to concretise a formal cooperative relationship with the Federation of Industries were advanced in the form of a joint consultative council between the two. I was asked to prepare a study on industry to parallel that on the development of tourism. I did so and when the draft was discussed by the consultative council I could see directly why there were two separate organisations.
The Federation side insisted that more emphasis should be laid in the study on the need to protect local industry. The representatives of the Chamber, which was always in favour of free trade, resisted the pressure.
It was not easy to bring the two sides together. I bore the brunt of the heated discussion, following which I went to the Malta Television studio to chair a live discussion programme in a series I was then involved in.
In the moments of preparation for the filming my mind wandered back to the heated confrontation of a while earlier. When the lights blazed on and the producer signalled me to start I was totally off cue and, for the first and only time in my life, I froze before the cameras. Efforts to bring my study of the development of industry to consensual agreement did not freeze as well. The completed study was endorsed by the two sides and also submitted to the authorities as an input into formulation of national policy.
Attempts to make the two sides converge went on unabated. They took a long time to conceive fusion without aborting it well before delivery. Successful delivery has now been achieved. It is more than timely. Malta's role in the EU and unfolding global events demand that scarce resources are utilised as efficiently as possible.
Over the years both the Federation and the Chamber sought expert economic advice on various issues, not least in the run-up to EU membership. To this day they generally had separate advisers. Now they can show much better focus. The Chamber chairman was right when he said that the merger also presented an opportunity to become more effective both locally and on the European stage.
I was happy to read that the new organisation will continue to be housed in the Chamber's Republic Street building. It is a graceful landmark and, not least with the structural extensions made over the years, very functional too. It is also right that the merged organisation will be manned by the combined permanent staff of both entities. They will have accumulated a wealth of knowledge and experience, which can now be put to improved use.
It remains to be seen how the government will retain the combined weight of chamber and FOI representation on national boards and entities, such as the Malta Council for Economic and Social Development. As one single entity the "new" Chamber may be expected to have single representation, like its peers on the various councils where the government invites representation.
The Federation president indicated a main reason why old hatchets could be buried and a new basis for cooperation established. He said that local industries, now established, have to compete on the open market, and new economic sectors have sprung up. "It was becoming very evident that these new industries did not have a natural home in either of the organisations as originally set up," he said.
It will take time to see to what extent the unified Chamber will function better than two separate units. The new structure will be divided into three economic groups: manufacturers, importers, distributors and retailers. A new group - service operators - will include the financial sector, ICT and other service sectors.
New times and the change they bring require new structures. The Chamber should be one of them, while recognising the need for further change within in the light of experience.