New business ventures

To its credit, the government has, over a span of time, persuaded leading world-class businesses to set up or expand their operation in Malta. Today, Malta hosts some of the leading companies known worldwide. Our motivated and highly-skilled workforce had a pivotal role in this outstanding achievement that this small nation has accomplished.

Presently, we have various foreign companies in the banking and insurance sector, in informa- tion technology and telecommunications, container and transhipment, pharmaceuticals production and aircraft maintenance, to mention a few. These companies employ thousands of workers with conditions of work and salaries that are among the best one could find on the islands.

Large and small local entrepreneurs have also invested heavily in various sectors, particularly in the wholesale and retail, hospitality and leisure industry and, recently, in the healthcare sector, all of which provide a source of employment.

The industries of agriculture and fisheries have found a niche market that has shown signs of improvement, both in quality and in production. The construction industry remained equally important in influencing trends in our economy.

A varied economic and industrial mix is even more essential in a market economy in which not only big players can participate, but which also leaves ample space and opportunities for small and different economic players.

However, Malta's open economy is more volatile under international economic pressures. Notwithstanding this economic pressure, most companies have managed to cope in international cut-throat competition, though the real test is expected to come in the coming months due to the international economic crisis.

What is the role of cooperatives in this economic and business scenario? This issue addresses the question that many international institutions are asking: How is the cooperative movement faring in the recent financial crisis? Reports are showing that many financial cooperatives around the world are growing as other institutions fail. Cooperatives are indeed better placed in the face of this economic turmoil.

It is apparent that a market economy also needs this form of business. Locally, unfortunately, a handful of people behind closed doors in high quarters look at cooperatives as a nuisance and an old-fashioned form of business. Regrettably, influential right-wingers tend to disparage and marginalise the role of cooperatives in our society.

In today's economic scenario, is it worth investing in the promotion of the values that cooperatives propagate, sceptics may question.

Cooperatives are enterprises with soul, equally owned and democratically controlled and managed by workers. Cooperatives in Malta were founded in 1947. Today, they employ roughly 5,000 workers with a turnover of about €47 million yearly. Cooperatives in Malta are a good business proposal and have successfully managed to create wealth and work opportunities. Cooperatives created over 100 million jobs worldwide.

Workers' cooperatives are a form of business which, if nurtured, can be as effective as any other foreign or local business. Local and foreign entrepreneurs have always found - and rightly so - the necessary assistance and support from governments during the initial phases of setting up in Malta. Incentives should also be extended to workers who voluntarily elect to form a cooperative, creating a new form of business. In most European Union countries cooperatives are today employing thousands of workers with conditions and salaries commensurate with their responsibilities.

During the consultation process led by Finance Minister Tonio Fenech on the budget for 2009, the UĦM had the opportunity to stress the role and the importance of co-operatives in our economy.

The UĦM has a direct interest in the assistance of cooperatives and has secured with the government the setting up of a commission with the specific aim to strengthen the cooperative movement in Malta. The commission is required to report to the government by the end of June 2009. Cooperatives will find their way on the national agenda again after a lull of some years.

In the budget for 2009 under the heading Together for Sustainable Future Responsibility, in the section titled Support for Private Enterprise, the following ensued: "Government believes that in order for private enterprise to remain the main driving force of our economy, it is necessary that we continue doing all that is necessary in order to allow our enterprises to operate without undue hindrance". Private industry must include cooperatives.

Creating better work opportunities with a social conscience for our workforce should continue to be central on our national agenda. Empowering workers to take charge of their future and creating wealth through cooperatives should become a business proposal for the taking. Motivated workers or self-employed people can organise themselves in cooperatives and take a variety of business initiatives. Competition should not stifle cooperatives but should reward their efforts. And consumers too will have a wider choice and be better served by cooperatives. The UĦM has had no regrets in assisting workers forming cooperatives.

Political parties and other institutions do well if they ventilate their beliefs, ideals and express the values of social justice while concretely taking the necessary measures to foster solidarity and create democratically-controlled new business ventures for workers.

Mr Vella is general secretary of UĦM.

gvella@uhm.org.mt