Let's bring out the best in us

In recent weeks, the Labour opposition has seemingly enjoyed the unfortunate news coming from STMicroelectronics with regard to job cuts resulting from a drastic global reduction in demand. Cheekily saying it supports the government in its effort to safeguard the future of the company in Malta, it pounces on the first opportunity to put the government in a bad light once ST announced 4,500 worldwide job cuts, which where also to impact the local plant.

I believe these workers and their families deserve better. However, I would like to set the record straight on this issue. I had never given any assurances. The heading used by The Times (January 29) can in no way be attributed to what I said. All I had stated, and was reported correctly, was that the government was not aware of any plans for mass redundancies at STMicroelectronics in Malta.

This was stated within the context of the regular meetings the government has had with ST over the past two years where we strived to ensure that ST maintains its level of investment in Malta in a continuously developing competitive scenario that had nothing to do with the global financial and economic crisis. Rather, we were aware of basic competitiveness issues, namely, that wages in Malta are substantially higher than those in Africa and Asia. Consequently, there was always the risk, in a globalised world, that multinational companies seek cheaper solutions elsewhere. Within that context, I do reiterate that the government had not been informed of any layoffs.

What happened in the day following that comment resulted from a decision taken by ST's mother company. Due to the present financial and economic crisis and the substantial reduction in demand for its products, it decided to cut 10 per cent of its workforce globally, totalling about 4,500. This was to be achieved through the termination of employment to hundreds of workers in certain factories around the world, including Germany, the Netherlands and the US, and in the cheaper labour factories in the Far East. Plants in Morocco and Singapore have been identified for complete closure.

The government is following the situation closely and sought with ST to reduce job cuts to the strictly necessary. At the same time, the government is working hard to safeguard jobs while attracting more and better jobs. Figures just published by the NSO indicate a further drop in unemployment of over 600, with 3,200 new jobs being created, and with more than two-thirds oft them being taken up by females.

At the same time, the government is also working side by side with companies facing difficult situations due to the international financial crisis and is seeking to provide necessary support to sustain present employment levels. It has also set up a task force specifically aimed at helping industry to cope with the global economic situation and its impact on our country. This is intended to support the budgetary efforts that have been made, particularly through an important investment programme aimed at supporting and stimulating economic activity by targeting the key productive sectors of our economy. However, when doing so, the opposition complained that this was not enough and, at the same time, was critical of the deficit increase. Once again, clear symptoms of an opposition that is out of touch with reality.

While our economy is still relative holding well in the wake of the international crisis, although, as already explained, we are feeling stress in some sectors, it is important that we continue looking forward with confidence. Vision 2015 must spur us to look beyond the present crisis as we strive to develop those high value-added areas where we have the potential to excel.

For this to materialise we must continue to invest and become more competitive. In this year's budget, the government acted responsibly in giving priority to an investment programme that is conducive to economic growth and job creation. We are supporting industry and enterprise in finding new markets, in investing in research and innovation and in improving their facilities. All this protects existing and generates new investment.

Similarly, investment in education remains paramount. Our human resource is our greatest asset and we must ensure that it has the necessary skills to prosper in the future.

We also need to sustain the demand for our tourism product. While the global economic slowdown will have its effect on us, we have the potential to be more resilient in this important economic sector. Last year, we saw an increase in tourists visiting our islands from euro area countries and cruise liner arrivals were also up. There is a lot of potential to continue to increase activity from these markets and also tap into other niches. Now, it is up to us to sustain this demand.

Contrary to the impression being given by the opposition, the government is not claiming that the crisis has had no effect. But we are convinced that the potential for making 2009 a good year definitely exists. We can benefit even in times of crisis. What is necessary is that we focus on our priorities. True, these are unprecedented and uncertain times. However, we have the ability to rise to the occasion and let this difficult period bring out the best in us. It is up to each and every one of us to make a difference.