Not just rhetoric... we mean business

Many economists and commentators are starting to predict signs of recovery in the world economy, however, showing concern as to how much this will be a recovery of jobs. Indeed, it is being muted in many international quarters as a "jobless recovery". Well, for this government a recovery without jobs is no recovery at all. We will not be satisfied with a recovery of statistics because, for us, our real concern will be the wellbeing of our families and those looking for a job.

The Budget we presented has the specific aim of addressing the creation of jobs while continuing on the path of modernisation through the necessary investment in all that makes our country better: our health, our environment, our education, our heritage, our solidarity, our infrastructure, to mention but a few. To propel our journey for jobs recovery we introduced an extensive list of measures aimed to encourage those who want to invest to do so now, to create jobs and to help those looking for a job to integrate as quickly as possible into the labour market, through specific fiscal and financial incentives, training, child care, coaching for the disabled, work trial schemes and much more.

We have committed €10 million micro-credit fund, which is available for nearly 1,500 small enterprises that will include also the self-employed, to provide them with the necessary liquidity for investment, with lower interest rates and less far collateral. We shall also give a number of fiscal benefits to motivate smaller enterprises to invest, grow and become more efficient and profitable. The 40 per cent tax credit for the cost of investment or new employment that is being offered to any type of business, including retail outlets that want to refurbish or expand their shop or facility, invest in new machinery or equipment, which enhances their operations can surely support these businesses recovery in a strong way. We extended this benefit to 60 per cent for business in Gozo because we are even more concerned of our need to generate more job opportunities in Gozo.

We also significantly increased Malta Enterprise's recurrent and incentives budget to transform it as a one-stop shop for all forms of enterprises while equipping this important organisation to provide more integrated services to businesses and help Maltese firms internationalise, in addition to the vital role of the promotion of local and foreign investment, particularly in new markets and, especially, sectors of high added value.

We want to show our partners in the economy's regeneration that we mean business. We will be encouraging foreign investors already operating in Malta to expand their operations in Malta, through what we have called verticalisation, in areas such as legal, financial, back office, corporative, logistical, research and development, marketing and sales and prototyping. We will also intensify our efforts to see more foreign direct investment to set up operations in Malta be they in the manufacturing or the growing service industry such as shared services centres in areas like call centres, software development, human res-ources, accounts and finance management, market research and internet.

This shows that our commitment goes beyond the rhetoric. Of rhetoric to analyse we had a lot this week. We also heard what the opposition wanted to say. They might say that history repeats itself and, just like under his predecessors, Labour's new leader managed to isolate his own party in being negative about this Budget. All the social partners, constituted bodies, unions, civil society have reviewed this Budget and commended it for its strategic objectives, above all that of investment, which will lead to the creation of work.

But our commitment does not end there. While creating jobs, we want to be able to retain our competitiveness by also equipping our youths and our people with the right tools. Crucial to this is our ever-going investment in the education systems. We believe that, in order to continue creating employment in our country, we need to keep on investing in our people. Education and training is the key for our country's further advancement and, therefore, they are priorities for this government. Expenditure in education for next year will be of €270 million, that is €16 million, or six per cent more, than this year.

Through the €430 million investment in our country's infrastructure we will continue sustaining economic growth and help the economy on its path towards full recovery. In doing this we are building on a success story and sustaining those sectors that formed a crucial part in Malta's economic transformation. Malta's visibility to investors has increased. However, it is only to the right economic climate and vision and the hard work of all those committed towards the country's economic well-being that Malta has become successful in providing the right conditions for sectors like the pharmaceutical sector, the services sector and the aviation sector to flourish. The fruits of all the efforts are being reaped even now as you're reading this article.

Trade unions, employers, civil society and everyone is invited to continue in partnering with us to keep the necessary transformation because we believe in our people and we believe that only together we can overcome the challenges and emerge stronger.

Mr Fenech is Minister of Finance, the Economy and Investment.