‘Government lack of focus on SMEs’

Noel Farrugia (PL) said that SMEs had regressed because of the government’s lack of focus on the sector.

The government had been moved to take action because the election was approaching and had to deal with complaints by SMEs. The government lacked the will to address certain priorities it had set itself back in 1992 such as the development of the Ta’ Qali Crafts village.

Operators at Ta’ Qali had been suffering from an injustice because the embellishment of the area had not even started and owners did not even know whether the promise of sale they had entered into with the government would be renewed. They were losing money on their investment because of the dilapidated state of the place. He asked whether they would be given any compensation.

He criticised the Enterprises Consultative Council because it did not have any authority except that it could make recommendations which the government could ignore. The Bill did not make any reference to any financing that the council could make use of to provide incentives for development. He asked whether a financial bureau coordinated with the banks would be set up to finance SMEs needs.

Debts incurred by the commercial sector had exploded over the last four years. Many self-employed were finding it difficult to pay NI contributions, income tax, energy bills and VAT while the cost of production had increased substantially.

The Bill should give assurances to SMEs on the financing they needed to modernise and expand. These recommendations had to be translated into policies and action so that disposable income would increase.