Several business people I exchanged views with recently were of one voice – the three months leading to the general election had not been very good for them. They detected some reluctance from consumers to commit to substantial spending. They themselves had put plans on hold. One or two added that the first three weeks after the election were also a blank period for them as they waited to see who was responsible for what, and what would be set out in the President’s Speech on Saturday.

Matters of interest to the economic operators are to be found allocated in several ministries

Such reactions to the political situation are rational enough. There is always a lull in economic activity before a general election. When it brings along a change of Administration, the lull tends to lengthen as people try to gauge what to expect. In terms of a broad brush, the new Prime Minister was emphatic enough in the run-up to March 9 and the polls. He said that if elected his would be a business-friendly government. That, in fact, was a central plank in his march towards office.

Needless to say the proof of this pudding will also be in the eating. The first indications are the focus the Prime Minister gave to economic affairs when he came to allocating duties to the ministers and parliamentary secretaries he appointed. The total is big, probably the largest administrative management team ever. And the spread is wide.

Matters of interest to the economic operators are to be found allocated to several ministries. It might have made more sense, in terms of coordination, had the Prime Minister appointed a Minister for the Economy, and allocated to him the functions which relate to the promotion of investment and other macro issues and the management of the various micro considerations that also abound.

That said, spreading the load also allows the ministers or parliamentary secretaries responsible to be as deep as can be in providing guidance to and monitoring the sectors under their responsibility.

There are also early signs that the Prime Minister intends to adopt a hands-on approach to overseeing his team. It must be for that reason that he shed some of the duties which used to form part of the Prime Minister’s portfolio. He is still left with a sizeable chunk, but it is deliberately reduced. The Prime Minister will be aware of all the important things going on in the army of administrators, and no big decision is likely to be taken without his knowledge and say-so.

It is too early to say how that will work. Time flies and already the new Administration is being criticised for some of its appointment decisions. But in terms of action to demonstrate that this will be a business-friendly Administration, much more time is required. The social partners will be testing the water in the first meeting of the Malta Council for Social and Economic Development, where they will probably probe the responsible minister, Dr Helena Dalli, to try to read how the situation will unfold.

I do not think that sharp moves should be expected. As a priority, however, the social partners are likely to press for early measures to reduce government bureaucracy as well as other government-induced costs. The minister will listen well, and probably reiterate the new Government’s commitment. From then on the clock will start ticking to see what effective action is taken.

In allocating duties to his ministers and parliamentary secretaries the Prime Minister, among other directly economy-related areas, placed the Employment and Training Corporation in the portfolio of Minister for Education Evarist Bartolo. At first blush, one might wonder how wise it is to load the Education Minister with other areas. Education requires a thorough commitment to shape it into what Maltese society and the economy are going to need not just today but over a span of at least 15 years.

Yet, precisely because it is so it makes a lot of sense for education and the ETC to be under the same minister. To contribute to economic growth on a sustainable path, it is essential to ensure that in the years to come the work force includes the qualifications, skills and training required by a changing economy.

Education, at the higher secondary and tertiary levels, may be geared to today’s needs. But what about five years from now and beyond? At present the financial and gaming sectors throw up a need for specific skills, like accountants and lawyers. But further diversification is required and will be brought by change in the global environment, not least the eurozone and the EU itself.

Projections of future employment requirements have to take into account a necessary expansion of the modern manufacturing sector as well as the contrasting need to find work for the low-skilled registered unemployed. The Education Minister has to see that the overall structure, starting from the primary level and the importance given to languages and science subjects. He has to assess whether the Education structure and that of the ETC are geared for those future requirements and needs.

Are the University and Mcast focused enough on the medium to long term? Do they have sound projections to work on? Is there a need to sharpen technical focus by remodelling a Fellenberg Institute? How can relevant research be improved?

That is only a glimpse at the size of the tasks the Minister for Education and important aspects of Employment has to deal with.

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