The Labour government is doing well on the economic front. Events coincide to confirm such a statement.
The Prime Minister has had a very successful visit to China, a meeting of a giant and a small guy that went ahead as if they were equals. That is how China has been treating Malta ever since Dom Mintoff astonished one and all and, immediately after reaching an accommodation with the West largely through Italy’s intervention, flew off to China to establish historic relations.
The Chinese have given proof of their interest in Malta by putting up hard cash to invest in the Delimara power complex, enabling the start of the unravelling of the Enemalta problem, consisting of both definite liabilities towards the government in the form of non-payment of overdues as well as a hard contingent liability whereby the State stands as guarantor for corporation loans.
The Chinese government is not being benign towards Malta because of our olive-coloured skin and shining brown eyes. Nor are they interested in the island politically. They have obviously taken a hard look at what Malta has to offer through its advantageous geo-political position at the centre of the Mediterranean – Mintoff’s old dream of the island acting as a bridge between far-flung nations – as well as a supply of well-qualified and trained personnel.
This suits China’s ambitions. They are economically expansionist, no doubt about that. And the major European countries, including Germany and the United Kingdom, are keen to benefit from it all.
With politics out of the way, Malta has the possibility to gain further if, at least, some of the initiatives provided for under the memorandum of understanding between the two countries come to fruition.
This is a scenario which is not a carry forward from the previous administration. It is due to Joseph Muscat’s enterprise in this area and will be a marking point of his term in office, especially if the years turn the hope and promise into more reality.
Malta’s economic future prospects cannot rest mainly on the good relations with China
The progress in relations with China coincided with another report by Standard & Poor’s, a leading rating agency. The report does not place the Maltese economy on a pedestal but finds much within it which is performing well and has a probability of further progress. This includes gross domestic product growth and an improvement in the national debt-to-GDP ratio as well as more reduction in the deficit of public finances.
This progress will embolden Muscat and the government to try to do more. And more must be done.
Malta’s economic future prospects cannot rest mainly on the good relations with China and what comes out from them. A continuation of existing policies, inherited on various fronts from the now-defunct Nationalist government, and new initiatives are required. In this regard, announcements by the government have to be followed through.
News that the White Rocks complex will again be up for careful development came rather late in the day. After the period set for expressions of interest is over, and, hopefully, sensible proposals are attracted, one hopes that processing will proceed at an orderly but swift pace.
Processing and implementation seems to be taken too long.
Development of the large space formerly occupied by the Marsa shipyard was begging for action. The new government acted fairly swiftly and the private sector responded with 18 early expressions of interest. These will, no doubt, be whittled down as processing takes place. No doubt either, that work is being done behind the scene. But how long is it going to take before progress is reported?
The same can be said for the reclamation project, which, I confess, I do not like but which is government policy. I believe there were 21 expressions of early interest. What has been done about them? Once again, one should assume that a lot of work is going on behind the scene.
Yet, the point is that time does not stand still. Action is required. The impetus gained so far on existing policies, enlarged by the extensive China project, gives encouragement. Still, more needs to be done, not least to re-energise the manufacturing sector, assiduously covered by Malta Enterprise.
Today’s successes soon become yesterday’s story. And tomorrow always comes. Get on with the rest of it.