Joseph Farrugia
Director General, Malta Employers’ Association
In its reaction to the national Budget, the Malta Employers’ Association stated that the government faces a difficult year in reaching its fiscal targets, given its projected expenditures and revenues for the coming period. The consolidation of fiscal finances remains an overall priority which the government should focus on during 2015.
The government is expected to implement the reforms in public transport to ensure an efficient and sustainable service which should increase economic efficiency through reduced traffic congestion.
Another priority is energy policy. The government has managed to keep its pre-electoral promises of reduced energy rates through substantial subsidies, rather through generation of cheaper energy.
It is imperative that the decision whether to build another power station or else whether to rely on the BWSC plant in conjunction with the interconnector and a gas pipeline will truly be made in the national interest and not based in pre-electoral commitments.
The national airline is another hot issue which faces a decisive year as it has its last chance to become a sustainable enterprise. This requires a stable and committed management team which is empowered to take any decisions necessary to save the airline.
Tony Zarb
General Secretary, General Workers’ Union
The end of precarious work practices was, is and will remain an important priority for the GWU. Such precarious employment undermines stability at the place of work, encourages the hiring of foreign workers and threatens established working conditions.
While we continue to encourage the government to take the necessary measures to regularise the way contracts are awarded for services in the public sector, we believe that more wide-ranging measures are needed to prevent precarious work spreading to the private sector – where we have already had similar cases.
During 2015, the government needs to find ways of strengthening the country’s manufacturing sector. The creation of more jobs that offer a just alternative to precarious employment is a priority. While we agree with the Youth Guarantee Scheme – where youths who have completed their obligatory education do not end up dependent on social benefits – we believe that a structure should be in place which offers training to people in precarious employment which will lead to job opportunities with decent conditions.
There needs to be more environmental awareness and we believe that the time is right for the country to embark on a serious long-term plan on how industry uses resources. Our country is the ideal place to be a research and development centre for industry that specialises in the responsible use of resources and the production of renewable energy. Government support for such an investment would contribute towards the creation of ‘green jobs’ which offer new alternatives to precarious work practices.
David Curmi
President, Chamber of Commerce, Enterprise and Industry
The Malta Chamber reiterates its call, made at pre-Budget 2015 stage, for the government to keep the country’s fiscal consolidation as a principle priority, while promoting Malta’s competitiveness to ensure sustainable, export-led growth. Data presented with the Budget 2015 document clearly shows that there is no room for complacency in terms of economic policy.
GDP growth forecasts for 2015 (2.9 per cent) is mainly fuelled by domestic demand and public expenditure (2.6 per cent for 2015). In 2015 net exports are expected to close with a marginal positive contribution (0.3 per cent) which in itself is a note of caution because domestic demand on its own cannot sustain long-term growth for the country.
Lasting economic growth needs to be driven by export-led activity and this requires the country to be competitive. Besides, the sensitive forecasts of public finance convergence to EU parameters leave no margin of error in terms of potential slippages in the restructuring of the health sector, the energy sector and transport, including Air Malta.
National competitiveness is an ongoing process that is never concluded and is achieved by addressing a list of matters that serve as bottlenecks in the economy. We look forward to seeing the matter of competitiveness being given its rightful importance, and being discussed at national agenda level.
For this reason, we look forward to the discussion of the Malta Chamber’s Economic Vision among our fellow social partners.
We are satisfied to note that our proposal for the MCESD to set up a specialised working group to discuss each fundamental listed in our Economic Vision was accepted, as we believe that the Economic Vision document can serve as a blueprint for the country’s economic prosperity for the years to come.
Josef Vella
General Secretary, Union Ħaddiema Magħqudin
2015 is on our doorstep and we all start jotting down our wish lists, aims and resolutions. Unless this country is going to take the question of productivity seriously, little progress can be made.
The strength of an economy is totally dependent on its ability to maximise its productivity through its workforce.
Our country is not seriously equipped to attract investment. We desperately need better coordination between policies whereby we plan how we want our economy to develop keeping in mind the skills needed for such investment. Policy coordination means coordination between various government departments including our ambassadors who need to market our investment strategy in an organised manner.
This cannot happen if we do not invest and train our professional staff at the various embassies and together with them we need to develop a plan to attract tailor-made investment.
It is also important to understand that investment can come from both local and foreign sources. A forum with local investors should be set up. Entering into a dialogue about investment opportunities with the business community should be encouraged. The important thing is to differentiate between discussing business opportunities and competing for business opportunities. These are two different processes that have to be kept apart and distinct from each other.
None of this can be achieved without bringing into the Maltese political scenario a sense of integrity, a sense of service to the nation, a sense of humility and a professional attitude.
Abigail Psaila Mamo
CEO, GRTU
The GRTU expects next year to be a very important one. We expect 2015 to consolidate on many issues that will have a significant impact on our economy.
2015 should tackle a problem that has plagued our economy, competitiveness and growth, for many years, the issue of unfair competition. The government has once again committed itself to tackle the problem through a set of measures announced in Budget 2015. We expect that in 2015 the government will move from talk to action and take all the necessary measures, in consultation with the main stakeholders. The current situation is unsustainable and has become more so with the new items added to the list of goods subject to excise.
The GRTU would like to see a definite improvement in the lending environment and lending trends, especially in relation to SMEs. The GRTU anticipates that cheaper and easier access to finance for enterprises should have a very positive impact on our economy with stronger and more competitive enterprises, increased growth and employment.
During the last years the country’s finances have been hampered by a number of issues, which until today continue to threaten Malta’s economic success. In 2015, the GRTU expects the government to focus on public transport and Air Malta.
It is not a question of carrying a burden which is not ours because succeeding in both areas is a national priority, but it is a question of carrying a burden that is jeopardising our finances and creating uncertainty. GRTU expects significant improvements in both areas.