The reduction in utility tariffs for businesses represents an injection of €50 million into the economy, according to Economy Minister Chris Cardona.

Speaking at the start of a meeting of the Malta Council for Economic and Social Development (MCESD) on competitiveness, Dr Cardona said the government had to be sensitive to the costs faced by industry, and remained committed to the 25 per cent reduction by March. 

“Competitiveness is the spine of everything we do. The country cannot be allowed to fall backwards,” he said.

The minister highlighted Eurostat figures showing an hourly labour cost of €12.80, which compares favourably to the European average of €23.70. Figures for the real unit cost growth since 2010 also remained positive, he said.

Outlining the government’s initiatives to boost competitiveness, Dr Cardona identified the upcoming National Logistics Policy as a positive step, aimed to increase connectivity around the island, thereby facilitating transportation.

He also pointed to the working group on competitiveness, with a focus on such areas as reducing bureaucracy and increasing port efficiency.