Politically, the announcement that a Swiss-based aircraft maintenance company will be opening a servicing facility in Malta could not have been better timed, coming as it did days after the presentation by the Finance Minister of the government's Budget for next year. Not only that but, as shrewdly noted by Prime Minister Lawrence Gonzi, it came within 24 hours after the Opposition Leader mercilessly lambasted the government for its "failures" over the past year.
The government may have scored a political goal or two in managing to conclude the deal with SR Technics, the company that will be operating the facility, in time for it to announce the move after the presentation of the Budget but what ultimately counts most is its value to the island's economy. Aircraft maintenance is turning out to be an important line in the island's new economic landscape that has been taking shape with the rapid expansion of the tourist industry and the financial services sector and the growth of new lines in manufacturing, particularly pharmaceuticals, requiring a higher value-added content.
This is an exciting new phase of the economic development process, another step forward in the upgrading process, as it were, requiring a workforce that is better educationally equipped than ever before. SR Technics' decision to move to Malta is therefore a most welcome addition to a sector that has good potential for further expansion. What is particularly significant is that the company has come to Malta at a time when competition for foreign investment has hardened following the financial crisis and the impact this has had on the economies of so many countries in Europe and elsewhere.
According to the Prime Minister, Malta competed with 54 other destinations for SR Technics. Its move to Malta is, thus, a sign of confidence in the island's economy, a matter that will definitely not go unnoticed by the European Commission and, more importantly, by other investors looking for a possible relocation as well as by credit rating agencies and international organisations, such as the International Monetary Fund. Of course, the effort to attract new direct foreign investment would have to remain a priority in the government's programme.
In the Budget for next year, the government has raised the money allocated to Malta Enterprise, the agency entrusted with the task of attracting new investment, and announced new initiatives that are planned to be taken. Foreign investors already established in Malta are to be encouraged to transfer additional activities connected to their existing operations here, such as legal, financial, and back office work, and a one-stop shop is to be set up to give assistance on European programmes.
A problem often brought up in any discussion on government work to attract new investment or in efforts for the expansion of any economic activity is that over excess bureaucracy in places that have to deal with the people involved. Hopefully, lessons have been learned from past mistakes in this line and the necessary steps have now been taken to cut to a minimum such bureaucracy. Bureaucracy would have to be eliminated not just in cases of projects involving substantial capital outlays or the employment of a good number of workers but, also, in cases where those seeking help represent small units.
One silver lining may not be enough for the government to go overboard in its elation over the attraction of SR Technics but it is certainly good political ammunition to fend off Labour's Budget criticism.