With the general election behind us, the business community’s attention now refocuses on promoting economic prosperity and well-being. Like the business community, the newly elected administration must recognise that further consolidation in our economic growth depends on private investment and this in turn depends on a sound and competitive business environment where there is a level playing field for one and all, where checks and balances function properly and the rule of law reigns supreme.

So for the purpose of this opinion piece, I shall focus on the Chamber of Commerce, Enterprise and Industry’s economic ambitions for the next five years, in the light that other central issues that characterised the electoral campaign are being dealt with by the judiciary.

In the run-up to the election, the chamber formulated 71 concrete proposals for an eventual new government and each of these was aimed at enhancing the soundness and competitiveness of Malta’s business environment.

I will highlight what in my view are the most important and most urgent issues the new government must focus its attention on.

In view of the strong impetus which Malta still requires in this field, the Prime Minister should seriously consider appointing a dedicated member of Cabinet for research and development within a ministry dedicated to industry or the economy. In the past, R&D has been combined with completely unrelated subjects, naturally ending up on the back burner of priorities.

This crucial aspect of economic growth, in a value-added economy like Malta’s, requires the full and undivided attention of the government to motivate innovation-driven companies to make the leap forward to the next level.

R&D is one of the foremost pillars upon which the country’s sustainable economic growth rests, as this can provide Malta with a much-needed competitive edge over competing neighbouring regions.

Also high on the national agenda is the much-overdue resolving of the Air Malta conundrum. As a chamber we have always insisted that the importance of the national airline is not only linked to the tourism sector but also to the remainder of the economy, as thousands of business operations depend on direct and frequent flights towards specific destinations in Europe. That is why the chamber has always appealed for the government and all involved parties in the negotiations to make sure that an agreement is found in order to save the airline.

The government must remain vigilant for any excesses and place in the highest priority the utmost and unwavering respect for the rule of law

The chamber’s suggested solution remains based on three columns: reduce the company’s operational costs, rectify the airline’s debt situation and subsequently divide the company’s shareholding into three parts – government, an international aviation strategic partner and local investors.

The rent law reform is also a highly overdue issue which requires immediate attention. Following a comprehensive, objective and technical analysis on the situation of the market, the chamber formulated a number of proposed measures and solutions to reform certain archaic and ill-serving rent laws. Consequently, the chamber is in a position to discuss its in-depth position with the incoming government with a view to encouraging its early implementation for the benefit of all landlords and tenants.

Rapidly increasing labour costs is another major concern for the business community. Companies that work with night and shift labour encounter additional costs in the form of premiums and bonuses to compensate their employees for the disadvantages of these special working hours.

The chamber has proposed the introduction of a measure to reduce this additional cost for the companies. The measure would reduce labour costs, especially in segments of the economy that work 24/7, such as manufacturing and hospitality. Such measures have been successfully implemented in other European countries, such as Belgium, and have reaped positive results.

In a thriving economy, bureaucracy remains a big headache and the recent introduction of excise duties on certain products not only compounded the matter further but also failed to generate any notable effect in the fight against illicit trade.

Excise taxes were introduced as a replacement for the eco-contribution but ended up being just a new tax that piled on top of older taxes. According to the previous regime, self-complying businesses that subscribed to private waste-management schemes in order to recycle their waste were exempt from the eco-contribution.

Yet with the introduction of excise duties, the same operators are paying excise duties on top of the scheme fees, hence incurring additional tax and administrative burdens. The chamber remains of the steadfast opinion that the new excise duties must be reversed immediately.

In conclusion, it is now time to put the intense electoral campaign behind us and start implementing the pledges and plans of the new legislature.

I appeal the new government to heed the chamber’s proposals, which are objective, well researched and most importantly deeply rooted in the sentiments of the business sectors they directly affect.

Most importantly the government must remain vigilant for any excesses and place in the highest priority the utmost and unwavering respect for the rule of law.

I urge the government to act with ever-more discipline with itself and to be evidently doing so in the process.

The chamber and government share the same aims. As the country’s foremost representatives of the business community, we shall remain available and willing to provide the government with sound, objective and reliable advice and support in the journey of our country’s economic growth.

Frank Farrugia is president of the MaltaChamber of Commerce, Enterprise and Industry.