Malta Chamber of Commerce - Frequent Changes in Ministers and CEOs Create Business Instability

September 08 2024 07:31 by PCLMedia

Frequent changes in government ministers and CEOs contribute to business instability, according to Marthese Portelli, CEO of the Malta Chamber of Commerce, Enterprise, and Industry. Portelli discussed these issues in an interview with The Malta Independent, which is the second part of a conversation with her and Council member Sylvan Mifsud. The first segment, published on Sunday, covered the Stabbiltà initiative and the effects of corruption scandals on business.

When asked about business concerns over government stability amid internal Labour Party issues, Portelli noted that "any form of instability impacts businesses, both locally and internationally." She emphasized that the frequent rotation of ministers and top executives necessitates restarting processes with each change. She cited multiple changes in crucial portfolios such as tourism, transport, and health, as well as shifts in leadership at key entities like Jobsplus and Transport Malta. Portelli explained that this instability hampers effective planning, prompting The Malta Chamber to advocate for continuity beyond electoral cycles unless a significant policy shift is required.

Portelli also addressed several proposals made by the Malta Chamber in its pre-budget documents. One such proposal is the introduction of e-mobility wallets connected to on-street parking fees. Although the government initially dismissed the idea, citing it was not a priority, the Environmental and Resources Authority (ERA) proposed a similar concept in 2023. ERA's plan suggested partial vehicle license surrender for e-wallets offering access to electric taxis, grants for electric bicycles, and vouchers for other services.

Portelli argued that the Chamber’s proposal is more practical and user-focused, allowing individuals to choose their mode of transport without surrendering their vehicle license. It enables users to alternate between private vehicles and sustainable transport, with e-wallet credits used to cover alternative transport costs. However, she noted that this measure alone would not resolve traffic issues, which require a comprehensive set of proposals to make a significant impact.

Regarding major projects like a shelved underground rail system, Portelli suggested exploring other solutions that could be implemented more quickly. She criticized the current system of allowing new developments to bypass parking space requirements and called for better management of road closures and obstructions through a centralized system.

Another proposal from the Chamber advocates for a moratorium on new tourism accommodation applications, reflecting concerns about overtourism. Portelli highlighted the need to rethink business models, including tourism, to focus on quality and sustainability. She emphasized attracting tourists who respect Malta’s culture and environment, and called for more high-level conferences and quality tourism that integrates well with local life.

Mifsud added that the anticipated tourist numbers for the year are around 3.7 million, but noted a decline in average per tourist spending when adjusted for inflation.

Finally, Portelli responded to concerns about reducing energy subsidies, suggesting a gradual phase-out with a six-month notice to allow for adjustments. She argued that subsidies encourage overconsumption and waste, and proposed reinvesting savings into renewable energy and green solutions to improve energy efficiency for both individuals and businesses.