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Time is Up: Malta Chamber of Commerce Calls for Urgent Economic Vision
August 17 2024 14:10 by PCLMedia
The Malta Chamber of Commerce is sounding the alarm, stressing the urgent need for a cohesive economic vision with clear milestones and actionable goals. Marthese Portelli, CEO of the Chamber, emphasized this point during the launch of their Pre-Budget 2025 document titled "Time's Up."
Portelli, joined by Chamber President Chris Vassallo Cesareo and various Council Members, highlighted the limitations of relying solely on traditional economic indicators like GDP growth, per capita income, and unemployment rates. She argued that these metrics often overlook the broader societal impacts of a growth-at-any-cost approach, which she criticized as emblematic of the current economic model.
The Chamber is urging the government to "connect, plan, and reform," advocating for a shift from superficial economic assessments to a more comprehensive evaluation of societal well-being. Portelli stressed the need for economic policies that prioritize sustainable development and improve the quality of life for all citizens.
Additionally, Portelli called for better management of taxpayer funds, insisting that the government must ensure a solid return on investment and avoid wasteful expenditures that offer minimal value.
In his opening remarks, President Chris Vassallo Cesareo underscored the necessity of moving away from labor-intensive models towards an economy less reliant on population growth. He emphasized the importance of investing in workforce training, upskilling, and technology to enhance efficiency and productivity.
The Malta Chamber identified 12 key policy areas requiring urgent attention, each with three critical proposals. These areas are:
1. Competitiveness
2. Fiscal Discipline
3. Utilities
4. Renewables
5. Traffic Congestion
6. Sustainable Tourism
7. Planning and Maintenance of Public Areas
8. Value-Added Employment
9. Third Country Nationals (TCNs)
10. Low Income Earners and Pensioners
11. Public Procurement
12. Enforcement of Laws and Regulations
Regarding "Traffic Congestion," the Chamber advocates for a robust infrastructure foundation to tackle the root causes of the issue, rather than merely expanding road networks for private vehicles. They propose introducing an "e-mobility wallet" to fund sustainable transportation options and suggest reallocating parking fees from central urban areas to this wallet. Additionally, they recommend refining the Transportation Deduction Act to promote car-pooling and improving public transport services.
For "Sustainable Tourism," the Chamber recommends maintaining high quality across the tourism supply chain and suggests implementing a moratorium on new tourism accommodation applications to prevent oversupply and enhance quality. They also call for clear policies to prevent encroachment.
On "Planning and Maintenance of Public Areas," the Chamber criticizes the ad hoc planning that has detracted from Malta's aesthetics and urges an immediate review of SPED 2015 and related planning policies. They advocate for more systematic and centralized cleaning efforts.
Regarding "Third Country Nationals (TCNs)," the Chamber proposes capping their employment to a percentage of the business’s workforce unless the roles are critical, such as in healthcare. They also recommend monitoring temporary agencies and extending employment licenses under permanent employers by three years.
For "Low Income Earners and Pensioners," the Chamber suggests targeted assistance rather than broad handouts and calls for exempting the Cost of Living Allowance (COLA) from taxation.
The Chamber advocates for "Proactive, coordinated, and non-selective enforcement" of laws and regulations, urging adherence to the European Commission’s July 2024 Rule of Law report and a crackdown on clientelism and lack of transparency.
In terms of "Competitiveness," the Chamber argues that legitimate businesses are unfairly penalized while illicit operations are rewarded, leading to an uneven playing field. They call for reforms to address this imbalance. This ties into "Fiscal Discipline," aiming to improve tax collection, reduce public spending waste, and ensure equitable economic growth.
The Chamber expressed a sense of urgency, demanding that the government move beyond mere listening and implement effective governance principles. Portelli criticized the erosion of good governance and its detrimental impact on ethical businesses and society.
This year, the Malta Chamber is focused on two main objectives: transforming the current economic model into one that benefits societal well-being and eliminating unethical operators that undermine fair business practices.
Despite consistently raising these issues, the Chamber noted that of the 219 proposals submitted last year, only 1.8% were fully implemented, 18.7% partially implemented, and 74.9% remained pending. Only 4.6% were rejected.
The Chamber reiterated its call for immediate action, stressing that the time for mere listening has passed. It demanded timely responses to critical issues and warned against complacency and lack of ambition within the public sector, which affects both businesses and citizens. "Critical issues require immediate attention: CPR is called for," the Chamber asserted.
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