Knowing what you have to do to sustain a thriving economy and doing it are two different things. One the one hand you need to be inclusive and very sensitive to reality and potential, to nurture it and build on it with every opportunity and on the other, you need to know what you are doing.
Figures can give the impression that our mind is at rest and the horizon is rosy but for those who need to not only maintain but also expand their business, making progress is becoming harder by the day. Not only do they face the hidden taxes and unnecessary costs to their operation, but they must think of growing competition from neighbouring countries, whilst always looking to be a step ahead in predicting the changes to come which may have a negative or positive effect on their business.
Becoming over-reliant on domestic consumption can lead to stagnation and even a downward trend as other competitors take a share of the pie. It is essential that our market should grow and that exports remain strong. Private-sector employment must also be an essential part of the whole economy, not just profit.
When the dockyard was dismantled many employees turned to self-employment using their talents and experience to set up a lucrative business or trade, bringing in other members of their family and realising their potential. There were many ideas taking hold and generating a sense of confidence in the future. It would not have been easy to transition from secure jobs to uncertain prospects but with the support of the institutions, government of the day and a good use of funds at their disposal, the community of small businesses grew and thrived. So much so that there was no going back for the next government, if they wanted to get elected.
Wanting more room to manage their costs, some relief from a heavy and sometimes uneven bureaucracy and to give new momentum to their investments, the business community put their trust in change and hoped for a positive sign.
They waited. Then they waited a bit more. The Individual Investor Programme (IIP) was launched and trumpeted as the battle horse of the pro-business movement so that talent and raw cash could be attracted to Malta. Fine for some, but hardly the environment that the majority of hard-working labourers, manufacturing sector, new enterprise and marketing of the local industry had been waiting for. The idea of a trickle-down economy became more like a suck-it-in snort.
Along came the reduction in electricity rates like a damp squib. Changes in the global price of oil and gas came so fast and so deep that whatever was knocked off the energy bill was insignificant and counter-productive. What was going to be a new life-line for businesses became a life-line to a bankrupt investor as our taxes were used to prop up the consortium meant to be building the new power station and providing cheap electricity, neither of which, to-date, has happened.
That sense of prediction and knowledge of where markets are heading was completely lacking as deals were made burdening the country with huge bank guarantees, red-herring hedging agreements and inward looking alliances. More a case of back-to-the-future.
When Malta chose to join the European Union it was because they were already familiar with the concept, the market and the potential of working within it. They could communicate, produce and sell their goods to a huge new market and they did this very competently, whilst investing their own money and commitment. They knew that with the right environment they could achieve success and realise their dreams. Even when the global economy faced one of the worst recessions in its history, Malta rose to the challenge and managed to overcome the adverse climate and maintain a good performance.
This was achieved through hard work, trust in the management and leadership and a strong vision. So, it was essential that any incoming government maintain that trust and vision. It is like finding a trained and well equipped army ready to take on their next assignment. But you cannot just take a helicopter to a remote outpost and dump the troops in the middle of nowhere, armed with just a standard issue weapon and expect them to face combat in the jungle when the enemy is carrying state-of-the-art automatic equipment for every purpose they may come up against and having professional tactical leadership.
Just like the dim prospects of the court case to recoup a dodgy deal, the chances are slim that the pro-business track is on course to prosperity. Having a salesman for a Prime Minister is no guarantee for success in the business industry. Technical governments were quite the rage for some time but if you want to serve the country and not just the interests of the few, much more than a best-buddy is needed. And if you are going to have a technical government, then at least it should have experienced, reputable and well qualified persons to lead the team. It’s no good having a merry-go-round of amateurs posing as the whizz kid in town who measures his capability by the portfolio he/she has secured and ”his” and “her” fat salaries lining their bank account.
The future for the business community in Malta and Gozo needs long-term strategic thinking to secure a strong foot-hold able to withstand tough times and capitalise on positive trends. The secrecy around the energy sector deals are making investors nervous and causing a negative perception and uncertainty at a time when all should have been clear and secure and storming forward. The resistance of the government to reducing the price of petrol and diesel is driving investment away and shifting the burden of debt of the power station onto the people whilst the so-called big boys of the commercial world sit back and enjoy the ride at our expense. Not only now do we still have to contend with government debt but we also have to make good for private investors from Malta and from abroad who are bent over double laughing all the way to the bank.
Jack of all trades, master of none the saying goes. Were it that easy to manage an economy we would be the envy of the world by now. But for those who found their bed laid already, it may appear that all they needed to do is fluff the sheets every now and again and put a hot water bottle in to warm their toes. Swinging left and right depending on the day of the week, wearing a blue tie and flying to red countries whilst installing monuments instead of building long-term infrastructure will only serve the self-interest of the speculators and the foreign crooks who can smell a kill from a mile away.
Whether or not the next generation of Maltese and Gozitan entrepreneurs will be staying on these islands and feeling confident that they can explore their possibilities remains to be seen. Gozo especially, is seeing itself drifting further and further away rather than becoming a strong business player. Unless they know that their efforts will stand a fair chance on an equal opportunity basis, they will just not bother taking the risk. This would be a big loss to our country and set us back decades. The new study into the impact of the EU – US Trans-Atlantic Trade and Investment Partnership (TTIP) warns that Malta’s economy will decline by 0.3 per cent, while investment is predicted to decline by 0.7 per cent if it remains committed to the agreement.
As previously wealthy countries such as Saudi Arabia and Azerbaijan are scrambling to diversify their economy due to the slump in the price of oil, we have a government that would turn us into the state-funded economy that other countries now seek to escape. That is just not for Us. We are hard-working, clever, educated and skilled and have experience in creating a business from scratch and making it successful. But, like any other bad habit that can take hold, if people get used to seeing tenders always going to same people, their prices unable to compete with those of other countries that enjoy low energy rates, find poor infrastructure and a lack of vision, they will soon pack up and turn to opening a lido or a petrol station on ODZ land and teach their kids to do the same. Government jobs have never been so good and getting a commission has never been as fast as it is now. Even those who don’t feel particularly flattered by the choice find their name on the ticket to a life-time pension. What incentive is there to trust in the pro-business?
For businesses now, it is like trying to make bricks from sand whilst the world has already switched to new materials. Recovering a good reputation in the international, financial and banking sector will take all of the next 25 years. We did it once, we shall have to do it again.