The 70s saw the Xewkija industrial estate brimming with activity as the sound of machines linked to manufacturing turned this area into the centre of economic activity on the small island. The textile industry was thriving and this provided many people with jobs. The people were hard-working and overtime was abundant. Many took this opportunity. Hundreds of couples were able to dream of buying a home based on the jobs that these large factories provided.
Despite the high work ethic of the Gozitan workforce, circumstances changed – both locally and internationally. Manufacturing in Gozo was not high on the agenda of the administration for more than two decades. The government of that time retracted from an active role in seeking and supporting industrial activity to one of total complacency. Consistent with profit-seeking objectives, foreign investment sought better opportunities and in a relatively short period of time this once booming industrial area disappeared completely.
In its place there is a hodgepodge of minor activities today. Uses of factories changed, with a visible re-dimensioning. While in the past, activity was export oriented, up to two years ago almost all the investment was local, producing goods and services, for the most part, for the domestic market. Although some element of exports exists, the added cost of travel, not only of money but more so of time, has meant that the site is less attractive for export purposes. Heavy manufacturing is no longer a feasible option for Gozo. But light manufacturing and especially service-provision can be attracted to and stay in Gozo. Unfortunately, the previous administration was not interested in such things and preferred to waste resources pursuing other objectives.
This administration strongly believes that investment and industrial activity has a future in Gozo. It is for this reason that incentives exist, and Malta Enterprise representatives are constantly engaging with local and foreign business, explaining the schemes available for those wishing to invest in Gozo.
However, it is not enough for this government. Gozo needs more foreign investment and the two investments in the first years of the new government have shown that this is possible. IT-based finance and medical services present high value added types of investment which complement the vision of an island needing to maintain its natural ambience and yet go forward in the 21st century at the same pace as other countries. The government is committed to invest in the infrastructure needed to make trade easier between Gozo and Malta and the rest of the world. The government is tackling this in three ways: the digital link (which is possibly the most important investment the government can step up for the development of the island); the possibilities of physical links; and the infrastructure needed for new investment.
The type of investment that Gozo is preparing for includes a creative hub, mainly for start-ups and innovative companies, including facilities for the film industry; an SME park and the capacity to offer young companies the ability to grow. Gozo does not need huge companies but a cluster of economic entities with fresh ideas in an environment conducive to change the service oriented economy of the island, from one based mainly on produce for the local market and tourism, to one geared more to the export of intangibles. The first investment of financial services is already exporting such intangibles. The medical/educational investment planned to start later on this year will bring a multitude of ancillary services, including accommodation, catering, entertainment, and the bustle that is often associated with student life. Such an investment can also eventually lead to light manufacturing activities associated with the medical profession and the rehabilitation needs of patients which can often extend to weeks. The caring profession will take on a new dimension and meaning. This long-term investment will create a myriad of different job possibilities.
There are other investment possibilities which the government is evaluating, such as scientific work and experimentation, executive training programmes, ecological projects, clean energy ideas and sea-related economic ventures. We have done well in the past three years and we are sure we will continue to offer Gozo the opportunities it deserves, while maintaining the heritage and beauty of the island. Just as the economy was able to provide over 800 new jobs in the past three years, we aim to continue to make it possible for new investment to create more jobs in the coming years.
Dr Refalo is Minister for Gozo