Last Wednesday, together with Dr Roberta Lepre and Dr Andre’ Borg, I was invited to participate in the discussion programme Iswed fuq l-Abjad on NET TV, hosted by anchor presenter Frank Psaila. The subject delved into was the Household Budgetary Survey that was recently published by the National Statistics Office. The HBS is a wealth of information and gives a true picture of the changes in our society. The survey was conducted between April 2015 and March 2016 but unfortunately the findings were released for public consumption late last January,twenty-two months after the data was collected.
The late release of the data collected will, without a shadow of doubt, cast a negative perspective on the laborious work carried out by the National Statistics Office. The purpose, aim and scope of the HBS, carried out every five years, is to, among other relevant facts, identify the expenditure patterns of Maltese households. Policy-makers, together with the other social partners – employers’ organisations, trade unions and other special interest groups – cannot devise effective policies targeted at vulnerable people without sound information in hand or with outdated information for that matter. In twenty-two months, many things can change and can either improve or continue to deteriorate without any of the policy-makers noticing, and thus failing to realise, that they need to intervene without procrastination. The one-size-fits-all policy should be tweaked to address particular circumstances.
One must keep in mind that the percentages and figures indicated in the HBS represent people, and it would be money down the drain if the competent authorities and policy-makers do not acknowledge this. It is easy to forget that behind the numbers are people with different needs and aspirations.
I will not go into the details of the 2015 HBS, but will refer to two indicators only. One of the indicators needs further analysis to ensure that those in need are provided with the necessary safety net and solidarity to prevent them from falling into the poverty trap even further. The other indicator is very encouraging.
The total annual expenditure of Maltese private households in 2015 was estimated at €3.7 billion. This amounts to an average of €22,346 per household, which is 14.2 per cent higher than that estimated in the 2008 HBS. In 2015, the weekly minimum wage was €166.26, or €8,645.52 a year. This accounts for a substantial shortfall when considered against average expenditure, particularly when one considers the minimum wage earners and others in the lower income bracket who in 2015 earned around €8,800 a year.These figures illustrate the veracity of an ever-growing number of households that cannot make ends meet.
A positive indicator that emerged from the 2015 HBS when compared to the 2008 HBS was in education. While Maltese households spent €7 per week on education in 2008, this almost doubled and rose to €12 per week in 2015. This is a significant increase and is, undoubtedly, money well invested. The only drawback, if one were to nitpick, is that the higher-educated are spending more on education but little is being spent by those who need to invest more. Nonetheless, this is undeniably a positive trend which will hopefully continue in future.
But the million-dollar question is, are we preparing for the future and laying concrete and stable foundations? In the past years, our economy has weathered very harsh economic and financial world-wide woes and yet, despite this, our economy had gradually improved and thrived, and new employment opportunities were created.
This brings me to the subject which needs to be addressed today, with urgency. What would the labour market be like in twenty years from now? Which industries can we attract and what lucrative employment opportunities would be available in the labour market for our workforce? These are some of the questions which the competent authorities and our policy-makers should be able to answer today.
While currently the economy is booming and our human resources are stretched to the limits to the extent that around 30,000 foreign workers had to be imported to support the completion of various projects, it is unlikely that this situation will prevail in the long run. Economic cycles tend to be cyclical, but also a bit like relay races. One needs to have something to pass on to whoever is coming next.
The building and construction industry has emerged as a strong economic driver, the multiplier of which is a thousand fold. But this over-development cannot be sustained for much longer, unless we want to change our local character so much that we end up a total concrete jungle.
The Individual Investor Programme has also brought a stream of cash to the national coffers; however, this investment is one-off and the selling of Maltese passports cannot be taken as a long-term business venture. This investment has also portrayed Malta in bad light with various stakeholders interested in investing in new business ventures.
Future employment opportunities lie in artificial intelligence, drones, wearables, mobile payments, crypto currencies, genomics and 3D printing; but where do we stand on these fronts? The competent authorities should be proactive in seeking new employment opportunities, and statistics should be a tool to help gauge where to invest energy, time, resources and funds. While the BHS gives a us a look as to what was, its usefulness is to help us plan for the future.
Gejtu Vella
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