The Malta Independent 26 April 2024, Friday
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Excelling in a fast growing economy

Tuesday, 18 September 2018, 11:27 Last update: about 7 years ago

Aaron Farrugia

We often speak about the downsides of sudden economic prosperity in the country. Many aspects of the country had to change radically in order to deal with the changing reality – a paradigm shift which our country is still getting accustomed to. Our problems have been turned on their head: rather than dealing with unemployment, we now struggle to have an adequate workforce. The issue is even more complex than we think: to deal with understaffed agencies, the entire system needs to change. Backlog is inevitable.

In order to make the application process for EU funds simpler and more expedient, the method with which calls for proposals were dealt with was changed. Rather than having applicants adhere to restrictive time windows, these could now benefit from an open rolling process. This is the process of grouping applications – which made it easier for farmers to apply, but contributed to the accumulation of applications significantly.

It is unacceptable that any entity has to wait longer than necessary for funds to be processed. This is why the Government reacted to this by creating a much more attractive package for current and prospective employees, both to retain the current workforce and to increase the headcount to ideal levels.

Given Malta’s economic prosperity in recent years with a full employment situation, there are challenges to recruit and retain good talent in such an environment. Staffing the Managing Authorities dealing with EU funds is not immune to this reality as Government has indeed also indicated to the Social Partners on the respective Monitoring Committee.

Late last year, we therefore finalised a much more attractive financial package for employees in this area, both to retain the current workforce and to increase the headcount to ideal levels. The approval for vacancies with an ameliorated package, which was demanded under my watch, was finalised at the end of last year. This meant that the new recruits at the Managing Authority have only began to process applications now.

Challenges indeed remain, as eligible candidates are opting to work in the private sector and industries such as banking and gaming. While we have worked to ameliorate the situation as expediently as possible, we have also doubled the amount of Project Selection Committees to two. The results have also been very positive overall, with an ever-increasing number of applicants giving rise to successful projects. Besides the above-mentioned measures, I have also worked relentlessly on driving up standards, improving capacity and instilling a customer-centred approach.

In recent weeks, the media reported on claims that some local farmers have been left waiting with quotations in hand but unable to start their projects. But the reality is that farmers can claim reimbursement of expenditure incurred on investments prior to receiving approval of their application provided that the expenditure is deemed eligible for support.

Indeed, such comments need to be processed within context. The reality is that this Government is continuing to build a Managing Authority capable not only of absorbing the maximum amount of EU funds available to Malta, but also ensuring they are used to best effect, on projects of strategic importance which will deliver long-term sustainable improvements in our economy and quality of life.

We are not only addressing the problem of an understaffed Managing Authority, but various measures have been taken in order to tackle the situation. The delays in payments for farmers is an unfortunate result of an efficient application process and unprecedented economic growth which caught many off guard. Nevertheless, the issue is being dealt with as we speak, and we are continuously building upon the mitigating measures which have been adopted since the moment I stepped into office.

Here it is also fitting to point out that farmers are benefitting from a number of different EU funded schemes, and this effort will be further intensified in the following weeks, also thanks to the introduction of rolling calls. To mention just a few examples, a total of 1,433 farmers will benefit from 5.7 million in EU funded granted to 17 local councils in order to improve rural roads. A total of 6.5 million was allocated towards bettering the quality of touristic agricultural products of Malta and Gozo, and the EU Funds programme for agriculture 2014-2020 amounts to 130 million.

We have been investing heavily in the Managing Authority for the past five years and building capacity so that it is better equipped to maximise Malta’s use of EU funds while ensuring that we are able to absorb all of the EU funds to which our country was entitled.

As a result, we have delivered major flagship projects and successfully disbursed millions despite the significant stumbling blocks. We are currently working on projects worth 1.2 billion.

Indeed, we have managed to reach 100% disbursement targets for EU funds in 2017 and are working tirelessly to achieve the same result for 2018.

Dr Farrugia is parliamentary secretary for EU Funds and Social Dialogue
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