Strengthening the

commitment

A lot of work has already been done to implement this objective in previous administrations under the leadership of Prime Minister Eddie Fenech Adami. This commitment towards the sustainability of self-employed and small enterprises will continue to be strengthened during this new administration under Prime Minister Lawrence Gonzi. This commitment towards the self-employed and small business can now be seen even more with the establishment of a Competitive-ness and Communications Ministry. Parliamentary secretary Edwin Vassallo will now be working in this ministry with Censu Galea.

Continuation of the work

carried out in the last two administrations

The work towards the sustainability of the self-employed and small enterprises was carried out by the Economic Services Ministry, and later by the Finance and Economic Affairs Ministry. Mr Vassallo worked hard in both these ministries to ensure that the structures that offer services to and help small businesses are better organised. These structures are the Commerce Division and the Consumer and Competition Division, as well as the recently established Malta Standards Authority. This work was the result of a coordination exercise between Economic Services Minister Josef Bonnici and parliamentary secretaries George Hyzler and Mr Vassallo in that administration. In the following administration, a similar coordination exercise was carried out in the Finance and Economic Affairs Ministry with John Dalli and parliamentary secretaries Tony Abela and Mr Vassallo who together continued to work on the organisation of these three entities. These entities offer support services to all those who operate a business or work in industry and Mr Vassallo ensured that the three entities work together in synergy. In this way, the structures that make up the internal market will be better organised.

Strengthening of the structures that support the internal market in coordination with Malta Enterprise

There was full coordination between Malta Enterprise and the above mentioned entities, and in this way the Finance and Economic Affairs Ministry assisted all those who work in business or industry.

A new opportunity towards the development of this work for the sustainability of small businesses

There can, of course, be further development on the good that has already been carried out. The changes that have taken place in the Commerce Division and the Consumer and Competition Division, and the way in which the Malta Standards Authority has developed, show a positive future, one in which the work that has already been carried out will continue to be strengthened.

1. The three projects

There are three primary projects that Mr Vassallo has been working on, and there has been a lot of progress on them.

The projects are: the infrastructural work in the Mosta Industrial Zone, together with the continuation and completion of roads in the Imriehel Industrial Zone, the Industrial Parks project and the development of the Ta’ Qali Crafts Village.

In the first there has been progress and we are now awaiting the granting of the contracts so work may start. Around Lm700,000 has already been granted in contracts, which means that the government is investing this amount in the two industrial zones. This is similar to what was done in the industrial zones of Tal-Handaq, Imriehel and Zebbug. The work will be starting in a few months’ time, however, the organisation of the work on the ministry’s part has already been done.

Another project where a lot of work has already been done is that of the industrial parks, that is, the granting of 200 tumolos of land for industrial purposes. We are now waiting for planning approval from the Malta Environment and Planning Authority. Once this has been granted, the owners of the land that has already been earmarked for development will be able to apply for the development permit from Mepa.

The third project is the development of Ta’ Qali Crafts Village. A lot of work has already been carried out, but a lot still needs to be done before the preliminary agreements can be signed by the present owners of the factories at Ta’ Qali. Once these preliminary agreements are signed, we will be able to start the tendering procedure for the construction of the village and the building will commence.

2. The implementation of the European Charter

The European Charter for small enterprises is a programme that Malta is committed to follow. Mr Vassallo is conscious of this fact, and has already been following the guidelines of the European Charter and will continue to follow them.

3. The implementation of the Maltese Artisan Council working plan

The implementation of the European Charter for small enterprises as regards the Maltese Artisan Council needs to be continuously assessed to evaluate what has been done and what still needs to be done. Ultimately, the implementation of the charter should lead to the appreciation of the self-employed or owners of a small enterprise in the sector of artisan crafts.

Together, the two working plans have around 80 initiatives that are being implemented, and each initiative has a certain importance and is innovative in itself.

4. The strengthening of those structures that make up the internal market

The structure that supports those involved in business is made up of the Malta Standards Authority, the Consumer and Competition Division and the Commerce Division. This structure is to be further strengthened so there may be more synergy between these entities. This work needs to be done in coordination with Malta Enterprise.

5. The work carried out with the Consumer and Competition Division

Now that Mr Vassallo has been given the responsibility of parliamentary secretary for small business and the self-employed, one must not think that he will no longer be connected with the Consumer and Competition Division. He has said on several occasions that the fact that he is a representative of the self-employed does not mean that he needs to justify every demand and request put forward by members of the self-employed. The consumer is not the greatest foe of the self-employed. He believes that in order to strengthen the internal market and organise it better, it is his duty to ensure that the consumer has the best possible laws to protect him. This allows the internal market to be regulated better thanks to the Consumer and Fair Competition Laws.

The European Council of Ministers responsible for commerce also discusses those topics related to the consumer. In this way, new proposals and amendments to Consumer Laws are discussed in the Competitiveness Council, whose primary aim is to ensure that the European commercial environment is the most competitive in the world, as established in the Lisbon agenda.

It is therefore imperative that the work we started, to ensure that not only the consumer but also traders are aware of the laws protecting the consumer, needs to continue.

6. Work carried out in coordination with ministries and governmental authorities

The self-employed and owners of small enterprises are spread out under the responsibilities of all the ministries and ministers, and are also the responsibility of several authorities and other entities. Therefore, Mr Vassallo is going to try to improve the access of this sector with the ministries, and help to strengthen the synergy and coordination between those entities that take decisions that affect business. With his new nomenclature of “parliamentary secretary for small business and the self-employed” the consultation process can now be stronger and all complaints and suggestions that are received relative to the self-employed and small enterprises can be passed on to the relevant sectors immediately.

7. Work to eliminate

unnecessary bureaucracy

that may disrupt business

The agenda for the self-employed and small enterprises is also the strengthening of the entrepreneurial policy, whose primary aim is to fight excessive bureaucracy. If the government wants to show its commitment towards the self-employed, then it is imperative to focus on reducing the excessive bureaucracy. This objective will be the focus of all that will be done. This is because the greatest concern of those in business is the excessive bureaucracy that is faced every day. Therefore, this should be the greatest challenge for this new administration.

8. Direct consultation with business associations and the self-employed

In order that every case of excessive bureaucracy is made known, the consultation with traders needs to be continuous. Consultation with the self-employed needs to be made on an individual level in shops, garages, factories, offices, and every other place of work. It needs to be made with business associations and in the local councils, where meetings for the locality should be organised. This needs to be done so the government is close and accessible to all those who need it, when it is needed.

9. The implementation of the objectives for a competitiveness policy

This needs to be made a primary objective in order to prove the government’s commitment to have a minister directly responsible for competitiveness. This ministry has been named not according to its present structure, but according to the result that is expected of it with regards commerce and industry.

Malta will be able to create work and attract investment only if we have a competitive economy and a ministry that works in synergy to ensure that the country is indeed competitive.

In order to achieve this, we need to continue building on what has already been done. As a result of a conference that was organised in conjunction with the University of Malta, a plan was drawn up, and a lot of work has already been carried out. These are the proposals that were published by Lino Briguglio and Gordon Cordina. This work now also needs to be done in coordination with the competitiveness committee within the Malta Council for Economic and Social Development. A consultation exercise with all the groups who attended the conference is already taking place and these proposals will then be forwarded to the government.

10. Work to intensify the process of impact assessment of legal notices and laws

This work had been started and was already producing results. In the previous administration the finance minister entrusted Mr Vassallo with the responsibility of evaluating all Legal Notices that required his approval. In this way, no Legal Notice was approved without an impact assessment being carried out to ascertain whether it would cause an unjustified increase in expenses and bureaucracy. This exercise was still in its initial stages and a lot still needed to be done. However, this ensured that those entities putting forward proposals for increased tariffs justified their proposals, and did not merely use the excuse of the Acquis Communitaire or the EU to hike their prices. This was a good start and Mr Vassallo believes that it is an experience that should build on.

If we work in synergy with all the administrative responsibilities, this will guarantee that we work in favour of competition. The results can be seen not only in capital projects or in those projects that are visible. The success of this exercise depends on the work and the new jobs that have been created. This success also depends on whether we succeed in having a changing mentality in the country.

Mr Vassallo expressed his hope that these exercises will succeed and said that he understands the need for them. He said that he understands this need because he sees it in all those who go to talk to him. Mr Vassallo said he believes we are capable of making a difference if all those who are responsible work together to ensure that the responsibilities are not the monopoly of a single ministry but belong to the government as a whole.

Issued by the Secretariat for Small Business and the

Self Employed