Mr Scicluna was replying to a question put by The Malta Independent, in view of Prime Minister Lawrence Gonzi’s continuous appeals for the Malta Labour Party to participate at MCESD level.

Mr Scicluna explained that the law, which was enacted in 2001, lists the bodies which can be represented on the MCESD. These included unions, employers and the government. He said Malta’s council was based on the model of the International Labour Organisation. He said there was also a standing committee for the civil society.

Mr Scicluna said this model was “very common”, adding that he did not know of any other similar council on which the party in Opposition was represented. “This does not mean that we cannot look at different formulae with which the party in Opposition can be involved,” he said.

Asked by this newspaper whether he thought it was the time to make amendments to the law, Mr Scicluna was evasive in his reply, simply saying that the law “could be changed” (tistà tinbidel). Asked to be more specific, Mr Scicluna did not commit himself to proposing the idea that the law is changed: “I have a very open view on the matter. Personally, I believe that it could be an advantage but that is my personal opinion. As chairman of the MCESD, the only thing I can tell you is that the government has to be the first to discuss the issue,” he said.

Speaking on the establishment of a social pact, Mr Scicluna said it is hoped that by the end of this year, preferably by Budget Day, a basis on an agreement on the issue would have been reached. Mr Scicluna said the council was presently conducting a number of studies on different issues. One is on the impact of the public service on the economy while another is on the country’s competitiveness.

“I think the time is ripe for us, as a country, to take stock of where we stand and what we have to offer. It is only then that we can ask ourselves the million-dollar question: why should people invest in Malta? Does it pay for him to invest here and why?” he said. Mr Scicluna said that the MCESD was a consultative and advisory body to the government on several issues. “The MCESD has all the components of a logical venue for important issues to be discussed,” he said.

Receiving a copy of the proposals of the Malta Employer’s Association for a social pact, Mr Scicluna said this was the second document of its kind. The first one was one submitted by the Union Haddiema Maghqudin. He said these documents will help the MCESD take a stand on various issues, such as the sustainability of the pension and the health systems.

MEA president Arthur Muscat spoke about the problems the country was facing and the need to generate more productive employment and more productive economic activity. He said it will not be easy to achieve this goal but neither was it impossible.

Mr Muscat said the country was facing difficult times: unemployment was on the increase, foreign and local investment is low, the public sector is burdened with too many people and the pension and health systems must be revised in order to remain sustainable.

“Jobs will only be created if entrepreneurs invest, but there has to be the right environment to convince them to invest,” he said.

Mr Muscat said the association was willing to receive comments on its document, adding that maybe it was the right time to compare and contrast the association’s document with that submitted by the UHM. He said this should be followed by a serious debate at MCESD level “because the MCESD is the best venue for such a discussion”.