Parliament on Wednesday night continued its discussion on the June 2005/2006 Report, “With the development of entrepreneurship – we will sustain small and medium enterprise and employment”, issued by the Secretariat of Small and Medium Enterprises.
More than 90 per cent of the Maltese economy is sustained by micro-enterprises, Parliamentary Secretary for the Self-Employed, Edwin Vassallo said. Comparing statistics between July and September of 2005 to those of 2006, the number of self-employed people has increased by 1,448, for instance. The employment that the country is generating is leading to a Lm35.3 million increase in importation of consumer goods and a Lm75.5 million increase in exports, according to NSO national trade statistics.
“This success does not mean that there are no downfalls. Commercial activity in the country is doing well, but it is one that is extremely vulnerable. Even though it is doing well, it asks that no one misbehave. We should be more careful and move with vigilance,” Mr Vassallo cautioned.
He expounded that the national fiscal policy and that of all entities should work towards an environment where one has no obstacles to employment, nor obstacles within employment, entrepreneurship is facilitated and the best possible environment is created. “We are not even half way there. The work that is being done is along the lines of education, providing incentives, and removing barriers of bureaucracy among others. It is a continuous process and one that has to be continued.”
The parliamentary secretary wound up his intervention by mentioning that though there was consumer confidence, due to competition and the park and ride scheme success, it is fragile and more challenges need to be met. He stressed that work needs to be undertaken for the market to keep on being competitive, for information to be accessible and for the system to continue to be fair.
Nationalist MP Frederick Azzopardi highlighted the opportunities globalisation offered to Maltese businesses, particularly in the tourism industry, yet cautioned about its downfalls saying they needed to be counteracted by economic growth, education and environmental protection. He said that the euro adoption will be a step in the right direction, as it will continue to strengthen the financial perspectives of the country. Mr Azzopardi however did stress that government expenditure had to continue to be controlled, and prudence was a virtue that needed to be upheld while reforms were taking place.
Mr Azzopardi also spoke about areas where he felt more focus and attention was needed. Privatisation and foreign investment, for one, must look at new horizons, such as in the pharmaceutical industry or that of ICT. “We must give impetus to innovation and creativity and continue to invest in human resources,” he said, giving examples of projects the government has undertaken in this respect during its term in office.
Economic services was another area Mr Azzopardi elaborated upon, saying that Arab investments will continue to grow in Europe and Malta should strive to be that service stepping stone. Giving particular attention to Gozo towards the end of his intervention, the Nationalist MP emphasised the disadvantages the island and its inhabitants face, reminding that their rural beauty has untapped tourism potential, as does the innovative character of their employability.
Opposition speaker on social security and cooperatives, Joseph Abela, focussed his intervention on cooperatives, saying that they give a considerable economic output, approximate APEX figures looking at Lm25 million a year, 5.5 per cent of GDP.
He explained that a cooperative works to educate and train its members, and that the community at large benefits from its doings, mentioning examples like the Eden Foundation and the Fair Trade Cooperative, which have a key element of social responsibility.
Mr Abela made certain suggestions towards the improvement and facilitation of cooperatives, such as for instance the creation of cooperatives in the financial sector or in social services such as elderly care or child minding, as well as for there to be more emphasise of the concept in schools.
“How can we talk about venture capital and start-up businesses, if we do not promulgate these ventures?” The Labour MP then went on to propose what a Labour government would do in this sector – the establishment of a directorate to regulate and aid cooperatives in the civil service, the creation of a bank facility for cooperatives in conjunction with the Central Fund, and lastly separate statistics for cooperatives.
“Small and medium enterprises are the backbone of the Maltese economy, they are also a national tradition, which gives a clear picture of the current market trends in the country,” PN MP Joseph Falzon said. He encouraged those in the business to continue the trend of employing, so as to train the employees who will then go out and start their own businesses. He did however stress that bureaucracy is a hindering factor for small and medium businesses, and urged for smoother and better processes to be undertaken. “These entities should have a fast track solution process. A mentality needs to be instilled that this is a necessity.”
Mr Falzon also spoke of the employment these enterprises are generating, liberalisation in markets having been a clear success story. Taking Lufthansa Technik as an example, he went on to evidence that beefing up certain sectors of education was a good call, yet more needed to be done in the fields of health and safety at the work place. Mr Falzon ended his intervention by saying that if the element of excessive rivalry between enterprises is eliminated, all would move along better in this industry.