Parliament yesterday began the second reading debate on the Malta Enterprise Corporation Amendment Bill. Investments, Industry and IT Minister Austin Gatt said that with this amendment, a unitary legislation shall be construed that incorporates the law in the Malta Enterprise Act and in the Business Promotion Act.

It shall also include certain provisions to meet with today’s investment needs. “Two pillars merge into one for the same objective – to see how money for investment is administered by Malta Enterprise, (ME) so as to make this country’s GDP grow.”

The Minister said they would continue reaping the benefits with this new law. Changes are aimed at making the whole scheme legally more comprehensive and efficient. “We would need to be able to legislate by legal notice – it’s easier and more efficient.” The Malta Enterprise will stipulate the guidelines to the notices. ME was chosen as the administrative body due to its “effective” working method. The enterprise had succeeded in the pharmaceutical industry, and other manufacturing factories have expanded and brought in new high-end investments.

Dr Gatt highlighted that in principle, the law will be solely limited to the manufacturing industry. If the need for expansion in other sectors is felt, the Bill makes provision for this possibility.

The minister said that new incentives to attract investment shall come into effect next month. These regard business advisors, royalty financing, business development, the environment, SME’s and Gozo, among others.

These incentives, it is envisaged, are there to attract manufacturing, mostly in the high-tech industry manufacturing services such as those offered by Lufthansa Technik and the Freeport, as well as the use of ICT in all sectors, research and innovation, and entrepreneurship.

“In 1996 we paid Lm18,900,000 in incentives; this year Lm19,400,000 and next year we project Lm20,500,000 .

“In all for these five years of mandate we would have given out Lm76,700,000 of taxes and EU funds in incentives,” Minister Austin Gatt impressed.

Continuing the debate, Chris Agius, the Malta Labour Party’s spokesman for Industry and Public Investments commended the action set out in the Bill’s provisions, particularly the fact that aid shall be given to any sector and not just the manufacturing sector. ME’s work ambit shall therefore increase.

The MP said many powers are being vested in the Minister who will have decision-making authority as well as the final say. He said that these powers should be reduced.

Mr Agius gave a bit of a background about investments in the country and their effect on job creation, job losses, expansion of markets and competition.

He highlighted how the Labour Party contributed extensively to this expansion. He also spoke about the downfall in the investments market, adding that certain sectors would suffer and many could become unemployed.

Labour’s spokesperson stressed the need to get rid of bureaucracy and red tape as this is was hindering competition.

Quoting Helga Ellul, Play Mobil’s CEO and Toly Products’ representative, Mr Agius said: “we should be treating key contributing investors to the Maltese economy as prime companies. We must not marginalise them.” This is why under a Labour Government, he said, the MLP are proposing that a committee chaired by the PM shall be created, so these investors may share their knowledge and aid in guiding Malta’s road to an investment haven.

Mr Aguis went on to lend importance to education as a cornerstone to investment in Malta. He underlined the need to decrease the percentage of early school leavers and that of enticing students to take on “new subjects”, such as sciences and technology, and not the traditional professions. He praised the government for many initiatives undertaken, yet deplored the allocation of finances, and the fact that the number of people living in poverty is growing.

Edwin Vassallo, Parliamentary Secretary in the Ministry for Competitiveness and Communications, said he sees poverty growing in the way Labour puts its ideas across. The MLP, he said, does not understand it is time to move on. “Industry is an old story, it has changed, and evolved – why are you still crying about 15 years ago? Wake up and smell today’s reality’s coffee!”

Mr Vassallo remains in possession.

At the beginning of the session, the motion on the Budget passed unanimously.