There is still a lot to be done to reduce bureaucracy and the perception that this is one of the main problems to business in Malta may be close to the real situation, Prime Minister Lawrence Gonzi said yesterday.
Speaking at a conference organised by the Federation of Industry, Dr Gonzi said the government aims to make the administrative process for businesses as technology oriented as possible.
He said there was still a lot to be done, particularly in some areas,like issuance of permits. On the other hand, said Dr Gonzi, the process involving issuance of licences has been modernised, is much cheaper and has been made more efficient.
Also participating in yesterday’s conference were Opposition Leader Alfred Sant, Alternattiva Demokratika chairman Harry Vassallo and Azzjoni Nazzjonali party leader Josie Muscat.
Chairing the conference was journalist Vanessa MacDonald, who asked Dr Gonzi about the results of a survey published by the World Economic Forum, which revealed that 24 per cent of Maltese respondents said that inefficient government bureaucracy was the most problematic factor for doing business. Last year, this figure stood at 25 per cent.
Dr Gonzi said this perception could actually be close to the real situation, but the government was committed to continue making it easier for people to do business in Malta.
He said the country’s competitiveness was closely tied to port charges, since local industry was so export oriented and in this sense, by means of the port reform, the government managed to reduce costs, thus making the country more competitive.
Dr Sant, on the other hand, spoke about court delays being the tip of the iceberg as regards government bureaucracy.
He said one of the country’s main problems was not only bureaucracy, but also corruption. He said the government was falling behind with regard to the amount and quality of capital investment and this was also impinging on the country’s competitiveness.
When the discussion focused on energy costs to industry, Dr Gonzi insisted that the government has helped protect jobs by means of its surcharge subsidy to industry. He added that the interconnection with Europe’s energy networks would secure energy supply for a number of years and allow the country to make use of more green energy.
Dr Muscat said he believed the country had to think more, on both short and long-term effects of energy generation and the need to go for alternative sources of energy.
“The MLP proposal to cut the surcharge on utility by half could finance a subsidy in part or in full, for people to have their own solar panels. Then we could induce people to sell electricity generated to the national grid,” said Dr Muscat.
Dr Vassallo believes that reduction of energy costs should be given top priority. He said wind energy, for example, is not as costly as people in Malta have been saying it is, and the idea to have an offshore wind farm is complete nonsense. Wind farms are a real possibility on land, he said.
“Malta is small and we have huge opportunities to make it beautiful and super energy efficient. It is not a matter of whether or not we will be making use or alternative sources of energy, but how we will be doing so,” said Dr Vassallo.
Dr Sant insisted, on the other hand, that pressure needs to be put on the government to become efficient.
“Ten years back we knew oil prices would go up, but we did not plan what we would do,” he said, adding that the government’s industrial development plan has truly been lacking.