Unfortunately the current administration does not believe, as we do, in this sector and seems that it is in the periphery of their policies, if they do have policies at all.

Last week I had the opportunity to explain the PL thoughts about industry and foreign investment among other things, to a distinguished audience who were invited by the German Embassy in Malta. I would like to thank Ambassador Braun, his staff and all those that were present for this event. The first part of my presentation was a brief history of German investment in Malta and in the second part I outlined certain elements of the PL policy that will be developed if and when we are entrusted to govern. For us Germany is one of the main trading partners, even though today it is not at the very top as in the past. One can say that with regard to German financial and trading operations these increased dramatically after Malta joined the European Union in 2004.

However, the inflow of German industrial investment was strongest in the 1970s and 80s. This for a number of reasons not less because the then Labour Government was wholeheartedly committed to industry and manufacturing. By 1976 the Federal Republic of Germany, as it was called before unification, overtook Britain as Malta’s top export market in 1976. As a matter of fact the German’s share of Malta’s total exports rose from 10 to 24% between 1974 and 1976, a growth of almost 89% in those three years. However the peak was reached in 1978 with 35% of the total exports being exported to the Federal Republic of Germany. Italy overtook Germany in 1989 and the latter’s share of Malta’s exports peaked in 1995 with 30.4%, while at that time the share of the unified Germany fell to 14%.

Clearly this country’s industrialisation owes a lot to German direct investment over the past 45 years. While there have been important new German investments in more recent years such as Lufthansa Technik, German industrial investments that were set up in Malta in the 1960, 70s and 80s continued to grow over the years, albeit some of them ceased to exist and others were acquired by non-German multinational groups. Thus, it is clear that the bulk of German green-field initiatives date back to periods when the political party I represent was in government.

We are proud of this fact. As the bigger and older German owned industrial companies in Malta can testify, successive Labour governments gave top priority not only to attracting FDI but also to do whatever was necessary, sometimes to the limits of social and political sustainability, to keep that direct investment in Malta. We are sure that German companies, and not only, that have been in Malta for over 30 years have not done so out of altruism but because it has paid them to be in Malta. We are proud to have set up and consolidated the conditions that made it possible for Malta to attract German direct investment, to have laid the foundations which made the growth of German companies in Malta possible.

A future PL government will continue to give the same importance to foreign direct investment as did previous Labour Governments. Obviously times have changed, we are after all in the 21st Century and Malta is now a member of the European Union, and the way with which we will continue to promote FDI, will have to take these changes into account. Although we will continue with the present trend to consolidate those conditions that attract foreign investment in financial services to Malta, we will not, as has unfortunately happened, neglect investment in industry. This includes the production of both goods and tangible services including, of course, investment in information and communication technologies. For us we look at our industrial base as one of the main pillars of our economy and we firmly believe that this should continue to be also in the future in spite of the current circumstances. That is why we feel that this sector should have a voice in the cabinet and the current situation is not politically conducive towards industry.

My presentation to the distinguished audience among other aspects, dealt with government induced costs in the broadest sense since if not adequately controlled these will prevent investment from coming to our shores. The cost of rent was also an issue which is of great concern and definitely a future PL government will not adapt a policy that would make Malta Enterprise resemble a real estate agency. Likewise bureaucracy means additional costs and if a government fails to tackle this problem and its own inefficiencies then the country’s competitiveness as a location for foreign direct investment will suffer a huge blow.

We look forward to work closely with industry for the good of industry itself and with the objective of achieving sustainable rates of economic growth that will permit us to realise our vision of a society that ensures a level of quality of life that is second to none in Europe. What nobody can ever doubt is our commitment to protect and enhance Malta’s viability for competitive foreign direct investment, both in economic but also in social terms.

Carmelo Abela MP Labour main spokesperson for industry

and foreign investment

Email: [email protected]