The Malta Independent 22 May 2025, Thursday
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The right way for government to foster business … and the wrong way

Thursday, 3 November 2016, 10:04 Last update: about 10 years ago

There was a time, a long time ago, when governments were held accountable and responsible for internal and external security only.

Not any more. Today, governments interact with the private sector in many ways and the private sector has come to consider the government as its partner.

The private sector looks upon government to provide the laws, the infrastructure, that cannot be otherwise provided by the private sector.

Above anything else, what the private sector expects from the government is to provide a level playing field so that all enterprises can compete in an atmosphere of fairness.

This may sound like a vague, generic, principle but a look at the input by the local private sector before and after the Budget shows that this principle is reflected in many areas of public concern.

Government many times provides the factories which the enterprises then use. Many times, the government provides the infrastructure, not just the utilities, but also facilitates the internet connectivity, builds and maintains the roads, ensures connectivity by air and by sea, etc.

The government is also bound by law to provide a level playing field with regards to public contracts. That is why the Department of Contracts exists together with its rather cumbersome rules and regulations. It is a pity these regulations are coming to be bypassed through the emergency procedure of a direct order. The less direct orders there are, the better for transparency.

In today's Malta, the government is also held responsible for accessing EU funds (although the private sector may tap into these too) and for ensuring that they are distributed fairly.

Of course, the country looks upon the government to discuss and set the macro-economic targets, to keep inflation low, and the deficit and to seek to be on the highest level of credit ratings.

But what the government is not expected to do is to reach some sort of behind-the-scenes agreement, possibly before an election, possibly as a counterpart to a hefty donation, which later translates into government initiative that helps and opens doors to just these select friendly companies and excludes the others.

It would seem this is what is happening right now.  People have come to believe that the approval of three towers at Mriehel and one in Sliema had this kind of background. People have come to believe that the blueprint for St George's Bay and Paceville had that kind of background.

If this is so, this is particularly obnoxious because when the people of a country get the idea (right or wrong) that they are children of a lesser god, there is no limit to what they will do to regain their idea of equality.

Government, this government, is still in time to prove to the country that this perception is not true. 
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