The Malta Independent 25 April 2024, Thursday
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Abela calls government economic package ‘ambitious’ but indicates measures are open to change

Kevin Schembri Orland Sunday, 22 March 2020, 11:30 Last update: about 5 years ago

Prime Minister Robert Abela has called the government's economic package, which has been highly criticised recently, as ambitious, but also indicated that measures can still change.

Prime Minister Robert Abela was being interviews on ONE Radio.

Asked about the economic measures his government has taken, and about the business community, Abela said that businesses will be the first to help the economy come back to normal after the Coronavirus situation passes.

He said that "we should not get into a mentality where we try to condemn businesses, as that will harm the situation. The businesses strengthened our economy past years and it is important to keep all businesses alive and keep jobs, those are our targets."

This is not a moment to say that businesses are egoistical, he said, referring to the criticism made on businesses for asking the government to help more. He stressed that the government shut down the airport, which was the life blood for the tourism industry. "We must appreciate the reality that all their clients stopped coming."

He said that this is a different situation from the 2008 recession, which happened gradually, and that the present situation happened over a period of days.

He continued to describe the government's economic package as 'ambitious' and described the international situation as 'unprecedented.' He noted that things change rapidly, and what was considered to be ambitious last week might need to be changed next week. Same as the health protection measures are changed, more things could be added depending on the circumstances.

He spoke of the need to keep businesses alive, and to keep jobs. "This is a moment where the government needs to aggressively move in to save businesses and jobs. If we need to go into a deficit from a surplus then that is what will happen. The surplus is there to be used and we will use it."

Optimistically, he said, the country will not be in its present position for very long, but said there could be circumstances where it could be long. He stressed that the government cannot burn its reserve funds all in one week for this very reason.

"We have a war chest and in the circumstances it is like we are in a war." He said that if everything is spent in week one, what will happen in week s two and three.

He said that while government wants to save jobs, they made provisions for those who might or are losing their job, such as the €800 per month.

He compared the country to a sprinter, in a period of recovery, and when recovery is complete, would sprint off again immediately. 

He spoke about importance of keeping dialogue with social partners, adding that discussions have strengthened now. He said that the government is finding cooperation from them. "I understand there was a moment with outbursts, as they are under pressure from members. It is normal to react that way when under pressure. Everyone wants this country to come out strong. Until the beginning of February we were moving ahead with a strong rhythm, and I believe that we can continue in that direction. This situation is only temporary."

He expressed his trust in the economy, business and the workforce.

Turning to the opposition, he said that while the social partners were making constructive criticism and putting forward constructive proposals, the opposition was not costing their proposals.

Speaking about hotels, he said that once the virus passes, that sector might need continued support, given that the international situation might still not be as it was.

He criticised the opposition for calling for an early lockdown, when the health authorities weren't calling for one.

Turning to the recommendations being made by the health officials, in relation to social distancing among other things, he said that in general people are obeying them.

He said that this is a period of discomfort, and if the country does not live through this period now and sacrifice, then the period would need to be prolonged.

He said that he is not saying people should not go out for a walk alone, but said for 15 people to be in a playground is not on. "It would be pointless closing schools if children gather in parks and playgrounds. The same could be said about closing restaurants when people gather in bays.

If we won't have complete cooperation, he said, it is likely the government will need to increase measures.

The Prime Minister also spoke about infrastructural developments, describing them as crucial. He said that such work must continue again stressing that the present situation is only a temporary one. He urged people to continue investing in the country.

 


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