An old proverb says that, “A smooth sea never made a skilled sailor”. The government navigated the recent rough seas through economic support measures which are bearing results. That we have served our people throughout and provided valuable support to the thousands of families affected by the repercussions of this unfortunate event is by now a recognised fact.
By virtue of several bold and sagacious decisions over the recent past, we were and are able to sustain our workforce and businesses and allow them to continue their lives and operations with a semblance of normality. Cynics might view this with skepticism, questioning whether this robust support by the government is even remotely possible. Others believe that the current distribution of resources will eventually come back to haunt us in the form of heavy taxation, which will put current and future households under duress.
I believe that, as a government, despite the turmoil, we have not only managed to stand shoulder to shoulder with our people but have also managed to stay solidly on course towards our vision for equal and just prosperity for all. This means that throughout all our endeavours we take into consideration the needs and burdens of all; from self-employed to households with a comfortable income to families who need the most assistance to survive.
Our vision encompasses the hardships every single entity and individual has endured during this troubling time. The launch this week of the €35 million Electricity Refund Bill Scheme in aim to support over 16,000 businesses and self-employedis a tiny reflection of our continuing drive in safeguarding both businesses as well as employees in the long-term.
Coincidentally, further evidence of this has just been published this week. In its most recent forecast, the Central Bank of Malta has predicted that next year the Maltese economy will grow at a rate of 6.1%, which will offset the decline observed this year as a result of the coronavirus pandemic.
The forecast by the Central Bank also states that in total, the measures introduced by the Government are estimated to have raised national wealth by 3%, reducing the economic impact of COVID-19 by about a third. The same forecast adds that both the unemployment rate and the inflation rate will be less than those observed before 2013, despite the fact that at that time our country was not affected by a pandemic. It also reaffirms the assessment made by international credit agencies, as well as by the European Commission and the International Monetary Fund, all of which predicted that the economic performance of our country will be better than that of our European peers.
Encouraging data indeed, but what does this tangibly mean for the man in the street? I have just this week had the pleasure of visiting one of Malta’s biggest manufacturing companies, Toly Products, which, like several other enterprises, through the salient measures and schemes launched, in particular the Covid Wage Supplement issued between March and July, managed to not only overcome this difficult period, but has reinstated workers back to a 5-day working week from its recent 4-day week. While the Covid Wage Supplement was an ongoing measure of utmost importance, we have also with regard to our industries managed to look further than the here and now.
Throughout the past months we have not only strived to safeguard jobs and keep afloat businesses but with a keen eye on the future, we have wholly encouraged and supported the all-important investment and innovation within our industry. I must admit that the fact that several enterprises have boldly risen to the occasion and not only managed to successfully adapt to the dire circumstances but also invest further in their companies and most importantly create more jobs, is simply a source of personal pride.
It is therefore quite heartening to observe that our schemes and measures are rendering positive results. A look at the business community on our sister island, particularly at a study carried out by the Gozo Tourism Association shows that 87% of Gozitan businesses said that without the Government’s assistance they would not have been able to continue operating longer than next month. 21% of those businesses which accepted the issued government vouchers also said that the latter made up between 50% and 75% of their revenue, while 23% also said that between a quarter and half of their revenue was made up by voucher payments.
These results continue to give us the impetus to build further on what we have achieved thus far. We will ensure that looking to the future, as we have proved in the past, through diligent planning and decisions as well as valuable dialogue with all relevant stakeholders, we will provide a necessary and timely safety net for our businesses, industries and most of all for the driving force of our country, our workforce. As we navigate these stormy waters, we will continue to strive not only for the immediate regeneration of our economy in the best interest of Malta’s citizens of today and tomorrow.