They say calm seas never made a skilled sailor. I recall that while we were constantly observing the developments unfolding on the international stage, and discussions with the Health Authorities were already underway, the news struck that the first covid-19 case had hit our shores. It was a moment which we knew would come, the question was not ‘if’ but ‘when’?
At a point in our history when our country was experiencing the highest economic growth across Europe, as well as the lowest unemployment rate, the advent of such an unprecedented scenario posed great challenges. I like to equate such a scenario with that of having to gradually slow down a Ferrari driven at a high speed.
I vividly remember being called in by Prime Minister Robert Abela who presented me with a report stating that if we do not rapidly take the necessary action 50,000 jobs will be lost, meaning 50,000 families will lose their livelihoods. Airports across Europe and the world were closing down, business exhibitions were being postponed while Maltese families and relatives were being trapped in countries in the throes of declaring their national lockdowns. Faced with such a situation the immediate reaction would be to panic, however, it was a matter of pulling oneself up by the bootstraps and getting on with the job in hand, no matter how insurmountable it all seemed. Every decision had to be well thought out and well-studied. While soon it will be the first anniversary of when the first case was registered in Malta, moving away from all the negative connotations and bleak narrative, I would also describe this day as the day when each one of us put our nation’s interest first. It was a moment of national unity, when partisan politics were set aside and together, with all our hearts and minds the protecting of businesses and safeguarding of jobs became the nation’s number one priority. It was a moment of truth. A time when we had to reap the fruit of our past economic decisions.
Hence, more than once, we presented our public with a holistic plan which bolstered teleworking initiatives, encouraging businesses to pursue with their operations, quarantine leave, the postponement of VAT and NI payments and lastly the Covid Wage Supplement. The latter proved to be crucial in allowing businesses to protect their employees as well as for them to seek innovative ways to diversify their operations and work on long-shelved investment plans which, when the time comes, will eventually springboard them into the new normality, or what The Economist has eloquently described as the ‘coronormal’. Unlike other countries which sought quick fixes and are now facing great consequences, we sought long-term measures that mitigate as much as possible the hard impact the pandemic caused on some sectors, particularly tourism, measures which allow room for employers to manoeuvre and flexible enough to adapt as per circumstances. This led to a surprising number of businesses which turned this adverse situation into a profitable opportunity. Some companies, for example, shifted their production to that of visors in view of high demand, other businesses focused on re-skilling their workforce, restaurants extended their operations to delivery services, whilst several businesses sought to adapt to the digital world.
Now we have to think ahead and adapt to the current unfolding scenario. The plan for the regeneration of our economy that was launched in June of last year was the cornerstone which aims to shift emergency measures to policies that are indefinitely both economically and socially sustainable, whilst ensuring a healthy balance between health, economy and the social aspect. In addition, with our finger on the pulse on the industry, businesses, and employees we are constantly acknowledging the challenges encountered and identifying innovative means for industries to re-adapt according to such scenario. Some sectors proved their resilience and agility to diversify and adopt new operational methods. However, this is no means to an end. This is a time to think outside the box and unleash visions for industries to gain grounds again, enhance futuristic skills that cater for new emergent sectors particularly technological related.
As a Government we shall persist and stand fast in the face of the storms crashing our shores. Some businesses are not as crowded as they used to be prior to the pandemic, some are facing cashflow challenges, for others it has been a long while ever since they opened their bars and clubs and welcomed regulars for a drink or two, others are struggling from making both ends meet or even so making it till pay day. We are aware of these hardships. We have stepped in to pursue with the provision of assistance through the COVID Wage Supplement and when needed, this will be extended. Aid was increased for bars and clubs. All is ready for the launch of the second round of €100 voucher scheme which will be implemented at an apt time. We are striving to bolster investment plans; and shall continue doing so. Reduced property stamp duty measure has been extended until July in order to keep on generating jobs and economic activity. We want to come out stronger than ever before with a resilient economy that stands again the test of time, an economy that is allowing new niches to grow. Most importantly, an economy that takes care of its people and our thriving nation.
Silvio Schembri is Minister for the Economy and Industry