While the after-effects of the Covid-19 pandemic are still present in many regions, the war on Ukraine has escalated from a regional military conflict, to a worldwide threat on global logistics and international trade.

Malta’s economy remains on steadier ground than that of other neighbouring countries around the world: the economic growth of this past decade has helped to cushion a huge chunk of the negative threat to our way of life posed by both the pandemic, and subsequently the conflict in Eastern Europe.

This is not to say, however, that our economic growth has made our country unassailable by the threats posed. Indeed, it was only a few days ago that one piece of news, the Euro-US Dollar Parity Rate, has further fuelled concerns of a possible economic downturn in the entire EU region. Inflation has soared in many places around the world, possibly jeopardising the way of life of workers from all walks of life.

This emerging crisis has provided the Government another opportunity to present an example of the necessity for swift, calculated and directly effective action. As the Parliamentary Secretary for Fisheries and Animal Rights, I have witnessed first-hand the negative impacts that the war on Ukraine has had on our fishing industry. Most notably, the explosion in the cost of operating costs related to fuel consumption for fishing boats which, in a matter of weeks, has more than doubled. This rise in cost is only expected to continue unabated for an undetermined time.

Earlier this month, the Government announced a financial assistance package for all local fishermen, aimed at discounting the rise of fuel used for fishing boats and other operational purposes. The funds allocated, which reached a total of €700,000, are regulated as per EU regulations, through the Temporary Crisis Framework, in order to support hard-hit economic sectors, in the context of the Russian invasion of Ukraine. 

This fiscal incentive is meant to grant a helping hand to a sector directly impacted by events abroad. While only a temporary measure, the Government has once again acted diligently and swiftly, in order to ensure that the livelihoods of the 600 fishermen eligible for the scheme, are safeguarded. Similarly to a similar incentive brought forward by the Government during the Covid-19 pandemic, this new incentive is another certificate in favour of swift, active Government intervention.

Till the end of July, we are calling on each and every fishing operator, private or commercial, who’s eligible for such a scheme to approach the Government and benefit from this incentive.

The raison d’etre for this scheme is pretty self-evident. Unlike motor vehicle fuel, which benefit from commercial undertakings undertaken by the Government in ensuring long-term price stability, the fuel used by local fishermen remains subject to market fluctuations. The crisis in Ukraine dealt a significant blow to our local fishermen, who were faced with the prospect of having their operating costs rise exponentially.

This matter is of a grave concern. The local fishing sector is not only a cultural tradition which has defined our country for countless generations. It also remains a source of employment for many people, of all ages. Additionally, preserving local food sources is of a greater importance than ever: both from an environmental and sustainability point of view, but also from an economic perspective.

No amount of strategic planning from beforehand, cautious or robust as it may be, can prevent any possible negative ramifications impacting particular sectors and economies. This is especially true for micro-states like Malta, with its geographic size and location rendering us particularly susceptible to regional economic tremors. It’s only through quick, effective and proactive measures, that the Government can neutralise, or reduce, the impact on our way of life from crisis abroad.

We are under no illusions, however, that such measures are only temporary and stop-gap in nature. The fishing industry cannot solely rely on public interventions to remain sustainable. This is why the Government has also financed projects, such as the new state-of-the-art laboratory in San Luċjan. These projects open up new avenues of commerce, trade and employment. Moreover, this particular project will also leave a lasting legacy on preserving our maritime-ecosystem, by tapping into the potential or reharnessing waste product into a re-usable commodity, both for local fishermen, as well as pharmaceutical and cosmetic industries.

Once again, in the face of a bourgeoning threat to our fishing industry, this Government has rolled its sleeves, and acted diligently. Time and time again, we as a country have persevered through the harshest of economic winters: By investing and addressing present challenges, we continue to ensure a thriving future for our fishing, for the benefit of all.

Alicia Bugeja Said is Parliamentary Secretary for Fisheries, Aquaculture and Animal Welfare