Country needs regeneration plan - Sant

Social partners yesterday were unable to reach consensus on whether the country was either facing a bleak crisis, or passing through a bad patch that could be remedied.

Most proposed similar solutions, albeit giving them a different name.

The meeting was convened by the Labour Party and was held at the MLP headquarters on the eve of this afternoon's protest march in Hamrun.

Labour leader Alfred Sant made the opening speech in which he said the MLP was not afraid to say the country was facing an "economic and social crisis".

Many of those present spoke against "doom and gloom" scenarios, arguing that that made matters worse.

GRTU director-general Vince Farrugia said Malta was not passing through a crisis. "We have a big problem but it is manageable," he argued.

Union Haddiema Maghqudin secretary-general Gejtu Vella said the union had launched the idea of having a Social Pact last summer and this could provide a way forward.

General Workers Union deputy general secretary Manwel Micallef proposed a House Committee to tackle job creation, since all would fall into place if jobs were created.

Others argued that such meetings should be held jointly between the MLP and Nationalist parties to avoid time-wasting, and expressed scepticism that unless there was the will to implement what was discussed, it was bound to become a waste of time.

Some argued for the need to set up the Trade Union Council so that unions would iron out any difficulties and start speaking with one voice.

In his opening address to constituted bodies, some of whom he had accused of forming part of "the cats' choir" in the run-up to the EU referendum campaign, Dr Sant stressed that his statement was not meant to influence the discussion.

However, the party administration would be in a "listening mode" to hear what the social partners had to say.

Dr Sant said the country was facing an "economic and social crisis" because foreign direct investment was lacking, government expenditure had increased while the deficit continued to increase, taxation levels too had increased, and although a lot of investment was made in infrastructure, this was not yielding the expected return.

Malta was suffering from "endemic stagnation and the biggest problem was that operators did not see any light at the end of the tunnel," Dr Sant said.

Growth figures

Dr Sant questioned the figures of growth in certain sectors of the economy when there was hardly one per cent growth in the GDP. He said he could not understand how some sectors were posting profits of 20 per cent.

In spite of the expenditure on education, there was still a high degree of illiteracy and there were mis-matches between what students were learning and what industry required.

Unemployment was increasing and the number of long-term unemployed had increased by about 45 per cent.

The government could not remain passive in the face of all this, Dr Sant said, adding that the party had commissioned a study to identify the economic and social problems and propose solutions.

"The country needs a regeneration plan to bring together all sectors and set priorities," Dr Sant said.

But the government had to recognise there was a problem to be able to begin tackling it, he said.

Most of those who spoke said Malta faced a problem with competitiveness, the deficit, bureaucracy and globalisation.

MLP in MCESD

UHM's Gejtu Vella said the MLP's announcement that it was prepared to start participating in a sub-committee of the Malta Council for Economic and Social Development was good news, since the country needed everyone's efforts to move ahead.

But GWU's Manwel Micallef argued that the MLP should not have a secondary role on a sub-committee, but should be on the MCESD.

GWU secretary-general Tony Zarb said everyone should have the courage to declare to their members that "everyone had to take a few steps back to be able to solve the country's problems".

The Malta Union of Bank Employees said the financial services sector was a thriving sector and should be encouraged. It is the only sector that was posting significant profits.

Joseph Farrugia, representing the Progressive Farmers' Association, said tomato processors had received Lm700,000 in subsidies from Government while the consumer saw little benefit.

Malta Union of Teachers president Alfred Bencini said many were criticising the educational system, but they were forgetting that the Malta College for Arts, Science and Technology was set up a year and a half ago after being dismantled "by a previous government" and a lot was being done to combat illiteracy.

That the National Minimum Curriculum was not fully implemented yet was a problem. Absenteeism from school and illiteracy would otherwise be lower.

A spokesman for the Gozo Business Chamber said it was very important not to mess with the Gozo ferry timetable and fares since that would be detrimental to the Gozitan economy.

GRTU hospitality and leisure section secretary Philip Fenech said Malta needed a "quick-fix solution" apart from medium and long-term plans.

Many businesses were not paying NI contributions or licence fees because they had cash flow problems. Enticing more tourists to visit Malta would immediately result in a mini boom that could start putting the industry back on its feet, he argued.

Media allowed to stay

Party president Stefan Zrinzo Azzopardi, who opened the meeting, said it was customary for the media to only attend the introductory part of the meeting so that those present would feel free to raise issues they did not necessarily want aired in the media.

However, GRTU director-general Vince Farrugia, supported by many representatives of other organisations, said he had no objection to the media staying throughout the meeting.

Dr Sant said the party had no objection to allowing the media to stay for the duration of the meeting and had only curtailed their participation in the past because some organisations felt uncomfortable speaking with the media present.

Dr Sant stayed for most of the meeting, but apologised for leaving before the end because he had to attend to other matters.