Is summer over?

It is clear now; moves to tackle the creation of new job opportunities, tax reform and the budget deficit are feasible only within the context of a meaningful plan for economic and social development in which specific priorities are laid down. The pre-budget document issued recently by the government - A Better Quality Of Life 2006-2010 - contains some of the most necessary indicators required to improve Malta's competitive advantage.

Setting out a list of objectives without indicating how they are to be attained does not constitute a plan; it merely is a statement of cold aspirations. We need to know who will shoulder the burden; or who is going to do what. All documents in the public domain have so far identified the need that we must change, adapt to the new school of thought called globalisation.

The plan should specify in detail the priorities in the years ahead with regard to increasing employment and improving living standards as well as the proportion of the national output to be allocated to investment and to public expenditure.

Competitiveness is not a one dimensional concept and this is why the Union Haddiema Maghqudin rejects crude attempts by neo-liberal organisations to use the unit labour cost as the sole measure of competitiveness as their main argument. Labour cost and productivity and their effects on prices are not the only influences on Malta's competitive ability. Cutting corners to attack the competitive notion will not achieve the desired results for Malta.

On the other hand Malta can improve the competitive advantage vis-a-vis competing countries both within the European Union and beyond. In return Maltese workers will enjoy more job opportunities with both higher wages and better conditions of work. Maltese workers will be the net beneficiaries if Malta earns a reputation of excellence and efficiency in all sectors of the economy. We all need to appreciate that any investment, be it small or large, is a financial risk taken by an entrepreneur who in return expects a yield which is equivalent to a decent and just profit. The UHM has certainly no prejudice against those who risk their financial potential.

Malta can compete on various strengths and it is wrong to promote it on the basis of low wages and/or poor working conditions. Malta has to embrace new sectors of the new knowledge-based world economy. It is only if we are able to gradually shift our industries towards more value added earnings that Malta can continue to safeguard and protect work. Companies employing low-skilled employees with little or no investment both in equipment and human resources cannot take the full load of the harsh economic competition.

In this regard lifelong learning cannot be a process of the future any longer. The ability to entice workers to further education and empowerment is a necessity. Private industries, authorities, entities, agencies, public corporations and the minute entrepreneur must allow time for their workers to seek career progression and new opportunities. This will enable workers to further appreciate their work and open new opportunities both to the workers and to the entrepreneurs. A multi-skilled workforce is becoming more apparent.

Raising training levels is not easy. How much is done by schools or colleges and how specialised do they become? How much is borne by the state and how much by the employer? How can standards be maintained when training is the easiest part of the budget to cut in hard times? When do we guide children towards specialisation? What do we do with older workers who have the wrong skills or none at all? These are some of the questions we need to answer to ensure a competitive advantage.

Making best use of our limited financial capital and human resources is of the utmost importance. Eight productive hours for eight hours' pay is a must. Collection of tax streams are essential, value for money in government spending remains a priority.

It is very clear that there is a strong link between the level of employment, tax revenue and public expenditure. The UHM has repeatedly stated it will not allow its dissatisfaction at the heavy burden of taxation being borne by workers to be used as an excuse for cuts in essential welfare expenditure. The UHM will resist the attempts by diverse economic players to whip up welfare expenditure.

The UHM accepts the necessity of a just level of taxation commensurate with the need to provide for public expenditure that is necessary for the maintenance and improvement of social services and other necessary government expenses.

Any economy is always full of ambiguity. There are no absolute guarantees in the work environment. If the ambiguity does not come out in one place, it will show up in another. In this light it is much healthier if everyone shares a little of the ambiguity now in return for newer and better employment opportunities. The UHM shall continue to speak out loud to safeguard workers by taking the necessary actions at the right time. Tomorrow may be too late!

Mr Vella is the UHM's secretary general.