The other day, I was talking to a friend of mine who chose to close his restaurant after many years. I asked him what had made him decide to do so. His first reaction was “it’s almost impossible to find suitable employees”. He then added inflation, too much red tape and government permits.

A few days ago, the European Commission published the economic forecasts of all EU countries and of the EU as a bloc. The Commission delved into all aspects of the Maltese economy and on skills, it said: “Labour shortages remain a bottleneck and are expected to persist.”

In June of this year, the Commission said that labour shortages and skills mismatches are significant across sectors.

The Commission stated that these challenges are fuelled by one of the highest shares of low-skilled workers in the EU (36 per cent vs EU 24.9 per cent in 2021), the limited participation of low-skilled adults (25-64) in learning, and the high share of early school leavers (11 per cent vs EU 9.7 per cent)

Moreover, a large percentage of pupils fail to achieve a minimum proficiency level, and underachievement in basic skills is particularly high among disadvantaged students.

So, there you have it. A big part of the problem is lack of education and lack of training when compared to other EU countries. You may say comparisons are odious and, indeed, they are. However, the Maltese economy is part and parcel of the EU single market where there is the right to freedom of movement. We simply cannot ignore the European context.

It is clear as day that the Maltese government’s policy of attracting non-EU nationals was misguided. It seemed to be a quick fix trying to resolve a complex issue. The finance minister admitted that he had championed this policy and then admitted that it had failed. This policy not only had an impact on the island’s infrastructure and services but, to all intents and purposes, it failed to ease labour shortages.

We, as an opposition, suggest the drawing up of a very comprehensive plan for the next five to 20 years, with the active participation of the social partners, civil society and the opposition.

A study conducted by the Malta Employers Association confirms that the overwhelming preference of companies is to employ Maltese workers. Maltese workers are more loyal and easier to train and communicate with.

The study shows that there are no problems whatsoever when it comes to the EU’s single market, where there is freedom of movement.

It is clear that the Maltese government’s policy of attracting non-EU nationals was misguided- Robert Cutajar

It also confirms that EU nationals bring a positive attitude, professionalism and technical skills to the workplace, with minimal communication, permit and accommodation challenges.

One of the main issues is this; quite a lot of Maltese travel to other countries to acquire work experience abroad, and EU nationals are often attracted to other EU capitals which offer a better ‘take-home pay’ (net income less rent and cost of living), leaving employers with very limited options.

So how are we going to solve this issue?

Draw up a plan. A bipartisan plan agreed among all the social partners. Renew and extend it every five years. Rope in industry, university, primary and secondary education. One of the solutions could be a very broad internship programme applied to all sectors for school leavers, MCAST and university students.

In June, the European Commission said the following:

“In Malta, average levels of basic skills are low and significantly below the EU average. A large percentage of pupils fail to achieve minimum proficiency levels. While the proportion of top performers has decreased since 2015, the percentage of underachieving pupils has remained practically unchanged and is above the EU average across the entire socio-economic distribution.”

The Maltese deserve a better education, better lifelong training, better salaries and much better long-term government planning. This is not a political issue and it is not just a competitiveness issue. It is about saving our European lifestyle and about the sustainability of our way of life.

So yes, it is about education, training and upskilling, but the underlying problem is that there is no national plan.

We know that Malta is applying (or intends to apply) for EU funds from the Recovery and Resilience Plan, to increase skills. But is there a plan? And if there is, why not publish it?

Why is it so difficult for the government to share this plan with the social partners and with the opposition? Would it not be more efficient and effective to have feedback from the country’s experts on the subject? Is it too much to ask how the Maltese government intends to spend these EU funds in this area?

The government has to get a grip on this formidable challenge before it is too late.  Let us sit around the table and agree on a robust plan, a plan worthy of the 21st century.

Robert Cutajar is the Nationalist Party’s spokesperson on the self-employed, small businesses and cooperatives.