Malta Chamber wants ban on government jobs for MPs

The Malta Chamber is calling for a ban on MPs holding government jobs and for the auditor general to automatically scrutinise all high-value public contracts.

These suggestions were among the business lobby's suite of proposals for the next legislature, which it presented on Thursday ahead of this month’s election.

Presenting the chamber’s 144-point plan, CEO Marthese Portelli said that while Malta had experienced exceptional economic growth in recent years, almost 70 per cent of this was down to an expanding workforce, with just over three per cent attributed to an increase in productivity.

The time was ripe for “a targeted reorientation of policy priorities” towards measures that prioritise efficiency rather than rapid growth, with Malta’s infrastructure creaking at the seams, the chamber argued.

Portelli said that a survey carried out among the chamber’s members showed that accessing skilled workers remained the top concern of industry players.

Addressing the launch, chamber president William Spiteri Bailey pointed to an open letter that the chamber had addressed to political parties at the start of the electoral campaign, in which it warned against “populist” campaign promises.

“We reiterate that short-term planning has run its course,” he said on Thursday, describing the ongoing electoral campaign as a “crossroads” for the country.

“The decisions taken will determine whether we let challenges erode our competitiveness,” he said.

Chamber president William Spiteri Bailey on Thursday. Photo: Malta Chamber

When asked whether parties had heeded the chamber's call to cut down on reckless pledges, Portelli pointed to the chamber's proposals, which "distinguish between ethical businesses and others".

"That is how every politician should be reasoning, in the best interest of the nation," she added.

Ban government jobs for MPs, improve governance

The chamber said Malta’s governance structures need to be strengthened, with “a clear demarcation between political decisions taken at ministerial level and the administrative responsibility of the civil service”.

MPs should be prohibited from “having second jobs with direct government links,” the chamber argued, with MPs obliged to disclose any conflicts of interest when dealing with parliamentary matters.

"You are either an MP representing the nation, or else you have a job with the government, which can influence your parliamentary work. There needs to be a clear line," Portelli said.

This echoes similar calls made by the OECD and the standards commissioner.

The chamber also reiterated its call for positions of trust to be capped and for several measures proposed in the EU’s most recent rule of law report to be implemented, including setting up a lobbyist register.

Meanwhile, public contracts of a high value should automatically be handed to the Auditor General for scrutiny before they are signed off, the chamber said.

Malta also needs more transparency in state advertising and less political influence within the national broadcaster, the chamber said.

Revise corporate tax

The chamber also repeated its call for Malta’s corporate tax regime to be revised, a measure that both parties have raised throughout the electoral campaign so far.

Malta’s corporate tax rate of 35% (“the highest corporate income tax rate in the EU,” the chamber said) should be slashed to 25% across the board, with companies that pay their dues on time receiving a reduced rate of 20%, the chamber argued.

The chamber is also proposing a lower stamp duty on property inheritance and donations for family businesses. A transfer taking place when all parties are alive should be lower than that paid after a person’s death, as this will encourage better succession planning among businesses, Portelli said.

Meanwhile, a portion of the VAT generated within a locality, alongside the eco tax collected from tourists, should be returned to the town to support the quality of life of its residents.

“If you are generating a lot of VAT and eco contributions, the strain on the locality is higher than in other towns,” Portelli explained.

Tweak labour migration policy

The chamber also wants changes to the government’s labour migration policy, including introducing sector-specific measures for industries, such as maritime and aviation, that require highly skilled workers.

The government should also revisit the ratio of Maltese to foreign workers within the policy, the chamber argued.

According to the chamber, several companies have reached the legal limit of foreign workers and are unable to find enough Maltese or European workers to engage, effectively forcing their overtime costs to “explode”.

This is particularly problematic within the retail sector, Portelli said.

The chamber also wants a one-stop shop digital platform through which foreign workers can apply for their necessary permits, incorporating Identitá, JobsPlus and other relevant national entities.

Promote active mobility, future-proof energy sector

The chamber’s plan addresses several other sectors, including transport and renewable energy.

It repeated its call for the government to set up a mobility wallet granting people benefits when leaving their car at home to travel. Meanwhile, new builds should be obliged to provide off-street parking before they are granted a planning permit.

The chamber also said Malta needs to do more to prepare for the liberalisation of its energy distribution network over the next decade. Malta is currently subject to an EU derogation allowing it to delay this until 2035.