If there was ever any doubt about how dangerous the coronavirus epidemic was going to be, it is now certain that it will affect many people’s behaviour and work for months to come. The most recent developments have been nothing short of dramatic and will have an impact not just on the health of some people but on the economy and employment.
The prime minister’s decision to stop all flights to and from several countries appears necessary in order to give top priority to health. This decision will, of course, cause substantial collateral economic damage.
The hospitality industry is bound to be the worst affected by a fall in revenue, as bookings decline, airlines fly ghost flights, hotel beds remain empty and bars, restaurants and other places of entertainment see reduced custom from both visitors and locals.
The main business lobbies – the Malta Employers’ Association, the Chamber of Commerce, Chamber of SMEs and Malta Hotels and Restaurants Association – have made sensible recommendations to government to help their members deal with the crisis effectively.
In advising workers not to report for work if they show any symptoms of the disease or have recently travelled from one of the most badly affected areas, they are following the best medical advice.
They understandably expect the government to bear part of the cost that these measures, taken in the national interest, will entail.
A more serious threat in the medium term is the probable disruption to the supply chain of businesses that provide the market with essential goods, especially food and medicine. We import most of our food from abroad.
The fact that our neighbour Italy is so adversely affected is bound to disrupt the flow of essential items to Malta. The government did well to allow the catamaran service between Malta and Sicily to continue to operate for the transportation of goods. This transport link is an essential lifeline for the normal functioning of the economy.
Banks have a crucial role to play in ensuring that this epidemic does not cause more damage than is inevitable. The Malta Bankers’ Association expects banks to be pragmatic in the way they deal with business customers likely to be affected by the crisis. HSBC has announed a few measures in this regard. It is the right thing to do for banks to declare a moratorium on loan repayments by both individuals and businesses who are the worst hit by the epidemic.
The initial apparent lack of agreement between politicians and the business community on the best way to deal with this crisis needs to end. Ultimately what matters most is the health of people because economic challenges, after all, can only be addressed adequately when the workforce and the rest of the community are in good health.
The Association for Consumers Rights was among the first to argue that flights from high-risk regions should be stopped. The business community and the government should heed the advice of medical experts, who are the best qualified to decide on these issues.
When this crisis begins to ease, it will be the right time for the government to sit down with the business community to decide how best to support those that have borne the highest economic cost imposed by this epidemic.
Safeguarding employment until the economy starts to recover should be the guiding principle for using taxpayers’ money judiciously.