Social partners call for plan, effective action by Malta

Representatives of constituted bodies have called for tougher action for Malta to achieve economic growth and reach targets set by the EU's Lisbon agenda.

They were giving presentations on the Lisbon agenda to the European and Foreign Affairs Committee which is debating the agenda before a debate in the full House of Representatives.

The Lisbon Agenda, agreed at a summit in Lisbon in March 2000, aims to make the EU "the most dynamic and competitive knowledge-based economy in the world" by 2010.

Justin Zammit Tabona, representing the Malta Business Bureau, which groups the Federation of Industry, the Malta Hotels and Restaurants Association and the Chamber of Commerce said that the competitiveness gap between the EU and the US had widened, instead of narrowing, in some areas over the past few years.

Malta, he said, needed to give the Lisbon agenda greater importance, more so as it was not scoring high in the "scoreboard" of progress towards the agenda targets, except for the ICT sector.

There were two areas of major concern - economic growth and the low participation rate of women and older people in the workforce. The social partners, he said, had to work together to make Malta an attractive place for investment.

The bureau was proposing the drawing up of a national programme led by the Prime Minister's office in conjunction with the competitiveness ministry aimed at achieving greater focus on the agenda requirements.

There should also be a detailed benchmarking exercise showing Malta's position in relation to the EU25.

Also needed was a major communications strategy explaining the need for reform.

Mr Zammit Tabona said that certain structural reforms could not be postponed any longer. Malta could not attract first class business if it did not move up the value added chain.

The country could not afford to discuss and not deliver. All financial and human resources had to be mobilised. The country needed to talk less and act more, and the sooner a consensus was struck on employment reforms the better.

A strong commitment by all social partners, he said, should result in a win-win situation.

GWU general secretary Tony Zarb said that the more time passed, the more it became clear how difficult it would be for Europe to reach the aims established by the Lisbon strategy.

In Malta's case, there was no doubt that more job creation was needed. There had to be an updated study on the demands of the industrial sector in the years to come and how that demand would be matched. There has to be strategy which matched employment needs and education and it was also important to provide adequate training facilities for workers.

On taxation, Mr Zarb said that one had to be careful that taxation did not deter investment.

Replying to questions, he said that although unemployment benefits were necessary and should be given, these should not be abused and when workers really wanted to work, every effort had to be made for those workers to be given work.

Mr Zarb said more women should be encouraged to join the labour force, if necessary through positive fiscal measures. Systems such as part- and flexi- time should also be adopted.

According to National Employment Plan, Malta had to have 70 per cent of the female working population in employment in five years' time. Currently, there were only 57 per cent. This was too low a figure.

He said that there were instances where the union had urged investors to set up shop in Malta but they did not come here because of bureaucracy. The potential creation of hundreds of jobs was lost.

Mr Zarb said that being competitive did not mean eroding workers' conditions - several measures could be taken without the need to resort to this.

UHM secretary-general Gejtu Vella said that unfortunately, Malta's position was at the lowest levels of the scoreboard. The UHM in a report at the beginning of last year had presented clear indicators and proposed a number of initiatives. Unfortunately, no action was taken.

The government, Mr Vella said, should conduct a clear value for money audit.

It should show, for example, whether the output of the education system matched the investment being made there. If they were not, why not?

The country could not continue talking ad nausea, it had to have the courage to highlight measures which needed to be taken, and get on with them. It was positive to have students graduating as teachers and lawyers, but these areas were not where the opportunities lay.

Students should be guided along their career paths and the stipends should be used in an effective manner.

Mr Vella also pointed out that while a number of those registering for work really wanted a job, a number of others were doing so because they had become used to this situation. The country had a duty to stop these people.

Pierre Fava, from the Malta Employers' Association said employment for all was the objective of the International Labour Organisation.

He said that many companies in Europe were outsourcing and many jobs were being lost to China and India.

Those two countries had labour markets which were far less regulated than in the US and Europe.

Should Malta manage to attract more foreign direct investment, it would be able to address the fiscal deficit without having to raise taxation levels.

Malta, he said, should act in parallel to the recommendations of the Lisbon agenda for growth and generation of jobs. The MEA believed that social objectives could only be attained through competitiveness.

Lawrence Mizzi, who also represented the MEA, said that Malta did not have to wait for the EU to take certain decisions. The Lisbon agenda set targets which member states had to meet individually. It was the member states which had to take the decisions and not the EU.

Godfrey Kenely, from the European Anti-Poverty Network (Malta) - a network of 46 non-governmental organisations, said Malta lacked a national plan to fight poverty and social exclusion.

Although it had a target to reduce school absenteeism by 25 per cent by next year, for example, no measures had been taken and there was no plan to achieve this aim.

The network, he said, did not agree that the Lisbon agenda should focus more on economic growth to the detriment of the environment and social sectors. There had to be a proper balance between these three pillars.

He pointed out that 68 million people in the EU were facing poverty including 15 per cent of the Maltese population and 21 per cent of children in Malta.

Clear targets were needed at both national and EU levels. Malta lacked a forum where NGOs were represented on such issues, he said.