This is no ordinary year and budget. The global pandemic continues to leave a trail of destruction around the world. The human cost of this pandemic is again on the rise. Social interaction continues to be restricted with the resulting economic cost being of significant magnitude. The external environment remains volatile and challenging.
This situation is obviously mirrored locally. With an economy heavily dependent on tourism, hospitality and accommodation, the economic consequences have been significant. This is also compounded by other internal challenges that have been brought about by the short-sighted economic vision and policy of the Labour administration.
The services-based diversified economy built over the previous 30 years, such services heavily dependent on Malta’s reputation, is today threatened by the prospect of Malta’s grey listing by Moneyval due to the reputational damage this administration has caused. A nationwide and sector-specific remediation plan needs to be launched at the earliest to safeguard the thousands of quality jobs and the future of so many of our students that depend on Malta’s reputation.
It is also time to reflect and rethink our current economic model. It is time to start building tomorrow’s economy, today. And this is precisely why this is no ordinary budget year.
As a main architect of Malta’s modern, diversified and service-based economy, the Nationalist Party is determined to constructively contribute to the national debate by offering an economic vision that is people-centric, resilient and future-proof.
Whilst recognising the fiscal stimulus packages launched by the government over the past months and their cushioning effect, we are convinced that, as we enter 2021, more economic sectors will require additional support packages. While these packages need to ensure that employees are retained and retrained where necessary, we cannot afford to lose sight of the horizon because, one day, this virus will pass and we need to prepare for that day.
In our pre-budget document, we focus on both fronts.
We are after sustainability and inclusivity. We are after quality and not quantity- Bernard Grech
Our short-term focus is to support companies going through their darkest hours through a number of support measures. We are not only proposing for them to continue operating as they were before but we are proposing a host of measures and incentives to help businesses to reinvent business models, transform themselves and invest in their future.
Our incentives are focused on both the core economic sectors but also the nascent sectors with a focus on start-ups, research and investment. We also state our intention to enable the creation of the green economy and, to this end, we propose various measures to kickstart this economic sector that can translate into quality jobs and a healthier environment for all to enjoy.
In this document, we also propose an initial framework for a renewed long-run masterplan for Malta’s economy.
Our pillars are simple: diversification and transformation, digitalisation, development in education and talent, a green renewal and governing as governance.
In the coming months, the Nationalist Party will be expanding much more on these pillars as we want to start embracing the future from today.
In all of our document, inclusivity has been a key tenant. We believe that the measure of success of any economy is not headline statistics but the inclusivity of its economic base, the distribution of wealth and the ability for everyone to succeed. It is precisely for this reason that we are actively proposing the concept of the living wage.
It is, therefore, an honour for me to have launched an economic pre-budget document that is short-run focused as much as it is long-run focused.
We are after sustainability and inclusivity. We are after quality and not quantity. We are after an economy that views the environment as its partner and not as its victim. We are after an economy that transforms itself, is future-ready and truly becomes a digital society where citizens, businesses and other organisations can truly reach their full potential.
Our pre-budget document’s tangible measures are aimed at stimulating, yet, transforming the economy.
Measures that equip our workers with the right skills to ensure their inclusivity in tomorrow’s economy.
This document and its proposed long-term masterplan for the future are a tangible expression that the Nationalist Party is guided by the belief that we need to build an economy that works for the people.
Bernard Grech is leader of the Nationalist Party.