[WATCH] PN leader urges for further economic diversification

PN leader urges for further economic diversification • Video by Ray Attard

Speaking at the national conference by the Malta Council for Economic and Social Inclusion (MCESD) at the Dolmen Hotel earlier today, PN leader Simon Busuttil said that an exercise in reflection showed that economic diversification had led to preserving the country’s economic state despite the surrounding crisis.

“Malta needs to continue diversifying its economy,” he said listing energy generation, maritime logistics, remote gaming and pharmaceutical companies among others, as examples of sectors where the country can excel.

Addressing the conference which focused on boosting competitiveness and social inclusion, Busuttil said that the two topics were inextricably linked and that an economy cannot be considered strong and healthy if it doesn't effect all of society.

Busuttil added that when the economic crisis had plunged the rest of Europe into abject conditions, the country had managed to stay afloat against all odds thanks to its strong banking sector and the previous government’s surgical approach leading to far-sighted measures.

"We should build on these principles and qualities, but we need to understand where our economy is heading," Busuttil said adding that the country needs a plan to address sectors where the country's economy is strong or could be made stronger.

Busuttil added however, that aside from understanding what the country’s competitive edge was, we also needed to assess the risks for the economy to avoid falling into any pitfalls.

In his speech, Busuttil also criticized the way the public sector was being managed, saying that it was “bloated”, and that it was creating low unemployment rates that were “artificial” and could potentially lead to economic hardship in the future. He added that even the increase in salaries was already slowing down with the average annual wage increase dropping to €187 compared to €500 under the previous administration.

Busuttil also criticized the fact that fuel prices had not dropped sufficiently to reflect international prices;

“Our economy is more weighed down than other EU countries and competitive costs are putting us at a disadvantage,” he said. “The PN believes that we should discuss the future of the economy and understand how to develop it efficiently.”

He added that an environment where people who want to make investments were encouraged to do so needed to be created while at the same time stressing the importance of respecting the environment. Referring to the proposed American University of Malta at Zonqor Point in Marsascala, Busuttil explained that economic development should never come at the expense of the environment

“ Approving projects in ODZ areas would be like biting the hand that feeds us,” he said referring to the need to ensure sustainable development.

Busuttil also stressed the needs to address the roots of poverty and of ensuring equal opportunities for all of society;

“The culture of political dependency needs to end,” Busuttil said.

Busuttil added that the PN was working with various fora to come up with suggestions and updates for economic policies.

Deputy Prime Minister Louis Grech responded to some of Busuttil's  accusations ahead of his speech saying that everyone wished for a different way of making politics, but that it was easier said than done and that the only way to overcome economic issues was if we abandoned partisan perspectives.

“Poverty is being effectively addressed by this government which has an express aim of dropping poverty by 6,200 by 2020,” he said.

Grech denied that the majority of jobs created during these two years resided in the public sector and he stressed that competitiveness and social inclusion were two sides of the same coin.   

“The government is committed to launching programs that help boost workers’ competitive capability and encouraging SMEs to continue operating,” Grech said explaining that the government planned on using some €200 million to promote ICT and innovation among others.

“The government is committed to and determined to significantly reducing social exclusion and finding sustainable solutions to predominant issues like pensions.”

MCESD Chairperson John Bencini questioned whether the country has a true grasp of competitiveness and of the common good and wealth distribution. He said that the conference had already struck some resonant notes and highlighted some important issues.