Chamber of Commerce calls for emergency fund to safeguard businesses experiencing coronavirus-related slowdown

The Malta Chamber of Commerce has called for an emergency fund to safeguard businesses experiencing coronavirus-related business slow-down.

The Malta Council for Economic and Social Development (MCESD) held an informative meeting with social partners regarding the government’s work on the coronavirus.

During the meeting, The Malta Chamber of Commerce, Enterprise and Industry underlined the concerns of the business community in relation to the coronavirus (Covid19) situation unfolding internationally, and how the uncertainty brought with it is already having an adverse effect on their operations.

Chamber President David Xuereb noted how business was voicing its apprehension as certain sectors were already being affected by hesitations or even cancellations due to fears related to travel. In order to mitigate this situation, during the meeting with all the other social partners, and several senior staff from the public service, the Malta Chamber together with the other employer organisations proposed the setting up of an emergency fund to sustain and safeguard businesses that may experience challenges in the weeks and months to come. “Such an adverse situation, if not tackled suitably and efficiently, may well spiral out of control and threaten parts of the economy leading to widespread hardship.”

The Chamber President said: “We must ensure, as we have done in past instances of extraordinary global magnitude, that strong companies are able to weather the storm and ensure they are ‘fighting fit’, with their full resources complement to continue to perform when the worst is over.”

The Malta Chamber also reiterated the position it had already communicated together with its fellow Employer Organisations, whereby all Maltese employees, irrespective of whether they are employed in the public or private sector, should be entitled to government paid quarantine leave of absence, under strict terms. The Malta Chamber noted that companies would already be facing serious productivity issues due to absence, even if quarantine leave is paid by government.

In a separate statement, the government said it felt that it was pertinent that social partners are informed on the ongoing preparations at a national level. The meeting was led by the MCESD Chairperson John Bencini.

In his address, Minister within the Office of the Prime Minister Carmelo Abela stated that the government is addressing this issue in a serious manner. He stressed with social partners that “whilst we have to be prepared at our utmost, alarm should not be created. We should be coordinated not only as a government, but also as social partners.”

Minister Abela called on social partners to pass the message amongst their members to follow the health advices emanating from the Department of Health. He added that they should not to rely on speculations, but rather on facts.

The Principal Permanent Secretary Mario Cutajar gave an account of the coordinated work being held between government ministries at a national level for any eventuality. He explained that, while Cabinet has already appointed a strategic committee led by Deputy Prime Minister Chris Fearne, an operational committee in the Office of the Prime Minister has been formed to coordinate, together with the Ministry for Health, the necessary work related to coronavirus.

“Through this operational committee, led by Principal Permanent Secretary Mario Cutajar, stem a number of working groups which are meeting on a regular basis to tackle from the communications aspect to economic and commercial activity, essential services and transport, among others. Furthermore, widespread preparations are being carried out by the Ministry for Health in public hospitals and other services it leads,” the government statement read.

The Superintendent of Public Health, Professor Charmaine Gauci, explained the plans of the Ministry for Health in terms of precautionary measures and information campaigns about the mitigation actions against a Covid-19 outbreak, in particular at points of entries and random testing.

Gauci remarked on the important role that social partners have to play in the control of the virus. She called on social partners to appeal to employers not to allow sick people to report to work, but to opt for telework instead. She said that employers, in cognizance of employees who visited locations where there is transmission of Covid-19, should put into place the voluntary quarantine system. She also appealed to organisations to prepare risk assessments and internal mitigation plans.