‘Next government must restore reputation on good governance’

MEA presents proposals

At a presentation of a memorandum to the political parties before the upcoming general election, the Malta Employers Association explained that the Malta is ‘living in a paradox’ since while the elections are occurring at a time of positive economic performance, there also serious questions concerning the ethics and good governance of the current administration.

“Corruption – even if only perceived – is not good for business. Our international reputation will only be secured if we can ensure and demonstrate that our institutions have strong values and ethics,” it reads.

There were a number of fault lines that needed to be addressed namely that the country would not be available for EU structural finding post 2020; that tax incentives which have attracted financial services and gaming will be reduced; and the drop in national revenue once sale of Maltese citizenship subsides. The memorandum also called for an impact assessment of electoral promises.

MEA Director Joe Farrugia said during the presentation that “political parties must be open and rise above the worrying trend of populism.”

Governance

The MEA called for parameters on the number of positions of trust within government departments, and that any person of trust would need to be subject to a periodic audit by an independent board to justify their position.

The association also called for twothirds majority approval for any key appointments.

On to the issue of contracts, the MEA said that all contracts entered by Government with other parties should be made public within three months; and that it should be illegal for the government to enter into binding agreements with entities whose ultimate owners are unknown.

Parliament

To introduce a Parliamentary system of full time members, which would be reduced to 41 members; and for ministerial salaries to be increased to that of CEOs to ensure that the highest quality of individuals take up the position

Education

The MEA memorandum criticised the fact that while Malta had the highest percentage of education expenditure to GDP in Europe (5.5%, 1.5% for tertiary) it still has a high number of school dropouts and a low percentage of persons who complete tertiary education.

The union called on the government, be that PN or PL, to determine socio-cultural factors that contribute to such a low achievement, and to encourage students to follow in demand disciplines.

Health

In the health sector, the MEA called on the government to increase incentives for Private Public Partnerships to utilise existing and future stock of hospital beds.

The association also said that the current provision of free medicine is wasteful, and patients should pay for the stock to be reimbursed by the Government later.

Air Malta

Decisive action needs to be taken for Air Malta, and the airline cannot remain a tool in political football, the memorandum says.

The MEA suggests that in the absence of a foreign strategic partner, the airline should be financed by raising domestic capital.

The airline also needed to remove inefficiency, change in work practices and industrial relations cultures before it could find investors.

Employment

The MEA highlighted delays experienced by Third Country Nationals in the processing of work permits.

The association also called for the enforcement of legislation on illegal employment practices and the black economy.

It also highlighted contentious examples of unqualified incompetent persons holding positions of trust with a lucrative remuneration package who are not held accountable for by actions they take which negatively affects employees.

Leave

Mr Farrugia said that in the field of leave employees enjoyed cherry pick- ing the best conditions around Europe and comparing them to Malta without examining the whole package.

He said that if people wanted more family friendly measures that they would have to have fewer public holidays.

Welfare, social, and pensions

In the field of social policy, welfare, and pensions, he said that the system needs to become a culture of enablement and not entitlement.

He praised the government for removing abusers and helping them find work, but maintained that the labour market mechanism cannot be expected to address poverty.

“Employers and unions cannot be expected it take the burden of resolving poverty brought by industrial relations and collective bargaining structures.”

Social housing, the memorandum says, should be used exclusively for the purpose to which it is intended, and the residents should be periodically assessed to see if they are still entitled.

The MEA, he clarified, was still against the introduction of second pillar pensions but advocated incentives for third pillar financial products.

Social Dialogue and Equality Act

The union once again reiterated its position that certain amendments needed to be made to the Equality Act to protect employers. However it called for revisions to the EIRA, and a major reform to the industrial tribunal.

Energy and green issues

An apolitical energy strategy which focuses on generating the cheapest electricity possible. The MEA also called for a common rate for commercial and residential use.

It also insists that transport should be made a priority in the next legislature.