Paving the road to recovery

Spring season is now in full swing, a time I consider to be symbol of hope, renewal, and the heralding of a new chapter. But nothing happens without the necessary effort, not even hope and renewal. These too require focused, collective, and resilient work and sometimes even sacrifice.

As Prime Minister Robert Abela remarked, in particular periods during the pandemic different decisions were needed in order to continue to protect the health of citizens and the quality of life of Maltese and Gozitans. In times when there was a need to increase restrictions and in times when there was a need to reduce the same restrictions, the absolute priorities have always been health, education, and elderly. As announced, changed related to Covid 19 measures will start taking effect as of Monday 12 April.

The strategy is to start gradually returning back to aspects of normally in a slow, cautious and responsible manner. This is being done to assure that both the lives and the livelihoods of our nation will remain protected. This Government never shied away from taking hard decisions but diligently to safeguard the best interests of the whole nation. We are defending and attacking with an aggressive vaccination programme.

During the first three months of this year, Malta vaccinated 95% of people over the age of 80. As a result, our country is 1 of 5 European countries that reached the goal set by the European Commission to vaccinate 80% of people aged 80+ by March. The methodology adopted in the vaccination programme has been commended by several international reports and EU institutions as nowadays Malta is at the top of the world in relation to administered vaccination per 100 population that have been given their Covid-19 vaccine. With care and a sense of responsibility borne by all of us, we are witnessing fruitful results. The numbers have dwindled, as people are strictly adhering to control measures.

Therefore, we do have something to look forward to with hope and courage. As a Government, from the first day of the pandemic to date, we have taken all necessary measures to protect not only the lives but also the livelihood of our people. In 2020, we announced the economic regeneration plan to support businesses, save workers’ jobs and safeguard the country’s economic wellbeing. More than a year later, we recognize that, despite the challenging circumstances, these measures have positively impacted businesses, the self-employed and workers.

Thus far we have strived and managed to bolster and sustain every one of our citizens, and we intend to continue assisting and be of support to you all.

A look at just two of the implemented financial assistance measures, namely the Covid wage supplement and the tax deferral, it could clearly be surmised that we have directly helped those businesses and selfemployed who were severely hard hit, enabling them to still be in a position to regenerate and invest in growth despite the adverse circumstances.

Statistics speaks for itself. The direct aid being provided to businesses in the first quarter of this year amounts to €70 million which includes rent payments that business owners started receiving recently, and an initial grant of € 5.5 million.

If we then look at the Covid Wage Supplement for employment protection we see that the Government has provided no less than €360 million in aid. This means approximately three percent of our country’s gross domestic product. The Government has managed to save thousands of jobs, which translates into the financial income of Maltese and Gozitan families and by extension their very livelihood.

We are and have always been a proactive Government. Hence as announced, the Covid Wage Supplement will continue to be provided until the end of the year. Government will be giving the maximum aid to companies which continue to experience the most negative impact on their revenue due to the pandemic. Through this measure and other schemes, among which those of the vouchers, reductions in electricity bills and business rents, in 2020 our country has managed to keep unemployment at a low level.

In fact, according to latest statistics released by the National Statistics Office, it transpires that last February, the number of people registering for work was 2,585, that is, 90 fewer persons than the first month of the year, when the number of unemployed was 2,675. This result in the labour sector is particularly encouraging when one notes how while in our country people working full time increased by 1.2%, the European average has seen a decrease of 1.4%. This positive development is another pointer that we are gradually resurrecting from this pandemic.

As the Minister responsible for the Economy and Industry, I am optimistic that the economy will soon be back on track. I am heartened to see the success we are achieving in the rollout of the vaccine where, through a glimpse at the rate of vaccination per capita, Malta currently ranks in as the highest worldwide.

That said, I believe that now is the time to be at our most careful and most disciplined to return to normality, as swiftly as possible.

Our economic regeneration plan is still clear and is set in motion. However, the economic pace must first pick up domestically. Then we move on to the second stage, where at international level we will start to experience progress as many European countries are steadily advancing with their vaccination rollouts, enabling immunity at European level. This will trigger peace of mind, especially with regard to travelling and consequently, work in the tourism sector will steadily commence its recovery.

Ultimately, this has been a challenging year for everyone. But now, that we can see a glimmer of light at the end of the tunnel, it is more important than ever that we do not give up. As a Government we will remain close to every member of our society and continue working towards our aim, that of creating a better today and tomorrow for our nation.

Let us recall, that this is a Government with an unprecedented track record in the achievement of Malta’s economic revival. This is the Government which has revived civil rights, social assistance and that continues to push forward an economy for the benefit of all. Prosperity that can be seen and felt in several strata of our society, through the eradication of poverty, the strengthening of social mobility, the growth of new economic niches, job creation, to global trade opportunities for our business community. This is the Labour Party in government, which will strive, as it has always done against all odds, to do right by the Maltese people, regardless of their status, political affiliation, creed or orientation.

Silvio Schembri is the Minister Economy and Industry