The Malta Council for Economic and Social Development Chairman Mr John Bencini, held a meeting with the council of the MHRA led by MHRA President Mr Tony Zahra, to discuss issues which MHRA believes should be placed on the MCESD agenda as a matter of urgency.

Mr Bencini said that MCESD should not limit itself to be a ‘talking shop’ as this would lead to an incredible loss of time and effort. Mr Tony Zahra agreed with Mr Bencini. Mr Zahra said that a number of important issues had to be addressed in the shortest possible time.

These included the Enemalta time bomb which has a number of sub issues such as the present incredibly low generating efficiency, the difference of 6 per cent between what is being generated and what is actually being collected by Arms, the need to look at Arms their workings and ensuring revenue security, the rumours about non taxed fuel circulating in Malta and other matters which have led this vital corporation to its’ present unsustainable state. MHRA has a number of times stated at MCESD meetings that Enemalta has the potential to drag Malta down if this is not tackled aggressively.

Mr Zahra also spoke about the budget deficits and informed Mr Bencini that the country does not even remember the last time it had a balanced budget. The fact that the country is not in breach if the deficit does not exceed 3 per cent of GDP is no reason for joy. Mr Zahra warned that if the interest rates were to increase by even 1 per cent the impact on government expenditure will be significant if it were to increase by 2 per cent it will become unsustainable unless severe cuts in other government spending are implemented.

Mr Zahra also spoke about Air Malta and said that if this company fails the impact on the island will be very severe. It is clear that the EU will not allow another bail out and therefore whatever is necessary to run round this company must be done now.

Mr Zahra also asserted that MHRA will support the MCESD Chairman if concrete actions are taken through MCESD to ensure that the right professional institutions are set up or strengthened to reinvent Government, that is to ensure appropriate corporate governance and organisational structures that will facilitate the delivery of sustainable and efficient public services. Reference was made to the urgent need to tackle the now much overdue issue of pensions.

Mr Zahra also pledged that MHRA will be there to ensure that the Tourism industry will not only keep on thriving but more significantly to regain its sustainability by curbing Government induced costs, by further extending the high season towards the shoulder and winter period thus creating a consistent flow of incoming tourists, and by further sustaining product Malta. “And this we will do because it is not only in the best interest of MHRA members who contribute 30% of Malta’s GDP and 35% of Government’s revenue but because it is in the genuine interest of our welfare and pride as Maltese”, reiterated Mr Zahra.

Mr Bencini said that in his role as MCESD Chairman he will push the point home that Government is the support for the engine of the economy, and not the engine itself. This must happen through appropriate dialogue between the MCESD social partners and Government leading to concrete action.

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