The Gozo Business Chamber, in a statement on Sunday, has reacted to what it describes as the, “so-called” incentives announced by the Government on Saturday in light of the Covid-19 virus.

It said that the present Covid-19 scenario has “impacted heavily on the businesses of Malta and Gozo.”

Relying more heavily on tourism, Gozo is the hardest hit, argued the GBC, adding that a number of large and small businesses are already planning a closure having their cash flow dwindling down to practically nothing.

It stressed that, “for these businesses nothing, except a heavy subsidy on wages, will keep them above the surface.”

The GBC went on to say that “it is neither just nor equitable that businesses are being called by Government to shoulder the burden of quarantine leave.”

“The call by the unions was heeded to the full and the Government acceded by transferring the problem to the most vulnerable, aiding to the collapse of businesses,” stated the GBC.

The GBC said that it “accepts positively the Government’s help in teleworking efforts already implemented by companies.”

“One must also note that this will help some sectors, but obviously cannot be of aid to all sectors especially those involved in manufacturing, retail, transport, and construction,” the Chamber added.

The GBC welcomed that the Government will be accelerating its payments to the private sector. “This is a step in the right direction,” it said.

“Although it is positive that the Government has protracted VAT and NI Contributions payments,” the GBC pointed out that “this does not help in the long run.”

The Chamber explained that it is proposing that from March onwards and for as long as this situation subsists, employers are only bound to pay 50% of National Insurance contributions.

“We invite the Government to discuss with us “a specific programme of incentives for Gozitan businesses. Gozitan businesses cannot afford more days in this situation let alone weeks and months,” stated the Chamber.

“The Government is called to act incisively by providing (together with the banks) substantial cash injection into businesses by the way of grants and loans (at subsidised rates) as other Governments are doing all over the EU,” it said.

The Chamber concluded by saying that the Government is called to consult with Gozitan institutions so that a specific package is drawn out to aid businesses on the sister island with immediate effect.

Photo by Alain Salvary

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