Former Chamber president says health system ‘is a failure’

Malta's health system "is a failure", according to retail entrepreneur Reggie Fava and government must take "some bold decisions".

Speaking during a pre-budget meeting with Finance Minister Edward Scicluna, Fava said he was "impressed" by how businesses were growing but certain sectors still needed bolder steps.

"Our health system is a failure. We have turned the President of our Republic into a beggar. She is on a daily basis begging for money to help those in need and to help pay for medicines essential to cure the sick," Fava said, somewhat passionately.

"I would like to see the governemnt taking some bold decisions."

Fava went on to add that the "feel-good factor" registered by businesses was not being felt by the lower middle class. "People in retail survive on these people but they are not feeling the change," he said.

Arguing that the health system was "not free", the finance minister spoke of the need to incentivise people to opt for private insurance. He went on to argue that people still preferred giving money voluntarily rather than being taxed and there was nothing wrong with donating money.

"But you don't need to beg and I agree that we need a system in place ... We are working on that," he said, referring to how and which medicines are provided for free.

'A burden that needs to be paid'

GRTU president Paul Abela repeated the chamber of SME's call to reduce energy bills by 30%.

"Given the international price of oil, the use of the interconnector and the BWSC efficiency, which is saving €1 million a month, I think our request is more than conservative," Abela said.

The Finance Minister however poured cold water over the proposal, explaining that the savings were being used to pay bank loans and interests owed by Enemalta that have been accumulating since 1998.

"In 1998, the PN government wanted to invest in energy and build the Delimara power station. It was a decision to invest in energy and they decided to finance it through a German development bank. It was a bullet loan and they didn't have to pay the loan until December 2012 arrived.

"Along the years, Enemalta neither paid for the capital, nor for the interest. Facing €830 million in debts, the government in 2012 needed to create a laborious special purpose vehicle. It was on the verge of defaulting and couldn't pay the German bank. This meant packaging the debt and borrowing money to pay the German bank.

"In Opposition, we approved it because we couldn't let Enemalta go bankrupt. A €300 million guarantee on the SPV was made: this is scandalous, telling our future generations to pay for something that won't be there."

Scicluna went on to add that whilst there were benefits of using the interconnector, "there is a burden that needs to be paid".

'Break the glass ceiling'

MCWO chair Lorraine Spiteri urged the government to incentivise and help women break the glass ceiling. While noting that family friendly measures had led to a drastic increase of women joining the workforce - partly the reason for Malta's economic growth success - it was time for more women to be in decision-making positions.

Another pressing matter was the women's role in entrepreneurship and how many women remained invisible despite supporting both the family and their family business.

"Women should realise that the business world can give them a platform," Spiteri said, suggesting the setting up of a unit within Malta Enterprise that would study the hurdles faced and draft long-term programmes and initiatives.

Spiteri went on to call for increase in funds to continue combating domestic violence.

'Balance the books'

Acting MHRA president Tony Zahra told the minister that this was the right time to balance the books.

"Our economy is growing, providing the perfect platform for government to carry out cuts. The money we owe is going up. Ireland went through an economic growth just like us, and it was after a slowdown that it implemented cuts. We must do it now. It might not make politicians popular, but I'm not a politician," he quipped.

Contrary to the GRTU, the MHRA did not call for a cut in tariffs but for schemes and incentives that would help businesses invest in sustainable units.

"We need to move forward and take initiatives to make our operations more efficient. Hotels are investing in upgrading their systems and what we need are incentives."

Zahra warned that Enemlata was the key to the island's success: "If we get it wrong, we get the whole island wrong."

'Ministers must be aware of their cost'

Briefing the stakeholders on the government's budgetary vision, Scicluna gave an overview of the various sectors that have seen the local economy grow. The minister argued that despite "the situation at ST Microelectronics", manufacturing had for the first time registered an increase.

ST Microelectronics, one of Malta’s leading exporters, re­ported a loss of €23 million in 2014, a dramatic result for a company that reported a profit of €127 million in 2011.

In 2012, the company’s profits fell to €113 million but by 2013, the company reported a profit of just €12 million.

Scicluna said that schemes implemented by the government to help curb the rate of unemployment had worked: some 2,000 long-term unemployed and 1,800 who receive or are dependent on on social benefits have joined the workforce.

For the unemployed aged under 23, the government made it mandatory for them to join a training programme if they were to receive social benefits.

"You can't stay home playing gadgets forever," the minister said, repeating one of his favourite phrases when talking about youth unemployment. He boasted of Malta's top position among the EU as far as tax burden on labour is involved.

Health and education remain "the big gobblers of resources" with the minister noting that an investment in education sees a long-term return.

In a bid to better manage the country's finances, the Finance Ministry is also drafting a list of indicators by which all ministers would know how their ministry, their work and what they request cost.

"Ministers must be aware of how much they cost," he said.