[WATCH] Shipping costs faced by importers cannot be solved through government funding alone - Miriam Dalli

Enterprise Minister Miriam Dalli says shipping costs and logistic problems faced by Maltese businesses must be solved through ‘tangible investment’ not government funding alone

Enterprise Minister Miriam Dalli says government is discussing with stakeholders the best way to mitigate the higher costs of shipping
Enterprise Minister Miriam Dalli says government is discussing with stakeholders the best way to mitigate the higher costs of shipping

Updated at 2:30 pm with PN reaction 

Higher shipping and logistics costs caused by the COVID-19 pandemic for Maltese businesses cannot be solved through government funding alone, Enterprise Minister Miriam Dalli said.

“Solving the issue of logistics costs will not come from funding alone; that is not the solution,” she said

On Saturday, the Nationalist Party said that it would be spearheading an effort to petition the European Commission in approving a state aid fund of €40 million for Maltese businesses and SMEs whose shipping costs increased drastically over the course of the pandemic.

MP Jason Azzopardi said transportation costs and logistics had climbed 500% for Maltese businesses whose importation of a container from China now costs €11,000.

But the Enterprise Minister said that funding alone would not solve the issue, and she, together with the government, is discussing with constituted bodies and private companies on “different alternatives and solutions”.

“To just pump money thinking you will solve the problem is not necessarily the solution, and it is not just me who is saying this,” Dalli said. 

She said stakeholders are helping the government in identifying the issues which need to be addressed. 

The minister insisted that attracting investment to the country would be a step towards addressing the issue.

“The issue of logistics goes beyond just funding, and we as a government, and myself as the responsible minister, are working towards creating alternative solutions, and more importantly to attract tangible investment,” she said.

PN reaction

Reacting to the minister’s statement, the Nationalist Party reiterated its call for the government and opposition to come together and make the case to the European Commission for State aid to be granted.

“With what Minister Dalli said this morning, it seems that either the Government does not understand, or want to understand, or is unable to understand the problem,” the PN said.

The party called on the minister to ignore “partisanship” which will not help the Maltese industry.

“Let us work together to convince the European Commission,” it said.