Reducing the burden on SMEs

The overwhelming majority of businesses in Malta are what we call SMEs - small and medium sized enterprises. These businesses form the backbone of the Maltese economy and play an important role in the economic cycle of the nation, both as regards employment and overall business confidence and growth. It therefore makes a lot of sense for the government to focus on the needs of such an important sector as well as try and reduce, as much as possible, whatever bureaucratic burdens are hampering the progress of these businesses.

The setting up of the Small Business Efficiency Unit is a step in the right direction. Last Monday the parliamentary secretary in the ministry for economic services, Edwin Vassallo, who is responsible for the self-employed sector as well as small businesses, gave a very interesting speech during Parliament's adjournment on the need to reduce excessive bureaucracy on SMEs. Mr Vassallo no doubt has first hand experience of the difficulties that SMEs go through every day because he himself comes from this sector; he is therefore well qualified to identify such problems.

Mr Vassallo rightly pointed out that the self-employed sector should be encouraged to develop its potential but he also said that unfortunately some businessmen expect the government to do everything for them. He rightly appealed for a change in mentality to promote risk taking.

Mr Vassallo also called on the bureaucracy to change its mentality and to become more efficient. It is no secret that the parliamentary secretary is sometimes frustrated with the way small businesses are treated by the authorities and this was clearly his message during his parliamentary speech. One sincerely hopes that the setting up of the Small Business Efficiency Unit will go a long way towards fulfilling the needs of small businesses and providing a one-stop service to this sector.

When we talk about the business sector in Malta we must remember that there are other businesses besides the usual well established large companies in the country. There is no doubt that these companies are well connected and catered for and have a very important role to play in the economy. However, some SMEs feel that not enough effort is being made by the government to see to their needs and to encourage their growth, and it would seem that Mr Vassallo shares these views. The parliamentary secretary knows that the government cannot afford to ignore such an important sector. One hopes that Mr Vassallo is listened to.

Listen to the employers

The Malta Employers' Association has published a survey that it had commissioned among its members which dealt with the European Union's social policy chapter. Although the social chapter should not create any problems for Malta or for Maltese employers - we live in a country where there is a heavy emphasis on the social aspect of public policy, employers' have made some reasonable requests which the government would be wise to seriously consider.

Unfortunately the government's record so far in consulting employers over changes to social laws is not very encouraging. Employers Association President Victor Scicluna said last Monday that the new regulations regarding the protection of young people and maternity at work were drawn up in a hurry and without sufficient consultations. He said that the regulations contained a number of defects which could have been avoided through consultations.

This lack of consultation on the part of the government gives the impression of arrogance and only strengthens the anti-EU lobby in Malta which has accused the government of rushing to adopt EU legislation without consulting anyone, simply to please Brussels.

The Employers Association has now asked for a five-year transitional period on parental leave in order to plan properly for such a scenario. An EU directive assures individuals of a minimum three months parental leave (not necessarily with pay) in the event of the birth or adoption of a child until such a child is eight years old.

The employers are asking for this transitional period so as to avoid disrupting personnel logistics in the private sector. This would seem to be a reasonable request and one hopes that the government considers it seriously. The least it should do is to consult with the employers before adopting this particular piece of European legislation.