The survey shed light on the current state of play of the catering industry as a whole, from fine-dining restaurants to kiosks.

In response to the results, the ACE said that though an increase in demand requires an increase in supply, the sector faces serious challenges spanning from harsh competition due to “enormous oversaturation”, the BCRS system and legislation issues.

Matthew Pace, ACE Secretary, said that the survey highlights the fact that the catering industry is facing “enormous oversaturation”, something not helped by the excessive issuing of licenses by the Malta Tourism Authority.

The authority has a flawed approach, Pace said, of even placing five restaurants in a hotel under a single umbrella licence.

Pace added that the sector also faces the problem of having many employees who lack the necessary skills due to previously unregulated temping agencies.

He said that while the Skills Pass Initiative had a “spot-on” agenda, its implementation has “excessively burdened the industry.”

He explained that due to the poor income of the workers requiring the pass, in order to retain employees, business owners have ended up paying for Skills Passes themselves since the employees couldn’t afford it. He added that the cost of the Skills Pass will show its effect in the next survey of this kind.

Pace also aired his grievance with BCRS Malta which he said also burdened the catering industry despite many consultations. 

He described the “laughable scenario” which meant that stores that are meant for raw materials and stock are now being used to house and sort the different types of waste that goes to BCRS and that which goes to WasteServ.

He emphasised on how fragmented waste collection is currently and said that it is both logistically and financially “not doable.” He added that recently BCRS sent an email to all its business customers to inform them that should recyclables beyond the scope of BCRS be sent the will not be refunded and will furthermore face a fine. 

Statistician Vincent Marmara, who carried out the survey, said that it was interview-based with a sample of 200 people in the catering/restaurant sector, owning 338 establishments in total, using the year 2020 as a baseline.

Marmara said the study found that revenue remained generally stable, with 27.8% saying there was no change in it, but there was a slight average decrease of 1.1%.  This was attributed to inflation and the increased Cost of Living Allowance (COLA).

Marmara added that when forecasting revenue between July 2024 and December 2024, 39% of respondents expected to make less revenue though 60% expected an increase.

He continued that respondents saw a 3% decrease in profits with the customers spending an average of €25.89. That said, he said that this varies according to the establishment: in fine dining establishments, the average customer spends €55 whilst in others, such as kiosks, that figure stands at €10.

The survey found that 56% of respondents made an investment in their business between July 2023 and June 2024, and 20% are willing to invest in the next 12 months. The survey showed that 21.5% of respondents undertook new ventures within the same 12 months of the calendar year.

Marmara concluded by saying that this study was the first of its kind and with future, regular surveys planned more information and even trends can be gathered for better forecasts and a better indication of the industry’s progress.

Alan Abela, a Partner at Crowe Howarth Malta, said that with an increasing demand in the catering industry the supply should increase with it. Having said that though, he pointed out that this is not easy due to the steep competition in the industry. He added that the figure showing investment into present catering establishments, as opposed to new ventures, is partially due to fine dining restaurants having to keep up their standard.

Abela pointed out that the sector faces other challenges such as issues with cash flow, ever-tightening legislation and question marks surrounding employment. He said that he wonders whether the step forward is de-legislation.

Abela suggested that the sector should regulate itself and not have the government regulate it.  This is because, he continued, owners know what is best for their business and governmental regulations are proving to be a burden on the industry. As things stand, “legislation is strangling the business”, he concluded.

Abela concluded by saying that though quality tourism is on the national agenda, for it to be realized professional restaurateurs must invest more and a dialogue with the authorities must be opened for high quality that is sustainable.

The post Catering industry facing ‘enormous oversaturation’, skills pass issues and licensing problems – ACE first appeared on The Malta Business Weekly.

Addressing the event, MEA President Joanne Bondin said that an aging workforce and the skill shortage spanning the whole economy are issues of “paramount importance” and that the promotion of senior employment is not only a necessity but a strategic advantage since it can decrease the need for foreign labour which is “not sustainable”.

She said that “silver jobs” are “central” to this strategy and the experience of the aging workforce accumulated over years cannot be wasted but injected into businesses to retain knowledge.

Bondin said that as a country an “adaptive approach” must be taken to address the demographic shift of the workforce and that government initiatives must be enforced to ensure long-term success. She concluded by saying that the aging population is not a “challenge to be overcome”; rather, an opportunity that should be embraced since it can lead to a more stable and inclusive labour market with a thriving workforce despite demographic changes.

Director General of the MEA Kevin J. Borg stressed that the aging population is not “just another research topic” but a “pressing issue that demands our direct attention” with action being necessary and urgent. He said that the ultimate goal of the round table conference was to share ideas for lasting and workable solutions for the aging Maltese population to shape the future of the labour market that may then be put into one document.

Borg said that early retirement must be discouraged before clarifying the MEA’s stance on the promotion of work past the retirement age, stressing that it proposes this on a voluntary basis. He said that this may be done through the promotion of part-time ‘silver jobs’ facilitated by job-sharing and telecom accommodations.

Borg said that apart from tax incentives for ‘silver jobs’, current “fiscal anomalies” must be “ironed out” as they are discouraging to the workers. He said awareness must be raised on the importance of ‘silver jobs’ as well as the promotion of life-long learning so that older workers will not feel “irrelevant to their younger colleagues”.

On the other hand, Borg gave importance to the workplace conditions for employees bolstered by employer incentives for an ergonomic workplace since it was found that older workers tend to retire earlier due to physical conditions caused by poor ergonomics.

JobsPlus CEO Celia Falzon said that though Malta has a higher life expectancy than the rest of the EU, the Maltese work-age bracket is lower than the EU average chiefly due to the traditional disparity between the genders, with fewer female workers, since they are only recently joining the labour market, meaning that attention must be paid to future findings.

Falzon said agreed with Borg’s view on the raising of awareness pointing out that an open call for the Mentorship Programme at JobsPlus remains with only one mentor available. She said that JobsPlus offers tax deductions and subsidies for employers who take older workers on board, as well as free training services to keep up life-long learning.

Falzon said the MEA’s proposals must be “delved into further” and noted that the market must make use of what is already available and make it more accessible. She pointed out that a change in culture is “crucial”, stressing that persons around 50 years of age are not “useless” due to the perception of that changing jobs is difficult, meaning that they are anxious that they will not find new employment. She added that the health of the workforce must be given importance “from day 1” since it will eventually lead to a healthier older workforce.

Identita’ CEO Steve Agius echoed Borg’s sentiment on local workforce planning and stressed that the approach to the workforce cannot be “one size fits all”. He said that entities must collaborate more for example, through data-sharing to make workforce forecasts especially in the construction sector. He added that those sectors requiring a skill set need most attention and stressed the use of models in policy-making to steer towards evidence-based decision making.

Galea said that despite the 65 years retirement age, if people are strong enough, the elderly should still be allowed to work, adding that employers should be pleased to have such experience in their business that can be passed on in practice to the younger workers. He added that he cannot see employers “saying no” to older workers.

Keith Bartolo from the OPM pointed out the responsibility of employers to respect the wish of employees who wish to retire and help them transition to a new, healthy life outside the workforce. He also pointed out that older employees have additional issues to their younger counterparts, chiefly care-giving despite free childcare and active aging services.

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“Given the discrepancies observed in the past ten years, it is imperative to re-evaluate the methodology used to calculate COLA and make necessary adjustments to ensure a more accurate reflection of inflation rates. The revision process should involve comprehensive analysis and an exercise aimed at reaching a social agreement between social partners and engages the relevant stakeholders,” its document containing proposals for the upcoming Budget reads.

The Chamber says that the COLA has been in place for several years without significant updates, “and there is growing evidence that it is becoming more difficult for the mechanism to adequately addresses the needs of various social classes. Therefore, a comprehensive reform of the COLA mechanism is essential.” It said that it is essential to engage field experts to conduct a comprehensive analysis of the existing system.

Consideration should be given to varying the current compensation system to levitating it towards more of a means tested system that would better address societal needs, the Chamber of SMEs said.

“Following on the above-mentioned point, the system could be even more aggressive in certain respects and compensate lower income earners with a higher COLA percentage, ensuring that those most vulnerable to inflationary pressures receive adequate compensation to maintain their purchasing power. Beyond a certain income threshold, COLA does not significantly affect individuals’ spending power or quality of life. Therefore, high-income earners (Euro 60K +) should contribute to alleviating this burden by receiving a reduced or no COLA adjustment.”

It also made proposals regarding the distribution of the COLA burden. “Recognising that inflation is a national and international issue not solely attributable to employers, we advocate for distributing the burden of COLA across all businesses, rather than solely on those employing workers.” It said that introducing the concept of a COLA fund, “funded by contributions from businesses as a percentage of their annual revenues, would enable a fairer distribution of the cost burden. This would include all registered enterprises, including foreign-owned and holding companies. Once spread across a wider spectrum, businesses would have to pay a relatively small contribution.”

During the press conference, the Chamber of SMEs also said that there is no room for governmental interference in business for example in particular markets. They said that government’s interference may compromise Malta’s competitivity in a difficult time.

President of the Malta Chamber of SMEs, Paul Abela, said that it is not the government who should decide on matters of business, such as deciding which sector has added value, and shouldn’t intervene. He said that at most, it may do so through Malta enterprise since as things stand, following the economic boom with an influx of profit, the country is set to face serious foreign competition and government intervention in the market would compromise Malta’s success.

Chamber of SMEs Council Member Beppe Muscat said that the Budget proposals fall under four pillars.

Muscat said the first was incentivising investment since small businesses do not receive much investment from the private or public sectors. He said that the public has a perception of business that it is not “genuine” when in truth, “the absolute majority is genuine, it employs many people and solves social problems.” He added that the latest SME barometer found that SMEs are concerned about investment.

Muscat said that for this reason, they proposed the reduction of the corporate tax rate, currently standing at 35%, amongst other things on condition of compliance. He said that such proposals are intended to be sustainable, leaving more money in the hands of businesses, whilst addressing the problem of compliance. Furthermore, he said that they are intended to address the “anomaly” of the “unfair playing field” for the Maltese regarding foreign businesses.

Muscat made it clear that the Chamber does not support those who receive frequent direct orders and unfair tenders but represents “genuine” business. For this reason, he said that the proposals advocate for the best quality as opposed to the best price when it comes to tenders. Other proposals included some aimed at small businesses as well as a Public Procurement Ombudsman.

Muscat said that the second pillar centres around business turnarounds, pointing out that some small businesses are still recovering from the hit they took in the COVID period. He explained that these businesses find no support from the private sector and wariness from the banks.

In light of this, Muscat said that they proposed a ‘Business Turnaround Grant’ for such businesses to allow them to hire experts to help them restructure and make a good turnaround, showing promise of being profitable once again and safeguarding employment.

Muscat said that the third pillar focused on micro-enterprises (businesses employing less than 10 people) and small businesses which make up over 99% of the business landscape in Malta and are important local employers. He said that despite this, such businesses generally feel forgotten after the yearly Budget despite their importance to the economy.

For this reason, Muscat said that they proposed a permanent secretary for this purpose and to address the needs of small-businesses and the self-employed. He said that they also proposed to make grants and schemes more accessible to small businesses for example, the highly successful Micro-Invest Scheme, and so increase tax credit.

The final pillar which addressed the changing work landscape, was based on research which found that 47% of jobs will cease to exist and 85% of future jobs are yet to exist, due to the rapid advances in technology, Muscat said. He pointed out that such a great change must be anticipated and turned into an opportunity by prepared stakeholders.

Muscat said that for this purpose, the Chamber proposed a taskforce focused on this change that may eventually issue a national and holistic vision that involves everyone, emphasizing that it cannot be partisan.

Muscat said digitization needs a change in Maltese mentality for which they proposed grants for the Maltese to attend international conferences so that Maltese businessmen can bring knowledge back from abroad and follow international trends. In the same vein of digitization, the Chamber proposed digitization of tax ahead of an EU directive which will enforce it by 2028. 

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She spoke during the presentation of its Pre-Budget 2025 document titled ‘Time up’.

The Malta Chamber is urging the government to ‘connect, plan and reform’.

Accompanied by President Chris Vassallo Cesareo and several Council Members, Portelli emphasized that while economic indicators like GDP growth, per capita income, and unemployment rates are important, “they often fail to capture the broader societal costs of pursuing growth at any cost – a hallmark of the current economic model.”

She stressed the importance of shifting from a superficial assessment of economic performance to a broader and deeper analysis of the population’s well-being, now and in the foreseeable future, “to ensure that economic policies prioritise sustainable development and enhance the quality of life for all citizens.”

Portelli further highlighted the need for diligent management of taxpayer funds, underscoring the Government’s obligation to ensure a good return on investment and “avoid wasteful spending that provides little or no value to taxpayers.”

In his opening statement, Chamber President Chris Vassallo Cesareo stated that it is crucial to move away from labour-intensive activities to an economic model that is not dependent on population growth. It is also critical to invest in worker training and upskilling, as well as to invest in technology to boost efficiency and increase productivity, he said.

The Malta Chamber identified 12 key policy areas requiring urgent attention, with three critical proposals outlined for each. The 12 key policy areas are: 1. Competitiveness 2. Fiscal Discipline 3. Utilities 4. Renewables 5. Traffic Congestion 6. Sustainable Tourism 7. Planning and Upkeep of Public Areas 8. Value-Added Employment 9. Third Country Nationals (TCNs) 10. Low Income Earners and Pensioners 11. Public Procurement 12. Proper Enforcement of Laws and Regulations.

With regards to ‘Traffic Congestion’, the Chamber said that the overarching goal is for a strong infrastructural foundation to address the root cause of the problem, instead of expanding road networks to accommodate more private car commuters, whilst improving a mass transport system. This may be done through the Introduction of an “e-mobility wallet” by which the government allocates an annual amount to every e-wallet to be used for various environmentally sustainable or shared transportation options by land and sea, it said. Following the introduction of parking fees in central urban areas, the fees paid would be returned to e-mobility wallet for use of sustainable means of transport. Furthermore, the Transportation Deduction Act to encourage more car-pooling should have its number of pooling employees decreased and an overall improvement of the public transport service for all workers, it said.

For ‘Sustainable Tourism’ though Malta is a unique destination, to remain competitive against other competing Mediterranean countries quality should be sustained throughout the supply chain, the Chamber said. It added that a moratorium on applications for tourism accommodation to prevent oversupply and boost quality is recommended, as well as clear policies for encroachment with no room for interpretation.

When it came to ‘Planning and Upkeep of Public Areas’, the Chamber said that: “the ad hoc planning approach adopted over the years has uglified Malta” and for this reason SPED 2015 must be reviewed immediately and in tandem with a review of clear planning policies which align with it. Furthermore, it recommended that systematic, cleaning is necessary and ideally more centralised as it is currently “sporadic” and under a number of governmental remits, it said.

With the aim of a new economic model for Malta pointing towards a high value-added economy, the Chamber said that Third Country Nationals (TCN’s) must be capped by a percentage that the business can employ, unless such work is essential such as for the healthcare system. This will, “Ensure the right balance between human resource needs and the country’s capacity to accommodate them sustainably”, it said. Furthermore, whilst temping agencies must be continuously monitored, employment licenses should be extended by 3 years under a permanent employer, it added.

The Chamber also recommended that Low-Income Earners and Pensioners should receive targeted assistance to those that need it, rather than distributing handouts such as the infamous pre-election cheques. It added that the COLA should not be taxed.

For proper enforcement of laws and regulations, the Chamber recommended “Proactive, co-ordinated and unselective enforcement at all levels” and the taking of the European Commission’s July 2024 Rule of Law report seriously. Furthermore, it called for a clamp down on the “culture of clientelism” and the lack of transparency.

For ‘Competitiveness’, the Chamber said that currently, legitimate businesses are being penalised whilst those operating illicitly are being rewarded, “when it should be the other way around” and leading to an uneven playing field. It said this must be addressed. This tied in to the point of ‘Fiscal Discipline’ which aims to improve tax collection, reduction of and more value-added public spending, “while ensuring a more sustainable economic growth safeguarding a level playing field in the interest of all” by the government and public sector and not just by “well-intended consumers and legitimate businesses,” it said. 

The Malta Chamber conveyed a strong sense of urgency, calling on the Government to move “beyond mere listening and adhere to principles of good governance.”

“The erosion of good governance is severely impacting ethical businesses and society at large. Government must decisively address unethical practices that undermine fair competition due to inadequate enforcement. Ethical businesses have had enough of this unfair competition,” Portelli asserted.

This year, The Malta Chamber’s focus is twofold, it said. “First, the tangible transformation of the current economic model into a well-being economy that benefits society as a whole; and second, the elimination of unethical operators whose misconduct is undermining ethical businesses.”

The Malta Chamber said that it has consistently raised these issues in various fora year after year. While there have been sporadic improvements, much work remains to be done.”

Of the 219 proposals submitted last year, it said, only 1.8% have been fully implemented, 18.7% have been partially implemented, while 74.9% remain pending without a decision. It said only 4.6% were rejected.

The Malta Chamber of Commerce, Enterprise and Industry reiterated that over the past years, it has presented numerous documents and proposals, consistently highlighting concerns and offering solutions.

The Malta Chamber insists that “Time is up” and that  Government needs to go beyond ‘listening’. “Timely action to address genuine concerns is required. Weak policy responses to major red flags have induced a culture of complacency and lack of healthy ambition within the public sector that is impacting the performance of businesses and ordinary citizens as well. Critical issues need to be dealt with expeditiously: CPR is called for.”

The Malta Chamber of Commerce’ full pre-budget document can be read here

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In an interview with this newstoom, Callus, better known for his involvement with the Graffitti group, said he believes that many people are unhappy to live in a society which is a “competition of sorts” in the pursuit of profit or, rather, “the illusion to be rich”. He added that many people don’t actually get rich despite this “individualistic form of society”, which will ultimately not lead to happiness.

Callus said wealth is created through work; the “absolute majority of us are workers, and there can be no wealth without work”. He said that workers “are not only those that fit the stereotype of a worker with a hard hat”.

He argued the return from all the wealth that workers create is a “tiny fraction” of the capital generated. He said that within this system, the lion’s share of the wealth generated goes towards profits with “companies becoming millionaires, billionaires, accumulating more and more”.

Callus said that this is not only a matter of accumulating a disproportionate amount of wealth but also power and influence, which is particularly present in Malta. He said, in essence, the main problem is as follows: “When you have a class that accumulates so much and becomes drunk on money and power, the more they will feel that they can do anything they want.”

When asked about the role of the economy in this system, Callus said since the early 1990s Malta has adopted an “increasingly neoliberal” economic system, which allows the private sector to lead the economy. He said there is a distinction between the economy and economic growth; with “economy” meaning contribution, creation and distribution of wealth and resources. Economic growth is “just part of all this”, despite the government and the Opposition harping on about its importance. He added that a country can have a strong economy which, if managed in a fair and efficient way, does not need to grow “without bounds”; in fact, he said a high level of growth is not even needed.

Callus said that when one factors in rampant economic growth within the neoliberal system present in Malta, “it also means a widening of inequalities” with one class building up more wealth, “while at the other end, we have growing masses of workers who are paid very poorly with a level of wealth that is very low”. He said that the neoliberal model is so problematic, although in Malta this was adopted “minus the austerity part”.

Callus elaborated that other countries have also adopted the neoliberal economic model but implemented austerity measures at some point. He said, in sum, “they give to the capitalist class whatever they want, while at the same time also reducing the public spending of the State, so reducing public services, but we haven’t seen that in Malta”.

Callus highlighted that this “boundless” economic growth is not sustainable; in the first place, the economy cannot keep on growing forever and secondly, one needs only to look at the “unaffordable” property prices, with young people being unable to find a “tiny place to live in” as a “direct consequence” of this economic model, among other problems. He pointed out that another consequence of this limitless economic growth is that “the economic activity needs to go somewhere”, leading to “intensive activity, whether it’s the squares, the beaches, the construction, that is all a consequence of this economic activity that is growing and growing, engulfing whatever it finds in its way”.

In light of all the negatives, particularly social consequences, Callus was asked how a Labour government that says it aligns itself with socialist values got away with such an “individualistic” wealth-centred economic model. Callus said that the government, “did a kind of trick,” by implementing some benefits, for example increasing pensions, as well as a “level of investment” such as in education and health (despite being “very inefficient and full of corrupt practices”). While this does bring some “material benefit”, he added, “it is completely dependent on this unlimited economic growth”.

Callus reiterated that this is a “trick” however, as apart from being unsustainable, “you are still allowing a class that accumulates the power and wealth with the inequalities that bind them”. He added that part of this trick was created under Joseph Muscat’s administration when benefits were handed out but at the cost of “tens of thousands of workers working in very exploitative conditions”. Furthermore, he said it was ensured that the majority of these workers are not Maltese and so could not vote in order to “keep a consensus towards the economic system”. He reiterated that a lot of wealth is being created, however, it is an “illusion of wealth” since, a lot of it is going to a “small, tiny class”.

Callus specified that Muscat’s contribution to the system was an “intensification of maximising profits” through government policies. This allowed “anything we had a key to maximising profits, we unlocked to have an explosion of economic growth”, he said, and pointed out that clear proof of this was the privatisation of land and construction everywhere.

In a nutshell, Callus said the “trick” went as follows; the unchecked economic growth in the neoliberal model, sans austerity, is sufficient to increase social benefits but simultaneously gives the capitalist class “whatever it wants” at the cost of the working conditions, especially of foreign workers, which “remain really low and very exploitative”. However, he said that the trick worked for the short-term and finally, the Maltese are realising that while wealth is being intensely generated, little is going towards them and they have been taken for a ride.

Callus said the “tipping point” of this charade was when the inequalities in work, property and environmental destruction began to show their negative consequences and “the contradictions came to the surface”. He said: “The people started feeling that it is very unjust and that the quality of life was suffering a lot. When we talk about the quality of life, we are not talking only about the environment, we are talking also about wages and work conditions. That is just part of our quality of life.”

Callus stated that the foreign workers most affected by this economic model are those who have been “rendered powerless” by the immigration system, leaving them with little ability to improve their situation in Malta. He explained that, generally, foreign workers are here on a single permit with the employer “having all power over them”, since their residence permit in Malta is tied to their employment contract with the same employer. “So, they are paralysed because the moment they try to complain for basic decency, the employer could simply not renew their contract, which is for one year, and therefore not renew their residence permit in Malta,” he said. He added that “if their employment is terminated, they have just 10 days to find alternative employment, which is basically impossible, or become illegal in Malta”.

Callus said the recent strike of Bolt couriers was an eruption of this frustration. He pointed out another facet of the economic model. “Part of the system that was created was to have employment laws, regulations and enforcement that are very poor. This led to the proliferation of agencies and employers that do not produce anything but bring over foreigners to work here with low wages and poor conditions.” He stressed: “The problem is that these workers cannot do much because the system is designed to make them powerless.”

Honing in on the grievances of the Maltese people, specifically, on feeling the consequences of the economic model, Callus clarified that while foreigners may face “the most extreme forms of exploitation and the cheapest wages, it doesn’t mean that the Maltese are not experiencing rising exploitation and low wages”. He said “many Maltese are realising that their wages haven’t grown much in real terms, meaning what you can do with this wage”.

“Despite all the claims of an ever-growing economy, it’s evident year after year that Malta has one of the lowest real wage growth rates in the EU, meaning the actual purchasing power of wages remains limited,” he said. “In fact, we are one of the worst countries in the EU regarding the value of wage and when considering the cost of living, inflation and how debt is increasing, there is a huge discrepancy with the increase in workers’ wages”.

“When you consider the cost of living and the cost of housing, again, because of this economic model, they [workers] are finding that to have a roof over their head is becoming unaffordable for them. This is because we have a property market that is dictated not by the common good, but just by profits,” he added.

When asked to comment on the recent drive towards “skilled” workers, Callus said that “the problem with that kind of discourse is that having more skilled workers will not solve the contradictions and issues that we currently have. It’s not a silver bullet”. Ultimately, he said that the education of workers is not the solution to the economic problems in Malta and that the main problem is inequality.

“I’m not against having skilled workers. It’s important to invest in education, to improve the skills of workers. However, having more skilled workers will not solve the levels of inequality that we have because they are political and economic issues.” He elaborated: “You will still have people, workers, who have to do a lot of jobs which are unskilled, that’s part of the economy. So, of course, it’s good that the country has invested in human resources but it won’t change the injustices in the economic model that we have.”

Callus said that “to solve this issue, we require political will in terms of legally improving the conditions and the wages of workers to make sure that the wealth is fairly distributed. So that whatever is created through work is not so disproportionately going towards the capitalist class but towards the workers. This will also require amending taxes, I would say”.

When asked to elaborate on his view on taxation, in light of recent governmental promises of cuts on income tax and the PN advocating for no taxation on the COLA, Callus said that “tax has become a dirty word in Malta. Both the political parties say, ‘no, we will never raise taxes’. But taxes are important. If we are going to have hospitals, education, infrastructure, anything, you name it, that is through government revenue via the tax system”.

“Those who have very high income, let’s say €80,000, €100,000 or €200,000, they are taxed at very low rates, so currently there is a very low ceiling. Meanwhile, those on a middle and low income shouldn’t be taxed more.” He added: “We do not have any tax on wealth. Neither do we tax those big businesspersons with widespread property, and who continue to accumulate more property, for rent.”

In conclusion, Callus said that he is “satisfied” that the Minister for Finance, Clyde Caruana, as well as the PN, are both lobbying for a new economic model but pointed out that there has been a lobby for this change since the Muscat legislation.

In anticipation of certain people who would brush off Callus’ analysis by calling him a “Communist”, as was done in the past, he was asked for his defence in advance. Callus said: “I’m a Leftist. I would say I’m a Socialist, in its broader term. Now, when we talk about Communism, that is a very specific ideology and system and while there are parts of that which I identify with, there are others which I do not. So that’s the only reason why I do not identify as a Communist.”

“The socialist system should be an alternative to the capitalist system we have now, which passes profits to the hands of private companies. The way wealth is created and distributed should not be done simply to maximise profits, but to achieve a society that is better for everyone. A society that meets the needs of everyone and that enables everyone to prosper, to work in dignified conditions and to have a good quality of life.”

Callus said he appreciated that both government and the Opposition had started a debate about Malta’s unsustainable economy, though he stressed the need to improve the quality of life and control economic growth. While he said that the current political discourse makes sense, “to a point”, there have been no action whatsoever to match it.

Callus said policies and practices that are “totally and exclusively” aimed at making the economy grow without limits are still being implemented. Furthermore, the incentivisation of every type of economic and commercial activity with the same policies on wages and taxation show, “there was no change. We kept going in the same direction of just burning everything that we have for the sake of economic growth. For profit”.

Regarding the PN’s proposals generally Callus said: “If you try actually to squeeze what they’re saying and see what comes out of it, they’re not saying much. They’re not really proposing any different direction than the one we have now. I think it’s quite similar to what the Labour Party is doing; they keep using these buzzwords like ‘skilled workers’ and ‘new economic sectors’.” The similarity doesn’t stop there, however, he said. “This is a problem, I think, that the parties have faced for a number of years. They have become so similar in terms of ideas and policies that now the people want a difference. I don’t think even one of the two big political parties is managing to articulate this alternative”.

Elaborating on the people’s need for an alternative, Callus said: “In the 1990s, the 2000s, up till I would say, even after the election of Joseph Muscat, there was a consensus on the economic model. We weren’t happy with it, there were hardships and problems and we were active in highlighting and addressing them but there was a majority comfortable with it. But now there is a great thirst by the Maltese people for a change, an alternative to what we have.”

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