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So it is finally done after all the talk and hype. The signing of the Smartcity agreement on Monday brought to an end the speculation and uncertainty that had initially clouded this landmark investment and the way has been laid for the start of something which can only be described as huge for this country.
Minister Austin Gatt was deservedly upbeat about this day, describing it as ‘the day when our industrial base changed forever’. Malta’s future looks away from the traditional mass-producing base to a future based on the importance of ICT as the industry of the future.
It was also heartening to note the Opposition’s presence in the form of IT spokesperson Leo Brincat who also demonstrated Labour’s commitment to the project which is crucial for the whole endeavour’s success. It is true that we rarely see eye to eye on most issues but the joining of the political class to encourage the success of Smartcity is a laudable initiative indeed, and one, which we hope, will be seen more often on matters of national interest.
So now the deal moves away from the political spectrum and begins in earnest for Malta as a whole. We expect full co-operation in all fields, be it planning, infrastructural and road works and other similar links in the chain of this massive project. It is heartening for us that we are associated with Dubai, a name that resonates with star-studded success in the construction and turnkey project industry.
Most important of all, let’s make this project a success for the thousands of children who are currently preparing to play a part in this country’s development like never before. This is a golden opportunity for our youth who will be the biggest gainers in this game. The future has never looked brighter.
As ever the voice of common sense and important warnings, Central Bank governor Michael Bonello had some important points to make in his annual statement accompanying the CBM report for 2006. Yet again, the governor points out that although wage growth has been moderate in the past year, the slippage in our international competitiveness has continued.
He goes further than that, stating that this slippage is partly due to the failure of productivity gains that are not compensating even for subdued wage growth. Yet again he points out that although membership in the single currency could be the formula for improved economic performance, the full benefits of this change can only be achieved if the necessary structural reforms are carried out.
Is there something really wrong here? We are constantly trumpeting our excellent growth levels when compared to other EU countries yet we still have the lowest female participation rate in the EU added to an abnormally high level of school leavers who leave secondary education without continuing their studies.
Another worrying observation by the Governor is the fact that there is need for more foreign direct investment to be injected into our economy. So if 2006 was supposedly a record year for FDI then what has gone wrong? Sometimes we feel that such statements do tend to be confusing especially when they contradict explicitly what our political class has been saying for a long time.
Although the governor was recently reported as saying that the construction industry does not contribute so much to GDP as perceived by many, he does sound a warning note in his report where he states a possible slowdown of the construction sector could have an effect on the stability of the domestic financial sector. This warning shot fired across the bows should not be taken lightly with the said industry growing to almost unsustainable proportions. We should take care and ensure that the bubble does not burst, as that would be catastrophic for our small economy. |
