John Attard Montalto of Sliema writes:
The relocation of Carlo Gavazzi prompted a red flag on the future of manufacturing in Malta.
The editorial titled ‘The slow agony of the industrial sector’ (September 4) crystallised the issue.
Our diversified economic texture, tourism, manufacturing, financial institutions, gaming, construction and, now, expanding maritime, aviation, green and other related activities prove our resilience.
Our ability must be to adapt and reinvent our manufacturing footprint to reflect the present.
The Mosta industrial area. Photo: INDIS MaltaMinistries must be focused on what is vital without other tangential responsibilities: important components of our economy.
The tragedy of Carlo Gavazzi is not only the relocation and layoffs but the stated motivations: no longer a low-cost location (we have not been low cost for almost 50 years), need for consolidation, lack of skilled local workers, inferior tax and other benefits.
What is new? These are almost identical to issues I faced in 1996 when appointed minister for industry.
I had barely warmed the proverbial ministerial seat when informed of a bombshell: 6,000 workers, yes, 6,000, were going to be laid off. ST Microelectronics, Brandstater and Dowty O-rings had decided to relocate. Our three major employers and exporters were leaving Malta.
Coincidence? I do not believe in coincidences. It was an industrial crisis that would lead to a national crisis.
Was the intention to immediately destabilise a government democratically elected? Was it 1958 all over again?
Fortified with the complete trust of my prime minister, Alfred Sant and the invaluable help of my new CEO at the Malta Development Corporation, Mario Vella, I was determined to change what appeared unchangeable.
I had managed to find out the probable real reason provoking this crisis.
I threatened to expose this if relocation was not seriously reconsidered.
Both in Malta and beyond I resorted to persuasion, affirmative action, innovative approaches, legislation targeting every issue justifying relocation. I replied with tailored solutions. Our triangular joint effort turned the tide.
Some issues in today’s world are beyond our control but others are. Thirty years on, the same issues, in the main, had resurfaced. But, with determination, imagination and innovation they can be readdressed.
Nothing is impossible.
But not all is doom and gloom.
Malta has just made an unprecedented leap in the global index of foreign direct investment occupying the 33rd place.
This is due to investments in various economic sectors, including manufacturing, which is here to stay.