The Malta Employers Association has called on the government to “rationalise Malta’s labour force”, raising concerns about strained infrastructure to support tourism and a lack of government transparency serving as a “hotbed for corruption”.

In its Budget proposals, the association noted how the current labour force suffers from a “squandering a misallocation”.  The MEA called for an end to the government’s Community Work Scheme, saying it was leading to “unproductive employment in the public sector” and a “leaking bucket labour force” as younger generations migrate.

An entire section of the MEA’s report dedicated to transparency and disclosure called for radical changes in the government’s current practices. The MEA called for “full public disclosure of contracts and remuneration conditions of persons occupying positions of trust.”

The association also suggested that key authority positions, such as the Attorney General and Police Commissioner, be approved by a two-thirds parliamentary majority rather than direct appointment.

Addressing employment and human resources, the MEA said that while the influx of foreign employees, which the government is opaquely trying to address through new legislation, is partially due to demographic trends, it is also true that it is “a direct result of squandering and misallocation of our own human resource.”

The association called for a redistribution of the public labour force to channels with increased demand, such as health, reducing manpower “where there are wasteful practices.”

“In Gozo, the labour resource has been depleted due to unproductive employment in the public sector. The Community Work Scheme should be discontinued, and employees channelled into productive work in the private sector,” it said.

The MEA noted how “The rules of public procurement are being flagrantly ignored with contracts amounting to millions of euros being awarded through direct orders,” leading to “an unlevel playing field among businesses”.

It said, “At best, this creates serious suspicion and a sense of unfairness. At worst, it serves as a hotbed for corruption.”

It also suggested that all government contracts with third parties be made public “within a reasonable time but certainly not exceeding three months” from when they are signed.

The association said the construction industry needs to be re-oriented “towards infrastructural projects, rather than on new buildings,” as “it is evident that the current state of the infrastructure cannot keep up with the demand of increased buildings and the corresponding spike in population.”

Speaking on the local tourism industry, the MEA suggested a more strategic approach, avoiding Malta “becoming a ‘party island’, and potentially attracting the type of tourism other countries are trying to steer away from.”

Concluding its report on budget recommendations for next year, the MEA suggested the Malta Council for Economic and Social Development as a forum for private-public discussions ahead of the budget, expected to be announced in October.