from the President Sandro Chetcuti
As many of you are probably aware I am currently approaching the termination of my time at the helm of Malta Developers Association, which I gave birth to and saw through its puberty and now its adulthood too. Over the years I have contributed various opinion articles in Design & Build on various topics about the construction industry. This writing is a personal look – possibly my last one as MDA President; a sort of friendly farewell as they said I was the grand-daddy of the organisation of the construction industry in Malta and Gozo.
So where do we begin? Yes, the title of this piece is taken from one of Ernest Hemingway’s greatest works; the story of an American working as an ambulance driver in Italy in WW1. In a way that is how I saw my role at the MDA: attending to the wounds and hurts of an industry that is often misunderstood and hence criticised. But there are other things that affect us all, in whichever industry we are involved.
At the moment, the Island and our Government has been faced with various issues, the last one of which is this issue of greylisting, which worries a lot of us in our industry. It also comes within a period of a pandemic which is still somewhat crippling us as a country (though now not as much as before, I might add).
To help us all cope and avoid serious problems, there are various aids in place for SMEs and other businesses (through vouchers and such like incentives). The result of this is reduction of income for the Government due to the heavy expenditure of these investment incentives. The challenges are indeed hefty and they are clearly not only for the Government but for us all.
“the property industry in Malta and Gozo is the only industry which has kept moving ahead with just a stumble, even helping support other industries”
Let us not forget that we are a small nation and therefore cannot expect to see miracles happening ‘just like that’. Dreaming that we will wake up one of these coming mornings and, as if nothing has been happening around us, life will get back to normal again, would be just that: a dream.
When we’re injured, we need a time for therapy and a time for recovery before we can start running again as before. In the same way, I see that the property industry in Malta and Gozo is the only industry which has kept moving ahead with just a stumble, even helping support other industries.
Today we are talking more and more about developing recreational areas around the Island where our families can relax and enjoy nature, all very much needed of course.
These are important issues that we should be taking seriously indeed. At the same time, one notes that today the call to fill properties has been very strong, resulting in practically no vacant properties being available.
“The MDA … operates under the wings of a strong administration infrastructure which also includes the role of a Director General working hand-in-hand with its elected council”
All of us here at the MDA are proud of the fact that our suggestions to Government have not gone unheeded but that they have been noted and often also implemented; ideas which the MDA puts forward all the time and will continue to do so long past the end of my tenure therein.
Rendering to Caesar
It is fairly obvious that our having been greylisted will indeed affect our economy in that it has given reasons to investors and foreign organisations to consider leaving our infrastructure. The reasons to stay however remain unchanged, and the manners in which our Government has protected those businesses which had the good sense and fortune to nestle under our wings have undoubtedly added to them. There has been no mass emigration and I am confident that we will be also seeing new intakes of foreign investments within our current scenarios as time goes by. The Government must react, and as a result, there will surely be a tightening of processes which will, in turn, surely cause pain. I trust that this Government will take the position that one needs to implement measures and introduce them over a period of time, A soft approach to change will always facilitate people’s ability to cope with and handle new concepts and restrictions more so than a rapid one.
It is certainly a fact that anyone who has been evading tax has to realise that there is no way of really evading tax…. and that they have to learn that they must pay the tax due willy-nilly.
“It gives me pleasure that many leading firms and organisations are remaining united in these difficult times”
As for our local construction industry, we find that the various stages of developing are covered by strict regulations, such as the with-holding tax system itself on property purchases which, in itself, do not give any possibility for abuse to take place as the payment of tax is done right away. It is also the industry where the most tax is paid on purchase and where it can be collected easily up-front. In the real estate sector, for example, the financial processes are quite simple – you bought, you paid for the purchase, you paid your tax: all in one operation – at the signing of the contract; the details of which also appear on the previously agreed promise of sale (konvenju).
My reckoning is that one must make a distinction between funds which are coming from an above-board business source and those which are not. Enforcements should prioritise on the latter.
The future beckons the MDA
It gives me pleasure that many leading firms and organisations are remaining united in these difficult times and understanding that they can only see their ideals – as bodies and firms – come to fruition through collective representation and correct presentation of positive concepts and improvements for their industry and country alike.
I wish to conclude my thoughts with these words, that cannot but emphasise that the key to success is this kind of unity as well as the ability to debate and to discuss what is good – and what is not – for the country since ultimately decisions can and will be taken for its collective good.
The MDA plays a vital role in our industry, and I am confident the it will continue to serve the industry as well as it has always done until now. We will continue to discern how the industry can further improve, and become more sustainable. And in so doing, all the players benefit.
I wish to thank all the members of the MDA, the council members throughout the years, and the various governments and ministries; for having both paid tribute to the importance of the MDA and for having welcomed and embraced my leadership and paid heed to our counsel throughout all these years. Your continued support to the MDA will undoubtedly continue to contribute to further future stability.
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