Issue link: https://maltatoday.uberflip.com/i/761508
maltatoday, SUNDAY, 11 DECEMBER 2016 15 euros... well, they're not 'nothing'; it's an extra cost. But they can absorb that cost better than the smaller shops..." Ultimately, she argues, it is a case of unfair competition. "We carried out a survey to see what our mem- bers' interests are. Before, it was more in favour of keeping traditional business hours. Now, it has shifted. They have come to the realisation that whoever wants to open, can still open against payment. It's only the smaller businesses that cannot af- ford 700 euros, and who are forced to remain closed..." Meanwhile, the plight of the small retailer has assumed political impli- cations, as the Nationalist Party re- cently published its own plan for the sector. The proposal for a 10% tax cut was welcomed by the GRTU... but even more important than that, Mamo suggests, was the decision to concentrate on the retail sector in the first place. "We were happy there was consul- tation with us before the PN's retail document came out. We welcome a bit of focus on an economic sec- tor which is very important in our economy – it employs around a third of the total workforce – and that it is finally given the recognition it deserves. The economy is doing well; but the last budget focused on the distribution of wealth among society. We think that is important even when it comes to the creation of wealth. As a country we tend to focus most on successful sectors, and specific areas we want to attract to Malta. Traditional businesses, we feel, are being left a bit on their own. The retail sector has been left to its own devices, at a time when competition is difficult. When there were funds to be had, many of them excluded the retail sector. When there were opportunities, they did not target retail. It was regarded as a second-class business... as though we don't want retail in Malta. The message they were getting is that their business is not important. So what we're saying is that, it's good to have economic growth – the figures at macro level are very positive – but it needs to spread across all sectors of the economy. Not just successful sectors such as gaming..." Speaking of the gaming sector, there are other elements at work which undermine fair competition. Malta has successfully attracted several multinationals through tax incentives. So while a local business pays 35% income tax, foreign com- panies pay only 5%. Isn't this, in it- self, an unfair advantage? "We have a bit of a concern. Basi- cally, when we came out in favour of the 10% cut proposed by the PN, it was in part because it would help small businesses compete with for- eign investments; and also to coun- ter unfair competition. There is a lot of unfair competition concerning products brought in from Sicily, and lack of proper enforcement, etc. So the damage is minimised when they are paying 10%, and not the full tax. "Yes, we do feel a bit that the coun- try is focused on attracting new businesses – which is good – and channelling where Malta wants to go economically. But we should not do this at the expense of what we already have. Basically, we have been arguing a lot for something that would give a quality mark to Maltese products. We have issues with the craft sector in particular. It has been performing well for quite a while now; and with the regenera- tion of the Crafts Village in Ta' Qali, things might hopefully improve. "But there is a big problem: local craft is very expensive to produce, and there is nothing to show that the products are local. A lot of imports are sold as 'local crafts', because we do not have a quality mark that brands a product, and gives value and assurance that it was locally produced. While it is good that we attract foreign investment, we need to see what we can do to help Mal- tese businesses, especially the ones that have been falling back for quite a while now. How will they fare with the increased competition? Will they be elbowed out, or will they be able to compete?" And yet, a free market economist would argue that the government shouldn't intervene in the market at all. Mamo however counters that for a market to be truly free, it also has to be a level playing field. "They say it is a free market, and the market will choose. We do not believe that is the way to go about it. We believe that certain businesses that have served our country well for a long time, and have employed our people... it would be a loss for the country if they were to disap- pear. They have invested in Malta, Malta has invested in them. Just be- cause we are going ahead with new investment, it doesn't mean we have to wrap up what we had before. We should build on what we have, not rebuild from scratch." Interview At a time when small businesses face unprecedented levels of unfair competition, the GRTU's chief executive officer, ABIGAIL MAMO makes the case for a more level commercial playing field must also be fair PHOTOGRAPHY BY JAMES BIANCHI