Doing more with less

The Malta Independent

Doing more with less

Doing more with less is the only real and lasting solution to extricate this country from the financial and economic crisis it is in and which continues to aggravate.

The main difference between our two main political parties is not, contrary to general impression, their policy regarding the future relations with the EU. Yes their position is different here but it is a difference of degree. Both positions aim for a stronger relationship with the EU one through one size fits all` integration and the other through a tailor made special relationship.

The main difference is in the economic philosophy of the two parties.` The nationalists motto seems to be that of doing less with more whereas labour`s policy is diametrically opposed of doing more with less.

The nationalist record in government is a continuous record of recklessly spending their way through problems.` Take Malta Drydocks. Two hundred million pounds and more of useless subsidies over the last 15 years still leaves the Drydocks commercially unviable and waiting` to undergo the real re-structuring which is being faced 15 years too late. Just imagine what real re-structuring could have been engineered if these funds were applied to finance productive investment to make the Drydocks truly commercially viable. What a waste!

And you can relate the same story all over again in all those economic areas which are draining our tax money without giving commensurate value added in return. From the civil service to Gozo Channel operations, from Freeport to Water Services.

These our real problems.` This is what is` forcing half the government represented by Min John Dalli to resort to taxing a moribund economy and forced sale privatisation in order to finance the irresponsible spending habits of the rest of the government.` Whilst other countries are re-visiting Keynes in pump-priming their soft economies through additional spending and lower interest rates, our government is prisoner to its own past excesses and is being forced to drain liquidity out of an illiquid economy.

The barter phenomenon is on the increase a clear indicator of economic problems yet to come. Contractors get paid with part of the property they build which they then transfer to their suppliers of concrete and steel who use their limited liquidity to pay their increasing tax dues leaving private sector creditors waiting for better times. Barter is now reaching new dimensions extending itself also to the purchase of services like repairs maintenance and insurance.

Labour economic policy points 180 degrees in the opposite direction. The country`s solution cannot lie in taxation to enable the public sector to continue to fatten itself at the expense of the private sector. The solution is in the public sector giving an economic lead in making much better use of the resources already at its disposal and thus leaving more spending power in the hands of the private sector.

Can this be done` Of course it can be done` if there is strong leadership and clear objectives. On a miniature scale we have just did it at Super One Television. With resources much less than our competitors we have topped the official rating charts for the third successive survey this time with a wide gap over the next in line.` Whilst TVM have the millions collected through TV licences and NET have the limitless financial resources available from the power network surrounding the nationalist party, apart from the advertising revenue from the political spots which MIC pay from our tax money and in which Super One refuses to partake on a matter of political principle,` Super One has to operate on a commercial basis with revenues coming only from pure` commercial operations in a very competitive area.

At Super One we did more with less and beat those who did less with more.` We registered better results both in audience ratings as well` as in commercial bottom line. The country`s problems need similar treatment.