Abela and Borg clash over economy, population growth and public procurement at SMEs debate

At an election debate hosted by the Malta Chamber of SMEs onm Tuesday, Prime Minister Robert Abela and Opposition leader Alex Borg clashed over economic policy, labour shortages, public procurement and Gozo’s development, at times having a heated exchange that repeatedly centred on credibility, long-term planning and the competing visions of the two major parties.

The debate came a day after the two leaders faced each other at the University of Malta in the first leaders’ debate of the campaign. Organised by the Chamber of SMEs, the discussion focused heavily on the economy and the parties’ proposals for businesses and workers.

Opening the debate, Borg said the Nationalist Party’s manifesto was designed with the needs of small and medium-sized businesses in mind and aimed to create “new economic niches” to diversify Malta’s economy.

Abela defended the Labour government’s economic record since taking office in 2013, arguing that Malta had weathered “crisis after crisis” alongside the business community since 2020 while maintaining strong economic growth.

The Prime Minister said his government’s macroeconomic targets for the next four years included reducing debt and maintaining a budget surplus, contrasting Malta’s performance with other European economies that adopted austerity measures.

“One always knows where they stand with my government,” Abela said.

Throughout the debate, Abela repeatedly attacked the PN’s financial calculations, referring to what he described as “bizarre figures” and accusing the Opposition of lacking credibility.

“The numbers are everything and one cannot present a vision by being fuelled solely by populism,” Abela said, while also highlighting prediction markets as one of the government’s proposed new economic sectors.

Borg pushed back strongly, accusing Abela of focusing more on attacking Opposition proposals than presenting new ideas of his own.

“The PL had years to address this problem and take initiatives,” Borg said, adding that Labour had spent years promising the same measures without implementing them.

He also argued that Labour had built upon economic niches originally developed under previous Nationalist administrations.

A major point of contention during the debate centred on labour shortages and population growth.

Borg outlined proposals for a more efficient system within Identità, including two separate branches and two one-stop shops, one for Maltese and European citizens and another for foreign workers and employers, aimed at reducing bureaucracy and delays.

He said Malta and Gozo were experiencing growing pressure on infrastructure and public services due to rapid population growth.

“We have roads clogged with traffic, hospitals struggling to cope with demand, and a declining quality of life,” Borg said, adding that studies for a new mass transport system were already prepared.

The Opposition leader also proposed a national Population Level Plan and the creation of a population authority tasked with studying demographic trends and ensuring infrastructure planning kept pace with the country’s capacity.

“For many years we had an economy built on a continuous influx of foreign workers without a clear plan on how much the country can sustain,” Borg said.

He also proposed a “Skills Wallet” scheme under which every individual would receive €1,000 every three years to invest in training and upskilling.

Abela dismissed Borg’s proposals as “an overpopulation of entities and authorities”, describing them as populist rhetoric rather than practical solutions.

The Prime Minister argued that jobs had been created through investment rather than simply importing workers and defended the government’s Labour Migration Policy as a way of addressing abuse by previously unregulated temping agencies.

He also pointed to artificial intelligence, automation and robotics as tools that could reduce pressure on infrastructure while sustaining productivity.

Abela said simplification should come through stronger implementation rather than creating new bureaucratic structures and stressed the importance of ensuring that people entering the country possessed the necessary skills and did not pose security risks.

The debate also turned heated over taxation and public procurement.

Abela criticised the PN’s proposal to reduce VAT for restaurants, arguing that it would create discrepancies between sectors and undermine fiscal stability.

On procurement, the Prime Minister insisted the system was “strong and transparent”, while Borg argued that direct orders had become too widespread and undermined fair competition.

“A PN government would ensure that direct orders would be the exception and not the rule,” Borg said.

Abela responded by questioning the Opposition’s competence and accusing Borg and Nationalist candidates of making major costing errors.

Borg rejected the criticism, accusing the Prime Minister of deliberately omitting details in order to misrepresent PN proposals.

The debate also touched on Malta’s greylisting, banking processes and a PN proposal for a green fuels fuel station at Hurd’s Bank.

Audience members also raised questions on government contracts for small businesses, employee benefits, educational institutions, reskilling, start-ups and women’s participation in the workforce.

Gozo’s regionality and autonomy emerged as another major issue.

Abela pointed to initiatives such as the Gozo Regional Development Authority as evidence of the government’s commitment to preserving the island’s character and improving connectivity and accessibility.

He also referenced comments previously made by Borg on high-rise development in Gozo.

Borg, who hails from Gozo, said he understood “the realities and struggles of every Gozitan” and pledged that a Nationalist government would revive projects he claimed had been neglected by Labour, including the Marsalforn breakwater project and new vessels.

He said the Nikolaos was the only vessel introduced under Labour, arguing that the rest of the Gozo Channel fleet resulted from Nationalist investment.

Among his proposals, Borg highlighted the extension of Mġarr Harbour to accommodate both the current fleet and future vessels.

A final question on economic growth and sustainability prompted both leaders to speak about the importance of creating more green open spaces.

In their closing remarks, Borg accused Abela of engaging in “petty politics” and said the PN manifesto reflected proposals put forward directly by the business community. He also floated the idea of a centralised digital system connecting all government departments.

Abela concluded by reiterating that the PN’s economic programme depended heavily on the success of new economic sectors and again questioned the Opposition’s financial calculations and credibility.

You may watch the debate in the link below.

 

 

 

 

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