Entrepreneur calls for an urgent emergency social and solidarity pact
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Entrepreneur Alec Mizzi, called for an emergency social and solidarity pact, in the wake of the extraordinary times Malta is living, due to the CoVid 19 pandemic outbreak.
In a post on social media, Dr Mizzi said that besides the justified anxiety felt by many for their own health and safety, “we are now starting to face the anxiety of an unknown and very worrying economic and financial impact”.
Mizzi said that the hospitality and tourism industry (airlines, hotels, restaurants, bars, guides, etc) are already facing this dilemma. And almost every other sector (save for those providing essential services, which face dangers of another kind) will face the same issues if and when a lockdown is imposed.
“The time has come for an EMERGENCY SOCIAL & SOLIDARITY PACT, wherein the burden is shared by Government, employers and employees. This is what our PM said yesterday, but it isn’t quite what his Govt has proposed, so far at least. This isn’t a partisan issue, but a matter of SURVIVAL.”
He suggests that all businesses forced to shut down (and certainly nobody does so capriciously) should continue to pay their staff, say 75% of their salary, funded as to 50% by Govt and 25% by the employer. In this way, employees will contribute by accepting a 25% lower salary. Of course, those able to work from home will do so, and if they do, the employer will also pay them the remaining 25%.
He also advised that government legislates so that all rents are halved during this emergency period, so that landlords/lessors and tenants/lessees share the burden.
Dr Mizzi said that the announced measures of tax postponement, whilst helping businesses’ cash flow, have no impact on their profit & loss, and hence their survival. If a restaurant is paying its staff whilst shut, what help is it that it can postpone tax payments, especially if sales (and hence VAT and income tax) are nil anyway?
He concluded saying that “Whilst we’re unable to avoid the anxiety caused by the spread of this virus, we need to URGENTLY allay this added and avoidable additional anxiety of layoffs, unemployment, credit defaults, etc. Yes, the country may need to dip into its reserves and suffer deficits once more, but this is a matter of SURVIVAL. Certainly the EU will allow state aid, and all taxpayers will accept eventual new taxes to help us get out of this nightmare with as little social and financial fallout as possible. This is social solidarity in practice. This is what we expect from our leaders.”
Dr Mizzi is Managing Director of Alf Mizzi & Sons (Marketing) Ltd. since 1986 and was appointed CEO of Alf. Mizzi & Sons Group in 1993.
He is non-executive director of a number of Alf. Mizzi & Sons subsidiary and associated companies, including Intercomp Ltd., Consolidated Biscuit Co Ltd., Macpherson Mediterranean Ltd., Homemate Ltd, Kitchen Concepts Ltd, Inspirations Ltd., LandOverseas Fund Sicav p.l.c, Supermarkets (1960) Ltd., as well as various overseas subsidiaries.
