Thursday, 20th November 2008
Lampuka cannot fly
Anybody who believes the economic recession won't come to Malta probably also believes Lampuka can fly, but like Lampuka, recession grows bigger and uglier. Economists say to forget any economic growth in 2009 and probably most of 2010 too.
When the recession hits the real economy in the coming months, people will think twice about booking a flight to Malta, taking a cruise on the Mediterranean Sea or sending kids to language schools in Malta.
So it is time to create an "economic war cabinet" with short-term objectives for long-term investment, in order to kick start the economy before it comes to a halt.
Stop the phantom-economy of inflating house prices and having a real estate bubble and stop throwing money at the drydocks black hole; you don't make an omelette without breaking some eggs.
Malta should stop thinking about a period of four years; we have to invest in the long-term future. We need a country management which has a vision and is able to make bold and daring decisions.
We don't need another "mother of all hospitals" project. We need infrastructural projects which are spread around Malta and Gozo. We need to create long term infrastructure projects which have lasting impact on all sectors of the economy.
We need of state-of-the-art construction and engineering; projects which are environment friendly and technologically feasible.
Freedom Square and the Opera House could become such projects, but it would be better to invest in education rather than mammoth parliamentary projects.
Exploring geothermal energy is such a technology (but not the only one), which could put Malta on the map again. Don't waste time and energy on commissions and studies. Competent and scientific interpretation of the existing information on previous drilling in Gozo and around Malta will provide realistic geothermal data and then, we will have to accept that sometimes progress is made by the proven scientific system of trial and error. Ten or more small geothermal plants around Malta and Gozo would do.
Another such project could be the creation of large caverns to stop wasting of rainwater and setting up a sustainable irrigation system. There are more projects to think of than there are pages in this newspaper.
European Union projects funds and grants are available for Malta at low interest rates! Malta should use this opportunity to profit from those low interest rates and take bold decisions with a vision for the future. Now is the time for big economic stimulus, before lethargy and recession sets in.
We know state regulation doesn't create jobs, but anti-cyclical investing in projects does. Malta's government should re-instate respect and trust in economic development.
Malta's economic velocity should not lose momentum with political nitty gritty. Malta needs to be bold and have vision.
Lampuka can't fly, but vision can!
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Comments
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The mono-rail keeps coming up since first mentioned by Austin Gatt. Up to that point nobody would have dreamed such a project was possible. But, stop and think about it. In Malta, when one town connects to the next with no wide thoroughfares, a mono-rail would have to be built above rooftops. Can you imagine how many hundreds of objections to noise, vibration, safety and other issues, will be voiced? The only feasible mono-rail would be a ring rail around the coastal perimeter. Then there would still be the complexity of delivering passengers from the mono-rail to the downtown areas.
A radical public transportation update is imperative and it may involve nationalizing the system whereby the state would own it, operate it and ensure a reliable and an uninterrupted service at scheduled times and not at the whim of owner/drivers. There are several models to opt for and Minister Gatt ought to acquire first hand experience which, I don't doubt he may have obtained some already.
Public bus transportation should be the starting point, Grand Harbour Ferries/lift, second and a mono-rail a distant third.
Mega public projects to make people work you still need public money and what do you do print more and raise inflation? Don't we have lost of that too?
Involving the private sector is the best bet in this scenario. Let us have a Mono-rail line for public transportation as a start. This is a clean, efficient and low cost way of travelling. We will have less cars and traffic on the Malta’s congested roads and less maintenance of the same roads and less usage of fosil fuels too.
Robert G has a lot of good ideas but...
Global recession is just that. Malta is part of the global economy and to pretend that it should escape unscathed is ridiculous.
Malta's Cabinet has been in an 'economic war' mode for quite some time with its vision to 2015 and beyond.
The house prices are already on a slight decline and subsidies to the Shipyards can be talked about in historic terms.
"We don't need another "mother of all hospitals" project because we already have one. Infrastructure projects are ongoing and last year in excess of 400 urban roads were completed and more planned for 2009.
Successive governments seem to have a mental block regarding the Freedom Square and the Opera House. I wouldn't expect any miracles soon.
We cannot keep going back to square one with regards to renewable energy. The wind generation project should be accelerated. Experimenting with geo-thermal generation will throw back the environmental thrust by a number of years.
Water preservation is desirable but costs are tremendous. One would hope that some project is at least on the drawing board.
Flying lampukas are a myth as much as having an inexhaustible source of disposable funds.
When Lampuki or Pigs can fly is only a matter of time in Malta. Patience my friend patience.
Oil exploration is a reality, balance of payment is top notch. Unlike China, Malta can and will weather the credit crunch. Come on mate all in good time, what's the rush.