SPEECH BY THE HON. LAWRENCE GONZI DEPUTY PRIME MINISTER AND MINISTER FOR SOCIAL POLICY AT THE FOLLOW-UP SEMINAR "JOINT ASSESSMENT OF EMPLOYMENT PRIORITIES OF MALTA"

Ladies and Gentlemen:

Barely a month has passed since we convened to declare our commitment as a candidate country to adopt the European Employment Strategy, firm in our belief that our adoption of this strategy reaps great benefits to our local social economy. Indeed, during the past years, the European Employment Strategy has reaped significant benefits in member states through the creation of more and better jobs, lower unemployment levels, and better accessibility and inclusion for disadvantaged groups amongst others.

It is therefore a pleasure for me, as the signatory of the Joint Assessment Paper to be present here and deliver a concluding address to what I have been informed has been a fruitful and laborious seminar. We are delighted to host this follow-up seminar since we are very aware of our obligations arising from the targets, which we have set for ourselves in conjunction with the EU Commission. These targets necessitate a cogent and coherent response not just from government sectors, but for all the social partners involved in the shaping, moulding and sustaining of a skill-supply strategy in the labour market.

Labour market analysis is becoming progressively more interactive in nature. Different labour market institutions are no longer being studied in isolation for their impact upon employment, but also in the way they interact with each other. Correspondingly, employment policy and planning in various countries is based on multidisciplinary and interministerial co-operation.

This is also the case at European level, where the 1997 Amsterdam Treaty saw the birth of the European Employment Strategy. Under this Strategy, member states co-operate through ‘open co-ordination’.

The JAP for Malta was signed on the 26^th October. This technical seminar, barely a month after, will enable key local policymakers to agree upon measures and timeframes for the implementation of the JAP priorities. As I have already alluded to, this need to be supported by all those involved and it is my wish to see all the stakeholders share responsibility for the implementation of the commitments which we have vouched to deliver.

The ETC Board itself is an icon of social dialogue, wherein, social partner representatives have the possibility to influence and possibly direct our public employment service. The time has come however, for social partners, particularly employers, to take a more leading role as drivers of the labour market in the bridging of the gap between skill supply and employment demand.

From our side, as government, we are promising to synchronise our tax and benefit systems to ensure a vibrant labour market, shifting away from welfare dependency and adopting a welfare to work policy. We will be actively following up the JAP priorities in a detailed progress report this coming year.

For this reason, I would like to announce the setting up of a Labour Market Policy Committee which shall steer and catalyse our efforts to deliver our commitments endorsed through the JAP. This Committee, headed by the Chairman and the CEO of the Employment and Training Corporation will be assigned with the following tasks:

• analyse labour market issues;
• establish, monitor and analyse labour market indicators;
• consult a Network of Employment Focal Points, and social partners wherever necessary;
• draft the National Action Plan on Employment, disseminate feedback and monitor progress against it;
• serve as the core group of the Sectoral Working Committee for Employment and Training in drafting the National Development Plan.

Experts in particular areas will also be requested to attend and contribute according to the subject being discussed. The Committee will report to me, as Minister for Social Policy through a quarterly Labour Market Report.

In parallel, however, we are also setting up a Network of Employment Focal Points which is to include representatives from a range of sectors such as social security, gender equality, persons with disability, industrial relations, economic services, education, statistics, finance, and the Malta Council for Economic and Social Development.

These focal points will be approached for purposes of obtaining information, expertise or feedback and will report to the Labour Market Policy Committee according to a consultation protocol currently being devised. I need to emphasise the necessity for conformity hereafter with the reporting requirements of the European Employment Strategy and in the detailing of the ways in which the Committee may be seeking input from these stakeholders.

I envisage the Labour Market Policy Committee to work hand in hand with the social partners in all phases of its work according to its terms of reference. For this reason, employers’ organisations and trade unions will be requested to nominate a focal point similar to government departments/agencies. Social partners will also be requested to make an input to all policies being drafted, and ideally also to endorse and support final documents.

As one can note we are taking a serious and structured approach to ensure that adequate attention and action is given to the Maltese labour market. The challenges which belie our country in terms of a skill-gap and the need to increase the female participation rate are real and concrete challenges which can only be responded to with a clear vision and strategy build on a collaborative process of social concertation.

I do trust that these measures are acknowledged by all and sundry, and I do hope that they assist other stakeholders to appreciate and respond in a positive and constructive manner to be able to reap the benefits which always derive from such initiatives when they are done in synergy. In a sense, we can only deliver if everyone delivers. Each social partner and stakeholder is a cog in the wheel of change, and unless all the cogs are in place, an effective response cannot be guaranteed. The end result is the benefit of an increase in the quality of life of our citizens and families. I am sure that everyone would like to see this wish become a reality.

I wish to thank the ETC for all their efforts, as well as their commitment to drive this strategy for our country. Besides being a responsibility delegated to ETC by government, I am glad to note that this task is also being taken as a mission with zeal and enthusiasm.

Thank You!