National reform programme 2008-2010 Malta - European Commission

Measure 1.2
Enhance price flexibility through the liberalisation of monopolies and actively considering
liberalising entry into certain service sectors particularly in the distribution, transport and
construction sectors, commencing with the liberalisation of the importation and distribution of
fuel and the ports sector
Government is firmly in favour of liberalisation, and has liberalised a number of sectors in
which the government was the major provider of services. Among the liberalisation initiatives
in the past three years one finds the port sector, fuel distribution as well as
telecommunications; both cellular and fixed line. Moreover, the provision of postal services
has also been passed on to the private sector, with the whole sector to be liberalised in due
course following Malta’s choice to allow for the maximum term under the EU directive to
elapse before fully liberalising the sector , by the 31st December 2012.
Measure 1.3
Review spending aiming at setting agreed departmental targets for achieving efficiencies in
the use of public resources. Efficiencies include savings in terms of public expenditure as
well as the redeployment of human resources
The Financial Management and Monitoring Unit (FMMU) has been set up as a permanent unit
within MFEI. FMMU is to ensure that all entities necessarily administer Public Funds within
stricter financial control, discipline and cost effectiveness and to aid the Government in
reducing public spending and managing the country’s deficit, which aims are central to
sustainable economic growth, convergence targets and Malta’s International Credit Rating
The Benefit Fraud and Investigations Directorate within MSOC was set up in late 2005 to
combat reports on alleged social benefit fraud. During the period 2006-2007 the Benefit
Fraud and Investigation Directorate concluded investigations on 2,372 cases of alleged social
benefit fraud and it is estimated that the combined operations of the Directorate resulted in an
estimated Lm3,000,601 (€6,991,400) in savings.
Malta reduced its expenditure particularly in the run up to the adoption of the Euro prior to
January 2008 to be in conformity with the Maastricht criteria. In fact, Malta reduced its deficit
from 3% in 2005 to 1.8% of GDP in 2007. 2 For the same period General Government debt
was reduced from 70.4% to 62.6% of GDP.
Measure 1.4
Further review of the public sector workforce, identifying the core competencies and staff
requirements in Government entities and the attachment of the surplus staff to a Surplus
Employment Pool
In November 2003, 902 employees were transferred to Industrial Projects and Services Ltd
(IPSL). Out of these 418 opted to apply for one of the four voluntary resignation / early
retirement schemes. The remaining 484 preferred to remain on the books of IPSL on the
grounds that Government would guarantee their employment within various public entities
and departments.
Today only 433 employees remained from the original number transferred from Malta
Shipyards Ltd due to retirement age. However, these were increased to 479 with the transfer
of surplus employees from other entities/corporations.
Recently, the company organised a skills assessment exercise; all employees were
interviewed so as to enable the company to asses the skills and abilities of every employee.
This exercise resulted in the transferring of 124 employees from one entity or department to
another so as to be better utilised according to their trade or profession. In some cases IPSL
staff had to be re-trained to be able to cater for office environment or in enforcement as was
the case of the environment field inspectors at MEPA.
Concurrently, the Management Efficiency Unit has also prepared a skills profiling manual in
order to serve as a guideline in profiling skills across the Public Service.
2 NSO News release dated 18th April 2008 available online at
http://www.nso.gov.mt/statdoc/document_file.aspx?id=2220 (last accessed on 29 th September 2008)
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