As part of our work and duty to the co-operative sector, each year Koperattivi Malta submits its recommendations for the Malta Budget. This year, our recommendations present a bold yet practical blueprint for co-operative growth and economic renewal reflecting our unwavering belief that co-operatives are not just an alternative, but a proven solution to building a fairer, more resilient Malta.

 

This year’s budget measures document remains largely consistent with last year’s recommendations, as many of our proposed initiatives have yet to be adopted by the Maltese government. While we had hoped to see greater progress in implementing these reforms, we remain steadfast in our belief that the cooperative movement holds the key to unlocking long-term prosperity. Our continued advocacy reflects the urgency of these measures, and we reiterate our call for their swift enactment to benefit Malta’s economy and society.

 

Recommendation 1: Investing in the Co-operatives Board to enhance user Friendliness, Digitalisation, and Modernisation

To modernise and elevate the Co-operatives Board to the same level of operational efficiency and user-friendliness as major authorities like the Malta Financial Services Authority (MFSA) and the Malta Business Registry (MBR).
  1. Implement comprehensive digital solutions to streamline processes, reduce paperwork, and provide online services for co-operative registration, compliance, and management.
  2. Increase the budget for the Co-operatives Board to ensure it has sufficient human capital and financial resources to ensure the best possible streamlined service provision.
  3. Establish a centralised digital register of information that is easily accessible to co-operatives, ensuring visibility and ease of access to essential data.

 

Recommendation 2: Encouraging the uptake of Public Sector Co-operatives to Reduce Government Payroll Burden

The objective is to enhance and redesign existing schemes that facilitate the formation of co-operative societies run by public service employees. The aim is to decrease the number of workers directly employed in the public sector.

  • By revisiting and improving incentives for public sector employees to transition into co-operative structures, the government can promote self-sufficient, autonomous co-operatives capable of competing for public tenders alongside private entities.
  1. The Government to consult KM to ensure these schemes align with co-operative principles and achieve sustainable enterprise development, given its track record with successful public sector co-operatives.
  2. KM would offer training programs to equip employees with the skills needed to manage and operate co-operatives effectively.

 

Recommendation 3: Sustainable Communities through Citizen-owned Co-operatives

To empower local communities by promoting citizen-owned co-operatives that enhance more active citizenship, better wealth distribution and a shorter and more sustainable supply chain, while reducing dependence on external aid.
  1. Promote citizen-owned co-operatives focusing on local sustainable development.
  2. A portion of government projects should be open and offered to citizen-owned co-operatives.
  3. Engage local councils to implement sustainable development strategies and support co-operative growth.
  4. Manage community facilities by empowering co-operatives to manage community assets like parks and playgrounds.
  5. Foster collaboration between Local Action Groups (LAGs) and co-operative societies.

 

Recommendation 4: Incorporating Co-operative Values into the Curriculum

To integrate co-operative principles into the educational curriculum, instilling values of cooperation, collaboration, and community spirit in future generations, thereby enhancing active citizenship and aligning with Malta’s future prosperity and unity goals.
  1. Curriculum Development: Collaborate with educational authorities to incorporate co-operative principles and values into the national curriculum at all educational levels.

 

Recommendation 5: Introducing Worker Buyouts to Malta

To introduce and facilitate the process of Worker Buyouts whereby employees of a company may take over a business when employers wish to retire through the formation of purposely-formulated co-operative societies.
  1. The legal codification of the process for worker buyouts through the co-operative model, with preferential rights given to workers in the bid to take over businesses instead of investors or other potential shareholders.
  2. Direct financial mechanisms for businesses that decide to transition to worker-owned.

 

Implementing these measures will streamline co-operative operations, enhance efficiency, and equip co-operatives to address future challenges effectively. Through a focus on digitalisation, sustainability, economic resilience, and equitable wealth distribution, we are laying the groundwork for a well-being economy that benefits all Maltese citizens.

Koperattivi Malta is dedicated to working in partnership with the government, policymakers, and the business community to realize this vision. By adopting best practices and aligning with international standards, we can foster a supportive and thriving co-operative ecosystem.

 

Together, we can build a resilient and prosperous future for Malta, rooted in co-operative principles and sustainable economic practices. We invite all stakeholders to join us in this endeavour, as we strive to make Malta a leader in co-operative excellence and inclusive growth.