The Maltese Case Dr Mario Vella Malta Enterprise

The Maltese Case Dr Mario Vella Malta Enterprise

Fisheries and Aquaculture in Malta • The fishing industry in Malta is relatively small, but its social significance by far outweighs its economic importance. – Caters mainly for local consumption (Maltese & tourists) • In 1971, Malta declared an Exclusive Fishing Zone (EFZ) that extended to 25 nautical miles from the baselines of the Maltese Islands • With the entry of Malta into the European Union in 2004, this zone was maintained as a Fisheries Management Zone (FMZ) around the Maltese Islands by EU Council Regulation • The aquaculture industry in Malta started in the late eighties catering mostly for export – Contribution to GVA € 8. 3 million (2013)

Fishing & Aquaculture • Exports of Fish and Crustaceans: – 2014: € 97. 5 million (of which 85% Tuna) – 2014: (Jan-Oct): € 30. 1 million – 2015: (Jan-Oct): € 48. 9 million • Gross Value Added – 2013: € 17. 7 million (0. 27% of total GVA) – 2014: € 27. 5 million (0. 40% of total GVA) • Full time employment: – 555 full timers and 644 part timers (July 2015) – 528 full timers and 650 part timers (July 2014) – 0. 32% of all full time employment and 1. 06% of all part time employment (July 2015)

Contribution to Employment and GVA Sector Employment Gross Value Added 2010 2012 2014 (%) (%) (%) Fisheries & 0. 4 Aquaculture Manufacturing 13. 5 ICT 3. 3 Financial and 5. 5 Insurance Wholesale & 15. 2 retail trade Source: Eurostat 0. 4 0. 4 12. 7 3. 5 12. 0 3. 7 12. 9 5. 5 12. 5 6. 0 10. 0 5. 9 5. 6 5. 4 7. 8 8. 2 7. 2 15. 3 15. 4 10. 7 11. 3 11. 1

Contribution to Exports Commodity 2011 2012 2013 2014 1. 5% 1. 8% 2. 6% 5. 5% 5. 8% 6. 7% Mineral fuels, oils & products 42. 4% 40. 8% 42. 4% 43. 2% Electrical machinery 26. 5% 23. 6% 23. 9% 20. 9% Fish and crustaceans, etc. Pharmaceutical products Source: National Statistics Office

Exports (€ million) Commodity 2011 2012 2013 2014 Fish & € 55. 7 € 80. 9 € 102. 6 € 97. 5 crustaceans, etc. Pharmaceutical € 209. 3 € 256. 1 € 261. 7 € 248. 2 products Mineral fuels, oils € 1, 620. 7 € 1, 812. 0 € 1, 664. 8 € 1, 607. 1 & products Electrical € 1, 011. 4 € 1, 046. 4 € 936. 7 € 778. 9 machinery Other Total € 921. 9 € 1, 243. 4 € 959. 6 € 987. 0 € 3, 819. 0 € 4, 438. 8 € 3, 925. 4 € 3, 718. 7 Source: National Statistics Office

Sales of Fish (2013) € 11 10% Tuna Source: NSO € million € 2 2% Sea Bream € 93 88% Other

Socio-Economic Contribution • The industry generally does not demand high education achievers. Although it does employ few knowledge workers in R&D and managerial roles. Employment by Category 86 7% 1, 190 93% Professional Source: ETC skilled/elementary

Fishing Vessels by Length (2013) 95 3% 60; 2% 1, 308 44% 1, 489 50% <5 5 - <10 10 - <15 ≥ 15 Source: NSO • The average of the Maltese fleet is old, circa 22. 5 years. • Nearly all our vessels are less than 10 metres.

GVA per Employee – Fishing & Aquaculture € 55, 000 € 50, 000 € 45, 000 € 40, 000 € 35, 000 € 30, 000 € 25, 000 € 20, 000 € 15, 000 € 10, 000 € 5, 000 € 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 EU 28 Source: Eurostat EA 19 Malta

0. 43% 0. 30% 2011 0. 37% 0. 44% 0. 32% 0. 44% 0. 33% 0. 41% 0. 27% 0. 32% 0. 36% 0. 48% 0. 45% 2010 0. 15% 2005 Source: Eurostat • 0. 29% 0. 26% 0. 50% 0. 45% 0. 40% 0. 35% 0. 30% 0. 25% 0. 20% 0. 15% 0. 10% 0. 05% 0. 00% 0. 39% Fishing & Aquaculture-Malta’s share in EU 28. . . 2006 2007 2008 GVA 2009 2012 2013 Employment For Fishing & Aquaculture, Malta’s share in the total EU 28: – Employment has remained stable between 2011 and 2013, – GVA has declined compared to 2007, but remained relatively stable (2010 -2013)

Competitiveness • Competitiveness relates to the extent that firms are able to compete successfully in the regional and global economy, advancing wages and living standards. • Competitiveness depends on efficiency of the location as a place to do business, increasing productivity and as well as achieving active participation of the workforce.

Factors Affecting Competitiveness: The Fisheries Competitiveness Index factors include macro-economic factors and micro-economic factors Macro-Economic Factors Micro-Economic Factors Fishing Companies Fisheries Management (Ex: competencies, competition & (Ex: property rights & freedom of cooperation between fishing exchange of fishing rights) companies and suppliers) Marco-economic management Fish processing companies & government (Ex: Impact of Government on (Ex: labour law & regulations, taxes) fishing companies) Infrastructure & Environment (Ex: education & knowledge, general infrastructure) Marketing (Ex: competencies of marketing companies/exporters as well as competition and interaction with suppliers)

Issues: Fisheries only • Deteriorating infrastructure • Lack of investment (renewing present fleet, technology and size) • Low priced imported fish • Declining availability of popular species

Way Forward • Need to promote environmentally sustainable, resource efficient, innovative, competitive and knowledge-based fisheries and aquaculture. These will contribute to long run productivity of the sector; hence increased competitiveness. • Fisheries in Malta is a small sector within a tiny country and the short term socio-economic implications and impacts of fisheries management need to be evaluated in the design and implementation. • Communicating to industry how fisheries management measures encourage the sector’s sustainability with positive implications for growth and further development of the sector. • Fisheries & aquaculture R&D. Malta Enterprise contribution through Life Sciences Park genomics projects and possible cooperation with Malta Aquaculture Research Centre.