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COVID-19 EU PolicyWatch

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Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case MT-2020-50/1168 Updated – measures in Malta

Modernisation of construction equipment

Modernizzazzjoni tat-tagħmir tal-kostruzzjoni

Country Malta , applies nationwide
Time period Temporary, 11 December 2020 – 31 May 2021
Type Other initiatives or policies
Category Reorientation of business activities
– Change of production/innovation
Author Luke Anthony Fiorini (University of Malta) and Eurofound
Case created 21 September 2020 (updated 18 January 2021)

Background information

COVID-19 had a marked negative financial impact on several sectors in Malta. By means of a tripartite agreement, a package of measures to save jobs and organisations was agreed and announced by the Government on 24 March 2020. Amongst the measures in this package, wage subsidies were offered to sectors which were worst hit. During a 'mini budget' announced on the 8 June 2020, which aimed to regenerate Malta's economy, government announced another package of measures. Amongst them was a measure to encourage construction companies to modernise their equipment.

Content of measure

This measure was announced with a package of measures by government on the 8 June 2020. The aim of these measures was to regenerate Malta's economy following the initial COVID-19 quasi-lockdown phase.

This measure aimed to provide an incentive for construction companies to purchase new, more efficient and environment-friendly machinery. The aim was to lessen the negative impact of the industry on the environment, as well as improving efficiency and reducing costs. Government pledged €4 million for this purpose, where any construction- related business can receive support of up to a maximum of €200,000.

Despite its announcement in June 2020, further information on the measure is yet to be published (September 2020).

Updates

The following updates to this measure have been made after it came into effect.

12 January 2021

The scheme ended prematurely on 12 January 2021 as the amount of aid requested had already exceeded the budget allocated.

11 December 2020

The application for this scheme were accepted from the 11 December 2020 until 31 May 2021. It was announced that the scheme was open for those: constructing immovable property, excavating or demolishing; those renting equipment for the purpose of construction; transportation of material related to construction, excavation and demolishing; owners and operators of quarries and batching plants; and building and finishing contractors.

Furthermore, it was announced that claims were to be supported by fiscal documentation, proof of payment, a destruction certificate of old equipment, and that the new equipment must be maintained operational by the beneficiary for at least 3 years for the commissioned date.

The actual grant varied between one that could cover between 60% and 25% of the cost and depended on the type of equipment purchased and if the equipment is new or not.

Use of measure

The measure is yet to be implemented and therefore no information on its use is yet available.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Direct consultation outside a formal body Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown

Involvement

By means of a tripartite agreement, a package of measures to save jobs and organisations was agreed on 24 March 2020. This was the third but most significant package of measures announced by the Government. Following this agreement, social partners remained in direct contact with the government highlighting their proposals of what was felt was still necessary to save the Maltese economy and jobs. In view of this, on the 8 June 2020, the government announced a 'mini budget' to help the Maltese economy to recover from the effects of the COVID-19 pandemic. Essentially, this was the fourth package of measures announced by the government. The current measure formed part of this package.

With regards to this specific measure, the Malta Developers Association (MDA) had lobbied the Malta Enterprise to introduce such a measure.

Views and reactions

The fourth package of measures, of which the current measure formed part of, received public support from an array of social partners. Those positive and vocal about it were primarily business associations, including the Chamber of Commerce, the Chamber of SMEs, the Malta Employers' Association, the Malta Hotels and Restaurants Association (MHRA), and the Association of Catering Establishments. Whilst it did not specifically mention this measure, the Malta Developers Association (MDA) also stated that it was in agreement with the package of measures announced in June.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      B - Mining And Quarrying B8 Other mining and quarrying
      F - Construction F41 Construction of buildings

This case is not occupation-specific.

Sources

Citation

Eurofound (2020), Modernisation of construction equipment , case MT-2020-50/1168 (measures in Malta), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.