iMovo Limited Managing Director Pierre Mallia said there is “disappointment” and “anger” by several companies in the technology sector for being left out of the latest aid measures announced by Government last night to help businesses get through the COVID-19 pandemic.

“We have endured massively challenging years of not being able to find skilled personnel easily. This was exacerbated by spiralling salaries due to a sector of largely international firms.

“We had to import a large proportion of our workforce and train people up. With our customers also at a standstill, we are collectively facing challenges because projects are being cancelled, services are also being terminated and we are being forced to potentially layoff for cashflow reasons, resources we have invested heavily in.”

Mr Mallia said that amid a loss in turnover, many have been left with a feeling of bitter disappointment at being eligible for first wave of measures.

Earlier this week, a large number of CEOs from companies in the technology sector had written to Dr Abela, requesting and proposing a more effective and substantial set of bail out measures than the initial €1.8 billion announcement.

The open letter’s cries appear to have fallen on deaf ears, as Dr Abela announced an €800 monthly wage subsidy for workers in defined ‘critical industries.’ In the event that a worker earns more, the employer will bridge the gap up to a maximum of €400, leaving workers with a maximum of €1,200 monthly.

Industries considered to be the worst impacted are: wholesale, retail, accommodation, food and beverage service activities, vehicle rentals, employment activities, tour operators, travel agencies and other related enterprises, security companies, building services companies, transport companies, creative, arts, and entertainment activities, personal activities – such as barbers, beauticians, and other similar enterprises.

Under the older measures, the Government provided for tax deferrals, the provision of soft loans through bank guarantees, and it also allocated funding to banks allowing it to provide commercial clients tax holidays. Government also agreed to subsidise up to two days of employer weekly work for self-employed and companies whose operations have been impacted.

In the open letter, the CEOs and Managing Directors from companies in the technology sector called for:

• Direct assistance of at least 50% of the payroll incurred by the companies for a number of months (e.g. June) following which a reassessment will be made for a possible automatic extension. (it should be noted that other governments in the EU and beyond are supporting this at levels of 75% and above)
• Tax holiday – covering VAT, FSS and NI for a number of months
• Government should by pre-agreement with the banks, ensuring financing loans and overdraft facilities should be made available to companies at or near 0% interest
• A direct subsidy against current rental expenses faced by companies; • Government should improve its payer track record and accelerate payments due to companies for delivering on public-contracts
• Acceleration of payment and radical cutting of red tape when it comes to EU funded schemes, where companies are still waiting to be reimbursed for several months
• Government to finance any obligatory quarantine leave.