Dear Sir,
I noted from your front page story how difficult it is to start a business in Majorca because of the red tape and excessive taxes and thought I would relay to you my experience after conducting an interview the other day. As you are aware I wrote about Martina Beckert who runs a “residencia” for dogs and cats near Algaida, and during the interview she made great emphasis of the overwhelming amount of paperwork, red tape and associated costs with operating her business. She said that after working 7 days a week from 0800 until 6.00pm, she and her husband, each evening, then have to start on the plethora of paperwork to ensure that they do not fall foul of the administration or taxation systems. As we know from the UK government, small businesses are the back bone of the economy of any Western democracy, so why does Spain make it so difficult for this vital source of economic growth in their country? Is it what we usually assume, that this punitive action is some sort of protectionist mechanism that permits the rich land owners and business leaders to operate monopolies? If you recall, Sir Richard Branson was very keen to open a 5 star hotel on the Island but was thwarted from pillar to post until he finally left, withdrawing all of his assets from the country! How could any alert minded economic ministry permit such a travesty to occur? Consider the variety of spin offs in economic growth and employment for the Balearics associated with the Branson project. Of course we have successful businessmen in the Balearics, but how many Spanish entrepreneurs have we? How many of these successful businessmen actually started an innovative enterprise without money inherited from their family? Conversely, and as you know I am always keen to interview entrepreneurs and there are quite a number of foreign nationals that have identified niche markets and thus started successful ventures on the Islands. Driven by an unfaltering work ethic and desire to succeed, these astute risk takers continue in their quest, despite the incredible adversities placed before them by unthinking politicians. Instead of rewarding these efforts to stimulate the economy and bring prosperity to the Islands, I find it strange that government appears to be stifling this vital form of monetary growth, with a plethora of taxes and red tape. In an environment where the economy is dependent on tourism, entrepreneurial enterprise becomes even more important to fiscal survival and should be encouraged.
Gerry Mulligan
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