If it`s not heaven (1)

The Malta Independent on Sunday   

   

We have had impassioned pleas for the EU issue to be decided on a national basis and not strictly along party lines.     Such appeals came not only from the church authorities but even from the Prime Minister himself when faced with Labour leader’s assertions that the referendum would bind only the government that organizes it.

 

The Labour leader softened his position by proposing that it is in the national interest to postpone the decision on the EU by a few years and meanwhile focus on the domestic issues which are afflicting our daily lives.   In contrast to an outright negative stand he kept open for review the possibility of EU membership in a few years time.

“It was the reaction of those who are not interested in building a consensus but in imposing one.”

 

For true consensus seekers this was an opening not only worth noting but worth exploring further to see if it can be built upon to achieve a real broad based agreement.    The reaction was otherwise.   It was the reaction of those who are not interested in building a consensus but in imposing one.

 

Basically the reaction from the government was that Labour’s opening is only because it is realising that it faces a referendum defeat.  So for the PN government rather than stop and consider it, all that should be done is to label Labour’s opening as a sign of weakness and press on regardless towards a referendum a few months before the next election hoping that the referendum could be a stepping stone to an otherwise unreachable electoral success.

 

So the argument is being made that Labour’s opening is just a time waster as the last train to the EU heaven is by proceeding to full membership in 2004 which means that a referendum has to take place in 2003.

 

Labour on the other hand is arguing that even if the EU could be heaven, which clearly it is not, heaven can wait until we devote our resources to address our domestic weaknesses which could otherwise threaten the economic sustainability of the sovereign state.

“Labour on the other hand is arguing that even if the EU could be heaven, which clearly it is not, heaven can wait until we devote our resources to address our domestic weaknesses”

 

Other pro-EU but not pro-PN observers seem to accept the last train to heaven approach arguing that politicians have not delivered the discipline necessary to move the country forward in step with the well developed consumption expectations of the electorate.   Therefore without the discipline of an external agent like the EU we will just be wasting more and more precious time and meanwhile compound the problem without offering real solutions.

 

These are the real issues for which there are no easy answers.    I for one have been and still remain very much against the holding of a referendum a few months prior to the next election.  This for two robust reasons.

 

Firstly in the charged environment preceding a general election it is difficult to have the referendum deliver the national decision expected of it.   Knowledge  that voting against the party line could prejudice the chances of success in an election  which will follow hot on heels to the referendum, will act as a barrier to the achievement of a truly national decision.

 

Secondly without exploring in its full details Labour partnership policy and informing the public about it with application of resources commensurate with the resources given to the membership proposal, the electorate will not be given an opportunity to make an intelligent choice.   Some will vote against membership wrongly believing that the status quo is a viable option.   Others will vote for membership even though they know little about it but simply because they think there is no other alternative.

 

So the only real national binding decision that can be reached on the EU is the one which comes out from a referendum following the general election.    So ideally both parties should commit themselves to holding a referendum on the EU issue within a relatively short time after the next general election and that the referendum decision will be binding on the government that will have ample time to execute it.

“But I know that political maturity is not a common commodity in government’s circles these days”

 

For those who argue that this sequence of events could put us out of the EU calendar for accession I would argue that to be a convenient excuse.   Firstly if the EU negotiations are concluded accession could be delayed by a year without causing any problems to the EU once the structures are ready to take us on as members through conclusion of the negotiations.   Secondly we can still make the accession calendar by holding an election as soon as the negotiations are concluded next autumn giving the incoming government good time to hold the referendum before the target accession date of 1^st January 2004.

 

Rather than arguing whether heaven can wait or whether this is the last train to heaven it is time to show political maturity to proceed with an election to be followed by a referendum so that the EU issue will stop being a source of political division and we can truly focus on our domestic problems

 

But I know that political maturity is not a common commodity in government’s circles these days.    Their power overstay generated arrogance leads them to ignore rulings of such independent bodies as the Broadcasting Authority meant to give a tiny redress to the extreme information imbalance about our EU choices.   It also forces government to patch up a hurried programme for visible deliverables by the referendum date.

 

I expect more make-up and less substance.   But it is substance and not make-up that takes you to heaven which the government does not want to leave waiting.   And if it’s not heaven it’s ……………..

 

 

 

   

Paniku

Il-Kullhadd



Jekk kien hemm bzonn konferma li n-nazzjonalisti jinsabu f`paniku din il-gimgha ircevejna ghal wahda tnejn.

In-nazzjonalisti f`dawn l-ahhar erbgha snin ma ghamlu xejn hlief studji u rapporti dwar x`hemm bzonn biex Malta tidhol fl-UE. Issa li qed jersaq zmien il-gudizzju tal-poplu qed ittihom rashom dwar kif jistghu jghaddu mill-ezami tal-poplu meta ser jidhru daqstant gharwenin.

Ma jridux imorru ghall-elezzjoni ghax jibzghu li l-poplu jibghathom fejn jixirqilhom.` Minflok iridu li jaghmlu referendum dwar l-UE ghax jemmnu li aktar ghandhon cans jirbhu dan ir-referednum milli l-elezzjoni.

`Ma jridux imorru ghall-elezzjoni ghax jibzghu li l-poplu jibghathom fejn jixirqilhom`



Ghax ir-referednum ghandhom tlett affarijiet jahdmu favur taghhom. Ghandhom magna ta` pubblicita qawwija mhallsa mit-taxxi taghna biex johonqu kull lehen ta` oppozizzjoni ghal dan il-progett. Ghandhom jghinhom ukoll il-fatt li hafna nies ta` twemmin laburista` ma fehmu xejn dwar fuq x`hiex qed nitkellmu u fir-referendum probabbli jippreferu ma jivvutawx. U t-tielet ghandhom l-inkompetenza taghhom stess ghax hafna nies serji tant qatghu qalbhom li dan il-pajjiz jista` jinfeda mir-rovina li se jhallu n-nazzjonalisti tant li` jemmnu li l-pajjiz ghandu bzonn dixxiplina minn barra biex nehilsu mil-kollass.

Izda n-nazzjonalisti inkwetati. Ghax ir-referendum ma jistghux jaghmluh wahedhom.` Ir-referendum, bhall-elezzjoni , irid il-parteciazzjoni taz-zewg partiti u ma jafux jekk il-partit laburista` hux ser jiehu sehem fir-referendum meta ga gie dikjarat li l-partit laburista ma jqisx ir-referednum bhala l-kelma finali dwar dan is-suggett.

U dan qed izid il-paniku tan-nazzjonalisti. F`daqqa wahda indunaw li l-poplu mdejjaq jarahom jittraskuraw kollox u hsiebhom biss fir-rapporti ta` l-UE.` F`sens ta` paniku issa ser naraw hafna progetti mexjin. Anke jekk dawn huma progetti li misshom` ilhom snin li tlestew . Anke progetti ta` ftit konkos u kisja tarmac ukoll se narawhom deskritti bhala progetti kbar.` Issa iridu visible deliverables ghax dak li ghamlu s`issa kien invizibbli ghall-ahhar.

` Jekk ma tridux li l-partit laburista jsemma lehnu il-pajjiz ma ghadux demokratiku u la ma ghadux demokratiku ma ghandux l-ingredjent baziku biex jidhol membru fl-UE`



Izda l-paniku deher l-izjed fl-arroganza li permezz taghha geghlu lill-PBS jisfida decizjoni ta` l-Awtorita tax-Xandir biex il-Partit laburista jkolli terz tal-hin tal-MIC ha` jghid tieghu dwar l-UE. L-essenza tad-demokrazija hija li l-oppozizzjoni ikollha spazju ragenovli biex il-veduti taghha jinstemghu. Wara battalja kbira l-Awtorita tax-Xandir tat rimedju ferm parzjali biex dan isehh.

Izda l-arroganza tal-gvern twasslu biex jahseb li huwa `l fuq mil-ligi u flok jobdi l-ordni ta` Awtorita` awtonama u super partes, jirrikorri lejn il-qorti biex jimblokka l-izvolgiment demokratiku li jhalli ftit spazju ghal vuci ta` l-oppozizzjoni.

Ghal dan il-paniku tan-nazzjonalisti ghandu jkun hemm risposta semplici u bierda. Jekk ma tridux li l-partit laburista jsemma lehnu il-pajjiz ma ghadux demokratiku u la ma ghadux demokratiku ma ghandux l-ingredjent baziku biex jidhol membru fl-UE.

Mela` jien nghid ghalija nghid lin-nazzjonalisti li r-referendum tistghu tmorru taghmluh wehidkom. Tistghu tmorru ttelqu wahedkom. Ahna mhux din it-tigrija irridu ntelqulkom. Ahna irridu ntelqulkom fl-elezzjoni halli il-poplu jiggudika l-operat taghkom kollu u mhux nitkellmu fuq il-fantasija ta` l-UE li ghada qed tizvolgi u tinbidel.

Ahna ma rridux nitkellmu fuq l-acquis communitaire.` Ahna rridu nitekllmu fuq id-dejn , fuq il-hmieg, fuq id-degradazzjoni, fuq l-ambjent imniggez, fuq il-bahar li ma tistax tghum fih, fuq il-kontijiet tad-dawl gholjin, fuq it-taxxi li dejjem jizdiedu, fuq l-investiment li mhux gej, fuq il-postijiet tax-xoghol li qed jintelfu u ohrajn li mhux qed jinholqu, fuq kif qed toghla l-hajja, fuq il-korruzzjoni, fuq kif il-konsumatur ma sar jiswa ghal xejn, fuq kif qed jinbieghu bla ghaqal l-assi tal-pajjiz, u fuq hafna affarijiet ohra li qed jifnuna kuljum.

Ir-risposta taghna ghall-arroganza tal-gvern ghandha tkun ghaqlija, taqlihom b`zejthom` u tqabbadhom paniku izjed milli ga ghandhom.` Imbaghad ikunu jridu jaghmlu hafna aktar visible deliverables imma l-akbar visible deliverables jibqghu iz-zewg muntanji li bnew tad-dejn u debris.` Difficli tahbihom dawn.

U mbaghad` wara l-elezzjoni gvern laburista gdid ikollu l-inkarigu li jfiehem tassew l-ghazliet li ghandu quddiemu l-poplu u l-gvern flimkien mal-poplu jaghzel l-ahjar fl-interess tal-poplu Malti u ta` hadd izjed. U min jixtieq li jsir Kummissarju tal-UE ikollu jistenna.

Ironic

The Malta Independent   

   

 

How ironic!    The most forceful argument in favour of the EU membership project is government’s own incompetence.

 

With increasing regularity I meet people who are forming an opinion in favour of membership not because they like what is being negotiated.  Indeed they hardly know or care to inform themselves.   They are starting to favour EU membership as they fear it is the only way to save us from our own incompetence and indiscipline.

 

They are realising that 15 years of irresponsible money no problem culture has landed us with mountains of debt and debris which are becoming unmanageable and are threatening our sustainability as a truly independent state.

“They are starting to favour EU membership as they fear it is the only way to save us from our own incompetence and indiscipline.”

 

It is a typical case that fighting the invisible enemy from within is tougher than fighting the evident enemy from without.    We have fought wars and remained unconquered in the face of all adversity.     Yet the invisible enemy in the form of money no problem culture, the concept that all problems can be addressed by spending ourselves through them, the strange believe that heaven will take care of our future and we need not work hard for it,   all this has eroded our financial structures, our social solidarity and our determination to protect our young nationhood.

 

The two years of Labour interlude between 1996 – 1998 serve, if anything, to strengthen this readiness to give up on our own ability to face the future as a stand alone state.   The interlude served to expose how a serious government could not survive the strength of adversity heaped on it for taking real measures to modernise us out of our own insularity and to start thinking that sustainability can only be guaranteed through hard work and economic efficiency.   Consequently they doubt whether a re-elected Labour government, with the adversity of having the electoral boundaries shaped to cut its parliamentary majority disproportionately slim even in case of a handsome overall victory, will have strength and will-power in the high dose demanded by the tough task ahead.

 

This is the irony that Labour has to contend with.  The irony that government is using its own weakness to give strength to the quick accession to EU membership project to which Labour is opposed.

 

“It is time that we start believing in our own abilities to manage our own affairs as  the best platform to guarantee peace and prosperity as we have enjoyed these last 40 years - debt and debris mountains apart.”

 

And for this government is receiving the support of all those nations who are eager to see Malta melt its hard earned sovereignty at the EU alter.   Take the recent development from the Seville summit where Ireland was re-assured that its military neutrality will remain intact and that it will not be forced to join a common defence policy.

 

This was immediately hailed by the Prime Minister to emphasise that our own neutrality was, by simple extrapolation, similarly assured.   But this is not so.  Our neutrality comes in three dimensions -   foreign policy, security policy and defence policy.

 

Ireland was only spared the last dimension but is being forced, as other existing and candidate members to adopt the first two dimensions.   Within the foreign and security policy arrangement from which Malta will not be spared we could well be forced to accept a military base for security reasons even though we might have a veto on the use of the base for common defence purposes.

 

It is time that we start believing in our own abilities to manage our own affairs as  the best platform to guarantee peace and prosperity as we have enjoyed these last 40 years - debt and debris mountains apart.

 

   

Banks should do More

Maltastar  

   

I have yet to meet anyone who disagrees that the economy is going through a bad patch.   On the contrary quite often when economic operators relate to me their direct experience they expose a bleaker picture than I can subscribe to.    Quite often I have to challenge their assertions to ensure they are not relating what they perceive as my wanting to hear.

But invariably the emerging picture is one where demand is sagging (domestic demand that is, because export operators seem to have a more stable economic environment) and the cash flow cycle is turning very very slowly.

“As a professional banker I am the first to support the view that banks should be very cautious is handling depositors’ money.”

Quite often banks are blamed for making the situation worse than it needs to be.   As a professional banker I am the first to support the view that banks should be very cautious is handling depositors’ money.

Experience is riddled with stories of economic collapse where the banks are made to sustain, through reckless or tele-piloted lending, economic non-performance.  Invariably facing reality could be delayed but never avoided altogether.   When matters run out of hand and a liquidity crisis develops forcing loss of confidence in the financial system the whole pack of cards crumbles in a very short time.   What takes a long time in coming crashes in a few days.

So banks are right in putting the safety of their balance sheets and of the financial system as a whole before any other priority.   But this is not to say that banks should take a disinterested view in playing a useful part in making sure that the economic slowdown remains shallow and that the economy is re-engineered onto a growth path as quickly and as effectively as possible.

Banks cannot do it on their own.   It is primarily the responsibility of macro economic managers to create the right scenario for this.   And economic management in modern economies is a shared function between the government executive and the monetary authorities.

Governments use fiscal policy to loosen the tax rein and allow more purchasing power in the hands of the consumer.    Monetary authorities loosen the monetary reins to bring down interest rates stimulating consumption and investment.

But this is only possible is the context of macro economic stability.   If, as in our case, the country has been burdened with huge public fiscal imbalances which have cause the real national debt to double in the short space of 5 years effectively reaching some 90% of the GDP, macroeconomic managers room for maneuvering could be very limited.

“So in the particular circumstances our economy is in, commercial banks have to carry a higher degree of responsibility to ensure that things don’t get worse than they really need to”

Loosening the fiscal and monetary reins in such circumstances could be a dangerous recipe for creating inflation which could undermine the very basis for a sustainable economic recovery.

So in the particular circumstances our economy is in, commercial banks have to carry a higher degree of responsibility to ensure that things don’t get worse than they really need to.    Knowing that their macro-economic masters have limited effective tools at their disposal to engineer an economic turnaround banks need to be doubly sensitive to their important role in  oiling the economy back to normality.

They do this through different measures.   Firstly they should be selective in financing new ventures which will lead to increase in capacity making dampening of demand much more serious for existing operators.   This applies not just to private sector demand for credit but also to public sector demands.   Banks should avoid being forced to finance expenditure which by all measures should be financed through government consolidated fund.     Financing the requirements of the Foundation for Tomorrow’s School clearly falls in this category.

Secondly and very importantly is the way they deal with existing credit exposures that under the burden of economic downturn are finding difficulties in keeping their commitments with the banks.

With those operators who are genuinely being effected by the economic downturn or by the re-structuring process banks cannot just solve the problem by simply throwing the book at them.   I am hearing of scandalous cases where banks are proposing borrowers to sign over their property to the bank at deflated prices so that the bank will act as a real estate agency and sell the borrowers’ property by dumping it on the market or arranging private deals.

“Their priority should be aiding the re-structuring and not simply become official channel  for exporting domestic savings”

This is scandalous because the with the substantial economic power which society places in their hands banks have an obligation to manage their affairs in a transparent manner.   When they decide to foreclose on property held as security society has produced legal systems meant to preserve such transparency.   In my days as Chairman of Mid-Med Bank as a matter of policy we used to allow a period of 12 months after legal foreclosure during which the borrower could reclaim his property by paying up the loan previously defaulted upon.    By-passing these legal transparent systems by forcing borrowers to sign open preliminary agreement giving the bank the right to make a private deal with their property is not in my dictionary for responsible banking behaviour.

It is crucial that at this stage of the economic downturn, whilst strengthening their provisions policy to preserve the integrity of their balance sheets, banks need to show a generous dose of forbearance in offering re-structuring deals to their borrowers in difficulty to ensure that the market is not flooded with foreclosed property at a time when demand is sagging.

Clearly banks should be doing more.   Their priority should be aiding the re-structuring and not simply become official channel  for exporting domestic savings.

   

Inhasdu

Il-Kullhadd



Nhar l-erbgha 19 ta` Gunju 2002 in-nazzjonalisti inhasdu. Bl-artiklu ta` kull nhar t`erbgha tieghu fit-Times il-Leader Alfred Sant farrkilhom il-maskra ta` L-UE li permezz taghha in-nazzjonalisti kienu qed jippjanaw li jghattu id-difetti kbar fit-tmexxija mghaxxa taghhom.

Ghan-nazzjonalista il-kwistjoni ta` l-UE ghandha tokkupa l-agenda kollha tad-diskussjoni politika f`pajjizna. Li kien ghalihom ma nitkellmux fuq il-mod zdinjituz li bih qed imexxu.` Ma ghandniex nitkellmu fuq il-korruzzjoni, fuq id-Daewoo u fuq l-iskandlu tal-bejgh tal-Mid Med Bank.

`Jien ilni nsostni li ma ghandnix noffru konfrontazzjoni daqstant qawwija fuq l-UE u li din il-materja il-pajjiz ghandu jhalliha timmatura sa ma nkunu nafu l-Ewropa stess kif ser tinbidel`



Ma nitkellmux fuq kif qraba ta` ministri b`arroganza jippretendu li kullhadd jaqdihom f`kollox anke jekk johrog il-flus mil-but. Ma nitkellmux fuq il-glied intern li hemm fil-partit nazzjonalista fejn issa ministru fetah` il-kazin tieghu ha jikkometi mal-kazin` ufficjali tal-partit.

Ma nitkellmux fuq id-degradazzjoni ta` l-ambjent. Kif anke l-arja u l-bahar li huma patrimonju ta` kullhadd gew kontaminati b`mod li ma jistghux jitgawdew.

Ma nitkellmux fuq kif progetti ta` toroq jibdew u ma jispiccaw qatt. Kif miljuni qed jintefqu fil-hala u bla kontroll fuq il-progetti tat-toroq` u ta` l-isptar tal-Qroqq.

Ma nitkellmux fuq kif progetti li suppost ga lesti ghadhom lanqas biss bdew. Kif` il-progett tas-Sea Terminal li missu ga lest ha ngawdu miz-zieda tal-cruise liners ghadu qas biss beda u issa kwazi tard wisq biex dan il-progett jirnexxi` ghax negozju lahaq ikkapparrah haddiehor. Kif il-progett ta` Bieb il-Belt issa gie skartat.` Kif il-progett ta` Manoel Island waqa daqstant lura.

Ma nitkellmux fuq kif is-servizzi tas-sahha qed jikkrollaw u mhux jirrispondu ghal htigiet ta` min ma ghandux flus biex ifittex servizzi privati. Kif l-iskejjel taghna mhux aggornati ghal htigiet tal-lum.

Ma nitkellmux fuq kif mhux jinholqu opportunitajiet godda. Kif m`hu qed jersaq lejna l-ebda investiment. Kif il-haddiema mhassba jaraw il-postijiet tax-xoghol mhedda u difficli jinstabu postijiet godda specjalment ghal min hu fuq il-45 sena.

Kif problemi endemici fil-pajjiz mhux qed jigu indirizzati b`mod effikaci minkejja il-miljuni kbar li qed jintefqu fuqhom kull sena.` Kif it-tarznari li suppost ghandhom ikunu sors ta` dhul ekonomiku ghal Malta ghadhom jerdghu sussidji insostenibbli u l-uniku soluzzjoni tal-gvern hija li nhallsu eluf` biex in-nies ma jahdmux. Kif il-Freeport mhux ikabbar ix-xoghol kif kien mistenni skond l-investimenti kbar li saru fih u li dan il-progett qed igieghel lil gvern ikompli jhallas tmintax il-miljun dollaru kull sena ghal imghax fuq id-dejn barrani.

`Perswaz li l-uliedna ahna lkoll nixtiequhom imorru l-genna. Izda nixtiequ wkoll li l-genna tistenna ghax irridu ngawdu l-uliedna f`din id-dinja qabel ma mmorru l-genna. L-UE u l-genna l-ahjar jistennew`



Ma nitkellmux fuq il-mod kif il-gvern qed jaghsar lil kullhadd bit-taxxi halli l-gvern ikompli jisparpalja u biex ilahhaq ma l-imghax li qed jieklu minn gewwa.` Ma nitkellmux fuq kif it-turizmu igammja u mhux joffri il-gid li kien beda jitkabbar taht gvern laburista.

Jien ilni nsostni li ma ghandnix noffru konfrontazzjoni daqstant qawwija fuq l-UE u li din il-materja il-pajjiz ghandu jhalliha timmatura sa ma nkunu nafu l-Ewropa stess kif ser tinbidel u sa ma fil-pajjiz timmatura opinjoni aktar uniformi dwar f`tip ta` relazzjoni hija aktar addatata. Sadanittant ma jinghalaq l-ebda bieb ghal kwalisijasi possibilita`.

B`hekk ma nhallux lin-nazzjonalisti jpingu l-UE bhala is-soluzzjoni tal-problemi kollha li holqot l-inkompetenza taghhom fit-tmexxija tal-pajjiz. Ma nhalluhomx ipingu lil Partit Laburista bhala pajjiz li huwa kontra l-UE meta fil-fatt il-partit m`huwa kontra hadd izda huwa biss favur Malta u l-Maltin.

Ghalhekk hasadhom Alfred Sant meta qal li issa huwa z-zmien li nitkellmu fuq il-problemi domestici u naraw minn miz-zewg partiti kien kapaci joffri l-ahjar soluzzjonijiet ghal problemi taghna li l-ebda UE m`hi ser issolvilna.` Li dawn il-problemi irridu insolvuhom ahna kemm jekk nidhlu fl-UE kif ukoll jekk nibqghu barra.` Li m`hu ser jigi pregudikat xejn billi il-kwistjoni ta` l-UE tithalla tistenna ftit iehor sa ma l-poplu Malti jkun jista` jigi offrut ghazla vera ` shubija shiha jew partnership` fid-dettalji kollha taghhom ` li imbaghad la ssir l-ghazla b`mod oggettiv u b`mod li l-poplu jkun infurmat sew dwar iz-zewg alternattivi principali, imbaghad nimxu skond dik l-ghazla bhala poplu wiehed, maghqud u determinat.

In-nazzjonalisti dan ma jriduhx. Ma jriduhx ghax jikxfilhom il-maskra li l-kwistjoni ta` l_UE huma jriduha bhala staffa ghall-elezzjoni li gejja biex tghatti id-difetti kbar li normalment igibu l-kundanna kbira tal-poplu fl-elezzjoni li gejja.` Ghalhekk flok il-mossa ta` Alfred Sant haduha bhala ftuh li jista jwassal ghal konsensus li tant ilhom jappellaw ghalih u li anke l-isqfijiet talbu ghalih, minflok hargu isterici jghidu li l-partit laburista qata` qalbu.

Dan juri kemm mhux genwin il-prim Minsitru meta jghid li jrid li r-referendum isir buq bazi tassew nazzjonali izda li r-referendum huwa jridu biex iservih politkament hallih jipperpetwa l-poter li ga twal iz-zejjed f`idejh meta fil-fatt il-poplu kien ried bidla fl-1996.

Hallu n-nazzjonalisti iwerzqu u jaqghu ghac-cajt f`ghajnejn kull min hu serju u jrid il-gid tal-pajjiz. Halluhom jghidu li qtajna qalbna. Il-fatti huma kontra.` Qatghu qalbhom huma li jekk innehulhom il bicca ta` l-UE mill-agenda poltika maltija huma jidhru gharwenin quddiem l-elettorat.

L-agenda taghna naghmlu ahna. Anke jekk l-UE hija il-genna tista tistenna. Perswaz li l-uliedna ahna lkoll nixtiequhom imorru l-genna. Izda nixtiequ wkoll li l-genna tistenna ghax irridu ngawdu l-uliedna f`din id-dinja qabel ma mmorru l-genna. L-UE u l-genna l-ahjar jistennew.

The Moreno Among Us

The Malta Independent   

   

Watching the clash between South Korea and Italy, I was thinking that a miracle was about to happen.

 

Italy, playing their best games in the World Cup, were just three minutes away from winning the match against a relegation-quality Serie A side, in spite of all that the prejudiced referee Moreno could throw at them.

“It is like EU referenda. When the electorate decides against the EU they keep trying until the answer is right.”

The referee seemed to have a clear brief. Make perfectly accurate decisions when the ball is midfield but make sure to throw all benefit of the doubt against the Italians whenever the ball is in either penalty area. Penalty, yellow cards and other biased decisions where to be thrown at the Italians making sure to demotivate them as such abuse gets loaded onto the four valid goals that were capriciously annulled in the previous two games against Croatia and Mexico.

Anybody who believes that it is quite coincidental for the same team to suffer five valid goals cancelled in three consecutive matches, and who in the last crucial match gets denied two clear penalties and have their best midfield player sent off capriciously at the golden goal stage, would probably believe in fairy tales.

But it was not to be. The inevitable had to happen when the dice was so loaded. South Korea not only scored a late equaliser but after Italy were reduced to 10 men, after they were denied a clear golden goal penalty, and after having a valid golden goal capriciously annulled, it had to happen that South Korea were to find a golden goal.

It is like EU referenda. When the electorate decides against the EU they keep trying until the answer is right. Once they get the answer they want then it is a golden goal. Then it’s all over. Nobody bothers to ask the electorate on its views of subsequent changes let alone to re-consider the original decision.

I see a similar analogy in the way the government is approaching the EU issue.

“To be sure, during past months I have increasingly come to believe that it might be better for the country as a whole, to totally shelve the EU membership/partnership issue for a few years. Instead, we should concentrate on the internal matters which need urgent and disciplined attention …”

The government is like the Ecuadorian referee treating the electorate the same way Moreno treated the Italian team. Just as Moreno was not interested in the real game and started cancelling whatever the Italians could produce, the government is not interested in discussing or putting on the agenda the issues which are really affecting our quality of life. As Moreno was only interested in making space for the Koreans to score the goals, the government is only interested in making space for the EU to show us how to save us from our own indiscipline.

This is the surest way to lose the game. It was therefore refreshing this week having the opposition leader agreeing that it is wrong to put the EU issue, in favour or against, as the top priority on the national agenda, eclipsing the urgency of the re-structuring programme which we must do for ourselves. His words are worth quoting.

“To be sure, during past months I have increasingly come to believe that it might be better for the country as a whole, to totally shelve the EU membership/partnership issue for a few years. Instead, we should concentrate on the internal matters which need urgent and disciplined attention.

There could hardly be adverse consequences with such an approach both for the anti- and pro-membership lobbies. A few years of waiting would allow the island to catch up on the modernisation and restructuring effort that it needs to carry out, thereby allowing it to secure a more favourable deal with Brussels.

How long can Malta fudge the internal choices it has to make, in full awareness of the point that if we continue to postpone decisions, the problems that have been allowed to pile up will threaten our survival?”

The government should stop acting like Moreno, let the nation approach the EU issue objectively with maturity requiring a longer time span, and meanwhile focus on the real game of re-structuring the economy in order to be able to take a smart decision about the EU in our own good time. One Moreno in FIFA circles is more than we need.

 
 

   

Funding Tomorrow`s Schools

Maltastar   
   

 

The PN has finally realised that to bring public schools to an acceptable level of effectiveness more resources have to be devoted. Resources comprise not just the physical schools environment, including the equipment and facilities available with the schools. They comprise also the management systems and human resources devoted to the schools and the administrative support given by central government.

“The formation of a Foundation gives rise to suspicion as to the real motivations for choosing this vehicle”

It is indeed a pity that the level of public schooling has been allowed to fall below that available at church and private schools (although a few shining exceptions exist as well in the public school sector). The right to education, as in the case of health, is universal and should not be conditional on the financial status of the family. Poor families who cannot afford private schooling have a right to quality education for their children within the public education system.

 

 

The government has set up a foundation called Foundation for Tomorrow’s Schools and has charged the Foundation to execute a programme to build new schools investing some Lm70 over the next few years in order to up-date the configuration of public schooling facilities.

The formation of a Foundation (as in the case of the Tal-Qroqq hospital) gives rise to suspicion as to the real motivations for choosing this vehicle. The investment could and ideally should be made within the structures of central government. The counter-argument is made that the creation of an autonomous body injects efficiency in the use and application of resources. This is doubtful. If the same people are to be involved in executing a project does it really make any difference on the type of vehicle within which they operate?

Or is it that such autonomous vehicles are used to escape the financial controls and accountability demanded by central government control systems?

It is easy to answer in affirmation basing on the practical experience of the FMSS, the Foundation in charge of the Tal-Qroqq Hospital.

But the evidence goes further.

The Foundation for Tomorrow’s Schools is proposing to fund its programme by commercial bank borrowing which will be guaranteed by the government. As I argued elsewhere in my writings, this type of off-balance sheet financing is economically irresponsible and extremely harmful.

“The financial irresponsibility of this government and its crisis management to the exploding national debt and persistent fiscal deficit re-confirms itself with monotonous regularity.”

If the project being financed was of a productive type and expected to repay itself through its own cash flows such off-balance sheet funding could be tolerated. If for example such borrowing is raised to finance the construction of a highway which is expected to generate toll-revenues then it could be acceptable as the government guarantee would be expected to remain contingent.

But funding public schooling does not produce any cash flow. Schools are social infrastructure which the Sate is expected to provide to the population by applying our tax money which has been rewarding government with some Lm240 million more than we were paying in 1998. Government guarantee in this case is not contingent. It is real and the loan will only be repaid from contributions from the consolidated fund.

 

The consolidated fund (read the public budget) is already well loaded with similar obligations. Each year the government has to vote some Lm30 million just to service the interest obligations of similar dead loans existing in the form of bank borrowing by government-owned organisations that cannot even afford to pay the interest let alone provide for repayment of the capital. Foremost amongst these is the Freeport which amongst other funding receives over Lm8 million p.a to pay interest on the foreign loan.

Water Services Corporation receives some Lm4 million p.a. for similar purposes and Gozo Ferries also reaches out its hand for similar payments purely to pay the interest on the bank loans raised to finance the Gozo ferries, the revenue from the operation of which goes to a totally different company, i.e. Gozo Channel Co. Ltd.

To this list, which comprises many others, we are now going to add the Foundation for Tomorrow’s Schools. Off balance-sheet borrowing of Lm70 million to finance social infrastructure is resorted to by panic stricken governments whose financial position is so tight as not to permit direct funding.

Such financial engineering, will no doubt be frowned at by international rating agencies and by the IMF and could well lead to the formation of their opinion that the government is not seriously resolved to address the public deficit problem but is just engineering to fudge the problem by hiding it off-balance. With the Enron experience behind them credit-rating agencies, who have just down-graded Japan two notches for similar reasons, could well be tempted to dish out a similar fate both to our sovereign risk status as well as to local banks that are financing such off-balance irresponsibility.

The financial irresponsibility of this government and its crisis management to the exploding national debt and persistent fiscal deficit re-confirms itself with monotonous regularity.

 

Quotas in Fashion

The Malta Independent on Sunday   

   

   

When benchmarked against the performance of Cyprus and Singapore, the long term performance of our economy is dismal.  

 

Cyprus and Singapore ought to be valid benchmarks as they are both micro-states having gained their nationhood approximately at  the same time as we did.   The economies of all three nations  started roughly from the same backward undeveloped position.

“Malta unfortunately remained far more inward looking than both Cyprus and Singapore”

 

By the very nature of things a micro economy can only prosper if it opens up and becomes competitive in a global market.   The domestic market is too small to permit economies of scale efficiency.    Whilst keeping strategic control over crucial sectors which cannot withstand the openness of the economy,   a micro economy benefits from wide liberalisation which allows the market to maximise the use of resources.

 

Malta unfortunately remained far more inward looking than both Cyprus and Singapore.   We continue to regulate far too many economic activities.    Most activities are subject to specific licensing when qualitative minimum standards are more appropriate than quantitative restrictions.

 

Entrepreneurs complain bitterly about such over-regulation.   The port operations are often singled out as being monopoly driven giving rise to high tariffs rendering international trade from Malta disadvantaged.   Often we hear declaration of intention to liberalise port services .   But there are other economic activities that are still regulated in quantitative terms.   Public and private transports, including taxi service, chemist shops, postal services  amongst others are still subject to licensing quotas.

 

Being a small economy it has been assumed that the government knows better than the market what the optimum number of participants should be.   The  right of entry into certain areas of economic activities is severely restricted.

“The freedom of establishment gives EU nationals the right to implant themselves in Malta as self-employed without suffering discrimination.  The rules which apply for Maltese nationals will have to apply to them.”

 

The argument has been made that it is these rigidities that have rendered our economy static  and have caused us to lose international competitiveness    falling well behind when compared to Cyprus and Singapore who liberalised their economy more substantively.

 

With the government over-committed to seeking  and achieving full EU membership by early 2004, one would think that EU membership is meant  to bring about a paradigm change in our mentality; the growing out of the culture of protectionism and the liberalisation of the restricted economic sectors   These will in normal circumstances be open not only to all Maltese nationals but eventually to all EU nationals.    This will spur local operators to maximise their efficiency to keep up with the competition rather than continue seeking shelter under protectionist measures.

 

This government has been harshly critical of quotas operated by former Labour administration.   The numerus clausus for tertiary education is probably well remembered.   Import control, whether outright exclusion, tariff barriers or  quota restrictions have been harshly criticised and gradually dismantled leading to basically a free trade area even sacrificing jobs in industries formerly protected against import competition.

 

But the unbelievable seems about to happen.    Instead of using the quest for EU membership to bring about a paradigm shift to liberalise the economy the opposite is just about to occur  in the sector involving small enterprises and self-employed.

 

The freedom of establishment gives EU nationals the right to implant themselves in Malta as self-employed without suffering discrimination.  The rules which apply for Maltese nationals will have to apply to them.

 

Labour opposition has been critical of the fact that the government did not negotiate any transitory provisions regarding the right to limit the entry of self-employed as it has done in case of normal employees.       It has maintained that the self-employed sector is in bad shape to withstand competition from EU nationals who would be attracted to implant themselves amongst us.

“In short, to keep the Sicilian pasticciere away, we may have to deny young talented Maltese the right to set up their own pasticceria.   I don’t understand anything anymore.”

 

Although Labour is often depicted as advocating extreme protectionism and inward looking policies this is not so.    Labour inward looking policies apply only to agricultural and fisheries sector knowing so well that these sectors would be wiped away if exposed to EU rules and that such wiping away would be strategically dangerous even if commercially expedient.

 

In so far as general non-agricultural trade Labour’s policy promote free trade arrangements not only with the EU but also with other trading partners.   But Labour favours a phased approach to give time and assistance to local entrepreneurs to restructure and be able to face competition even in the freedom of labour and services that would eventually be introduced as part of the enhanced free trade arrangements.   Labour knows only too well that such freedoms have to be phased in within the context of a growing and vibrant economy as their sudden application on a stagnant economy could cause unpleasant and damaging shocks.

 

But now it seems that the government, in trying to protect the local economy from the influx of EU self-employed, is bent to bring quotas back in fashion and subject the right of entry into sectors of self-employed dominated economic sectors. To stay within EU rules the restriction would have to apply to all EU nationals including the Maltese themselves.

 

Rather than bring about a needed paradigm shift to liberalise restricted economic sectors we are risking EU membership to subject more areas of the economy to stiffer controls restricting the right of entry to Maltese nationals.   In short, to keep the Sicilian pasticciere away, we may have to deny young talented Maltese the right to set up their own pasticceria.   I don’t understand anything anymore.

 

X`Tahseb

Il-Kullhadd



Hekk nigi mistoqsi sikwit mil-laburisti rigward l-elezzjoni generali li ssir xi zmien fit-tmintax il-xahar li gejjin.

Nahseb li l-Partit Laburista jixraqlu jkollu rebha kbira. Nahseb li tkun rebha hafna akbar milli kellna fl-1996 u li tkun tippermetti biex bit-tbaghbis b`kollox li sar fil-konfini tad-distretti elettorali il-Partit ikollu maggoranza ta` siggijiet parlamentari` akbar milli kellna fl-1996.

`Nahseb li tkun rebha hafna akbar milli kellna fl-1996 u li tkun tippermetti biex bit-tbaghbis b`kollox li sar fil-konfini tad-distretti elettorali il-Partit ikollu maggoranza ta` siggijiet parlamentari` akbar milli kellna fl-1996.` 

 Nahseb hekk ghax il-pajjiz jinsab imdejjaq mit-tmexxija sterili tal-Partit Nazzjonalista u jinsab jistenna mod gdid ta` tmexxija, aktar serju, aktar fl-interess tal-Maltin u b`hafna aktar galbu u krejattivita`.

Qatt ma niftakar li l-pajjiz kien ghaddej minn zminijiet ta` qtugh il-qalb daqs illum.` Il-poplu llum fehem li dak li kien jghid gvern laburista dwar il-hofra finanzjarja li nbiet minn gvern nazzjonalista fis-snin disghin hija rejalta`. Jishet lil min kien jghid li gvern laburista kien qed jivvinta meta jsemmi din il-hofra u jidhaq b`min jghid li din il-hofra hija tort ta` l-ammistrazzjoni qasira laburista ta` l-1996 ` 1998.

Il-poplu inkwetat li fl-erbgha snin 1998 ` 2002 iz-zieda fid-dejn nazzjonali u l-bejgh permezz ta` privatizzazzjoni tela ghal kwazi Lm500 miljun jigifieri qed inzidu d-dejn nazzjonali b`miljun lira kull tlett ijiem.

Il-poplu inkwetat jara l-gvern dejjem jafghas izjed fil-gbir tat-taxxi li qed jifnu l-ekonomija u l-livell tal-hajja tal-haddiem u l-pensjonant.` Inkwetat izjed` li minkejja dan il-flus jintefqu biss f`imghax fuq id-dejn li ma jrendi xejn ghat-tkabbir ekonomiku.

Il-poplu rrabjat jiftakar min kien weghdu li jehfief il-pajjiz tat-taxxi qabel l-elezzjoni u min kien tah x`jifhem li kien kapaci jgib Lm100 miljun lira kull sena mill-Unjoni Ewropeja.` Irrabjat ghal` min irid inessi dawn il-weghdiet u jipprezenta ruhu biex jerga` jiehu l-vot wara li naqas li jonora weghdi solenni li kien ghamel.

Il-poplu qalbu maqtugha jara lil tal-hwienet, kbar u zghar,` igergru kemm qed jonqsilhom il-bejgh ghax hadd ma jhossu komdu jzid ir-ritmu tal-konsum. Qalbu maqtugha jara t-turizmu jickien u l-esportazzjoni tonqos.` Qalbu maqtugha jara li investiment gdid mhux jersaq lejna u ma jigu krejati l-ebda opportunitajiet godda u l-uniku soluzzjoni donnu hija li nhallsu lin-nies biex ma jahdmux permezz ta` early retirement schemes.

`Il-poplu mdejjaq jara il-gvern ma jsib ebda soluzzjoni ghal problemi ambjentali generati mit-tniggiz tal-power station tal-Marsa u mill-mizbla tal-Maghtab.` 
    
Il-poplu mdejjaq jara il-gvern ma jsib ebda soluzzjoni ghal problemi ambjentali generati mit-tniggiz tal-power station tal-Marsa u mill-mizbla tal-Maghtab. Dawn theddid ghal sahhitna u qed itellfuna milli ngawdu mill-ftit affarijiet li fadal b`xejn ` l-arja u l-bahar.

Il-poplu konfuz ma jafx jekk min jahdem it-tarzna hux ser jibqaghlu post tax-xoghol, jekk il-gvern jiflahx ikompli isostni l-impjieg ta` tant nies impjegati bla bzonn fis-settur pubbliku u jekk il-finanzi pubblici hux se jkunu f`qaghda li jipprezervaw is-servizzi socjali u l-pensjonijiet.

Ghal dawn ir-ragunijiet kollha il-poplu qed ifittex soluzzjonijiet godda.` Soluzzjoni rejali ` soluzzjonijiet made in Malta u mhux soluzzjonijiet mill-arja u mil-fantasija li jkunu made in Brussels.

U hawn tinsab l-akbar sfida li ghandu quddiemi il-partit laburista.`

Tajjeb jew hazin il-partit nazzjonalista wassal il-poplu taghna f`tant qtiegh ta` qalb li l-poplu donnu beda jahseb li ma jezistux soluzzjonijiet lokali u li jekk ma nidhlux fl-UE ser nitkissru ekonomikament.

Il-partit laburista irid jaghmel sforzi akbar biex juri li dan mhux il-kaz u li decizjoni dwar l-UE, minghjar ma nghalqu l-ebda bieb, l-ahjar tittiehed wara li nfejqu il-problemi ekonomici bi tmexxija gdida u serja minn `gvern laburista li jkun elett b`maggoranza qawwija fl-elezzjoni li gejja.