The article "Malta still insisting on retaining zero-VAT rate" (July 30) quotes Arnold Cassola, currently the Brussels-based secretary general of the European Greens, extensively.

Dr Cassola said that unnamed "top European Union bureaucrats" consider Malta to be among the worst prepared countries in drawing up proposals which would entitle Malta to structural funds.

But the top European Union bureaucrat responsible for structural funds disagrees. During a recent series of meetings held in Malta, Mr Guy Crauser, the European Commission's Director General for Regional Policy, stated that he considered Malta's preparations in relation to projects that would eventually make use of cohesion funds, to be in an advanced stage.

Not only are these preparations in an advanced stage, but the regional policy directorate within the office of the prime minister is already co-financing certain preliminary activities under pre-accession programmes, such as environment impact assessments and feasibility studies for the upgrading of the local transport infrastructure.

Furthermore, Dr Cassola was wrong in stating that structural funds can be applied to project proposals.

These funds are programme and not project based. The actual call for project proposals will only come at a later stage after the European Commission has approved Malta's single programming document. In line with agreements made with the Commission, the drafting of this plan will only start in September this year.

Malta's single programming document will be built around the national development plan and the rural development plan. The national development plan, currently being finalised, is extremely focused as it lists objectives in terms of measures.

This plan, which is not a Commission requirement, will further enhance Malta's planning and programming process.

On the other hand, the rural development plan has already been finalised following many months of consultations with all interested parties, including farmers and their representatives.

Dr Cassola should note that the end result is that Malta's programme proposals detailed in the single programming document will be based on an encompassing strategy that is well-structured, well-researched and well-planned.

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