FOI discusses Government proposals for further levy dismantling

The F.O.I. held two separate meetings with Economic Services Minister Josef Bonnici over the past three weeks. At both meetings Professor Bonnici allowed the Federation to include in its delegation a number of industrialists in the sectors that were directly concerned with the timeframes proposed by Government on the removal of levy protection in the food, beverages and tobacco product sectors.

The first meeting involved firms having no direct inputs from the local agricultural sector. FOI deputy-president Anton Borg was accompanied by vice-president Joseph Pace and executive Cecilia Vella.

The meeting was opened by the FOI side who highlighted the general concerns of the agro-food sector, including: free accession of Maltese products into the EU markets; the improvements needed in the local infrastructure to serve industrial requirements; the strain on competition in the local market for local firms that were faced by more competitively priced imports, partly as a result of EU subsidies to exporters to Malta from member states; and the high freight, transportation and other local costs that Maltese firms pay.

The meeting then continued with various points made by all interested FOI members producing edible oils and margarines, flours, mixes and doughs, pasta, confectionery products and savory snacks, bread, mayonnaise, meat cubes, ice-creams, cream and custard powders, foods in liquid form, non-alcoholic beverages, beer, vermouth and wine flavoured with plants or aromatic substances, other fermented beverages, wheat, animal feeds and tobacco products.

During this meeting, the minister clarified certain points about levy dismantling. It was also agreed that the legal notice to be issued would not stipulate the date of the last levy removal (i.e., the remaining 70 per cent of the current levy being charged).

In fact, Legal Notice 226 of 2002, which was published on the Government Gazette on August 6, only outlines the schedule of levy dismantling that will take effect from next Sunday, January 1, 2003, and July 1, 2003. FOI members desiring a copy of this legal notice are to contact the FOI Secretariat on tel: 2123-4428, 2122-2074.

The second meeting, organised thanks to the collaboration of Professor Bonnici, was held last Thursday. On this occasion the nature of discussions involved proposals for the removal of levies in accordance with the proposals contained in the Special Market Policy Programme for Maltese Agriculture (SMPPMA).

These involved exclusively all processed food and beverages industries that depended for their raw materials on local agricultural produce or local husbandry. Senior officials from the Ministry of Agriculture and Fisheries were also present for discussions.

The FOI delegation, which was headed by president Joe Zammit Tabona and Mr Pace, also included members operating in the animal feeds, dairy, eggs and poultry, pigmeat and beef, and tomato processing sectors, as well as wine-producing operators.

Throughout the meeting the FOI officials pointed out clearly that its position varied from Government's, according to submissions the Federation had sent to the ministry in April and modified last June.

Member representatives highlighted the major points raised within these positions, including the importance that any partial levy removal should be accompanied by the required technical and financial aid for operators to bring their plants and production systems to EU compliant levels; the required developments in the primary sectors together with alternative support measures until these developments take place; access to EU markets to Maltese manufacturers ahead of membership; and the required infrastructural improvements like testing facilities and improved water quality.

The future of current price stabilisation mechanisms; guarantees of quotas; the importance of retainer products for the tomato processing operators; and the requirement of anti-dumping measures were other important issues discussed during this meeting.

Mr Pace, FOI director general Edwin Calleja and Ms Vella accompanied Mr Zammit Tabona to the meeting, which is being followed up by written clarifications by the FOI to the Minister for Economic Services and Minister of Agriculture and Fisheries.

The FOI also requested the organisation of two separate technical meetings between Government officials and FOI members operating within the dairy manufacturing and pigmeat processing sectors.