Cabinet agrees to talks on party funding

The Cabinet yesterday approved a proposal by Prime Minister Lawrence Gonzi for the government to enter discussions over the funding of political parties.

It is understood that talks will be held with all stakeholders but government sources said more details would be announced at a later stage.

Dr Gonzi recently said he would be recommending to Cabinet that talks be reopened with the opposition on party financing.

His declaration was made following a letter from Nationalist Party general secretary Joe Saliba asking him to set up a parliamentary committee to draw up regulations. The PN, Mr Saliba wrote, believed the time had come for more transparency in the matter.

Dr Gonzi has said that he believes people should have more information on party financing so that confidence in the political system would grow, in the interests of the country.

Labour's two deputy leaders have both said they agree with the need for legislation to regulate party funding.

With Malta one of the few European countries that does not oblige political parties to disclose their sources of funding, it is not the first time the issue has come under the spotlight. Big businesses are known to donate considerable sums of money to political parties - sometimes to both - raising suspicions over what strings might be attached to such donations.

Party financing had been discussed within the Galdes Commission, set up by then Prime Minister Eddie Fenech Adami in 1995. But no agreement had been reached on the allowable limit of donations or on which amounts should be declared.