Fenech convinced Services Directive good for Malta

Finance Minister Tonio Fenech has reiterated that the EU Service Directive is good for Malta as it promotes the open-market concept and liberalises the market to such an extent that it opens a myriad of opportunities for Malta.

Mr Fenech was winding up the debate in second reading of the Services (Internal Market) Bill, which establishes the general provisions facilitating the exercise of freedom of establishment for service providers and the free movement of services in the internal market. It also provides a framework of principles on which the internal market could develop.

Answering directly Labour MP Alfred Sant, Mr Fenech stood firm on his introduction of the Bill when he had said that he expected the directive to give Malta an impetus to continue to develop in a market which was far greater than Malta's.

Services were fundamental to the economic texture of the country and speakers from both sides had acknowledged the directive was providing good opportunities for these to expand. However, he was not surprised that Dr Sant interpreted the directive as a threat to the Maltese professionals and the small self-employed.

The Bill excluded the health and social services sectors, financial services and gaming.

Mr Fenech said the EU was built on social principles which respected the market but, at the same time, was socially responsible. The European social model formed part of a model which protected employment.

The directive emphasised having effective instruments which facilitated business, such as introducing the concept of a one-stop shop. Malta Enterprise, as announced in the Budget, was the direct contact point for the one-stop-shop concept. This gave local operators opportunities to access other markets and EU funds.

Before presenting the Bill, the government had launched an extensive consultation process with local operators. The Bill was an enabling law with legal notices to follow as the implementation process progressed further. A scrutiny process by the EU would be carried out next year to check that all member states had transposed the directive correctly into national legislation.

Concluding, Minister Fenech said the Bill aimed at facilitating the licensing of businesses by foreign operators in Malta but at the same time opened a window of opportunity to local operators.

Earlier, Ċensu Galea (PN) said it was only after several discussions that EU member states had reached a compromise on what could be implemented through this directive. While the direct effect of the Bill was that it would implement the EU directive, it also addressed 14 other national laws.

On enactment of the Bill, the government should provide information to explain how these 14 laws would be amended and how these amendments would bring about a difference. Every section could be brought into effect when the minister decided. Meanwhile, it would also be beneficial if organisations that represented employment sectors conducted information campaigns.

It was expected that this would bring about a radical change of how one looked at the services, rights and obligations, the way authorisations were issued in order to provide services and how regulatory boards should provide information with regard to service activities.

Amendments would not only affect the Commercial Code and the Code of Organisation and Civil Procedure, but would also provide changes to the sector of self-drive garages, postal services, the accountancy and engineering profession, the sectors of education, transport and tourism and the Malta Resources Authority.

Concluding, Mr Galea commented that the Bill aimed at creating a level playing field to service providers, and augured that it would serve to expand Malta's economy.

Edwin Vassallo (PN) said the amendments represented a simplification process of bureaucratic procedures that would help the development of commercial activity.

He had been positively struck by the inclusion of the possibility being given to those traders who were compliant with other national laws, who would now be able to start operations in Malta by simply notifying the licensing authority of their activity. This provided less obstacles to traders.

This would reduce bureaucracy which remained cumbersome, and called for traders to overcome the dose of prejudice and jealousy prevalent in the Maltese culture. Malta de-pended on its commercial activity and the services market was important.

Mr Vassallo referred to the principles embedded in the European charter of small and medium-sized enterprises and invited the government to follow these principles to assist the development of small businesses. This must not only be reflected in legislation but also in the administrative application of the legislation. He also recommended that employees of small enterprises should strengthen their IT competencies.

The Bill was unanimously approved.

Speaking on the Bill, opposition finance spokesman Charles Mangion said considering the fact that out of the approved €348 million capital expenditure for 2009 only €169 million had been spent in the first nine months, and also in view of the fact that the stimulus package implemented by the government in the manufacturing and tourism industry did not exceed €14 million, the fact that the deficit of €258 million exceeded the one projected for 2009 fourfold underlies the fact that Malta's deficit was among the highest in the EU.

The country's debt had risen to €4 billion.