Opposition proposes committee on Libya

The opposition has proposed the setting up of an inter-parliamentary committee to discuss how Maltese businesses involved in Libya could be helped through the current crisis while retaining their workers.

Introducing the two-hour debate on the opposition motion on the Libyan crisis, Karmenu Vella said the committee could include organisations such as the Chamber of Commerce.

Mr Vella made it clear the opposition was not calling for bailouts, but assistance to enable Maltese companies to survive the crisis.

A large number of Maltese entrepreneurs had invested in Libya during the last 40 years. This was beneficial to the Maltese economy as exports to Libya amounted to €85 million. There had also been a number of Libyan investments in Malta in companies with some 7,000 in direct and indirect employment. Although it was difficult to quantify the impact in monetary terms, this definitely amounted to hundreds of millions of euro.

The motion suggested that Parliament should encourage all the parties involved to quickly find a peaceful solution. This was the only hope for investors and the Maltese economy.

Mr Vella said many such investors felt insecure and concerned that their investment would go up in smoke. There was also the fear that the current economic and commercial vacuum in Libya would lead Maltese investors to lose their position. It was up to the government to help Maltese investors and workers reintegrate in Libya once the war was over.

There was also uncertainty with regard to the money owed to many of these companies. It had originally been said that the freezing of bank accounts was intended to affect only the regime, yet many companies had been affected.

Many investors and workers were asking what support the government was willing to give and when this help would come. In a meeting held between the prime minister and the MCESD on March 14, Dr Gonzi had promised that the government would take the necessary measures to reduce the impact on the Maltese economy. Yet no action had been taken after the meeting.

Mr Vella said the motion recommended the setting up of an inter-parliamentary committee which would include representatives from both the Maltese and Libyan Chambers of Commerce. This committee would have the role of protecting investors and workers and coordinating ideas and suggestions to help them. The committee would also facilitate discussion with government entities such as the Inland Revenue and VAT departments and banks. The committee would not consider bail-outs and should not in any way increase the burden of Maltese taxpayers.

Malta had found the resources to help Ireland and Greece, it was now necessary to find a way to help the Maltese.

On a national basis, the government should try to help the 300 workers who worked directly in Libya and many of whom were currently on standby and not being paid. The government had promised to find alternative employment for the 500 Air Malta employees who were being dismissed. Mr Vella hoped that the government would treat these 300 workers in the same way.

Most factories which exported to Libya were working reduced hours and on reduced wages. Medelec Switchgear Ltd had started to work a four-day week.

Mr Vella suggested that the Inland Revenue and VAT departments and banks should consider making special arrangements for these companies and workers. These could include special tax payment schedules, national insurance contributions, repayment schedules and lower interest rates.

The government should also help companies to find alternative international markets.

There were also a number of international possibilities which should be analysed. The government had to analyse whether it was possible for the EU to help such companies. Richard Cachia Caruana had said that Malta had been given assurances before it had agreed to the sanctions. Mr Vella asked what assurances the EU had given Malta. The government should also analyse whether there was ground for discussion with the UN.

It was important to show more seriousness on this issue. He referred to Minister Tonio Fenech’s article on The National, a magazine available on Emirates flights. The minister had said that Malta could benefit from the situation in Libya and that this could create a number of opportunities. This was not the case and Malta definitely had more to lose than to gain from this situation, Mr Vella said.