Mugliett slams public sector for lack of action
Jesmond Mugliett (PN) speaking in Parliament criticised public employees administrating the Permanent Residence Scheme for not being alert enough to notice abuses which led to the eventual suspension of the scheme.
The loophole was noted after the government had to pay €250,000 in medical expenses to a foreigner benefitting from this scheme.
Furthermore, individuals could have used the scheme for ulterior motives such as obtaining European citizenship.
Mr Mugliett said one had to analyse ways to curb such abuse and not facilitate misuse.
He welcomed the fact that the opposition motion was for a general discussion without a vote because this showed that its main aim was to find a way forward for the scheme to benefit the economy. This scheme had been stopped abruptly and was not replaced.
Even though it was called the permanent resident scheme, the system permitted that foreigners did not actually live in Malta.
This was an issue which should be addressed and not allowed in any new scheme.
The scheme’s abrupt suspension had drawn criticism from the opposition and the construction and property industries. Many individuals had been on the verge of selling property only to be left with a promise of sale which no longer held any water. The scheme’s thresholds were not realistic and the government should look at those set by other countries in direct competition with Malta.
The construction industry employed 12,000 people and it was therefore important that the government did not increase the pressures on it, already burdened by the increased tariffs and fees imposed by Mepa. The crisis in Libya had also had its negative effect on this industry.
Statistics showed that the construction and property industries contributed 3.1 per cent to the economy. Mr Mugliett believed that this was underrated.
No ministry had taken full responsibility for these industries. The Building Industry Consultative Council (BICC), Mepa and Malta Enterprise could all do much more to help these industries. Many believed that the lack of assistance to this industry was aimed controlling property glut.
Creative measures could be taken to help these industries without compromising the economy. The government should instigate research in these industries and create a forum to be able to communicate directly with the people working in this sector.
Mr Mugliett said he hoped that the constructive criticism offered in the debate would lead to an alternative scheme being set up in a timely manner.
He urged the minister to set up the right administrative board to manage and monitor the new scheme.
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Mr Carmelo Micallef
Jun 18th 2011, 14:33
A major loophole in this supposedly gathering scheme is the applicants ability to rent a property.
Irrespective of the rental level, it is counterproductive to tax revenue generation and puts a burden on the Civil Servants to ensure it is not being abused by several applicants all living in the same room and then using their Schengen Visa to 'disappear' into Europe, surely a strong case for Police investigation into past applications, after all as the Minister for Finance has stated there have not been that many.
In buying a property the applicant would have paid his income tax, stamp duty and local professional fees. The following year the Inland Revenue have a fixed address to chase income tax due. Property purchase renders quite stable plus showing a provable level of wealth.
Last but not least, the Minister for Finance has stated that the proposed new scheme will not be as expensive as that of Switzerland ..... echoes of Alfred Sant? This point is made because indications are that the parameters for new system will be much harsher for Malta than for UK, Spain, Portugal, Italy, France, Greece, Slovenia, Croatia, Cyprus, Austria, Hungary, Slovakia, Latvia and Estonia....Perhaps our very clever Minister for Finance is going for Alfred Sants' dream of "Switzerland in the Mediterranean".
What a sad day when a PN Minister for Finance equates himself with a Socialist Prime Minister.
Mr Tony Camilleri
Jun 18th 2011, 13:53
Jesmond Mugliett imisskom indunajtu inthom għax inthom imħallsin biex tmexxu.
Is-Servizz Ċivili jobdi biss l-ordnijiet tagħkom.
Fuq kollox, aħjar jieqaf kollox għax qed teqirdu Malta kollha u qed iġġibuna barranin f'artna stess b'dal barranin kollha jixtru proprjetà f'Malta waqt li l-familji Maltin ma jistgħux ilaħħqu mal-prezzijiet.
Mr Carmelo Micallef
Jun 18th 2011, 15:56
Please check with Charles Mangion, Joe Mizzi and Roderick Galdes to ascertain their wholehearted support for this Scheme.
Please note: there is cross party support for the Scheme.
What they are discussing on an open forum basis in Parliament is the best terms for Malta in writing the new rules for Residency in Malta without the right to work.
Philip Hili
Jun 18th 2011, 11:23
Sur Mugliett,
Wara, kulhadd gharef!!
Jekk kont taf qabel b-din il-"loophole", ghax ma tkellimtx?
Nahseb jekk tghalaq halqek sa ma jasal zmien il-kontijiet, taghmel figura isbah!!!