Justice Minister Owen Bonnici yesterday told Parliament that political parties should first get their house in order before engaging in a national debate on State funding of political parties.
Introducing the debate in second reading of the Financing of Political Parties Bill, Dr Bonnici said that one could only discuss State funding after ensuring the proper implementation of the Bill.
Opposition MP Chris Said retorted that it would be a mistake for the government to discard the Nationalist Opposition’s proposal for State funding, arguing that by doing so the government would be sending the wrong message.
The government should have the courage to provide for State funding to strengthen democracy, the more so because Labour governments had “stolen” a good number of properties and was using them as party headquarters and village clubs. To have a level playing field between the parties, Dr Said said, the PL should give these properties back to their rightful owners and pay compensation.
Labour has stolen a good number of properties for use as headquarters and village clubs
Earlier, Dr Bonnici said the Bill aimed for the parties to be more credible and accountable and to enjoy the trust of the public. Political parties were crucial in a democracy and were an important tool in society.
Dr Bonnici paid tribute to the 1994 Galdes Commission as well as to former Nationalist MP Franco Debono in the part they played for Malta to finally have a law that had been under discussion for 25 years.
Borrowing from the Italian practice, Dr Bonnici said this piece of legislation could easily be termed the “Debono Law” because he had played such a major part in it.
The Bill establishes that “donations” mean any gifts, money, property or sponsorship, excluding property left to a party in last wills and testaments.
He added that a political party needed to be properly registered with the Electoral Commission within three months after the enactment of this Bill.
Political parties at the moment did not have to publish their accounts but this Bill made this obligatory. The Bill would provide a three-tier system for donations to prevent wealthy people from dictating the government’s agenda.
Donations exceeding €40,000 would be prohibited. Anonymous donations would not be able to exceed €50 and political parties would be obliged to keep records of donations between €50 and €500.
The Bill distinguished between donations of between €500 and €7,000 and donations between €7,001 and €40,000.
Donations exceeding €7,000 would have to be declared by reference to their source in the party’s financial report presented to the Electoral Commission. Evasion of these provisions would result in administrative penalties.
The Bill would also raise the capped amount that a candidate could spend in elections to be more realistic. However, serious constitutional consequences for such a breach were introduced.
Candidates would be allowed to spend €20,000 for every electoral district in a general election. A candidate who stood in two electoral districts would be able to spend €40,000 as he desired. At present, the amount was capped at €1,400.
However, Dr Bonnici warned, if anyone gave a false solemn declaration, an elected MP would be unseated by the Constitutional Court.
The Bill would cap candidate spending at €50,000 in MEP elections and €5,000 in local council elections.
The minister said that, although political parties would have three months to register themselves, they would only be required to present their accounts to the Electoral Commission from 2015. This measure was made to allow political parties to adapt to such a change.
Parties’ financial reports had to be made available for public scrutiny.
Dr Said, the PN’s secretary general, said the Opposition agreed in principle that a law should regulate the operation and financing of political parties.
The Opposition believed the Bill should regulate not only political parties but the State’s participation in the way political parties worked. The Bill referred to instances where the State shall, as a matter of public interest, favour the formation and operation of such political parties – but the only way it could do this was through financial help, he said.
It was true the PN had been facing financial problems but its proposal of State party financing was not made because of this.
The PN had never sought to enrich itself, even when in government. On the other hand, Labour had benefitted from State financing by taking costly properties around Malta and Gozo for over 40 years. Party financing was not simply about the transfer of money but of property, which contributed much to the assets held by a political party.
Over the years, Labour had taken government land or requisitioned private property to create social clubs.
What was truly worrying, however, was the fact that the Bill did not make such practices illegal. When, on January 1, 2015, the Bill becomes operative, the two parties would not be at the same starting point.
The PN had always paid for the property it now owned while Labour had rented property at minimal rates and some had been handed over to it by a Labour government.
Labour held 22 government properties under rental contracts. Three were located in Floriana and another in a prime location in Victoria. A property in Naxxar housing the party’s social club cost it three cents a day paid to the State.
Labour had intentionally left Australia Hall to deteriorate so that it’s price could go up. At the time it cost Lm4 million so claims it could now be sold at about €10 million were probably right.
In giving up Freedom Press in Marsa, Labour had received 14,000 square metres of land including Australia Hall. It had received Lm14,000 in cash, Lm3000 for furniture removal, a property in St Andrew’s and a factory in Marsa to serve as a printing press, now housing the One complex.
Social Solidarity Minister Michael Farrugia accused Dr Said of misleading the House as he failed to give all the facts. Labour had ceded its headquarters and eight tumoli of land adjoining the Freedom Press to make way for a national project.
Dr Said continued that in addition to the property in St Andrew’s, Labour had been given the Maċina at Lm400 rent per year together with the Ħal Ferh complex on emphytheusis.
The party had also been given requisitioned property in prime areas in six localities to serve as clubs. He challenged the Labour Party to return these properties to their original owners and to pay them compensation.
The Bill did not address these issues. The PN in government had embarked on discussions to introduce a party financing law and a select committee had been set up under the previous legislature. Talks had been discontinued due to the lack of participation by Labour opposition representatives.