Much political capital is being made on the strength of the Maltese economy. It is an undeniable fact that the economy is flying and a shining beacon in the European Union where most others are struggling. What is much less acceptable is the government taking credit for it. These are the facts.
With all other tourist destinations which normally compete with Malta for the tourist dollar (or euro) in serious trouble for a variety of reasons including a heavy influx of refugees, acts of terror and significant economic unrest, it is no surprise that tourism, the engine room of the Maltese economy and the one industry which bears the brunt of Malta’s national revenue, is breaking records and taking the economy along for the same ride.
The other main event is of course the collapse in the price of oil which is no less than equivalent in relative money terms to an oil discovery in Maltese waters without the environmental concerns and risks.
A blind man’s dog could successfully manage the Maltese economy in current circumstances. This government won two massive economy-related lotteries during its term. One was the meltdown in the price of oil and gas, which among many other things saved Air Malta and enabled a cut in the electricity tariff, and the other were the tragic events all over Europe which panicked tourists into total abandonment of destinations like Tunisia, Greece, Turkey, Egypt and so on. Many of them instead now opting for Malta.
A stable administration would be putting heads together to make hay while this particular set of favourable economic circumstances remain present. Not so unfortunately for Malta.
The government is in a state of paralysis with the Prime Minister and various ministers forced to spend all their time and energy wallowing in muddy controversies with no respite, constantly attempting to defend the utterly indefensible. It’s time for the Prime Minister to show leadership by taking some action to demonstrate reasonable accountability and move on.
A blind man’s dog could successfully manage the Maltese economy in current circumstances
Finance Minister Edward Scicluna would be fulfilling his obligations much more constructively in examining lateral ways of maintaining this favourable economic tide and applying the current excellent revenue streams to laying the foundations for future economic growth through diversification of economic activity.
Instead he wastes time trying to defend fellow minister Konrad Mizzi and chief of staff Keith Schembri with unintelligent statements that demonstrate either his total naiveness of sophisticated financial matters or absolute lack of understanding of commercial imperatives which, given his position, is very troubling.
It’s clearly time for the government to accept that every single financial pundit around the world condemning the use and, more importantly, the intent of Panama-based companies and corporate structures cannot be wrong. From the Times of London, The Wall Street Journal and The Australian Financial Review to the BBC, CNN and European financial writers and experts, all have unequivocally condemned the setting up and logical clandestine motive of these structures.
Yet it seems Scicluna and Justice Minister Owen Bonnici know better with their pathetically trivial explanations and smoke screens. Unfortunately the bad news for any opposition is that elections are mostly about a country’s economy. Normally good economic times breed voter apathy towards change. It may be that the extent of unexplained apparent wrong-doing by members of this government is so wildly spread and significant that it might make a difference at the next election.
There is a growing public perception that the apparent suicidal strategy the Prime Minister has resorted to in defending his acolytes, much to the high cost of his own support base, may be more to do with a potential personal interest in these matters than affection and admiration for fellow members of cabinet.
That perception is certainly growing. There was no soul searching, no hand wringing when it came to dismissing minister Manuel Mallia for actions which were serious enough at the time but which pale into insignificance when compared to some of the other shenanigans of the last couple of years.
The PM’s latest contrived attempt to deflect public debate to other matters was the opportune, albeit seemingly orchestrated but nonetheless significant, issue of flawed concrete in the construction of Mater Dei.
The cost of rectification being trumpeted countless times in a vain effort to disengage the public from Panama and other scandals is apparently €150 million, a very significant sum. The Prime Minister also hinted mischievously at the possibility of corruption behind the Mater Dei debacle.
Well, here is his challenge. Many believe the Mater Dei concrete issue is a simple albeit highly expensive contractual issue which should be covered by the contractor’s insurance, professional indemnity insurance of the consulting engineers and other professionals employed on the job and responsible for quality controls particularly as far as concrete is concerned. There may well have been gross negligence by the previous administration in allowing this to happen.
If the Prime Minister believes there is more to it than that he is in a position, unlike the leader of the Opposition, to instigate a comprehensive independent investigation which could lead to criminal charges if supporting evidence of corruption or other wrong doing was uncovered. In addition to clear his name and his government once and for all, the Prime Minister should also appoint an international independent firm which specialises in forensic investigation of fraud and white collar crime to investigate all of the recent financial scandals which continue to haunt him and the government giving the investigating team the power of access to all bank accounts of all of related parties with specific instructions to follow money trails to the ultimate beneficiaries.
That would put an end to all the innuendo and suspicion and might even restore some credibility to the country’s financial standing overseas. It’s an obvious fix if there is nothing to hide and one which will pluck the nation and its government from the quagmire of inactivity and restore a paralysed administration bogged down with defensive action back to its proper role of lawmaking.
Perhaps when that’s done the dust of political battle can settle and the government will focus more on how best to insulate Malta from the possibility of a sudden contraction in the booming business of tourism which would be expected to happen once other destinations become secure again or, much worse, than that the unmentionable happens and Malta’s internal security is compromised.
With strong revenues the government should be studying ways to support the manufacturing sector by encouraging recapitalisation of aging manufacturing facilities with government grants, provide skilled labour training and retraining and embark on an internationalcampaign of promotion for goods manufactured in Malta.
There is much to be done to ensure Malta’s economic good fortune is translated to enduring economic good times into the future through good planning and implementation.
Anthony Trevisan is a businessman passionate about environmental issues particularly as they affect Malta.