The Memorandum of Understanding signed with China was the first of its kind and had put Malta ahead of other countries seeking closer economic relations with the country, Prime Minister Joseph Muscat told Parliament last night.
It would open a window of opportunity for investment in several sectors such as the infrastructure, financial services, education, culture and sports.
Dr Muscat refuted claims by Opposition leader Simon Busuttil that there was “nothing groundbreaking” in the MOU because in 2009, in one day, former Chinese Vice President Xi Jinping had signed six different agreements with the Maltese government.
He said the results already achieved by the government through its relations with China were far in excess of those achieved during the previous 25 years and gave a very good return on the investment made in the people working for the government there.
The investment sought was sustainable, would create jobs and would strengthen economic growth
He said the MOU covered all sectors of economic growth. It also gave Malta the opportunity to consider various forms of the permanent link which could exist between Malta and Gozo and the breakwater between Valletta and Marsamxett.
The investment sought was sustainable, would create jobs and would strengthen economic growth. This agreement reflected the government’s vision of an open economy.
Dr Busuttil asked the Prime Minister to state whether the government consulted the EU before signing the MOU since such an agreement referred to an air services agreement, which fell under the aegis of the Union.
He also asked whether the government had committed itself to build the Marsamxett breakwater, the bridge that would connect Malta with Gozo and the monorail. Would the government award contracts to Chinese companies at the expense of Maltese contractors?
Opposition deputy leader Mario de Marco pointed out that the Marsamxett breakwater and the Malta-Gozo bridge projects were not even mentioned in the MOU.
George Pullicino (PN) asked why the Prime Minister did not table the agreement with Electrogas and Sai Mizzi Liang’s contract. Did he raise issues of human rights violations by the Chinese government during his visit?
Beppe Fenech Adami (PN) asked why Foreign Minister George Vella did not form part of the Maltese delegation when the agreement required cooperation between the countries’ foreign ministries. And why did Labour MP Deo Debattista form part of the delegation?
Replying, Energy Minister Konrad Mizzi said that the agreement with Shangai Electric was welcomed by ratings agencies Standard and Poor’s, Moody’s and Fitch. The European Commission also acknowledged that Enemalta was moving in the right direction.
In its first phase, the agreement brought an investment of €320 million. It covered shareholding in Enemalta, investment in Delimara 3 power station, the opening of an energy service centre and a company offering renewable energy services.
Dr Mizzi said the Enemalta Act would see the corporation turned into a public limited liability company with its employees deployed in its various departments. Employment and conditions were guaranteed and all collective agreements would be respected. No employee would be obliged to work abroad.
The Petroleum Division would become an independent entity.
Speaking about Enemalta’s share transfer, the minister said that a Chinese delegation was in Malta to audit the valuation and governance.
The process for the transfer of assets was well under way and would be completed in autumn.
Studies were also well in hand to transform the BWSC plant to gas as soon as the gas facilities were completed. Shanghai Electric and Enemalta were also setting up a joint venture to invest in renewable energy equipment.
Dr Muscat said the agreement included social housing, the breakwater and the monorail. Former Transport Minister Austin Gatt had suggested a tram system as part of a monorail deal but nothing was ever done.
There were some 3,000 individuals who were in dire need of social housing, but the Opposition still maintained that social housing was not needed.
Although the government would be in a position to tackle human rights issues with Chinese officials, the Prime Minister said he could not understand all this negativity on the Opposition’s part. When investment from the United Arab Emirates was brought in by the former PN government for SmartCity, the then Labour Opposition did not volunteer the same negative attitude. Hence, the Opposition only sought to hinder the process, and its criticism was just “sour grapes”.
To say that Malta needed the EU’s permission to sign the MOU, as suggested by Dr Busuttil, was shameful and reflected the servile attitude the Opposition adopted towards Europe. Malta was a sovereign state capable of entering into any commercial agreement it deemed beneficial.