Finance Minister Tonio Fenech yesterday denied that the government had set up Malita Investments as a consequence of an economic and financial crisis, arguing that the IMF and the EU had given positive certification of the islands’ economy and finances.
Winding up the debate on a motion for the transfer of properties to the company, Mr Fenech accused the opposition of using the issue of public borrowing requirements to instil fear in potential investors.
He said that according to EU methodology, the national debt stood at 72 per cent and was not 17 per cent higher as alleged by the opposition. If the opposition believed that debt carried by Air Malta and Enemalta formed part of the national debt, it should declare how it would be financing it if the PL was elected to power.
The European Investment Bank had approved a loan to Malita Investments at a low interest rate even though there was no government guarantee to cover this loan. The bank believed that this institution was commercially viable.
The institution was forward-looking and was the first step in setting up a national investment fund. It also provided an opportunity for the Maltese to invest in their country’s future because 20 per cent of the shares would be bought by the public. There was a potential that the dividend could rise to seven per cent.
The minimum holding that the government had to have in the institution stood at 70 per cent and could not be reduced before 25 years. At present the government was to hold 80 per cent of the shares. Malita was not set up specifically for the City Gate/Parliament project, although renting the space of the Opera House for commercial activities would provide a source of revenue.
The government had embarked on this project to stimulate economic growth.
At the beginning of his speech, Minister Fenech announced that the Attorney General had advised the government that the motion was a money Bill and proceeded to deliver to the Speaker the President’s message asking the House to consider the Bill – a procedure which is usually followed at the beginning of all debates on money Bills.
Nationalist MP Franco Debono asked for further explanation but Mr Fenech proceeded to deliver his winding-up speech.
A vote on the motion, called by the opposition, will be taken when the House meets this morning.