Budget cuts barred the Malta-EU Steering Action Committee from sustaining a fund that constituted bodies and civil society resorted to when participating at European events, director Vanni Xuereb said yesterday.
He called for a review of the way the Civil Society Fund was used and for a specific allocation to be made, distinct from the money voted to Meusac in the national Budget.
He was reacting to two angry statements by the Forum grouping of trade unions, which is insisting that the funds were indispensable to small organisations to continue representing Malta at a European level.
It complained that the funding had been stopped behind its back.
Dr Xuereb said Meusac’s 2011 budget of €1.1 million was cut to €900,000 last year and again to €800,000 this year.
The money was needed to cover running costs, including salaries, information events, television and radio spots and appearances and even petty initiatives such as a tender advert in the Government Gazette.
“Money does not grow on trees. Whereas my annual allocation is shrinking, my expenses are growing. We are trying to stretch it as much as possible but there’s a limit to everything.
“This fund is simply unsustainable. To continue it, I would need an increase in my budget,” he said.
He said that when the CSF was introduced as pre-accession funds to help constituted bodies and NGOs familiarise themselves with the EU, there was an agreement that four large organisations would receive up to €58,200 each every year, payable against receipts and an annual report of the events attended.
These are the General Workers’ Union, the Union Ħaddiema Magħqudin, the Malta Employers’ Association and the Chamber for Small and Medium Enterprises – GRTU.
In the case of smaller organisations, including Forum, Meusac would issue a call once a year and organisations would then apply for funds, against presentation of receipts.
The last time such small organisations received financial aid was in 2011 when 31 beneficiaries received a total of €101,213.
Taking into account funds paid to the large organisations, Meusac used up just over €334,000 of its annual budget on this initiative.
Dr Xuereb said the original agreement, document or contract determining how the funds should be utilised was never found.
He said he had flagged the funding problem last year and had proposed to the minister responsible for such matters at the time, Chris Said, to cut the €58,200 allocation to the four large entities by 18 per cent, to reflect Meusac’s own 18 per cent budget cut, and to use the savings to make another call for smaller organisations.
He said he was directed to leave the allocations untouched so no call was issued for 2012 or this year.
Forum president Paul Pace insisted yesterday his organisation received funds last year.
Dr Xuereb said he was not even in a position to pay the €58,200 to the four organisations again, adding that although he knew of talks at ministry level about this, no decision had yet been taken.
To make matters worse for Meusac, the EU dropped a €250,000 annual agreement it had to fund information meetings.
“What I’m suggesting is helping these organisations tap into EU funds to finance participation in the events they attend to represent their members.
“Otherwise, with my allocation diminishing and my expenses increasing, it is simply unsustainable,” a resolute Dr Xuereb said.
He recalled informing civil society representatives of the matter and also speaking about it at a core group meeting in the presence of Prime Minister Joseph Muscat and Social Dialogue Minister Helena Dalli at the end of May.
On that occasion, the GWU and Forum were not present.
Forum, the GWU, the UĦM and the Nationalist Party insisted in separate statements yesterday that the funds should continue because they allowed Malta’s voice to be heard in Europe.