Committee for Economic and Financial Affairs chairman Silvio Schembri.

The newly-formed House Committee for Economic and Financial Affairs, similar to that which exists within the European Parliament, will make possible better, deeper debate on economic issues by Parliament, Finance Minister Edward Scicluna said yesterday.

Introducing the motion on forming this committee, Prof. Scicluna said the financial crisis that hit the EU had brought to people’s attention the importance of all laws affecting these sectors and the importance of coordination between member states.

Today, more than ever, families and businesses were taking an interest in financial matters as they understood the impact they had on their daily life, he said.

The committee had been one of the Labour Party’s electoral promises and had even been recommended in a memorandum by Speaker Emeritus Michael Frendo in the past legislature, he added.

Its main responsibilities will include the scrutiny of the economic situation and of reports published locally by European and international institutions which could have an impact on the local economy. In this way, it would keep the Government updated on the situation and any potential problems. The Governor of the Central Bank will also report on progress to the committee.

Prof. Scicluna said he had no doubt this committee would be kept busy, adding its work would be done in a meticulous manner so that results would be produced.

Former Finance Minister Tonio Fenech said the Opposition welcomed the motion as it created an opportunity to discuss important aspects of the financial and economic situation in a more interactive manner.

He said that this need had long been felt. It was not enough that the Governor of the Central Bank published his report on the state of the economy once a year.

The crisis had exposed how, in some countries, it was a question of whether they could sustain their debt levels, but in some cases the economy was so weak markets doubted whether they could.

The alert mechanism and similar procedures seek to do something about this. However, serious discussion was required on what Malta was doing about the challenges it faced.

Mr Fenech said the treaty which provided the basis for the European Stability Mechanism – which was discussed extensively during the last legislature but had not been yet approved by Parliament – spoke of the importance of this committee.

Commenting on what he had observed of the Government so far, Mr Fenech said the solution to creation of jobs in the manufacturing sector did not lie in turning to past industries. Malta could not compete with countries like Morocco and China, he said, and he hoped cheap labour was not this Government’s solution. He said it was important to look to higher value-added industries.

Mr Fenech emphasised the importance of this committee being kept up to date on news about mechanisms such as the ESM and the EFSF, and of constant dialogue.

Concluding, Mr Fenech said the committee was very important and would function well as long as the discussion was healthy and those responsible give a clear account of the solutions they were tailoring to fit the challenges.

Labour MP Silvio Schembri, who will be chairing the committee, said it was a very important addition to Parliament and he was glad to be part of it. He was committed to making this initiative a successful one. He said he was pleased that the Opposition had accepted to take part in this new venture.

Financial changes in one EU country were affecting all member states, he said. This committee would have the task of supervising and studying what was happening in these countries to be well prepared for the effects on Malta.

The financial crisis showed there was a great need to monitor and analyse the system. The Government believed that scrutiny was essential and this committee had the task to oversee how the Government was spending its money. It would be vigilant at all times.

The other members of the committee are Prof. Scicluna, Charles Buhagiar and Michael Falzon for the Government; and Kirsty Debono, Tonio Fenech and Robert Arrigo for the Opposition.