A fixed-term Parliament

At this point in time, within the party we are discussing our electoral Manifesto for the forthcoming general election. When will it be held: shortly or much later? At the time of writing no official announcement has been made. Maybe by the time this article is printed matters would be clear.

When presenting proposals for the consideration of the ever-pending Constitutional Convention, we had as a party considered the matter in some detail: should the Prime Minister have the discretion to advise on the dissolution of Parliament?  This was one of the “rights” of Kings and Queens which have been inherited by Heads of Government as a result of democratisation. Since independence it has been the Prime Minister’s right in Malta to advise that Parliament be dissolved and that an election be called.

Over two years have now elapsed since we proposed to the Constitutional Convention that Parliament should have a fixed term and that the election date should be fixed.

Such a provision is normally associated with the American experience on the first Tuesday of the month of November: every alternate year electing the House of Representatives, every four years for electing the President and for electing a third of the Senate every two years.

In the United Kingdom the Liberal-Conservative coalition had in 2011 introduced a fixed-term Parliament Act as a result of which, for the first time ever, the Prime Minister’s role in determining the date of dissolution of Parliament and the subsequent holding of a general election were severely curtailed.

Nick Clegg, then Liberal leader and Deputy Prime Minister had, in piloting the relevant act in Parliament, described such a move stripping Prime Ministers of the power to pick election dates to maximise party advantage as a profound reform. He further emphasised that such a reform was essential to restore faith in politics.

The introduction of a constitutional provision for a fixed-term Parliament would entail removing political self-interest from election timing.

Of course, all Prime Ministers, with tears in their eyes, plead national interest whenever they make use of this discretion.

It would be interesting if we could have an explanation as to what “national interest justification” exists for having a snap-election in Malta at this point in time. Robert Abela’s justification could be as follows.

The first reason to justify a snap election is that come January 2022 a criminal jury relative to the failed HSBC hold-up is scheduled. Possible revelations could spot-light the alleged role of senior Labour Party politicians in the planning of this failed hold-up. Probably Robert Abela thinks that having clear information as to who was involved in planning the HSBC hold-up is not in our interest. It is definitely not in the interest of the Labour Party as it could unmask the Labour Party for what it really is: an eye-opener to some!

The second reason to justify a snap election is the turbulent energy market which could play havoc with the costs to generate electricity locally. Given that we import gas through a contract which is to expire shortly, the price of gas used at Delimara to generate electricity will probably sky-rocket. Alternatively, we use the interconnector to tap energy generated on the mainland. The use of the interconnector was very recently curtailed due to the substantial increase in the price of the energy available!  A substantial increase would impact government finances negatively and Robert Abela would prefer not to have this fact in the public domain during an electoral campaign.

The third reason would be the impacts of grey-listing which are bound to increase with time. The longer it takes to take action as per the agreed road-map with the FATF (Financial Action Task Force) the more the impacts. Labour cannot divorce itself from this. They think that having an election out of the way would at least shield Labour from more electoral impacts of grey-listing.

Having a snap election could potentially shield the Labour Party from these and other impacts which could have a substantial political fallout. The snap election will not address these problems, it will just postpone them into the future.

A fixed-term Parliament would do away with all this. Instead of trying to avoid problems it is better to address them head-on.

published in The Malta Independent on Sunday : 24 October 2021

Malta: it-theddida mit-tibdil fil-klima

Malta hi waħda mid-diversi gżejjer li huma vulnerabbli għat-tibdil fil-klima.  Malta mhiex vulnerabbli daqs il-gżejjer Maldives, li huma fost l-iktar pajjiżi ċatti. Għandhom għoli medju ta’ 150 ċentimetru il-fuq minn livell il-baħar bl-iktar punt għoli jkun 5.10 metri.  Fil-mument li bħala riżultat tat-tibdil fil-klima jibda jogħla l-livell tal-baħar il-gżejjer Maldives ikunu minn tal-ewwel li jisparixxu taħt l-ilma. Il-gżejjer Maldives huma destinazzjoni turistika popolari fl-Oċejan Indjan. 

Jekk dak miftiehem fis-Summit ta’ Pariġi fl-2015 jitwettaq u ż-żieda fit-temperatura medja globali ma taqbizx il-1.5 grad Celsius fuq dik pre-industrijali, xorta jkollna niffaċċjaw għoli fil-livell tal-baħar ta’ madwar 50 ċentimetru. Min-naħa l-oħra jekk iż-żieda fit-temperatura tkun bejn il-1.5 u 2 gradi Celsius iż-żieda fil-livell tal-baħar tista’ twassal anke sa tlett metri.  L-impatti ta’ dan ikunu katastrofiċi u jiddependi minn kemm idub silġ u kemm dan idum biex idub

Ir-rapport tal-IPCC (Intergovernmental Panel on Climate Change) li ħareġ nhar it-tnejn, jemfasizza li jekk l-emissjonijiet serra mhux ser ikunu indirizzati sewwa u jonqsu b’mod sostanzjali l-istima hi ta’ żieda medja fit-temperatura globali ta’  2.7 gradi Celsius sal- 2100 liema żieda twassal għal tibdil mhux żgħir fil-livell tal-baħar.

Il-pass li jmiss nittamaw li jsir f’Novembru li ġej fi Glasgow fl-Iskozja fejn rappresentanti tad-dinja kollha jiltaqgħu biex jippruvaw isibu soluzzjoni li tkun kapaċi twettaq il-konklużjonijiet tas-Summit ta’ Pariġi fl-2015.  

Ir-rapport tal-IPCC jgħidilna li huwa ċar li bir-ritmu presenti tal-emissjonijiet tal-gassijiet serra, iz-żieda ta’  1.5 gradi Celsius fit-temperatura medja tista’ tintlaħaq anke sal-2030, ferm qabel mistenni. Huwa biss bħala riżultat ta’ tnaqqis immedjat ta’ dawn l-emissjonijiet li jistgħu jonqsu l-impatti li diġa qed naraw madwarna: żieda qawwija fit-temperaturi, maltempati iktar spissi u b’qilla li dejjem tiżdied, xixfa fit-tul f’inħawi u għargħar f’oħrajn ……………  Irridu niffaċċjaw ħafna iktar minn dan kollu, flimkien ma żieda fil-livell tal-baħar u dan sakemm naddottaw stil ta’ ħajja li tirrispetta lin-natura.  

Jekk irridu insibu tarf tal-ħerba kbira li qed takkumula, u l-gwaj kawża tat-tibdil fil-klima li hemm lest għalina, irridu nibdew naħdmu man-natura u mhux kontriha.  Dan hu l-iskop tad-dibattitu dwar il-mira ta’ karbonju zero (carbon neutrality): li innaqqsu l-emissjionijiet malajr kemm jista’ jkun biex il-ħsara li saret tibda tkun imsewwija u fuq perjodu ta’ żmien forsi tkun rimedjata ukoll, anke jekk in parti. Imma hu essenzjali li kulħadd jagħti sehmu. Ma nistgħux nippretendu li ħaddieħor joħroġ għonqu u li aħna nibqgħu gallarija, qiesu ma ġara xejn!

Il-vulnerabilità tal-gżejjer Maltin għandha minnha innifisha tikkonvinċina mhux biss biex niċċaqalqu aħna, imma biex inċaqilqgħu lil ħadddieħor ukoll.

Biex nilħqu din il-mira jeħtiġilna li naddattaw l-imġieba tagħna u l-istil ta’ ħajjitna ma’ dak li turina u tgħidilna n-natura: b’mod speċifiku jeħtieġilna ekonomija li tirrispetta lin-natura u taħdem mal-forzi ekoloġiċi, mhux kontrihom.  

It-turiżmu u t-trasport huma żewġ oqsma ta’ ħidmietna, bħala pajjiż, li jeħtieġilhom li jkunu mmansati. Qed jagħmlu wisq ħsara u huma fost il-kontributuri ewlenin għall-impatti Maltin fuq il-klima.

Meta nibdew nindirizzaw it-turiżmu, wara snin twal li kulħadd fittex li jaħleb din il-baqra ekonomika, ser ikun hemm min iweġġa’. Ilna ngħidu li l-pajjiż ma jiflaħx għat-tlett miljun turist li ġew fl-2019, il-parti l-kbira minnhom bl-ajru. L-impatti kumulattivi tagħhom huma sostanzjali, mhux biss fuq l-ambjent lokali imma ukoll fuq dak reġjonali u globali. Issa hu l-aħjar mument li jibda’ dan il-proċess ta’ tibdil fil-qasam tat-turiżmu, aħna u nirkupraw bil-mod mill-impatti tal-ħerba li ħalliet warajha l-COVID-19.

M’għandniex nibqgħu bl-attitudni ta’ qiesu ma ġara xejn (business-as-usual) imma għandna nibdew minn issa nimmiraw biex jonqos it-turiżmu tal-massa u fl-istess ħin jiżdied it-turiżmu ta’ kwalità u bħala riżultat ta’ hekk jonqsu n-numri kbar ta’ turisti li għamlu tant ħsara.  L-impatti soċjali jkunu ferm inqas  jekk nitgħallmu ftit minn dak li ġarrabna bħala riżultat tal-pandemija COVID-19. Ikun utli jekk nifhmu li l-ħeġġa ta’ uħud għall-mudell low-cost iħallina mwaħħlin fil-problema fejn qegħdin issa.  

Huwa ukoll essenzjali li nindirizzaw ukoll it-trasport bil-karozzi privati. Ilkoll nifhmu li f’pajjiż żgħir bħal tagħna, imkien m’hu l-bogħod. L-istrateġija nazzjonali tat-trasport innifisha fil-fatt temfasizza dan il-punt għax tgħidilna li fil-gżejjer Maltin madwar 50 fil-mija tal-vjaġġi li nagħmlu bil-karozzi privati huma għal distanzi qosra li jdumu inqas minn ħmistax-il minuta.  Għal dawn id-distanzi l-qosra hemm bosta alternattivi sostenibbli. Lil hinn mid-distanzi l-qosra, f’dan il-pajjiż imkien ma hu l-bogħod! Trasport pubbliku organizzat b’mod effiċjenti jista’ jindirizza kważi b’mod assolut il-kontribut tat-trasport f’Malta għat-tibdil fil-klima.

Biex tieħu deċiżjoni dwar il-passi meħtieġa ħalli tindirizza t-tibdil fil-klima trid il-kuraġġ għax kull deċiżjoni hi iebsa. Mhux ser inkun kritiku tal-inizjattiva ta’ ġnien li ma jiġġenerax emissjonijiet (carbon neutral public garden) jew tal-għajnuna biex ikunu nkoraġġiti “bjut ħodor”.  Imma għandu jingħad li dawn l-inizjattivi huma insinifikanti ħdejn dak meħtieġ li jsir biex ikunu indirizzati l-impatti tat-tibdil fil-klima.  

Malta hi vulnerabbli. L-għoli ta’ livell il-baħar, anke jekk ikun l-inqas mill-istimi li qed isiru fir-rapport tal-IPCC ikun ta’ dannu għall-infrastruttura kostali. Joħloq ukoll bosta problemi għal dawk li jgħixu fil-lokalitajiet madwar il-kosta. Ma nistgħux nibqgħu nipposponu id-deċiżjonijiet biex dawn forsi jittieħdu għada flok illum. Għandna responsalliltà etika jekk il-ġenerazzjonijiet futuri: din il-pjaneta, imsejħa d-dinja qed nieħdu ħsiebha biex wara ngħadduha lilhom f’kundizzjoni aħjar milli ta’ qabilna għaddewha lilna.  

ippubblikat fuq Illum: il-Ħadd 15 t’Awwissu 2021

Malta’s climate-change vulnerability

Malta is one of many climate-vulnerable islands.  Malta is not as vulnerable as the Maldives, which has an average altitude of 150 centimetres above sea-level and a highest natural point of 5.10 metres, as a result of which it is the world’s lowest lying country. Most of the Maldives will disappear once sea-level rise takes over. The Maldives is a touristic destination in the Indian Ocean. 

If the Paris 2015 Climate Summit target of restraining temperature rise to 1.5 degree Celsius above the pre-industrial age temperature is achieved, we will still face a sea level rise of around 50 centimetres. If on the other hand this target is exceeded but the temperature rise is still below 2 degrees Celsius the sea level rise will be close to three metres.

The current rate of greenhouse gas emissions, emphasises the IPCC report issued last Monday, if unchecked, points to an estimated 2.7-degree Celsius temperature increase by 2100 which increase could signify a substantial rise in sea level.

Where do we go from here? It is the answer which level headed climate diplomats will seek to hammer out in Glasgow this coming November, and in the preparatory meetings leading thereto.

It is clear that at the present emission rate of greenhouse gases, the 1.5-degree Celsius threshold could be reached as soon as 2030. Only immediate reduction of emissions will reduce the impacts which are already evident all around us: excessive increase in temperature extremes, increased frequency of intensive storms, prolonged drought in areas and floods in others. We will have to face more of this together with a sea-level rise until such time that we can reduce it through adopting climate friendly policies and lifestyles.

We need to work in tandem with nature if we expect to stand a chance in mitigating the havoc which awaits us. This is the objective of the carbon neutrality debate: reducing emissions in order that the damage done to date is contained the soonest and hopefully reversed, even if partially. In this process everyone must do his bit. We should not wait for others to act and expect that we are exempted from doing anything.

Our vulnerability as an island should be convincing enough that it is in our interest that we not only take action ourselves but also that we convince others about it. 

In order to reach this objective, we need to align our behaviour with what nature expects: the specific requirement is to have a climate friendly economy. Tourism and transport are two areas of activity which need to be cut down in size as they are among the major contributors of the Maltese islands to climate change.

Tackling tourism adequately will be painful. We must however realise once and for all that having 3 million tourists annually, most of them flying over, is not on. Their cumulative impacts are substantial not just on the local environment but even on a regional and global level. Now is the time to do it when we are in the process of recovering from the COVID-19 devastation. We should not aim for business-as-usual but should opt specifically against mass tourism and in favour of quality tourism at a much-reduced level. It would be less painful if we learn the COVID-19 lessons and ensure that tourism is more climate friendly.  In this respect if we keep on encouraging low-fare policies we will continue the process of digging our own grave.

Addressing land transport is also imperative. In a small country such as ours it should be obvious that everywhere is within easy reach. The Transport Strategy in fact clearly points out that over 50 per cent of car trips in the Maltese islands are for short distances of a duration of less than 15 minutes. There are better alternatives to using private cars for such very short distances. Beyond short distances, nowhere on the islands is so far away. Public transport when efficiently organised could go a long way to solving the contribution of transport to climate change.

Tackling climate change requires the courage to take tough decisions. I will not be critical of the initiative to have a carbon neutral public garden or making available grants and subsidies to encourage roof gardens! Such initiatives are however insignificant when viewed in context of what needs to be done. 

Malta is very vulnerable. A sea-level rise, even if this is at the lower end of what is being estimated, would seriously jeopardise our coastal infrastructure. It would also create havoc in a number of coastal settlements. We cannot keep postponing decisions into the future.  We have an ethical responsibility towards future generations: the planet we have in trust should be in better shape when they take over. The longer we take to decide on the action required, the more painful the consequences.

published in The Malta Independent on Sunday : 14 August 2021

Tibdil tal-klima: miżuri li jeħtieġ li jkunu ġusti

Huwa essenzjali li nilħqu l-mira ta’ emissjonijiet żero tal-karbonju (carbon neutrality). Ilu żmien ovvju li ekonomija dipendenti fuq iż-żjut mhiex waħda sostenibbli. Il-Konvenzjoni tal-Ġnus Magħquda dwar it-Tibdil fil-Klima, fis-summit ta’ Pariġi, fl-2015, kienet fasslet pjan dwar it-triq meħtieġa biex nintlaħqu miri li jħarsu l-klima. Jekk ma nimxux ma’ dan il-pjan, il-futur ifisser biss gwaj.

It-tibdil fil-klima diġa qiegħed magħna.  Madanakollu, l-impatti fuqna jistgħu jkunu ferm agħar minn dak li għaddej bħalissa: temperaturi estremi, nixfa’ kbira f’xi reġjuni u għargħar f’oħrajn. Id-diżastri qed iseħħu quddiem għajnejna kuljum. Il-qagħda għad trid teħżien bosta, qabel ma l-affarijiet (forsi) jaqilbu għall-aħjar.

It-temperatura medja fuq livell globali qed tiżdied. It-temperatura imkejla tvarja minn reġjun għall-ieħor. Fil-Mediterranean, studji riċenti qed jindikaw li qegħdin viċin li naqbżu żieda ta’ grad u nofs Celsius fuq it-temperatura pre-industrijali. L-impatti ta’ dan diġa qed inħossuhom.

Bħala stat gżira, Malta messa li hi fuq quddiem fid-dibattitu globali dwar it-tibdil fil-klima.  Sfortunatament, pajjiżna hu fost dawk il-pajjiżi li kontinwament ikaxkru saqajhom biex jevitaw jew inaqqsu l-azzjoni meħtieġa da parti tagħhom. Il-fatt li aħna żgħar ma jeżentaniex mir-responsabbiltà tagħna lejn il-futur.

Fost l-eżempji ta’ dan hemm ir-resistenza, tul is-snin, biex nagħtu importanza lill-ġenerazzjoni ta’ enerġija rinovabbli flimkien mat-tkaxkir tas-saqajn għall-proċess tal-elettrifikazzjoni tat-trasport.  

Ilkoll niftakru l-insistenza tal-Gvernijiet Maltin mal-Kummissjoni Ewropeja biex il-miri ta’ Malta dwar l-enerġija rinovabbli ma jkunux l-20 fil-mija iffissati mill-Kummissjoni imma jinżlu għal 10 fil-mija tal-enerġija totali ġġenerata.  Bl-istess mod, minkejja li fl-2017 saret dikjarazzjoni politika mill-Gvern favur l-elettrifikazzjoni tat-trasport, wara 4 snin għadna bla pjan u miri ċari. Il-bidla issa ser ikollha isseħħ b’ritmu mgħaġġel u ftit li xejn jidher li bħala pajjiż aħna ippreparati għaliha.

L-Unjoni Ewropeja għadha kemm żvelat pjan bi proposti biex l-emissjonijiet serra jitnaqqsu b’55 fil-mija meta mqabbel ma dawk tal-1990. Dan għandu jseħħ sal-2030, u dan bħala mira intermedja fit-triq lejn emmissjonijiet żero tal-karbonju (carbon neutrality) sas-sena 2050.

Waħda mill-proposti li qed issir hi li l-enerġija minn sorsi rinovabbli ġġenerata fl-Unjoni Ewropeja tkun ta’ 40 fil-mija mill-enerġija kollha użata. Dan ikun ifisser li fi żmien 9 snin Malta jkun jeħtieġilha li timmultiplika b’erbgħa l-enerġija rinovabbli li niġġeneraw fil-pajjiż. Din ser tkun mira iebsa, iktar u iktar meta tieħu kont tal-fatt li tul is-snin il-pajjiż dejjem ipprova jiżloq mill-obbligi tiegħu f’dan il-qasam.

Proposta oħra tal-Unjoni Ewropeja hi li sal-2035 ma jidħlux iktar fis-suq karozzi li jaħdmu bid-dijsil u l-petrol. Din mira li ser ikun meħtieġ li nilħquha fi żmien 14-il sena. Lokalment din mhi ser issolvi xejn jekk ma tkunx imżewġa ma miżuri biex jonqsu l-karozzi mit-toroq.

Proposta oħra tal-Kummissjoni Ewropeja hi dwar l-introduzzjoni ta’ taxxa fuq il-fjuwil użat milll-vapuri kif ukoll dak użat fl-avjazzjoni. Din il-proposta bla dubju jkollha impatt mhux żgħir fuq il-gżejjer u l-istati periferali Ewropej. Hi proposta li hi motivata mill-fatt li l-Ewropa kontinentali hi moqdija iktar bil-ferrovija, ġeneralment effiċjenti u li hu meqjus li tħalli impatti ambjentali ferm inqas mill-ajruplani.

Bi proposta ta’ din ix-xorta it-turiżmu jintlaqat sewwa. Kemm tkun kbira d-daqqa jiddependi minn kemm tkun kbira taxxa ta’ din ix-xorta.  Malta, il-Greċja u Ċipru diġa qed jgħidu li ma jaqblux ma dan!

Kemm is-settur tal-avjazzjoni kif ukoll dak marittimu huma kontributuri sinifikanti ta’ emissjonijiet serra. Sal-lum dawn iż-żewġ setturi evitaw  li jkunu nklużi fil-miżuri biex inkun mħarsa mit-tibdil fil-klima minħabba lobbying qawwi. Il-proposti tal-Unjoni Ewropeja jekk jidħlu fis-seħħ jibdlu din is-sitwazzjioni, dejjem sakemm il-lobbying jinżamm taħt kontroll!

Uħud diġa iddeskrivew dawn il-proposti (u oħrajn) tal-Unjoni Ewropeja bħala suwiċidju politiku u dan minħabba li l-impatti konsiderevoli tagħhom jistgħu jkunu l-kawża ta’ nkwiet soċjali qalil. Li nilħqu l-mira ta’ emissjoni żero tal-karbonju hu essenzjali imma rridu nkunu konxji li l-impatti tal-miżuri meħtieġa inevitabilment ser iweġġgħu bosta bihom.  Id-diskussjoni meħtieġa trid tassigura li waqt li jittieħdu d-deċiżjonijiet meħtieġa bla iktar dewmien, il-vulnerabbli, inkluż dawk bla mezzi jew b’mezzi limitati, għandhom ikunu mħarsa  milli jkunu huma li jħallsu għall-ispiża akkumulata minħabba nuqqas ta’ azzjoni għal snin kbar.

L-ikbar sfida ghal dan il-Patt Aħdar hi li l-bidla meħtieġa teħtieġ li tkun waħda li issir b’ġustizzja. It-trasformazzjoni ekoloġika teħtieġ li tkun soċjalment ġusta. Dan tagħmlu billi tpoġġi lin-nies mhux il-kapital jew il-profitti bħala l-konsiderazzjoni ċentrali tagħha. Il-bidla, iżda trid isseħħ illum qabel għada. Iktar ma ndumu nkaxkru saqajna, iktar ikun għoli l-prezz li jkollna nħallsu.

ippubblikat fuq Illum: il-Ħadd 18 ta’ Lulju 2021

Change must be fair

Achieving carbon neutrality is long overdue. It has long been obvious that an economy that is dependent on fossil fuel is not sustainable. The UNFCCC (United Nations Framework Convention for Climate Change) at its 2015 Paris summit finally agreed to plot the basic roadmap required. If we do not follow this roadmap, havoc is the name of the future.

Climate change is already here. However, its impacts can be much worse than what we are already experiencing: extremes of temperature, drought in some regions with floods in others. We see the disasters developing almost daily. It will get much worse before it can get any better.

The mean global temperature is rising. The measured increase varies between one region and another. In the Mediterranean, recent studies have indicated that here we are very close to surpassing a 1.5-degree Celsius rise over the pre-industrial age temperature. We can feel the impact already.

As an island state Malta should be at the forefront of the global climate change debate. Unfortunately, our country is among the laggards continuously seeking to avoid or minimise the action required at our end. Our size does not exempt us from our responsibilities towards the future.

Our slow take-up of renewable energy over the years and the institutional resistance to transport electrification are among the most obvious examples.

We do remember the insistence on the part of Maltese governments with the EU Commission that Malta renewable energy targets should be 10 per cent and not 20 per cent of the energy generated. Likewise, after a policy announcement in favour of transport electrification in 2017, four years down the line we are still without clear targets. The change will now have to be adopted at a quicker pace, and one which we are not yet prepared for.

The EU has unveiled a proposal intended to reduce greenhouse gas emissions by 55 per cent, compared to 1990 levels, by the year 2030, an intermediate target on the roadmap to carbon neutrality by 2050.

One of the measures proposed would require raising the share of the renewable energy generated to 40 per cent of the final energy consumption, meaning that Malta, within nine years, would be required to quadruple the renewable energy which it generates. This would be quite tough, in view of having repeatedly been successful in wriggling of our commitments over the years.

A de facto ban on petrol and diesel cars by 2035 would accelerate our path to electrification of transport. That is a target to be achieved within fourteen years. Locally, however, it will not solve much, if not coupled with a substantial decrease in private car usage.

The proposal to tax shipping and aviation fuel would undoubtedly have a considerable impact on islands and the peripheral states of Europe. It makes sense when applied to the European mainland which is more dependent on railways, a suitable alternative. In respect of islands and the peripheral states it will be certainly painful, even though it will, when applied, contribute to achieving emission reduction targets.

Tourism would be hit considerably by a tax on aviation fuel, dependent on the extent of the taxation rates applied.

The aviation and maritime sector are significant contributors of greenhouse gas emissions which have so far have avoided being addressed due to very effective lobbying over the years. The EU proposals would ensure that this will no longer be the state of affairs, dependent that is, on the taming of the lobbies!

Some have already described the proposals of the EU Commission as political suicide as their far-reaching impacts could trigger considerable social unrest. Achieving carbon neutrality is essential but the paths selected will be very painful, some more than others. In the ensuing discussion we have to ensure that while the essential decisions are taken without delay the poor and the most vulnerable are shielded from having to pay the accumulated cost of inaction over the years.

The biggest challenge we face is to ensure that the Green Deal is fair. The ecological transformation must be socially just and place people, not profits, as its central consideration. Change must however happen the soonest. The longer we postpone taking action the higher the price we will have to pay.

Published in The Malta Independent on Sunday : 18 July 2021

Il-lista l-griża: x’tistenna wara snin ta’ żero infurzar?

Fi stqarrija wara d-deċiżjoni tal-FATF (Financial Action Task Force) li tpoġġi lil Malta fuq il-lista l-griża tagħha, iċ-Chairperson ta’ ADPD Carmel Cacopardo qal:

“Ninsabu mnikktin bid-deċiżjoni, minkejja li din kienet mistennija.

Matul il-ġimgħa li għaddiet, il-kelliema tal-Gvern kienu qed jenfasizzaw li ttieħedu ħafna deċiżjonijiet biex jissaħħaħ il-qafa regolatorju. Li ma qalulniex hu li dan sar wara bosta snin ta’ infurzar żero. Li għal snin sħaħ l-awtoritajiet regolatorji bħall-FIAU kellhom fosthom kollaboraturi ta’ kriminali magħrufa bħal Silvio Valletta, eks-Deputat Kummissarju tal-Pulizija.

Kellna lill-grupp Parlamentari Laburista li irrifjuta li jikkundanna lil Konrad Mizzi u lil Keith Schembri għall-involviment tagħhom fl-iskandlu tal-Panama Papers.

Kellna lill-Kummissarju tal-Pulizija jirrifjuta li jinvestiga każijiet ta’ ħasil ta’ flus għal snin sħaħ. Huwa reċentement li Kummissarju tal-Pulizija ġdid għamel l-investigazzjonijiet u prosekuzzjonijiet possibbli.

Sfortunatament, l-azzjoni kontra l-ħasil tal-flus waslet tard. Saret ħsara konsiderevoli. Il-kompliċità kriminali tal-gvern f’dan kollu għamlet ħsara serja lill-ekonomija u lis-soċjetà. Huma dawk fil-livelli ta’ dħul aktar baxx li se jħossu l-biċċa l-kbira ta’ l-impatti negattivi ta’ dan kollu. Dawn jeħtieġu l-empatija tagħna. Dawn għandhom bżonn l-iktar protezzjoni f’dan il-mument.

Il-Gvern bl-appoġġ tal-Oppożizzjoni matul is-snin żviluppa kunsens nazzjonali dwar is-settur finanzjarju inkluż is-setup li jagħmilha possibbli għall-użu ta’ Malta bħala ċentru internazzjonali tal-evażjoni tat-taxxa. Flimkien mal-bejgħ tal-iskema taċ-ċittadinanza dan ikkontribwixxa aktar għall-erożjoni tar-reputazzjoni ta’ Malta bħala ġurisdizzjoni affidabbli.

Dan l-isfreġju sħiħ fuq Malta kien immexxi direttament minn Joseph Muscat u Edward Scicluna, eks-Ministru tal-Finanzi li ġie ppremjat bil-ħatra tiegħu bħala Gvernatur tal-Bank Ċentrali. Muscat spiċċa. Scicluna għandu bżonn isegwih malajr. Huwa għandu jew jirriżenja jew jitkeċċa minnufih.

Huwa pertinenti wkoll li nfakkru li dan it-taħwid kollu kien is-suġġett tal-ġurnaliżmu investigattiv ta’ Daphne Caruana Galizia li nqatlet għall-isforzi tagħha biex tinfurmana u tesponi l-elit kriminali. Tlifna ħajja ta’ mara, omm u ġurnalista.

Huwa essenzjali li tittieħed azzjoni immedjata biex tibda terġa’ tinbena r-reputazzjoni ta’ Malta. Dan għandu jinkludi r-revoka immedjata tal-iskema tal-bejgħ taċ-ċittadinanza u l-għeluq tal-lakuni legali li biddlu lil Malta f’bażi ta’ evazjoni tat-taxxa.”

Another fake consultation

Reading through the Green Paper entitled “Towards Cleaner Vehicles on Our Roads” it is evident that this consultation process is flawed. After being 4 years in the making, instead of proposing solutions it just asks questions which should have been answered by the Green Paper itself as part of the consultation process.

This is symptomatic of a government which has been continuously emitting conflicting signals on transport issues. The Green Paper recognises the obvious when it states that transport combustion emissions increased by 86 per cent over the period 1990-2018. The massive investment in unnecessary road infrastructure has been a major contributor in this respect, a point which is conveniently ignored by the Green Paper.

The proposed shift to cleaner vehicles on our roads is welcome, but on its own it is not sufficient. This measure will definitely reduce combustion emissions. It will however also shift the said emissions from our roads to the sources of the electrical energy used to electrify our roads. Knowing that government is planning to install a second interconnector to the Sicilian mainland for the supply of electricity it is clear that part of the emissions will be shifted 80 kilometres to the north, the rest to Delimara. It is still unclear how this will be reflected in the price we pay for electricity, as information on the matter is conveniently absent from the Green Paper.

The Green Paper rightly discusses the need to upgrade the skills of the technical personnel required in servicing and maintaining electric and hybrid vehicles. It also points towards the need for substantial investments in the infrastructure required particularly for charging points. However, it fails to address a number of points of controversy which require urgent resolution and should have been addressed through this consultation process.

The consumption of petrol and diesel is bound to decrease as a result of the drive towards the electrification of our roads. The rate of decrease of fuel consumption will depend on the manner in which the electrification exercise will proceed throughout the transition period. Why then has no moratorium been announced on the development and construction of new fuel stations? A number of controversial applications for fuel stations are still burdening the land use planning process when it should be crystal clear to all that in view of the electrification process, they will no longer be required. The consultation process is conveniently silent on the matter thereby encouraging unnecessary pressures on the planning process.

Simultaneously it is pertinent to point out that the sale of fuel contributes a substantial income to the exchequer which income will now slowly taper to near zero through the transition period. The Green Paper fails to volunteer information in this respect. How will this substantial income be substituted? Will the electrification process itself provide the substitute financial resources or will other areas of activity be tapped to make good? The amounts involved are substantial. In fact, the budgetary estimates for 2021 indicate a projected income of €154 million from excise duties on petroleum products. What are government plans for the substitution of this income? The Green Paper is once more completely silent on the matter.

The Green Paper refers to Low Emission Zones but it does not have the courage to make specific proposals. It is imperative that the transition period from now until the full electrification of our roads gradually adopts the identification of Low Emission Zones within which internal combustion engine vehicles will have a prohibited access. The Green Paper fails in this respect too.

The Green Paper refers to two studies which have been commissioned by the Cleaner Vehicles Commission on the electrification of our roads. These studies are not however available to inform this public consultation.

Notwithstanding having been announced four years ago, with ample time for preparation, this consultation process is deficient. It fails to address the basics: it fails to inform. It is a fake consultation.

published on The Malta Independent on Sunday : 20 June 2021

Jaqaw il-Covid attiv wara l-5pm?

Illum, f’Malta, tħabbru tnaqqis ta’ miżuri kontra l-Covid.

Fost oħrajn ir-restoranti ser ikunu jistgħu jiftħu sal-5 ta’ wara nofsinnhar.

Ħadd ma qalilna għaliex sal-5pm. Għaliex mhux sas-1pm jew sal-11pm? Kif waslu ghaliha din?

Jaqaw il-virus tal-Covid, f’Malta jibda jaħdem wara l-5pm?

Jista’ xi ħadd jispjegalna x’inhuma dawn ir-ragunijiet xjentifiċi li jiġġustifikaw li r-restoranti jiftħu sal-5pm u mhux inqas jew iktar?

Ftit iktar serjetà tagħmel il-ġid! Ikun għaqli li ma tippruvawx tinqdew bix-xjenza biex tiġġustifikaw l-arbitrarjetà

Meta l-istat jinkoraġixxi l-evażjoni tat-taxxa

F’indirizz li għamlet nhar it-Tnejn liċ-Chicago Council on Global Affairs, Janet Yellen, Segretarju għat-Teżor tal-Istati Uniti, ippreżentat l-argument favur taxxa minima applikabbli għall-korporazzjonijiet multinazzjonali fuq livell globali, irrispettivament minn fejn huma bbażati.  Proposta ta’ din ix-xorta, kif rappurtat min-New York Times, ikollha s-saħħa li żżomm lil dawn il-kumpaniji milli jċaqilqu l-profitti tagħħom minn post għall-ieħor biex jevadu l-ħlas tat-taxxi dovuti minnhom.

Meta jitnaqqsu it-taxxi biex tinġbed l-industrija u n-negozju, emfasizzat  Ms Yellen, hemm is-sogru li mmissu l-qiegħ: fejn ser tieqaf? Ma nistgħux nibqgħu sejrin hekk. Il-kompetittività mhiex biss kif kumpanija tmur fil-konfront ta’ kumpaniji oħra.  Hi ukoll il-mod li bih nassiguraw  li l-gvernijiet ikollhom sistemi ta’ ġbir ta’ taxxa li jkunu stabbli b’mod li jistgħu jiġbru biżżejjed fondi x’jinvestu f’servizzi publiċi u jkunu f’posizzjoni li jirreaġixxu fi żmien ta’ kriżi. Hu meħtieġ li ċ-ċittadini bejniethom jerfgħu b’mod ġust il-piż tal-finanzjament tal-gvern.”

Din il-materja hi diġa fuq l-agenda tal-Unjoni Ewropeja. Hi opposta b’qawwa minn Malta, il-Lussimburgu, l-Irlanda u pajjiżi oħrajn.  L-argument dwar l-armonizzazzjoni tat-tassazzjoni hu parti integrali mill-ġlieda kontra l-evażjoni tat-taxxa u l-ħasil tal-flus.

Hu ta’ sfortuna li Malta (u pajjiżi oħrajn) repetutament abbużat mis-sovranità tagħha fuq materji ta’ taxxa. Huwa riżultat ta’ dan l-abbuż repetut li l-proposta dwar l-armonizzazzjoni tat-taxxa qabdet l-art b’mod li issa hi appoġġata ukoll mill-Istati Uniti tal-Amerka.  Malta rmiet il-vantaġġ kompetittiv tagħha billi abbużat minnu repetutament. Il-ħsara lir-reputazzjoni tal-pajjiż hi għaldaqstant awto-gol mill-kbar.

Malta ma tistax tkun kredibbli fil-ġlieda kontra l-evażjoni tat-taxxa u l-ħasil tal-flus jekk ser tibqa’ tiffaċilita l-evażjoni tat-taxxa fuq skala internazzjonali.  Xi snin ilu il-Grupp tal-Ħodor fil-Parlament Ewropew kien ippubblika studju intitolat Toxic Tax deals: when BASF’s tax structure is more about style than substance. Dan ir-rapport kien svela kif tul is -snin, il-kumpanija Ġermaniża ġgant tal-kimika BASF kien irnexxielha tevita u tiffranka l-ħlas ta’ biljun euro f’taxxi fuq 4 snin billi użat lill-Malta għal dan l-iskop. Dan sar billi kumpanija sussidjarja ġiet reġistrata f’Malta u t-taxxi dovuti, għax l-azzjonisti mhux residenti f’Malta, ħadu lura 6 euros minn kull 7 li kellhom iħallsu f’taxxa!

Il-każ tal-Korporazzjoni Amerikana Apple fl-Irlanda, kif nafu, wassal għall-evażjoni ta’ 13-il biljun euro f’taxxi. L-iskandlu Luxleaks fil-Lussimburgu ukoll wera kif dan il-pajjiż żgħir fost il-fundaturi tal-Unjoni Ewropeja ukoll kien qed jinkoraġixxi l-evażjoni tat-taxxa.

Dawn huma ftit mill-eżempji. Bla dubju hemm bosta oħra li s’issa huma moħbija mill-iskrutinju pubbliku. Bħala riżultat ta’ dan kollu madwarna għaddejja evażjoni ta’ biljuni ta’ euro ta’ taxxi, kontinwament. Malta, l-Irlanda, il-Lussimburgu u xi pajjiżi oħra jiġbru parti żgħira mit-taxxi dovuti bħala ħlas talli jippermettu din l-evażjoni ta’ taxxa fuq skala pjuttost kbira.

F’Malta dan kollu kien possibli bħala riżultant tal-hekk imsejjaħ “kunsens nazzjonali” bejn il-PLPN dwar il-qasam finanzjarju. “Kunsens” li ilu fis-seħħ numru ta’ snin. Il-ħsara lir-reputazzjoni ta’ Malta li seħħet u għad qed isseħħ bħala riżultat ta’ dan kollu, għaldaqstant, ma jġorriex il-Partit Laburista waħdu. Il-Partit Nazzjonalista ukoll għandu resposabbiltà xi jġorr. Għalhekk fuq dawn il-materji in-Nazzjonalisti u l-Labour dejjem iħokku dahar xulxin.  

Sfortunatament l-evażjoni tat-taxxa u l-ħasil tal-flus huma ħafna drabi konnessi. Bosta drabi fejn issib waħda issib l-oħra ukoll.

It-triq il-quddiem m’għandiex ikollha impatt fuq is-sovranità fil-qasam tat-tassazzjoni kif determinat mit-trattati Ewropej permezz tal-ħtieġa tal-unanimità f’materji konnessi mat-taxxa. Imma hemm bżonn urġenti li l-qasam tal-politika fiskali ukoll jinbena fuq prinċipji etiċi b’saħħithom. U mhux dan biss. Għandu jkun assigurat darba għal dejjem li Malta ma tibqax tiddependi minn dħul ġej mill-evażjoni tat-taxxa.

Għax id-dipendenza tal-ekonomija Maltija fuq l-evażjoni tat-taxxa (u l-bejgħ tal-passaporti) hi ta’ inkwiet kbir għall-pajjiż. L-industrija tal-evażjoni tat-taxxa hi sors ta’ dħul kif ukoll ta’ impiegi li it-tnejn li huma inevitabilment jintilfu fi żmien qasir. Wasal iż-żmien li nippjanaw għal futur nadif, futur li mhux iktar dipendenti fuq l-evażjoni tat-taxxa.

Ippubblikat fuq Illum: il-Ħadd 11 t’April 2021

When the state encourages tax evasion

In a speech delivered on Monday to the Chicago Council on Global Affairs, Janet Yellen, US Treasury Secretary, made the case for a global minimum tax applicable to multinational corporations irrespective of where they locate their headquarters. Such a proposal, reported the New York Times, would prevent companies from shifting profits to evade taxes.

Lowering tax rates to attract business, emphasised Ms Yellen, is a race to the bottom which has to be addressed. Competitiveness is not just how companies fare against other companies. It is also about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods and respond to crisis, and that all citizens fairly share the burden of financing government.

This issue is already on the agenda of the EU facing fierce opposition from Malta, Luxembourg, Ireland as well as others. The issue of tax harmonisation is an integral part of the fight against tax evasion and money laundering.

It is unfortunate that Malta (and others) have been repeatedly abusing its tax sovereignty. It is as a result of such repeated abuse that the proposal for tax harmonisation is gaining ground such that it now has the support of the United States of America too. As a result of greed Malta has squandered a competitive advantage by abusing it repeatedly and continuously. The resulting reputational damage is hence an own goal.

Malta (and the other countries) cannot be credible in the declared fight against tax evasion and money laundering if it keeps facilitating tax avoidance on an international scale. Some years back the Green Group in the European Parliament had published a study entitled Toxic Tax deals: when BASF’s tax structure is more about style than substance. This report reveals that over the years, the German chemical giant BASF used Malta to avoid the payment of one billion euros in taxes. This was done using the “legal” possibility to have tax refunds of up to six sevenths of the tax due in such cases where shareholders are not resident in the Maltese islands. Tax avoidance is tax evasion sanctioned by the state.

The Apple Corporation case in Ireland as a result of which another €13 billion in taxes were avoided is another example of tax evasion sanctioned by the state of Ireland. Luxleaks had also revealed countless of other examples as a result of which Luxembourg too embarked on state encouraged tax-evasion.

These are just some examples of many: the proverbial tip of the iceberg. There are undoubtedly countless of others, currently below the radar of public scrutiny, as a result of which the payment of billions of euros in taxes are being continuously avoided. Malta, Ireland, Luxembourg and other countries receive a small part of the actual tax due as a result of facilitating this state encouraged tax evasion.

Locally this scam is the result of the PNPL “national consensus” on financial institutions and fiscal policy in force for a number of years in Malta. The responsibility for the resulting reputational damage is thus not one to be shouldered by the Labour Party on its own, it has help from the PN which has continuously buttressed this abusive behaviour.

Unfortunately, tax evasion and money-laundering are inseparable twins!

The way forward need not impact the tax sovereignty afforded by the EU treaties through the unanimity rule on taxation issues. However, it necessitates ensuring that policy on all fiscal issues is also founded on sound ethical principles.

In addition to ensuring that fiscal policy is not in any way unethical it is about time that Malta does not any more, in any way, depend on tax avoidance.

The dependence of Malta’s economy on tax avoidance (and the sale of citizenship) is very worrying. The tax avoidance industry is a source of both revenue to the state and employment opportunities, both of which will be lost in the not-so-distant future. It is about time that we start planning for a cleaner future, a future that is, which is not dependent on the tax avoidance industry!

Published in the Malta Independent on Sunday : 11 April 2021