Edward Scicluna u l-bajtar tax-xewk

Iktar kmieni din il-ġimgħa, l-President tal-Kummissjoni tal-Unjoni Ewropea, Ursula von der Leyen, ippreżentat lill-Parlament Ewropew pjan ta’ €750 biljun biex inqumu fuq saqajna. Pjan li jista’ jiġġenera investiment stmat €3.1 triljun fl-ekonomija Ewropea. Permezz ta’ għotjiet flimkien ma’ self, il-Kummissjoni Ewropea qed tfittex li tegħleb l-impatti ekonomiċi negattivi tal-Covid-19 kif ukoll li tagħti bidu għall-azzjoni meħtieġa biex ikun implimentat il-Ftehim l-Aħdar (the Green Deal).

It-triq biex nirkupraw mhiex faċli. Mhux il-każ li mmorru lura għal kif konna. Dak spiċċa. Irridu nimxu l-quddiem lejn normal ġdid. Li nintegraw flimkien il-ħidma biex nirkupraw mill-impatti tal-pandemija flimkien mal-azzjoni meħtieġa dwar it-tibdil fil-klima mhux ser tkun faċli imma hi essenzjali u mhux possibli li tkun posposta. Kif ġie emfasizzat fuq Euroactive nhar l-Erbgħa, it-triq biex nirkupraw tiddependi minn ħafna kundizzjonijiet konnessi mal-ambjent. 25 fil-mija tal-finanzjament propost mill-Kummissjoni Ewropeja hu fil-fatt marbut ma’ ħidma klimatika.

Edward Scicluna, il-Ministru tal-Finanzi, fl-ewwel reazzjoni tiegħu għall-pjan tal-Kummissjoni ikkummenta mħasseb dwar miżuri prattiċi konnessi mal-klima. Bħala gżira ser inweġġgħu ħafna qal, jekk jindirizzaw l-emissjonijiet tal-ajruplani u l-vapuri. Il-pjan, qal Edward Scicluna, jixbah lill-bajtar tax-xewk. Scicluna jippreferi li ma jsir xejn ħlief paroli. L-anqas m’hu jieħu pjaċir b’dak li qed jingħad dwar it-tassazzjoni tal-kumpaniji, avolja konxju li m’għadx baqa’ żmien biex fl-Unjoni Ewropea tħajjar kumpaniji jibqgħu jħarbu l-obbligi tagħhom tal-ħlas tat-taxxi.

Hu korrett li jingħad li ser nintlaqtu bil-miżuri dwar il-klima. Hekk għandu jkun, għax il-ħidma tagħna għandha impatt fuq il-klima. Nistgħu imma ninnegozjaw biex dawn l-impatti fuqna jonqsu mingħajr ma nnaqqsu l-impenn (reali) tagħna biex ikunu indirizzati l-impatti klimatiċi tal-industrija tal-avjazzjoni u tal-vapuri. Bla ebda dubju dan ser ikun ifisser impatti sostanzjali kemm fuq it-turiżmu kif ukoll fuq il-kummerċ.

Dan ma jistax ikun evitat għax dawn l-industriji għandhom l-obbligu li huma ukoll jġorru fuq spallejhom l-impatti li qed jikkawżaw. Dak hu li wegħdna bħala pajjiż fis-Summit ta’ Pariġi dwar il-klima. Wasal il-waqt li nwettqu dak li ġie imwiegħed. Biex niġu fuq saqajna irridu nfasslu l-futur mill-ġdid. Il-ħsara li teħtieg li tissewwa mhiex biss dik ekonomika u ambjentali. Jinħtieġ li tul l-Unjoni Ewropea kollha nibnu s-solidarjetà fuq pedamenti sodi. Dak li Edward Scicluna jqis bħala l-bajtar tax-xewk huma fil-fatt l-għodda bażiċi tas-solidarjetà.

Għax is-solidarjetà hi meħtieġa mhux biss meta aħna bir-raġun kollu nokorbu ma’ kull mewġa ta’ immigranti fl-ibħra Maltin. Is-solidarjetà hi dak li Malta tinjora meta tfittex li tkun attraenti għal min irid jevadi t-taxxi f’pajjiżu: dawk li jħallsu ftit lill-kaxxa ta’ Malta biex jevitaw milli jħallsu l-biljuni band’oħra. Il-politika dwar l-armonizzazzjoni tat-tassazzjoni fl-Unjoni Ewropea hi r-risposta bis-sens għall-politika li tinkoraġixxi l-evażjoni tat-taxxa f’Malta, l-Olanda, il-Lussimburgu u l-Irlanda.

L-Oxfam f’rapport ippubblikat fl-2019 u ntitolat “Off the Hook. How the EU is about to whitewash the world’s worst tax havens” temfasizza li “l-Irlanda, il-Lussimburgu, Malta u l-Olanda huma fost il-pajjiżi li l-iktar jinkoraġixxu l-evażjoni tat-taxxa fid-dinja, b’mod li jagħmluha possibli li kumpaniji kbar jirnexxielhom iħallsu ammont żgħir ta’ taxxa. Per eżempju, ir-regoli internazzjonali tat-taxxa jippermettu lill-Vodafone Group Plc biex jallokkaw kważi 40 fil-mija tal-profitti taxxabbli tagħhom f’Malta u l-Lussimburgu.”

Rajna ukoll rapporti dwar il-BASF, ġgant fl-industrija kimika fil-Ġermanja, li jispjegaw kif din tevadi t-taxxa. Fir-rapport tal-Ħodor Ewropej ippubblikat fl-2016, intitolat “Toxic Tax Deals. When BASF’s Tax Structure is more about style than substance” kien spjegat kif il-BASF irnexxiela tevadi madwar biljun euro f’taxxa, u minflok ħallset ammonti żgħar bil-kompliċità ta’ Gvernijiet Maltin: ħomor u blu.

Jeħtieġ li l-ewwel u qabel kollox nirkupraw l-imġieba etika tagħna, anke qabel ma nirkupraw ekonomikament u ambjentalment. Ir-riġenerazzjoni tal-valuri tagħna għandha tkun prijorità qabel ma nippruvaw insewwu l-kaxxa ta’ Malta li minnha, bħalissa ħerġin il-flus maħmuġin akkumulati mill-bejgħ tal-passaporti. Flejjes miġburin minn persuni bħall-biljunarju Russu Boris Mints, l-Eġizzjan Mustafa Abdel Wadood, il-biljunarju Ċiniż Liu Zhongtian, in-negozjant Russu Pavel Melenikov u l-Iżraeli Anatoly Hurgin, li irnexxielhom jiżgiċċaw minn eżami suppost rigoruż u ngħataw iċ-ċittadinanza Maltija: però xorta spiċċaw għaddejjin proċeduri kriminali f’diversi pajjiżi oħra primarjament dwar frodi u ħasil tal-flus!

F’dan iż-żmien ta’ ħtieġa l-Ministru tal-Finanzi Edward Scicluna spiċċa dipendenti fuq flejjes li oriġinaw minn dawn is-sorsi maħmuġin. Ma tkunx esaġerazzjoni li ngħid li spiċċa dipendenti minn flus li oriġinaw mill-kriminalità.

Fir-reazzjonijiet tagħha għall-proposti tal-Kummissjoni tal-Unjoni Ewropea Evelyne Huytebroech, waħda miż-żewġ mexxejja tal-Partit tal-Ħodor Ewropej, emfasizzat li din il-proposta flimkien ma dik tal-Parlament Ewropew u l-proposta Franco-Tedeska ilkoll qed jaraw proċess ta’ self komuni. Dan hu pass il-quddiem għas-solidarjetà Ewropea. Għax is-solidarjetà tinbena bil-mod u bit-tbatija. Imma għal Edward Scicluna dan kollu bajtar tax-xewk!

ippubblikat fuq Illum :il-Ħadd 31 ta’ Mejju 2020

The recovery plan and Edward Scicluna’s prickly pears

Earlier this week, EU Commission President Ursula von der Leyen, presented for the consideration of the European Parliament a recovery plan worth €750 billion but which can unleash an investment estimated at €3.1 trillion in the EU economy. Through a combination of loans and grants the EU Commission seeks to integrate the reversal of the economic downturn resulting from the Covid-19 pandemic together with the action required to implement the Green Deal.

The road to recovery will be tough. It is not the case of going back to normal but of going forward to a new normal. Integrating the recovery from the pandemic impacts with climate change action will not be easy but it is essential and cannot be postponed. As emphasised by Euroactive on Wednesday, the road to recovery has plenty of green strings attached. 25 per cent of the funding proposed by the EU Commission is in fact earmarked for climate action.

Finance Minister Edward Scicluna, in his first reaction to the recovery plan, voiced concern on practical climate action measures. It hurts, he says, to address air traffic emissions or shipping pollution. As an island this would impact us substantially. The proposed recovery plan is comparable to prickly pears, he stated. He prefers the status quo: all talk and little walk. Edward Scicluna is not amused by rumblings heard on corporate taxation even though he is well aware that the days of attracting corporations seeking tax havens within the EU may well be numbered.

It is correct to state that we will be impacted substantially. We can however negotiate to reduce such impacts without diminishing our commitment to addressing climate change impacts of the airline and shipping industry. This would mean significant impacts on tourism and trade. These however cannot be avoided as climate change impacts have to be internalised: that is they have to be shouldered by the industries generating them. This is what we promised in the Paris Climate Summit. Promises that we must now honour.

Operation recovery must re-design the future. It must not be just an economic recovery or an environmental rebirth. It must also be a recovery of practical solidarity all over the Union. What Edward Scicluna views as prickly pears are in fact instruments of solidarity.

Solidarity is not just what we rightly cry for when immigrants crash through our borders. Solidarity is what we ignore when Malta insists on being attractive to tax evaders: those who pay peanuts to the Maltese exchequer in order to avoid paying billions elsewhere. The issue of tax harmonisation on an EU level is the sensible response to the tax haven fiscal policies of Malta, the Netherlands, Luxembourg, and Ireland.

Oxfam in its 2019 report entitled “Off the Hook. How the EU is about to whitewash the world’s worst tax havens” emphasises that “Ireland, Luxembourg, Malta and the Netherlands are among the most significant tax havens in the world, enabling some of the biggest corporations to pay minimal amounts of tax. For example, currently, international tax rules allow Vodafone Group Plc to allocate nearly 40% of its taxable profits to Malta and Luxembourg.” We have also seen reports on BASF clearly explaining how the German chemical giant avoids paying taxes due. The European Greens report “Toxic Tax Deals. When BASF’s Tax Structure is more about style than substance” published in 2016 had outlined how BASF had successfully avoided close to a billion euros in tax, paying just a small amount thanks to Maltese governments blue and red.

The recovery must be primarily ethical before being economic and environmental. Regenerating our values should be a priority higher on the list than the regeneration of our coffers, currently dishing out dirty money originating from the sale of citizenship schemes. Monies collected from the likes of Russian billionaire Boris Mints, Egyptian national Mustafa Abdel Wadood, Chinese billionaire Liu Zhongtian, Russian businessman Pavel Melenikov and Israeli Anatoly Hurgin, who slipped through what is described as a rigorous due diligence process and gain Maltese citizenship only to be prosecuted in different jurisdictions for various crimes primarily fraud and money laundering.

It is indeed telling that in time of need Finance Minister Edward Scicluna is dependent on monies originating from such dubious sources! It would not be an exaggeration to state that he is dependent on the proceeds of crime.

In her reaction to the EU Commission proposals Evelyne Huytebroech co-Chair of the European Greens emphasised that the EU Commission’s proposal together with the proposals of the EU Parliament and the Franco-German initiative all foresee a mutualised debt instrument: a major breakthrough for European solidarity. Solidarity is constructed slowly and painfully, while Edward Scicluna juggles with his prickly pears.

published in The Malta Independent on Sunday : 31 May 2020

€55 million down the drain

Our roads are bursting at the seams. We all agree that this is an accurate statement, but the problem is with identifying sustainable solutions addressing the issue.

Government has opted for the solution which focuses on an upgrading of the road network: widening roads, reorganising road intersections, constructing flyovers and underpasses. These solutions may reduce commuting time in the short term but they will, however, in the long term inevitably increase the number of cars on our roads, as a result making the situation even worse than it is now. This is a policy which sends one clear message: the private car is the transport policy makers’ preferred mode of transport.

This policy option is clearly unsustainable.

Malta’s transport policy makers have – time and again – failed to understand that the foundations of transport policy in Malta have to be based on the simple fact that everywhere is close by – a stone’s throw away. An efficient public transport system would solve most of our mobility needs. However, for public transport to feature more prominently in the manner we select our mobility requirements, subsidies are not enough.

After more than sixty years of neglect, the policy-makers need to take a clear stand to encourage alternatives to owning and driving a car. It is only then that public transport can take its rightful place as the leading – and preferred – provider of sustainable mobility in our islands. This could be supplemented with sea-transport, cycling and walking. As a result of fewer cars on our roads, both cycling and walking would undoubtedly become more attractive options.

From the reply to a Parliamentary Question answered earlier this month by Transport Minister Ian Borg, it results that, on the 30 April 2018 we had 377,305 vehicles on our roads. With a population estimated at 432,000 that translates to 832 vehicles per thousand people, one of the highest car ownership statistics in the world. This is not a sign of effluence but the most solid proof that the policy-makers have failed to come to grips with the real issues of sustainable mobility in a small country.

According to 2014 statistics available, Luxembourg had 661 vehicles per thousand population on its roads. This too is a very high car ownership rate, but applying it to Malta would signify that we could do with removing 75,000 cars from our roads: a 20 percent reduction. Luxembourg, having a population comparable to Malta, is also small in size as a country, with everywhere being easily within reach, even though it is approximately six times the size of Malta. Turkey, on the other hand, which is much larger in size and population when compared to Malta, has 134 cars per thousand people on its roads: a car ownership statistic which, if applied to Malta, would mean that we have an excess of 302,000 cars on our roads – 80 per cent. Rather than further developing our road network with fly-overs and under-passes we could then start planning for the transformation of most of our existing roads into recreational areas! This, of course, is wishful thinking.

However, these are the real issues that need debating. Unfortunately, there is no interest in considering the reduction of car ownership as a realistic policy solution which effectively addresses traffic congestion and consequently sustainable mobility.

Rather than a policy of upgrading our roads we need a policy of transition, that slowly nudges our behaviour from one as a result of which cars rule our roads to one where our mobility is addressed in a sustainable manner primarily through a substantially increased use of public transport. It will obviously take time to reverse a 60-year neglect – as a result of which the state in Malta abdicated its duty to offer guidance leading to the development of sustainable mobility solutions.

It is this state of affairs which earlier this week led Minister of Transport Ian Borg to launch a “Central Link project”. €55 million down the drain.

published in The Malta Independent on Sunday: 27 May 2018

Encouraging the avoidance of paying tax

The issue as to whether or not  Malta is a tax haven has been brought to the fore once again, as a result of the amendment to the Panama Papers Inquiry Report discussed in the European Parliament earlier this week. The defeated amendment would have seen Malta, Luxembourg, Ireland and the Netherlands labelled by the European Parliament as “tax havens”.

The matter is much more complex. On the one hand it involves tax competition and on the other hand it is a matter of justice in taxation matters.

As has been repeatedly stated, competition on taxation matters is one of the few areas in which small, as well as peripheral, countries in the European Union have a competitive advantage. Alternattiva Demokratika-The Green Party is not in favour of loosing this competitive advantage through tax harmonisation in the EU. However, it has to be used in a responsible manner.

The rules permitting the refund of a substantial amount of tax paid by foreign-owned companies based in Malta is one of the main reasons for the current spotlight. This substantial tax refund effectively reduces the tax paid by such companies from 35% to five per cent and is obviously considered very attractive by a number of companies. The basic question that requires a clear answer is how many of these companies are letter-box companies, that is companies which do not have any part of their operations on Maltese soil?

It would be reasonable to encourage companies to base part of their operations in Malta and, as a result, make use of tax advantages. But in respect of those companies which have not moved any part of their operations to Malta, making use of beneficial taxation arrangements is unreasonable and unjust. It leads to such companies avoiding paying tax in the countries in which they create their profits and consequently avoiding their social responsibilities on paying taxes in the countries that are providing them with the very facilities which make it possible for them to create their wealth.

In a nutshell, Malta is providing these companies with the legal framework to avoid their taxation responsibilities in the countries in which they operate through payment of a fraction of these taxes to the Maltese Exchequer. They pocket the rest.

Hiding behind the EU unanimity rule on tax issues will not get us anywhere, as Ireland has learnt in the Apple case. At the end of the day, the situation is not just about  taxation: it also involves competition rules and rules regulating state aid, as the legal infrastructure encouraging the avoidance of taxation is, in effect, a mechanism for state aid. The is also an issue of tax justice, as a result of which tax should be paid where the profits are generated.

Tax competition has a role to play as an important tool that small and peripheral countries in the EU have at their disposal. No one should expect these countries, Malta included, to throw away the small advantage they have, but it should be clear that this should be used responsibly and in no way should it buttress the urge of multinationals to circumvent the national taxation system in the country where their profits are generated.

Profits should be taxed where they are actually generated and not elsewhere. The EU needs to end – once and for all – not only tax evasion but also tax avoidance resulting from loopholes in national taxation rules. For this to happen, the EU member states must not only be vigilant, but they must also refrain from encouraging tax avoidance through the creation of more loopholes.

Tackling tax evasion and tax avoidance seriously will mean that taxes are paid where they are due, thereby funding the services and infrastructure that is required in a modern, civilised society. This can only happen if more companies pay their dues.

Tax competition need not be a race to the bottom.

published in The Malta Independent on Sunday : 17 December 2017

Tax avoidance: does Malta play a role?

basf-malta

On 30 August, the European Union, through Competition Commissioner Margrethe Vestager, ordered Apple Corporation to pay €13 billion in unpaid taxes to the Irish state.  The EU ruling considered that the special tax treatment of Apple, whose tax bill was substantially reduced, amounted to unlawful state aid.

In November 2014, through Luxleaks, we learnt of tax avoidance schemes in Luxembourg and elsewhere, as a result of which billions of euros in tax were being avoided by multinational corporations.

The EU has subsequently launched various investigations into the favourable tax treatment which Luxembourg, The Netherlands and Belgium have granted to various multinationals.

As a contribution to the on-going debate on tax avoidance in the EU, the Green Group in the European Parliament has recently published a study on the tax avoidance strategies adopted by the industrial giant BASF, the largest chemical company in the world.

Founded in 1865, BASF has its headquarters in Ludwigshafen, Germany, from where it manages a €70.4 billion turnover with production sites in 80 countries.

Malta features in this report together with Belgium, the Netherlands and Switzerland.

Over the years, BASF has used mismatches in national tax systems in order to avoid paying its taxes. It is estimated that, over a five-year period spanning 2010 to 2014, BASF avoided the payment of close to one billion euros in taxes.

Chapter VIII of the report, published by the Green Group in the European Parliament, deals with Malta. It refers to the existence of a BASF subsidiary in Malta which held €5.07 billion in assets. These assets where transferred to a new German subsidiary, BASF Finance Malta GMBH, which was managed from an office in St Julian’s, thereby creating the eligibility for preferential tax treatment which could amount to as much as a refund of six-sevenths of all tax payable in Malta.

All this is a clearly planned movement of profits through generous loopholes as a way of avoiding most of, if not all, of the taxation which would be due under normal circumstances.

This abuse of the differences in national tax systems needs to be addressed urgently. As rightly stated by Malta’s Finance Minister Edward Scicluna at a Luxembourg ECOFIN meeting last September, the way forward lies in coordination at an EU level and not in the harmonisation of the national taxation systems, as some EU member states are insisting.

Tax competition has a role to play as an important tool that small and peripheral countries in the EU have at their disposal. No one should expect these countries to throw away the small advantage they have, but it should be clear that this should be used responsibly and in no way should it buttress the urge of multinationals to circumvent the national taxation system where their profits are generated.

Profits should be taxed where they are actually generated and not elsewhere. The EU needs to end – once and for all – not only tax evasion but also tax avoidance resulting from loopholes in national tax rules. For this to happen, the member states must not only be vigilant, but must also refrain from encouraging tax avoidance through the creation of more loopholes.

Tackling tax evasion and tax avoidance seriously will mean that taxes are paid where they are due, thereby funding the services and infrastructure that is required in a modern, civilised society. This can only happen if more companies pay their dues. Tax competition need not be a race to the bottom.

published in The Malta Independent on Sunday – 4 December 2016

Unhappy meal : zero-hours contracts and tax avoidance

for reader offer. McDonald's logo.

 

In 2009 McDonald’s restructured its business in Europe with the effect of extracting billions in royalties from its European operations.

This restructuring involved a number of decisions .

A Luxembourg based intellectual property holding company (McD Europe Franchising Sàrl) was set up immediately after a tax policy change (in Luxembourg) which allowed companies to benefit from significant reductions of their tax rate on income earned from intellectual property. Subsequently billions in royalties from McDonald’s European operations were routed to Luxembourg in the coffers of McD Europe Franchising Sàrl.

Over the five years 2009-2013 it is estimated that McDonald’s avoided the payment of €1 billion in taxes. Consequently the European states hosting 7,850 outlets which in 2013 had an estimated turnver of €20.3 billion have lost €1 billion in tax revenue.

McDonald’s the tax avoider tries to depict itself as a vital provider of jobs, particularly for youth. Most of McDonald’s employees experience precarious, low-wage work with little prospect for steady employment or advancement. It is known for instance that in the UK, the vast majority of McDonald’s 97,000 employees are on zero-hours contracts : employment contracts with neither guaranteed hours nor work schedule stability.

A very unhappy meal. Precarious employment for the employees and tax avoidance galore for the corporation!

 

Information extracted from : Unhappy Meal: €1 billion in tax avoidance on the Menu at McDonald’s  (report published by  Coalition of European and American Trade unions and War on Want, the UK based anti-poverty campaign group, 24th Feburary 2015)

Malta, il-Lussimburgu u l-evażjoni tat-taxxa

Juncker + Muscat

Matul il-ġranet li għaddew segwejna l-informazzjoni żvelata dwar il-Lussimburgu. Kif l-awtoritajiet tat-taxxa tal-pajjiż, fiż-żmien li Jean Claude Juncker kien Prim Ministru innegozjaw ma numru ta’ kumpaniji kbar status fiskali li permezz tiegħu setgħu “jiffrankaw” biljuni kbar f’taxxi.

Din li jiffrankaw fil-fatt ma hi xejn għajr evazjoni legalizzata tat-taxxa. Biex ma jħallsux taxxa f’pajjiż jagħmlu użu mil-liġijiet ta’ pajjiż ieħor. Għal min hu fil-business dan hu aċċettabbli. Fil-fatt meta kien ippressat mill-istampa Jean Claude Juncker qal li dak li ġara kien legali imma jifhem li mhux aċċettabbli etikament.

Għax il-politika m’għandiex x’taqsam biss mal-liġi. Dak li hu legali mhux dejjem huwa aċċettabbli. Fil-prattika, l-Lussimburgu taħt it-tmexxija ta’ Juncker għamlitha possibli lil numru ta’ multinazzjonali jħallsu ħafna inqas f’taxxi.  Dan hu etikament ħażin. Għax ċaħħdet lill-pajjiżi fejn joperaw dawn il-kumpaniji minn taxxi li kienu meħtieġa għal programmi soċjali f’dawk il-pajjiżi.

L-argumenti politiċi li jinġiebu s’issa huma dawk dwar il-kompetizzjoni fiskali. Jiġifieri li ġaladarba t-tassazzjoni hi kompetenza tal-istati membri fl-Unjoni Ewropeja, x’rati ta’ taxxa jitħallsu u minn min hu determinabbli biss individwalment mill-istati membri tal-Unjoni Ewropeja.

Imma issa hemm min qed jargumenta li meta pajjiż jagħti status fiskali privileġġjat lil dawn il-kumpaniji biex jiġbdhom lejn il-pajjiż, idaħħal ftit taxxi minn fuqhom kif ukoll joħloq numru ta’ impiegi konnessi mar-reġistrazzjoni u l-amministrazzjoni tal-kumpaniji, dan kollu hu għajnuna mill-istat (state aid) liema għajnuna mhiex aċċettabbli.

Għalhekk fetħet investigazzjoni dwar il-Lussimburgu li qed titmexxa mill-Kummissarju għall-Kompetizzjoni, id-Daniża Margrethe Vestager.

Hu inevitabbli li dan kollu f’xi stadju ser iħalli impatt fuq is-settur finanzjarju f’Malta. Huwa magħruf li bosta xogħol f’dan il-qasam ġie f’Malta minħabba pakkett ta’ inċentivi li jinkludi rati ta’ taxxa favorevoli ħafna. Fi ftit kliem dawn il-kumpaniji ġew hawn għax jaqblilhom. Jaqblilhom għax iħallsu ftit taxxi ħdejn li jkollhom iħallsu f’pajjiżi oħra. Bħala riżultat ta’ dan qed jagħtu kontribut lill-ekonomija tal-pajjiż kif ukoll qed jiġġeneraw numru mhux żgħir ta’ impiegi.

Il-problema hi li dan kollu huwa ibbażat fuq l-evażjoni tat-taxxa f’pajjiżi  oħra. Hi problema li rridu niffaċċjaw fix-xhur li ġejjin meta l-Kummissjoni Ewropeja tiddeċiedi jekk tiftaħx investigazzjoni dwar Malta kif ukoll dwar pajjiżi oħra fosthom l-Irlanda u dan wara li tiżviluppa ftit ieħor l-investigazzjoni dwar il-Lussimburgu.

Tajjeb li l-istat Malti jiġġieled f’Malta kontra l-evażjoni tat-taxxa. Imma imbagħad hi ipokrezija politika li Malta tfittex li tibbenefika mill-evażjoni tat-taxxa f’pajjiżi oħra.  Jew aħna kontra l-evażjoni jew m’aħniex!  Ma nistgħux inkunu kredibbli bħala pajjiż jekk nibqgħu niżviluppaw l-ekonomija tagħna fuq l-evażjoni tat-taxxi f’pajjiżi oħra.  L-ekonomija u l-etika għandhom jimxu id f’id.

Karmenu Vella : kontroversja bla ħtieġa

Junker + Vella

 

Għada waranofsinnhar Karmenu Vella jippreżenta ruħu biex ikun eżaminat minn żewġ kumitati tal-Parlament Ewropew.

Fid-dibattitu pubbliku li ilu għaddej mill-10 ta’ Settembru 2014, id-diffikulta prinċipali mhiex il-persuna ta’ Karmenu Vella, imma d-deċiżjoni politika li ħa Jean Claude Juncker dwar ir-responsabbiltajiet li assenja lil Karmenu Vella u lil oħrajn. Fl-ittra li ntbagħatet mill-Grupp tal-Ħodor lil Jean Claude Juncker nhar il-Ġimgħa li għaddiet dan kien ċar ħafna u jpoġġi f’perspettiva l-argumenti kollha.

Karmenu Vella il-persuna jidher li ma hu fil-mira ta’ kważi ħadd. L-unika kritika diretta lejh kienet dik tal-Corporate Europe Observatory. Għalhekk ma nistax nifhem kif fl-aħħar siegħat ħoloq il-kontroversja hu stess meta ġew ippubblikati t-tweġibiet li kien mitlub jagħti bil-miktub għal xi mistoqsijiet li sarulu. Hi kontroversja li kien ikunu ħafna għaqli li kieku evita. Imma tawh pariri ħżiena!

Il-gazzetti tal-lum (apparti l-Kullħadd u t-Torċa li baqgħu siekta) kienu mimlijin bil-kummenti li juru kemm Karmenu Vella żbalja bl-ikraħ meta qal li hu ivvota biex Malta tissieħeb fl-Unjoni Ewropeja meta hu ċar li sa ftit ġranet qabel il-votazzjoni tar-referendum tal-2003 hu kien involut b’mod attiv favur il-LE, anke f’dibattitu fuq it-TV.

Issa din kienet kontroversja bla ħtieġa għal Karmenu Vella. Imma kontroversja li ħalliet togħma morra ma bosta. Hawn Malta ħadd m’hu jemmen dak li qal Karmenu Vella dwar kif ivvota. X’ser jagħmlu l-Membri Parlamentari Ewropej ma nafx. Naf biss li ħadd m’hu ta’ subgħajh f’ħalqu. Dawk minnhom li jsegwu x’inhu jiġri jafu l-posizzjoni li ħa l-Partit Laburista f’Malta dwar is-sħubija fl-Unjoni Ewropeja. Min minnhom għaldaqstant jifhem x’qiegħed iħarref Karmenu Vella bil-fors li ser ikollu d-dubju dwar it-tweġbiet l-oħra li Karmenu Vella jagħti fuq l-Ambjent, is-Sajd u l-Politika Marittima. Għax il-loġika tgħidlek li jekk ma ssibhiex bi kbira li tħarref fuq ħaġa l-anqas m’int ser issibha bi kbira li tħarref fuq affarijiet oħra.

B’mod oġġettiv, kieku l-kumitati parlamentari tal-Parlament Ewropew kellhom jiddeċiedu fuq il-kompetenzi individwali tal-kummissarji proposti, madwar 6 minn dawk proposti ma jkunux approvati. Imma nafu li l-Parlament Ewropew u l-Kumitati tiegħu ma jaħdmux hekk sakemm ma jkun hemm affarijiet ta’ serjeta’ kbira li jistunaw. Dejjem sakemm ma jkunx hemm xi gaffe bħalma għamel Rocco Buttiglione fl-2004 inkella sakemm il-Kummissarju li jkun qed iwieġeb ma jweġibx b’mod adegwat mistoqsijiet dwar dak li jidher bħala l-konflitt ta’ interess tiegħu jew tagħha kif kien ġrala l-Bulgara Rumiana Jeleva fl-2010.  Sakemm ma jiġrix hekk hu probabbi li l-Kummissjoni tkun approvata kollha kif propost u dan bl-appoġġ tal-Popolari u s-Soċjalisti kif ukoll tal-Liberali.

Pero jekk jinqala’ dak li mhux previst ma tistax tgħid x’jiġri.

Its BBQ time

Karmenu Vella + Dom Mintoff

On Monday 29 September at 2.30pm Karmenu Vella, Malta’s nominee to the Juncker led EU Commission will meet with Members of the European Parliament who sit on the Parliamentary Committees dealing with the Environment, Fisheries and Maritime Affairs. They will listen to his introductory views on the responsibilities which he has been assigned and subsequently they will ask questions.

For three hours they will listen to his answers after which they will decide whether in their opinion he is suitable for the post to which he has been nominated, that is as EU Commissioner for the Environment, Maritime Affairs and Fisheries.

The MEPs will be interested to hear Karmenu Vella explain as to how he will go about with the proposed revision and possible consolidation of the Birds Directive and the Habitats Directives which matter he was specifically instructed by Commission President-elect Jean-Claude Juncker to take in hand. These views are especially significant in view of the quasi unconditional support which the Labour Party in Malta gives to hunters and trappers. The European Voice on Monday 22 September paraphrased it very accurately when it stated that: the matter “is particularly sensitive because Malta has been in repeated and continued violation of these laws because of bird hunting.” Will Karmenu Vella, for example, in view of the Labour’s experiences in Malta seek to sanction spring hunting within the rest of the EU? MEPs will undoubtedly be very eager to learn about what possiblies lies ahead if EU Environmental governance is dependent on Karmenu Vella!

In the letter of appointment Jean-Claude Juncker identified 5 clear targets which Karmenu Vella has to attain, namely:

  1. The overhaul of existing environmental legislative framework,
  2. The European Union strategy about the quality of air,
  3. The circular economy and the results achieved to date and in the light of the first reactions of the European Parliament and of the Council of Ministers,
  4. The implementation of the common fisheries policy,
  5. Active participation in international fora on the Oceans within the United Nations and other multilateral and bilateral fora.

MEPs would be very much interested as to what is in store as a result of environmental deregulation. Which legislative instruments will be targeted? How will Karmenu Vella in his role as Commissioner  seek to ensure that the protection which the EU has to date afforded to both man and the eco-system is not dismantled but rather reinforced?

The European Chemicals Agency which deals with the implementation of the REACH Directive has been removed from the Environment portfolio and transferred to the portfolio dealing with Enterprise. This is not a matter which Karmenu Vella has to answer for but it is indicative as to the forces at play on Juncker’s table. The REACH Directive is not considered as an environmental matter by Jean-Claude Juncker. In his opinion it has to be administered primarily in the interests of enterprise, that is of business and industry.

Committees of the European Parliament will by now have digested the experiences of former European Commissioner John Dalli. As a result they would be more than interested about Karmenu Vella’s contacts with the business world, about his thoughts on lobbying as well as what he think’s transparency is all about.

A report published by the Corporate Europe Observatory earlier this month is entitled: Do not bet on the commissioner: the case of Karmenu Vella of Malta.  Since this report emphasises that Karmenu Vella “is not suitable to be a commissioner” the members of the Committees of the European Parliament would undoubtedly wish to hear from Karmenu Vella as to why, in his opinion they should arrive at a different conclusion.

 

published in The Malta Independent : Wednesday 24th September 2014

Squeezing Labour’s balls

squeezing the ball

 

Last week’s hunting related incidents and the reactions of Joseph Muscat’s government is clear indication that Malta’s Labour Party is fed up of being blackmailed by the hunting lobby. It is realising, just eighteen months into this administration’s life that the hunting lobby has been squeezing Labour’s balls for far too long. It seems that Labour has finally found the appropriate time to ensure that the hunting lobby let go.

But will they?

Its much more than the need not to embarrass Commissioner-designate Karmenu Vella in next week’s hearing at the European Parliament. It is in fact the direct result of Juncker’s challenge through the determination of Vella’s portfolio.

Earlier this month the Guardian, in what is most probably the most accurate assessment of Juncker’s strategic thinking, stated that “Juncker is effectively calling the bluffs.”

The Guardian, analysing Juncker’s nominations, has concluded that Jean-Claude is putting a number of national governments on the spot. Specifically referring to the British, French, Hungarian, Greek, German and Dutch designate-Commissioners the Guardian argues that Juncker has strategically placed them in charge of policy areas which their national governments have a problem with.

Even though the Guardian did not refer to Karmenu Vella’s portfolio it is pretty obvious that Vella fits the bill perfectly. Karmenu Vella as Environment Commissioner will have very little room to manoeuvre in order to accommodate Muscat’s hunting and trapping commitments and hence if Muscat opts to continue to defy the EU environmental acquis he will be in for a lot of trouble and embarrassment.  Karmenu Vella will be the reluctant executioner. Joseph Muscat clearly wants to avoid this.

This is Juncker’s gamble as a result of which the squeeze on Labour’s balls may get worse.