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, tulis-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

Fil-lista l-griża: wara snin ma jsir xejn dwar il-ħasil tal-flus

Ċertament li mhux ġust mal-Maltin li l-FATF (Financial Action Task Force) poġġiet lil Malta fuq il-lista l-griża.

Li dħalna fil-lista l-griża hu bla l-iċken dubju ħtija tal-Gvern. L-Opposizzjoni ukoll għandha terfa’ parti mit-tort u dan minħabba li fl-2013 ħalliet warajha istituzzjonijiet dgħajfa. B’istituzzjonijiet dgħajfa l-ħmieġ hu iffaċilitat.

Ilkoll għandna nkunu mnikktin bid-deċiżjoni tal-FATF (Financial Action Task Force) li tpoġġi lill-Malta fuq il-lista l-griża, minkejja li din id-deċiżjoni kienet mistennija.

Il-kelliema tal-Gvern, matul il-ġimgħa, kienu qed jenfasizzaw li ttieħdu 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. Ilkoll kemm huma ikkontribwew biex Malta ġiet inkluża fuq il-lista l-griża.

Tiftakru lil Varist Bartolo fuq Hard Talk jispjega għaliex ivvota favur Mizzi u Schembri? Kienet strateġija biex jissopravivi qalilna (strategy for survival) bit-tama li jkun għadu hemm meta tasal il-battalja li jmiss. Jew forsi tiftakru lill-Leo Brincat jispjega meta kien taħt skrutinju fil-Parlament Ewropew in konnessjoni man-nomina tiegħu għall-Qorti tal-Awdituri? Dakinnhar kien qalilna li ma jridx li jispiċċa eroj għal ġurnata biex imbgħad wara jispiċċa fil-baħħ!

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

Sfortunatament, l-azzjoni kontra l-ħasil tal-flus waslet tard. Sadanittant 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 iħossu 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 li jagħmilha possibbli li Malta tintuża bħala ċentru internazzjonali tal-evażjoni tat-taxxa. Flimkien mal-iskema tal-bejgħ taċ-ċittadinanza dan ikkontribwixxa aktar għat-tkissir tar-reputazzjoni ta’ Malta bħala ġurisdizzjoni li tista’ tkun afdata.

Xi ħadd jiftakar iċ-ċirkustanzi li wasslu għar-riżenja ta’ Joseph Cuschieri, CEO tal-Awtorità tas-Serviżżi Finanzjarji (MFSA) wara li ż-żjara tiegħu f’Las Vegas ma Yorgen Fenech ġiet għall-attenzjoni pubblika? Il-vjaġġ kien iffinanzjat minn Yorgen Fenech meta Cuschieri kien għadu jmexxi l-Awtorità tal-Logħob li suppost kienet ir-regolatur tal-casino ta’ Yorgen Fenech.  B’regolaturi bħal dawn, kif jista’ jsir l-infurzar?

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 xieraq 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. Intilfet il-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.

Ippubblikat fuq Illum : il-Ħadd 27 ta’ Ġunju 2021

Grey listing: after years of zero enforcement on money laundering

The grey listing announced earlier during the week as a result of a decision by the Financial Action Task Force (FATF) is definitely not fair on the Maltese people.

The grey list is government’s making. However, the opposition certainly has a finger in the pie too as it is ultimately responsible for the weak institutions which it left in place in 2013. These weak institutions facilitated the current mess.

We should all be saddened by the decision of the FATF (Financial Action Task Force) to have Malta on its grey list, even though this course of action was expected.  

Government spokespersons have been emphasising that a lot of regulatory sprucing and reinforcement has been taken in hand.  However, they did not tell us that this has been done after several years of zero enforcement. After years having regulatory authorities such as FIAU staffed by collaborators of known criminals, such as Silvio Valletta, former Deputy Commissioner of Police.

We have had all Labour MPs in Parliament refusing to condemn Konrad Mizzi and Keith Schembri when their Panama Papers involvement was made public. All of them have contributed to this grey listing. 

Do you remember Evarist Bartolo explaining on Hard Talk why he voted in favour of Mizzi and Schembri? He had a strategy for survival, hoping “to live and fight another day”. Or Leo Brincat’s explanation when being scrutinised by the EU Parliament Budgetary Control Committee prior to his appointment at the European Court of Auditors? Leo Brincat had than stated that he did not want to live as a hero for one day, to be subsequently condemned to the wilderness for the rest of his life!

We have had the Commissioner of Police not investigating money laundering cases for years on end. It is only recently that a new Police Commissioner has made investigations and prosecutions possible.

Unfortunately, the action against money laundering has been late in coming. Considerable damage has resulted in the meantime. Government criminal complicity in all this has seriously damaged the economy and society.  It is those in the lower income levels who will feel most of the impacts of all this. They need our empathy. It is they who need most protection at this point in time.

Government with the support of the opposition has over the years developed a “national consensus” on the financial sector including the setup which makes it possible for international tax evasion to make use of Malta as a base. Together with the sale of citizenship scheme this has further contributed to the erosion of Malta’s reputation as a trustworthy jurisdiction.

Anybody remembers the circumstances which led to the 2018 resignation of the MFSA (Malta Financial Services Authority) CEO Joseph Cuschieri following his Las Vegas trip with Yorgen Fenech becoming public knowledge? The trip had been financed by Fenech when Cuschieri was still the Gaming Authority Chief, supposedly regulating Yorgen Fenech’s casino!

All this mess was directed by Joseph Muscat and Edward Scicluna, former Finance Minister who has been rewarded for his endeavours by his appointment as Governor of the Central Bank. Muscat is gone. Scicluna, politically responsible for ensuring that money-laundering structures were functioning, needs to follow him at the earliest. He should either resign or be dismissed forthwith.

It is also pertinent to point out that all this was the subject of the investigative journalism of Daphne Caruana Galizia who was blown up for her efforts to inform us and expose the criminal elite. We have lost a life: a mother, a wife, a journalist.

Immediate action is essential to start rebuilding Malta’s reputation. This should include the immediate repeal of the sale of citizenship scheme and closing the legal loopholes which have transformed Malta into a tax haven.

published in The Malta Independent on Sunday: 27 June 2021

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

Dritt ta’ aċċess għax-xemx

Id-dritt li jkollna aċċess għax-xemx reġa’ għal darba oħra qed jissemma b’insistenza. Dawk fostna li huma konxji li l-użu tax-xemx għall-ħtiġijiet tagħna jagħmel kemm sens ambjentali kif ukoll sens ekonomiku qiegħed dejjem jiżdied. Sfortunatament huma ostakolati mill-politika dwar l-użu tal-art li hi interessata biss biex taqdi lir-rebgħa li, jippruvaw jgħidulna li hi żvilupp.

Li nagħmlu użu mill-enerġija li tiġġenera x-xemx jiddependi minn dak li jkun hemm jostakola l-wasla tar-raġġi tax-xemx meta jkollna ħtieġa tagħhom! Meta l-parti l-kbira tal-pjani lokali kienu approvati fis-sajf tal-2006, kien żdied bil-kbir l-għoli tal-bini permissibli f’diversi lokalitajiet. F’xi każi l-ammont ta’ sulari li jistgħu jinbnew żdiedu minn 2 għal 5, inkluż penthouse. Is-sitwazzjoni hi agħar fejn jista’ jkun hemm garaxxijiet li jkunu parzjalment taħt il-livell tal-triq (semi-basement). Din il-bidla f’dak li jista’ jinbena effettwat ħafna żoni fejn kien hemm bini b’żewġ sulari.

L-impatt ta’ din il-bidla fl-għoli permissibli tal-bini qiegħed jiżdied biż-żmien għax issa qed isir żvilupp mill-ġdid ta’ bosta propjetajiet li ilhom ftit ta’ żmien li nbnew. Dan qed joħloq ħafna dellijiet fuq bosta djar residenzjali fl-ibliet u l-irħula tagħna. Bħala riżultat ta’ dan il-pannelli fotovoltajċi u l-istallazzjonijiet li jsaħħnu l-ilma bix-xemx (solar water heaters) stallati fuq il-bjut ta’ bosta residenzi issa qegħdin fid-dell għall-ħin twil u ġew ma jiswew xejn. Dawn huma investimenti li għamlu ħafna familji Maltin li ġew issagrifikati fuq l-altar tar-rebgħa tal-hekk imsejjaħ żvilupp. Sussidji użati bħala għajnuna biex niġġeneraw l-enerġija mix-xemx, inkluż dawk li oriġinaw minn fondi Ewropej, f’numru mhux żgħir ta’ każi spiċċaw moħlija.

Dan kollu hu riżultat ta’ politika dwar l-ippjanar tal-użu tal-art bla viżjoni fit-tul. Politika li falliet biex tqis u tindirizza impatti ovvji. B’mod speċifiku hi riżultat li teżamina l-proposta dwar l-għoli permissibli tal-bini fid-dawl tal-proċeduri stabiliti mid-direttiva tal-Unjoni Ewropea dwar l-istima ta’ l-effetti ta’ ċerti pjanijiet u programmi fuq l-ambjent (Strategic Environment Assessment Directive). Din hi direttiva li tfittex li teżamina politika (policy), pjani u programmi biex ikun stabilit u eżaminat l-impatt ambjentali tagħhom.

Dawk minnha li huma familjari ma kif taħdem u ħadmet l-Awtorità tal-Ippjanar jafu li l-Pjani Lokali ġew approvati bl-għaġġla fis-sajf tal-2006. Dan sar l-għaliex iktar dewmien kien ikun ifisser illi dawn il-pjani kienu jkun soġġetti għal eżami dwar l-impatti ambjentali tagħhom skond kif tipprovdi d-direttiva tal-Unjoni Ewropea dwar l-istima ta’ l-effetti ta’ ċerti pjanijiet u programmi fuq l-ambjent (Strategic Environment Assessment Directive). Inevitabilment kien jirriżulta minn dan l-eżami li ż-żieda fil-għoli tal-bini li seta jingħata l-permess kien ser ikollu impatt negattiv fuq il-ġenerazzjoni tal-elettriku mix-xemx, kif fil-fatt qed jiġri llum! Dan l-impatt kien ikollu jkun indirizzat u l-għoli tal-bini kien ikollu jonqos.

Kellna parti mill-Gvern taħdem favur il-ħtieġa li nagħmlu użu mix-xemx biex niġġeneraw enerġija nadifa. Imma kellna parti oħra mill-Gvern li kienet ostaġġ tal-lobby tal-iżviluppaturi li riedu iktar spazju fejn jistgħu jiżviluppaw. Il-bqija nafu x’ġara. Dak l-ispazju issa qed jiġi żviluppat u bħala riżultat spiċċajna bil-pannelli fid-dell fuq il-bjut!

Iktar kmieni din il-ġimgħa, fil-Parlament, Miriam Dalli, Ministru għall-Enerġija, l-Intrapriża u l-Iżvilupp Sostenibbli fi tweġiba għal mistoqsija parlamentari ta’ Ryan Callus kelliemi tal-Opposizzjoni dwar l-Enerġija qalet li l-Gvern għaddej b’konsultazzjonijiet interni dwar dan kollu.

Tant ilna niddiskutu dan kollu li mhux nifhem x’għandha f’moħħha l-Onorevoli Ministru. Fil-fatt ftit hemm possibilitajiet x’jiġu kkunsidrati.

L-iktar possibilità ovvja hi li fejn hu possibli jitreġġa’ lura l-għoli permissibli tal-bini għal dak li kien fl-2006. Dan imma, hu diffiċli biex isir, u kieku kellu jsir immedjatament tasal talba għal kumpens ta’ miljuni ta’ euro.

Hu possibli li jkunu introdotti drittijiet dwar l-aċċess għax-xemx f’bini ġdid. Dan għandu jsir immedjatament. Hu possiblili li jkunu emendati r-regoli tal-ippjanar b’mod li jkun assigurat illi fil-bini ġdid, b’mod partikolari fil-bini ta’ flats, ikun possibli li minn fuq il-bjut tagħhom tkun ġġenerata l-enerġija mix-xemx. Dan għandu jkun biżżejjed u jagħmel tajjeb għall-konsum tal-elettriku fil-blokk tal-flats kollu. Dan ikun ifisser li l-arja ma tinżammx mill-iżviluppatur iżda tkun parti mill-blokk f’idejn is-sidien tal-flats biex fuqha jistallaw pannelli foto-voltajiċi. Dan jassigura li kull blokk ġdid ta’ flats ikun carbon neutral, jiġifieri jiġġenera elettriku mix-xemx daqs kemm ikun ikkunsmat. Il-pannelli b’hekk jieħdu post il-penthouse.

B’hekk nistgħu nibdew bil-mod insewwu l-ħsara li saret.

Ippubblikat fuq Illum : il-Ħadd 21 ta’ Frar 2021

Solar rights and planning wrongs

Solar rights are once more in the public debate. The number of those aware that utilising solar energy for our needs makes both environmental and economic sense is on the increase. Unfortunately, they are being obstructed by land use planning policy which is only interested in serving greed, camouflaged as development.

The utilisation of the sun’s energy is dependent on what gets in the way of the sun’s rays when we need them!  When most of the Local Plans were approved way back in summer of 2006, the permissible heights of building development in a multitude of areas were substantially increased. At times this increase was from 2 to 5 floors, including a penthouse level. It is worse where semi-basement garages are permissible. This change was in particular applied in respect of large areas with a previous predominance of two floored terraced houses. 

The impact of this change in the permissible height limitation is increasing in severity with time as the redevelopment of old properties is being gradually taken in hand. This is resulting in the shadowing of an ever-increasing number of residential units in a number of residential areas. As a result, solar water heaters and photo voltaic panels installed on a number of roofs in the past years, are now in the shade for a considerable amount of time and consequently are practically useless. Investments made by a number of our families have been sacrificed on the altar of development greed. Subsidies (including those originating from EU funds) which were utilised to assist the tapping of solar energy in a substantial number of cases have thus been thrown down the drain.

This is the result of myopic land use planning which failed to consider obvious impacts. Specifically, it is the result of the failure to subject the proposed height relaxation planning policies to the EU Strategic Environment Assessment Directive. The Strategic Environment Assessment Directive seeks to examine policies, plans and programmes in order to ensure that their environmental aspects are effectively considered.

Those of us familiar with the workings of the Planning Authority are aware that most of the Local Plans were rushed through to approval during the summer of 2006. This was done as any further delay would have made them subject to Strategic Environment Assessment procedures which would have inevitably highlighted the impact of height relaxation on the generation of solar energy. As a result, the conflict with the need to have solar energy generated would have been highlighted and most probably addressed.

While one section of government was encouraging one and all on the need to tap the sun’s rays to generate clean and renewable energy, another section, hostage to the development lobby was obstructing this and pushing forward their need for more space to develop! The rest is history. That space is currently being developed today, in the process obstructing the further generation of renewable energy on our rooftops.

In Parliament, earlier this week Minister for Energy, Enterprise and Sustainable Development Miriam Dalli in reply to a Parliamentary Question from Ryan Callus, spokesperson for Energy on behalf of the Opposition, stated that government was holding internal discussions on the matter.

The matter has been discussed many times to date so I cannot decipher exactly what Minister Miriam Dalli has in mind. There are in fact very few possible options which can be considered.

The most obvious option is to revise as much as possible the height relaxation carried out in 2006. This will be very difficult to carry out, and, if done, it will be immediately followed-up by a request for compensation running into many millions of euro.

Alternatively, one can seek to introduce solar rights on new buildings without further delay. It is possible that planning policy is amended to ensure that all new properties, in particular blocks of flats, should generate sufficient electricity to cater for the number of units in the new block, thus ensuring carbon neutrality. Such a measure would essentially require that the roof is owned together with the individual units in order that owners of the said units may install photo voltaic panels. Consequently, it would signify that the space which till now has been utilised for the development of penthouses would henceforth be reserved for the generation of renewable energy.

In so doing a history of planning wrongs would commence the long and difficult road of correction.

Published in The Malta Independent on Sunday : 21 February 2021

A minimum income for a decent living

Within the European Union structures a debate has commenced on adequate minimum wages throughout the Union. Commission President Ursula von der Leyen had stated on her appointment that she would be proposing a legal instrument to ensure that every worker in the Union has a fair minimum wage.

The consultation process within the EU was launched over one year ago. As a result, a proposal for an EU Directive on adequate minimum wages has been finalised together with a number of supporting documents, including a 240 page long extensive impact assessment

In an explanatory memorandum published by the EU together with the text of the proposed Directive it is emphasised that “in the majority of EU Member States with national statutory minimum wages, minimum wages are too low vis-à-vis other wages or to provide a decent living even if they have increased in recent years.” In its impact assessment, the EU Commission calculated that an increase of national minimum wages according to the double decency threshold (60% of the median and 50% of the average wage) would improve the wages of around 25 million workers in Europe.

Malta is one such state with a low minimum wage which does not suffice, in particular, for vulnerable categories. A Caritas study published last Friday once more identifies short-comings of the minimum wage in Malta, when this is the only source of income for a number of vulnerable households.

The Caritas study entitled “A Minimum Essential Budget for a Decent Living 2020” follows previous studies published by Caritas in 2012 and 2016 as a result of which detailed research illustrates how the basic needs of vulnerable households, cannot be addressed if these households are dependent on one minimum wage as their only source of income.

The latest Caritas study concludes that a household comprising two adults and two children require €13947 annually as a minimum for a decent living, while if the household consists of a lone parent and two children this requirement drops to €11038. This is well below the 2021 statutory minimum wage which is currently €181.08 per week even if one also takes into consideration the June and December statutory bonus. On the other hand, the requirements of a household consisting of an elderly couple adds up to €8157 annually, concludes the Caritas study. This last figure, which is manageable, is however qualified in the Caritas report in that it may vary substantially due to the myriad of costs specific to the lifestyle and health status of the elderly.

The above excludes cases where the minimum wage earner needs to fork out expenses for a privately rented dwelling, in which case subsistence is practically impossible. The Caritas 2020 report emphasises that impact of the rent due “can dramatically affect the financial circumstances and quality of life of low-income households”.

The agreement signed by government with the social partners in 2017 as a result of which after one year in receipt of a minimum wage there are mandatory increases of €3 per week and an additional €3 per week after the second year, was a step forward and without doubt lessens the burdens of minimum wage earners. But this is certainly not enough. An overhaul of the method of calculation of the minimum wage is essential as this has to be reflective of real and actual needs. It has to be capable of sustaining a dignified living.

The recent news that the Maltese government is among the EU Member states which are objecting to EU legislation that would set up a framework regulating the minimum wage is worrying as the Maltese Government has been reluctant to take steps ensuring that the minimum wage is revised periodically to reflect actual needs. ADPD has long been advocating for this revision. However, the Labour government has repeatedly indicated that it was more interested in helping the wealthy get even wealthier. It was more interested in defending the crooks in its midst.

Our society needs to guarantee a basic income for all which is sufficient for a decent living. A number of countries are carrying out trials to identify the best way forward in this respect. The Universal Basic Income or UBI is being tested in a number of countries through pilot projects.

There is much to learn not just from these pilot projects. Malta’s Covid-19 wage supplement, for example, was a worthy initiative which merits further consideration. If properly applied it can form the basis of a long-term initiative to guarantee a minimum income for all. Obviously, it is easier said than done but we need to start some long-term planning which addresses the need to guarantee a minimum income for all thereby ensuring that all have access to sufficient resources to live a dignified life. This is the next step for the welfare state.

published in The Malta Independent on Sunday: 7 February 2021

Ħbieb tan-natura …… b’subgħajhom fuq il-grillu

Iktar kmieni din il-ġimgħa, l-Kap tal-Opposizzjoni Bernard Grech ħatar il-kelliema tal-Opposizzjoni (Shadow Cabinet), fosthom kelliemi għall-kaċċa u l-insib. Mexa fuq il-passi tal-Gvern u ssepara din ir-responsabbiltà minn dik ambjentali, fejn hu postha.

B’dan il-pass, il-Partit Nazzjonalista ukoll tana messaġġ ċar li anke hu jiġu jaqa’ u jqum mir-responsabbiltajiet ambjentali tal-pajjiż. Il-kaċċa u l-insib għandhom ikunu regolati skond id-Direttiva Ewropeja dwar l-Għasafar.

Il-Gvern qiegħed kontinwament attent li jbiegħed il-kaċċa u l-insib mill-istrutturi regolatorji ambjentali biex jasserixxi l-kontroll politiku. Il-Unit dwar l-Għasafar fl-2013 inqala’ mill-qafas regolatorju ambjentali. L-ewwel tqiegħed fil-Ministeru responsabbli mill-agrikultura u issa spiċċa fil-Ministeru għal Għawdex.

Il-Partiti fil-Parlament huma ċari fil-messaġġ tagħhom: il-kaċċa u l-insib, għalihom mhux meqjusa ambjent, imma jarawhom biss f’termini ta’ voti.  

Il-kaċċa u l-insib għandhom ikunu regolati f’qafas regolatorju ambjentali, speċifikament bħala parti minn strateġija realistika dwar il-biodiversità. Din hi raġuni ewlenija għalfejn nopponu bil-qawwa l-kaċċa fir-rebbiegħa. Għax hu fir-rebbiegħa li n-natura jkollha l-possibilità li tistejqer u tirriġenera ruħha. Jekk mhux ser tieqaf il-kaċċa tal-għasafar fir-rebbiegħa tibqa’ tikber il-ħsara lill-biodiversità. Din hi verità ambjentali bażika li iktar ma tkun aċċettata minn kulħadd, aħjar.  

NET TV nhar l-Erbgħa irrapporta li Edwin Vassallo inħatar bħala l-kelliemi tal-PN fil-Parlament dwar il-ħarsien tad-delizzji tradizzjonali. Għax il-PN, bħall-Labour, iħarsu lejn il-kaċċa u l-insib tal-għasafar esklussivament f’termini ta’ voti. Għad m’għandhomx idea dwar l-impatti ambjentali li qed jinjoraw.

B’mod redikolu, meta Bernard Grech iltaqa’ ma’ rappresentanti tal-kaċċaturi, l-FKNK, huwa iddeskriva lill-kaċċaturi u lin-nassaba bħala ħbieb tan-natura. Il-ħbieb tan-natura ma jkunux armati!   

Minn meta ‘l hawn il-ħbieb tan-natura jisplodu l-għasafar fl-ajru jew jaqfluhom f’gaġeġ?  

Huwa ċar li Bernard Grech u l-PN li hu jmexxi, għadu mħawwad fejn jikkonċerna l-ambjent. Mhiex xi ħaġa ġdida din!  Tfisser biss li l-PN għadu ma tgħallem xejn minn dak li għadda minnu f’dawn l-aħħar snin. Billi jilgħaq lill-kaċċaturi u lin-nassaba m’hu ser jasal imkien.

F’qasam fejn diversi għadhom jippretendu li jagħmlu li jridu kont nistenna li Bernard Grech jappoġġa lil dawk li qed jinsistu għal regolamentazzjoni rigoruża tal-kaċċa. Kliemu, sfortunatament, jinkoraġixxi lil dawk li jabbużaw, inkluż lil dawk li jiġu jaqgħu u jqumu minn l-għasafar protetti. Għandu jifhem ukoll li l-perjodu ta’ transizzjoni dwar l-insib kif imfisser dettaljatament fit-trattat li bih Malta issieħbet fl-EU ilu li skada.  Dan ifisser li l-insib suppost li ilu li spiċċa minn Malta. Il-kummenti ta’ Bernard Grech, għaldaqstant jinkoraġixxu attività illegali. Is-saltna tad-dritt, Dr Grech, tapplika għall-kaċċa u l-insib ukoll!

F’Jannar 2017, predeċessur ta’ Bernard Grech ippubblika l-politika ambjentali tal-PN fi ktejjeb intitolat “Kwalità tal-Ħajja Aħjar”.  F’dan id-dokument ma ssibx referenza għall-kaċċa u għall-insib. Id-dokument jiddiskuti l-biodiversità f’termini ġenerali u jemfasizza li f’Malta l-ekosistemi mhux imħarsa u l-biodiversità qed tiddgħajjef kontinwament.  L-appoġġ tal-PN lill-kaċċa u l-insib (bħalma jagħmel il-Labour) hu attakk frontali kontra l-biodiversità. Hemm bżonn li jiġu f’sensihom.  

L-insib diġa hu illegali. Anke l-kaċċa jeħtieġ li tkun imrazzna u mhux tkun inkoraġġita.

Ambjentalment il-PN għadu lura ħafna.

Ippubblikat fuq Illum : il-Ħadd 24 ta’ Jannar 2021