L-Awtoritá tal-Ippjanar tinkoraġixxi l-ispekulazzjoni tal-art

L-Awtoritá tal-Ippjanar qed toħroġ il-permessi ta’ żvilupp għall-pompi tal-petrol u d-dijsil ħierġin bħall-pastizzi.

Xi xhur ilu, f’diskors li għamel il-Prim Ministru kien qal li l-Gvern immexxi minnu jaqbel li karozzi li jaħdmu bil-petrol jew bid-dijsil għandhom jispiċċaw mit-toroq Maltin. Nhar l-10 ta’ Settembru 2017 Joseph Muscat kien ħabbar li l-Gvern kien fi ħsiebu li “dal-waqt” jagħti bidu għal konsultazzjoni pubblika biex ikun stabilit meta u kif għandha tkun implimentata din il-politika li bħala riżultat tagħha jkunu jistgħu jinxtraw biss karozzi li jaħdmu bl-elettriku jew karozzi simili.

Għaddew seba’ xhur u għadna qed nistennew li jibda dan il-proċess ta’ konsultazzjoni pubblika. Sadanittant, aħna u nistennew, l-ispekulaturi tal-art, bl-għajnuna tal-Awtoritá tal-Ippjanar għaddejjin xalata: jippjanaw kif jirrovinaw iktar raba’, 3000 metru kwadru kull darba, u dan biex jibnu pompi li ftit ieħor mhux ser ikollna bżonn. Imbagħad x’nagħmlu bl-art li tkun diġa ġiet rovinata?

Alternattiva Demokratika taqbel li m’għandniex ħtieġa ta’ karozzi li jaħdmu bil-petrol u d-dijsil fit-toroq tagħna. Fil-fatt kienet Alternattiva Demokratika, bil-ħsieb li tintlaħaq il-mira strateġika ta’ Karbonju Żero fil-gżejjer Maltin li fil-Manifest Elettorali ta’ l-aħħar elezzjoni ġenerali poġġiet quddiem l-elettorat din il-proposta speċifika: li fi żmien 20 sena, ċjoe sal-2037, għandhom jispiċċaw il-karozzi kollha li jaħdmu bil-petrol u d-dijsil mit-toroq Maltin. Alternattiva Demokratika kienet l-uniku partit politiku f’Malta li kien ċar fuq dan f’Malta sa minn qabel l-elezzjoni ġenerali.

Id-dikjarazzjoni tal-Prim Ministru tal-10 ta’ Settembru 2017 kellha twassal għall-konklużjoni loġika li m’għandniex bżonn ta’ iktar pompi tal-petrol u d-dijsil. Kien ikun floku kieku tħabbar moratorju immedjat. Fil-fatt messna qegħdin ngħoddu l-ġranet li neħilsu darba għal dejjem mill-karozzi li jaħdmu bil-petrol u d-dijsil. Bħala riżultat ta’ dan messu hu ovvju li fil-futur qarib m’hu ser ikollna bżonn l-ebda pompa tal-petrol jew dijsil: dawn għandhom jonqsu mit-80 li għandna illum sa xejn u dan meta tkun implimentata b’mod sħiħ il-politika mħabbra mill-Prim Ministru u li dwarha ilna 7 xhur nistennew il-konsultazzjoni pubblika.

M’għandniex bżonn ta’ pompi ġodda: imma għandna bżonn li jagħlqu l-pompi li ġja hawn mingħajr ma jinħolqu oħrajn flokhom. L-20 sena proposti minn Alternattiva Demokratika fil-manifest elettorali tal-2017 biex jispiċċaw mit-toroq Maltin karozzi li jaħdmu bil-petrol jew bid-dijsil kienu meqjusa raġjonevoli, suffiċjenti u fl-istess direzzjoni ta’ deċiżjonijiet politiċi simili li ittieħdu minn pajjiżi oħra. Dan hu żmien biżżejjed biex tkun żviluppata l-infrastruttura nazzjonali meħtieġa għall-karozzi li jaħdmu bl-elettriku. Hu ukoll biżżejjed biex dawk li għandhom dawn it-tip ta’ karozzi jibdew jidraw ftit l-iżvilupp ta’ din ir-realtá ġdida bla petrol jew dijsil.

Bosta pajjiżi oħra diġa ddeċidew, inkella qegħdin fil-proċess li jiddeċiedu li fit-toroq tagħhom ma jkollhomx iktar karozzi li jaħdmu bil-petrol jew bid-dijsil. Dawn jinkludu in-Norveġja u l-Olanda (it-tnejn sal-2025), il-Ġermanja (sal-2030), Franza, r-Renju l–Indja u ċ-Ċina (lkoll sal-2040). Ma jdumx ma jkun hemm oħrajn ukoll.
L-Awtoritá tal-Ippjanar qegħda tkompli tinjora dan l-iżvilupp importanti fil-politika tal-pajjiż billi tibqa’ għaddejja bl-applikazzjoni tal-politika imsejħa 2015 Fuel Service Stations Policy b’mod robotiku. Din il-politika dwar il-pompi tal-petrol u d-dijsil tippermetti qies massimu permissibli ta’ 3000 metru kwadru imma l-Awtoritá qatt ma qieset li kien neċessarju li tordna tnaqqis fil-qies tal-proposti li kellha quddiema. Għax kollha kellhom il-qies massimu ta’ 3000 metru kwadru. Bħala riżultat ta’ dan l-Awtoritá tal-Ippjanar flok għal pompi qed toħroġ permessi għal żoni massiċċi kummerċjali barra miż-żona tal-iżvilupp.

Din hi l-agħar forma ta’ spekulazzjoni tal-art u f’dan il-kaz it-tort hu unikament tal-Awtoritá tal-Ippjanar. L-Awtoritá tal-Ippjanar hi ta’ theddida għall-ġenerazzjonijiet futuri. Dan hu l-punt li għamlu ż-żgħażagħ mill-Moviment Graffiti u l-Kamp Emerġenza Ambjent meta nhar il-Ħamis ipprotestaw u ħarbtu laqgħa tal-Bord tal-Awtoritá tal-Ippjanar waqt li dan kien qiegħed jikkunsidra applikazzjoni għall-pompa ġdida tal-petrol u d-dijsil f’Ħal-Luqa.

Għandna Awtoritá tal-Ippjanar li hi ala bieba mill-ambjent u mill-kwalitá tal-ħajja. Bil-provi.

 

 

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The Planning Authority encourages land speculation

Development permits for fuel stations are being approved left, right and centre by the Planning Authority.

Some months ago,  in a speech made in public, the Prime Minister said that the Government agrees that use of petrol and diesel cars should be phased out and that, in future, all cars should be electric. On the 10 September 2017, Joseph Muscat announced that government would “shortly” be launching a consultation on “setting a cut-off date beyond which all new car purchases would have to be electric or similar vehicles.”

Seven months have elapsed, and we are still waiting for the consultation exercise to be launched. And while we wait, land speculators (with the Planning Authority’s assistance) are in festive mood, plotting the ruin of 3000 square metres at a time to develop fuel stations that we will shortly not need any more. And what will be done with the spoiled land then?

Alternattiva Demokratika agrees with the proposal to establish a cut-off date for cars that run on petrol and diesel. Indeed in its manifesto at the last general election,  with a strategic zero carbon future for the Maltese Islands in mind, it put forward this specific proposal to the electorate: that internal combustion engine cars should be off our roads in 20 years time, that is by 2037. Alternattiva Demokratika was the only political party in Malta that took this clear stand before the general election.

In view of the Prime Minister’s declaration of the 10 September 2017, the logical conclusion is that new fuel stations are not required. An immediate moratorium would be in order and, in fact, we should be on the eve of the start of a countdown that would rid us of cars that run on petrol or diesel. Consequently, there will be no need for fuel stations in the not too distant future: reducing from the current 80 to none, when the phase-out – which is still subject to public consultation – is fully implemented.

We do not need new fuel stations: what we need is that existing fuel stations are closed down without their being replaced. The 20-year time-frame proposed by Alternattiva Demokratika in its 2017 electoral manifesto was considered to be reasonable, sufficient and in line with similar policy decisions taken in other countries. This time-frame was deemed sufficient to develop the required national infrastructure for electric-powered cars. It was also deemed to be a reasonable length of time to permit those who own vehicles running on internal combustion engines to adjust to the development of a new reality without petrol or diesel.

Various other countries have decided on – or are considering – the elimination of internal combustion engine driven vehicles from their roads. These include Norway and the Netherlands (both by 2025), Germany (by 2030), France, the United Kingdom, India and China (all by 2040). Others will soon follow.

The Planning Authority continues to ignore this policy development by applying the 2015 Fuel Service Stations Policy robotically. This policy establishes a maximum permissible size of 3000 square metres but the Authority did not consider it appropriate to scale down any of the proposals submitted for its consideration as all the approved stations cover the maximum size possible. As a result, the Planning Authority is churning out permits for massive commercial areas outside the development zone.

This is land speculation at its worst and the Planning Authority has no one to blame but itself and is a threat to future generations. This is the point made by the protestors from Graffiti and Kamp Emerġenza Ambjent last Thursday, when they stormed a Planning Authority Board meeting considering a development application for a new fuel station at Luqa.

We have a Planning Authority which doesn’t give two hoots about the environment and our quality of life.

 

Published in The Malta Independent on Sunday : 8 April 2018

 

L-Ippjanar rasu l-isfel

Nhar l-Erbgħa, l-Kumitat Parlamentari dwar l-Ambjent u l-Ippjanar beda d-diskussjoni dwar jekk għandux ikun hemm tibdil fil-politika dwar il-pompi tal-petrol (u d-disil) (Fuel Service Stations Policy) tal-Awtorità tal-Ippjanar. Bla dubju kien xprunat mid-deċiżjonijiet riċenti tal-istess awtorità dwar pompi tal-petrol f’f’Burmarrad, Marsaskala u l-Magħtab. Hemm applikazzjonijiet pendenti għal pompi ġodda f’Ħ’Attard, l-Imqabba u l-Iklin fil-waqt li hemm madwar 60 pompa oħra qed jistennew il-permessi mill-Awtorità tal-Ippjanar biex itejbu l-faċilitajiet inkluż protezzjoni ambjentali u dan minn total eżistenti ta’ 85 pompa.

Il-kummenti validi kienu bosta. Ikkonċentraw l-iktar fuq il-ħtieġa li l-pompi tal-petrol fiż-żona urbana jingħalqu u li dawn jiċċaqalqu xi mkien ieħor. Ftit iżda kien hemm ħeġġa biex tkun diskussa l-qalba tal-materja: xi bżonn għandna tal-pompi tal-petrol?

Madwar ħames xhur ilu, il-Prim Ministru, wara li għal darba oħra ħares ħarsa sewwa lejn il-Manifest Elettorali ta’ Alternattiva Demokratika tal-2017, ħabbar, li l-Gvern immexxi minnu kien ser jagħti bidu għal process ta’ konsultazzjoni pubblika. Dan biex jistabilixxi data minn meta karozzi li jaħdmu bil-petrol u d-disil ma jkunux jistgħu jinbiegħu iktar biex minflok ikollna karozzi li jaħdmu bl-elettriku. Ma smajna xejn iktar dwar dan ħlief artiklu miktub mill-Ministru tat-Trasport Ian Borg entużjażmat li fis-snin li ġejjin ser nimxu fuq il-passi ta’ pajjiżi Ewropej oħra.

Il-Prim Ministru, bir-raġun kollu emfasizza li din il-bidla fil-politika tal-Gvern kienet meħtieġa minħabba li l-emmissjonijiet tal-karozzi kienu l-ikbar sors ta’ tniġġiż tal-arja fil-pajjiż. Għalfejn dan id-dewmien kollu biex ikunu stabiliti u mħabbra d-dettalji ta’ din id-deċiżjoni tajba? Uħud mill-pajjiżi Ewropej ilhom żmien li għamlu dan. In-Norveġja u l-Olanda stabilew is-sena 2025, il-Ġermanja qed tikkonsidra s-sena 2030, fil-waqt li Franza u r-Renju Unit huma mħajra għas-sena 2040 biex iwaqqfu l-bejgħ ta’ karozzi li jaħdmu bil-petrol u d-disil.

Id-diskussjoni dwar il-politika li tikkonċerna l-pompi tal-petrol/disil għandha issir f’kuntest wiesgħa tal-politika tat-trasport inkluż l-elettrifikazzjoni tal-mezzi privati tat-trasport.

Il-punt ewlieni tad-diskussjoni huwa li bħala riżultat tal-elettrifikazzjoni n-numru ta’ pompi tal-petrol/disel meħtieġa mhux ser jiżdied imma ser jonqos fuq medda ta’ snin u dan sakemm jasal għal xejn jew kważi xejn. Allura għalfejn nibnu u ninkoraġixxu l-bini ta’ iktar pompi tal-petrol/disil? Ikun ferm iktar għaqli kieku l-investiment nindirizzawh lejn is-soluzzjoni tal-problemi, mhux lejn it-tkattir tagħhom!

Il-pompi tal-petrol eżistenti fiż-żoni urbani qed jintużaw bħala skuża biex jippruvaw jiġġustifikaw it-tħarbit ta’ 3000 metru kwadru ta’ art. Fil-fatt dan hu l-iskop ewlieni tal-politika dwar il-pompi tal-fjuwil approvata fl-2015.

Ma jkunx aħjar li flok ma jingħalqu l-pompi tal-petrol fl-abitat ikunu konvertiti f’lok fejn tiċċarġja l-batteriji tal-karozzi? Dawn il-pompi qegħdin fil-parti l-kbira tagħhom f’żoni ċentrali u huma ġeneralment ta’ qies żgħir. Kull pompa tal-petrol urbana li tkun salvata u konvertita biex fiha niċċarġjaw il-batteriji tfisser ukoll li nkunu salvajna 3000 metru kwadru ta’ art minn spekulazzjoni. Fl-istess ħin inkunu qed nippovdu servizz li ser ikun essenzjali eżatt fejn hu meħtieġ.

Dan ikun użu tajjeb għall-investiment, aħjar milli jintuża f’bini ta’ pompi ġodda barra miż-żona ta’ l-iżvilupp. Jekk dan isir inkunu qed nittrasformaw problema eżistenti f’diversi lokalitajiet f’soluzzjoni addattata għall-bini tal-infrastruttura meħtieġa għall-eletrifikazzjoni tat-trasport privat f’Malta.

Dan ovvjament ifisser li nkunu qed naqilbu ta’ taħt fuq il-politika dwar il-pompi tal-fjuwil. Flok ma nużaw il-pompi urbani bħala skuża biex tkun ġustifikata l-ispekulazzjoni tal-art inkunu qed nagħtu spinta tajba lill-ħarsien ambjentali.

Hu eżattament dan li għandna bżonn f’dan il-mument: naqilbu l-ippjanar rasu l-isfel.

 

Ippubblikat fuq Illum : Il-Ħadd 4 ta’ Frar 2018

 

Turning the Fuel Service Stations Policy on its head

Last Wednesday, the Parliamentary Environment and Land Use Planning Committee discussed the possible revision of the Fuel Service Stations Policy. The three development permits issued in the past weeks by the Planning Authority for fuel service stations at Burmarrad, Marsaskala and Magħtab without doubt was the spark that motivated the discussion. Among the pending applications, Attard, Mqabba and Iklin are queuing for new service stations, while over 60 more, from a current total of 85 stations are awaiting the Planning Authority go-ahead for upgrading.

A number of valid observations were made. Most of the discussion dealt with the need to relocate service stations currently within urban areas but there was, however, a reluctance to address head-on the real issue: do we need fuel service stations?

Almost five months ago, the Prime Minister – taking a leaf from Alternattiva Demokratika’s 2017 election manifesto – announced that his government will be launching a public consultation to establish a cut-off date for the sale of diesel and petrol cars in Malta and the use of only electricity-driven vehicles instead. We have not heard much more about this proposal, apart for an article by Transport Minister Ian Borg who wrote about following in the footsteps of other European countries in “phasing out new petrol and diesel vehicles in the next few decades”.

The Prime Minister has rightly emphasised that this change in policy is required in view of the fact that vehicle emissions are the largest source of pollution in Malta, but why wait so long to put flesh on the bare bones of the declared policy? Other European countries have already determined their cut-off date. Norway and the Netherlands are considering the year 2025, Germany is considering 2030, while France and the United Kingdom are opting for the year 2040 by which to halt the sale of diesel and petrol vehicles.

Revisiting the Fuel Service Stations Policy should not be discussed in a vacuum. It has to be placed in the context of related transport policies and in particular the fact (hopefully) that Malta should now be going electric.

The main issue clearly is that, as a result of going electric, the number of fuel service stations required will at some point in the future – hopefully the not so very distant future – will be next to nil. So why build more of them? Why encourage investment in something that is not needed? It would be much better to channel investment into resolving problems instead of adding to them.

The relocation of urban area fuel service stations – the main thrust of the Fuel Service Stations Policy approved in 2015 – is being used to justify the uptake of 3,000 square metres of land. But instead of relocating the existing service stations in urban areas, would it not be much better if these were converted into charging stations? These service stations are centrally located and mostly of a relatively small size. Every conversion one into a charging station would potentially save 3000 square metres of land in the middle of nowhere and simultaneously provide the service of electrically charging vehicles right where that service is required: in our urban areas.

It is towards the conversion of these fuel stations that investment should be channelled. They can be transformed from being a problem in our residential communities to being an integral and focal part of the strategy to develop a suitable, reliable and – above all – sustainable infrastructure so necessary for the electrification of private transport.

This would obviously turn the Fuel Service Stations policy upside down. Instead of using urban service stations as an excuse to trigger more land speculation, it is about time to inject some environmental considerations right where they are most needed.

This is what we need right now: the turning of the Fuel Service Stations Policy on its head.

 

published on the Malta Independent on Sunday : 4 February 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

New Petrol Stations: immediate moratorium needed

For a short period of time, the number of new petrol stations in Malta was on the decline but recently this trend has reversed, undoubtedly as a result of the Planning Authority 2015 Fuel Service Station Policy.

New petrol stations are mushrooming all over the place, and not only is it easier to obtain a development permit to construct a petrol station but you get the added “concession” to ruin up to 3,000 square metres of surrounding land.

Those proposing the development of new petrol stations claim to be doing us a favour. They argue that the increasing number of cars on the road necessitates more and more petrol stations. The number of petrol stations in the Maltese islands currently stands at around 80 and new ones are mushrooming, undoubtedly fuelled by the 3,000 square metres permissible footprint in the 2015 planning policy.

It is submitted that the policy on the development of fuel stations should complement the policy on the phasing out of internal combustion engines and an immediate moratorium on the development of new petrol stations is essential.

During the 2017 General Election campaign, Alternattiva Demokratika proposed the phasing out of vehicles running on internal combustion engines in Malta over a 20-year period. This time-frame was deemed sufficient to develop an infrastructure for electric-driven cars. It was also deemed to be a reasonable time-frame to permit those who possessed vehicles running on internal combustion engines to adjust to a new reality without petrol or diesel.

This position was also taken up by the Labour government in Malta after the June election. However the details have not yet been determined.

Various other countries have decided on, or are considering, eliminating internal combustion engine driven vehicles from their roads, including Norway (by 2025), the Netherlands (by 2025), Germany (by 2030), France (by 2040), the United Kingdom (by 2040), India (by 2040) and China (by 2040). Others will soon inevitably follow.

In addition, car manufacturers are considering shifting to a manufacturing mode that will only produce hybrid or fully electric cars. Volvo will proceed on such a path by 2019 and no doubt others will follow fast on Volvo’s heels.

Within this context, does it make any sense to continue issuing development permits for more petrol stations?

We need an in-depth examination of transport related policies. It is clear to everyone  that our roads are bursting at the seams and that the further development of our road infrastructure is opening up our roads to more cars, as a consequence adding to our pollution problems and simultaneously making our accessibility worse.

An overhaul of Malta’s transport policies should seek to promote sustainable transport policies thereby reducing the number of cars on our roads.

Yesterday, I addressed a press conference on the site of the proposed extension to the road network at Attard. This project, when implemented, will take up valuable irrigated agricultural land. This is one more instance which will increase the number of cars on our roads, gobble up agricultural land and ruin the life of full time farmers.

Transport policy on these islands seems to be multi-directional, sending mixed signals in all directions. Some coherence is required. Establishing a moratorium on the construction of new petrol stations and establishing a date by which internal combustion engine driven vehicles are phased out from our roads would be a good first step. This should then be followed by ending the crazy spree of the development of new roads.

It is a process which will lead us to reclaim our roads for our own use, but then it will take some time.

published in The Malta Independent on Sunday : 3 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

Land Reclamation and the construction industry

land reclamation 01

The issue of land reclamation should be tackled in a responsible manner.

The Netherlands used land reclamation successfully to adequately manage its low-lying land. Hong Kong made use of land reclamation to create high value land required for its airport on the Chek Lak Kok island. Through land reclamation Singapore expanded its container port, an essential cornerstone in its economy.

In Malta land reclamation was used in the past to create the Freeport Terminal at Kalafrana in the limits of Birżebbuġa.

MEPA has during the recent past engaged consultants to assess the potential of land reclamation in Maltese waters.

A 2005 study was commissioned by MEPA and carried out by  Carl Bro. This study identified six relatively large coastal areas as search areas for potential land reclamation sites. The study had  recommended that these six areas, or a selection of them, be “investigated in further details in parallel with the execution of a pre-feasibility study, before a principal decision is taken on whether land reclamation is considered realistic under Maltese conditions. It is recommended that such investigations and studies be carried out by the Government prior to the involvement of the private sector in possible land reclamation projects.” (page 8 of report).

MEPA took up this proposal and commissioned ADI Associates together with Scott Wilson to carry out a detailed study on two of the identified coastal areas. These studies were finalised in 2007 and 2008 and consist of 4 volumes. The coastal areas identified and studied are those along the  Magħtab/Baħar iċ-Ċagħaq coastline and the Xgħajra/Marsaskala coastline.

These latter studies conclude with a detailed set of recommendations on more focused studies relative to environmental and economic impacts which would be necessary if land reclamation is to be further considered.

In Chapter 10 of its electoral manifesto the Labour Party is committed to utilise a programme of land reclamation as an important tool in the infrastructural development of the country.  The said electoral programme emphasises the environmental and economic sensitivity of such projects and underlines a  commitment to high standards in environmental, social, economic, land use planning and sustainable development fields.

In Parliament it has been declared that the next step would be for expressions of interest to be submitted by those proposing  projects for  development on reclaimed land. A call should be issued in the near future.

I believe that this is not the way forward.  On the basis of the studies carried out to date and such additional studies as may be required it would have been much better if government presents for public consultation a detailed draft land reclamation strategy.  Such a strategy would then be subjected to public consultation. A dialogue is required, not just with the developers but also with civil society, including most importantly with environmental NGOs.

The draft strategy would undoubtedly indicate the proposed permissible development on the reclaimed land. It would be interesting to note if the said strategy would consider the need for residential development in view of the over 70,000 vacant residential properties  on the islands. On the basis of existing and possibly additional studies the strategy would also seek to ensure that Malta’s coastline is protected much more effectively than Malta’s countryside has been to date.

All views should be carefully considered before such a strategy is finalised.

Once the strategy is finalised its environmental impacts should be carefully scrutinised  as is provided for in the Strategic Environment Assessment Directive of the EU. This Directive now has the force of law in Malta. It is only when this assessment has been finalised and the impacts identified are suitably addressed through changes in the draft strategy  itself (if required) that it would be reasonable to invite expressions of interest from interested parties.

Land reclamation is no magic solution to a construction industry which is in urgent need of restructuring. Even if land reclamation is permitted it cannot and will not offer a long term solution to an ailing construction industry which has been capable of contributing to an accumulating stockpile of vacant dwellings which are equivalent to 9 ghost towns, each the size of B’Kara.

The country would be economically and socially much better off if the construction industry is assisted in its much needed restructuring. It would undoubtedly need to shed labour which can be absorbed by other sectors of the economy. Retraining would  be required  to ease the entry of the shed labour force into other economic areas.

This  would certainly be much more beneficial and sustainable than land reclamation.

published in The Times  on 27 April 2013 under the title: Land Reclamation and Building

Ir-riżenja ta’ George Pullicino

Naf li qed noħlom meta ngħid li George Pullicino għandu jirreżenja. Imma naf ukoll li l-politika hi t-twettiq tal-ħolm.

Pullicino għandu jirreżenja għax arroganti u inkompetenti. Dwar l-arroganza tiegħu inkiteb ħafna matul il-perjodu li kien responsabbli għall-MEPA. L-agħar perjodu għal ħafna snin għall-ambjent f’pajjiżna.

Nhar is-7 t’Awissu 2012 il-Kummissjoni Ewropea ippubblikat rapport analitiku dwar kif qed titħaddem fis-27 pajjiż membru l-politika dwar l-immaniġjar tal-iskart. Dan ir-rapport hu intitolat Screening of Waste Management Performance of EU Member States.

F’dan ir-rapport Malta ġiet ikklassifikata fost dawk il-pajjiżi li għandhom deficit fi prattikament l-oqsma kollha tal-implimentazzjoni tal-politika tal-immaniġjar tal-iskart. Ir-rapport hu iktar iebes minn hekk, juża l-kliem implementation gap. Jiġifieri ghad baqa’ ħafna ħafna xi jsir biex il-paroli u l-fatti ma jibqgħux jikkuntrastaw!

Il-Greċja u l-Bulgarija biss ġew ikklassifikati agħar minn pajjiżna. Il-Greċja qegħda f’tarf ta’ kollass ekonomiku u l-Bulgarija mifnija bil-korruzzjoni! Il-Litwanja kklassifikati daqsna!

Dak ċertifikat!

Għal dawn l-aħħar tmien snin ir-responsabbilta’ politika għall-politika dwar l-iskart kienet ta’ George Pullicino.

Kienet responsabbilta li għaddhielu Lawrence Gonzi fl-ewwel Kabinett tiegħu. Responsabbilta’ li ħadha mingħand Ninu Zammit u għaddiha lil Pullicino f’Marzu 2004.

F’dawn it-tmien snin Pullicino iktar kien moħħu fil-konfront politiku bħal dak li infexx fih f’Marsaskala dwar l-Impjant ta’ Sant Antnin milli li jiżviluppa politika dwar l-iskart li taħdem għax hi aċċettata. Bl-arroganza tipika tiegħu rnexxielu jkisser il-possibilita ta’ kunsens mal-komunitajiet u tefa lura ħafna l-iżvilupp ta’ sens komunitarju fil-politika tal-immaniġjar tal-iskart. Ir-riperkussjonijiet għadhom qed jinħassu anke’  illum.

Hu veru li r-rapport tal-Kummissjoni Ewropea janalizza l-qagħda kif kienet sentejn ilu u dan għax jaħdem fuq statistika u rapporti li ilhom ftit ippubblikati. Imma dan ma jgħoddx biss għal pajjiżna. Jgħodd ukoll għal pajjiżi bħall-Awstrija, l-Olanda, id-Danimarka u l-Ġermanja li kienu fuq quddiem nett fil-klassifika u komplew jissaħħew!

Anke’ jekk imxejna ftit il-quddiem, ftit iktar milli jindika r-rapport, xorta għadna lura ħafna. Għal dan jaħti biss George Pullicino.

Ir-rapport juri falliment fil-parti l-kbira mill-kriterji addottati biex jitkejjel il-performance tal-pajjiżi membri tal-Unjoni Ewropea.

Dan hu ċertifikat ta’ falliment li għalih għandu jassumi responsabbilta politika l-Ministru George Pullicino. Jiġifieri għandu jkun raġel u jgħid “fallejt” u jirreżenja. Jagħmel il-wisa’ għal min jista’ jagħti kontribut pożittiv għall-implimentazzjoni tal-politika dwar l-iskart.