Free zones should be well-regulated, but the model used in its operation should be from the outset based on a public-private partnership founded on a framework agreement with the Chamber of Commerce, Opposition MP Claudio Grech insisted in parliament on Monday.

Speaking during a discussion on the new legislation, he said free zones were “a no-brainer”, and the Opposition was in favour, explaining that the policies and vision which the government was now espousing had been PN policy for decades.

However, he said that considering the environmental impact that these free zones would inevitably have, it was appropriate for proposals to be discussed before the Environment and Development Planning Committee. Furthermore, the risk of abuse by organised crime should be taken into account, as activities carried out in these zones posed the risk of money-laundering.

Opposition MP Edwin Vassallo added that the space in the free zone should be offered for a nominal fee, but that the government should avoid tarnishing the sector with corruption, and “keep its hands off”.

Government MP Aaron Farrugia spoke highly about the potential that free zones would have for the establishment of logistics hubs which offered high-value-added products, especially considering the premium on space in Malta.

Accomplishing this would require human resources on the ground with the required experience, and MCAST and other institutions would soon be offering courses in logistics, he noted.

Plans for a logistics hub mooted in 2016 had flopped when an international request for proposals had not even received a single bid. However, since then, the idea of free trade zones has taken over, as they would offer entities the possibility to bring goods into Malta without having to go through customs procedures, as long as were not take out of the zone.