Virtu Ferries managing director Henri Saliba has accused the Malta Chamber of Commerce, Enterprise and Industry of playing a ‘dangerous game’ with its claims about illegal trading, saying that its recent presentation to a parliamentary committee omitted key facts.
The Chamber has been claiming that the local market was being destabilised by ‘Sicilian traders’ who brought merchandise to Malta on the catamaran without paying taxes such as VAT and eco-tax.
But the figures for a typical week on the catamaran recently, obtained by The Sunday Times of Malta, showed that of the 85 trailers carried, 69 had Maltese number plates. And of the 16 with Italian or Sicilian plates, seven of them were bound for identified Maltese supermarkets or importers.
Mr Saliba has scrutinised the points made by the Chamber in Parliament and insists many facts did not emerge. The most relevant relates to surveillance, as many of the Chamber’s arguments are based on the premise that the authorities have no information about what is carried on the ferry.
Mr Saliba said Virtu actually sends a copy of the manifest for each ferry to the Customs and police in both Sicily and Malta, and in the case of trailers, it also gives information about the cargo said to be carried. He explained that since the trailers on the catamaran are accompanied, no bill of lading is required, as it would be if the ship has to accept responsibility for the shipment.
“We have excellent relations with Customs and police in both countries. We are not obliged to send them this information as we are certified as an EU Authorised Regular Shipping Service because we carry EU-originating cargo between two EU ports, just as we do in our services in Croatia and Venice,” he said, adding that contrary to the impression being given, inspections were carried out, and information was requested on a regular – if not frequent – basis.
“The Chamber has been complaining about the catamaran since 2006, even when the vessel we had then, the San Ġwann, only carried 21 light vehicles. The claims about fiscal evasion are just a smoke screen to hide the fact they are protecting the interests of the larger importers who are their members.
“The reality is that the catamaran has made it possible for many more small importers and service providers to source different suppliers in Sicily and beyond, and to benefit from the economies of scale of large Italian chains, which mean they can offer much more competitive prices. That is why the prices are cheaper – not because they do not pay tax,” he said.
He pointed out that it was very unlikely that the vendors in Sicily would allow sales without VAT, saying that much of the merchandise was bought from huge enterprises who would never take such risks.
“Companies can opt to pay VAT in Sicily or in Malta, but since it is 18 per cent here and 22 per cent there, they often opt to pay here. It is naïve to think they could avoid paying taxes in both countries. The EU has a robust inter-state system to ensure that the VAT regime works across borders,” he said. Firms present documents to show they are VAT-registered, and once stamped, they are returned to the original vendor to be attached to their VAT returns.
Of the 16 trailers with Italian or Sicilian plates, seven of them were bound for Maltese supermarkets or importers
“The Chamber heads have failed to accept the realities of today. Consumers are buying from Sicily and sending a message to those who have had it too good for too long. The Chamber should encourage competition in a market-driven economy. Yes, competition is tough. Yes, it is hurting traditional importers. Why is the Chamber trying to blame this on Virtu?”
The harsh tone taken by Mr Saliba was prompted by the address to Parliament, which also prompted Italian Ambassador Giovanni Umberto De Vito to raise his eyebrows as he objected to ‘Sicilian traders’ being tarnished by the claims.
Mr Saliba has asked to address the committee, insisting he has information that would shed a different light on the situation.
“The Chamber is using Parliament to get the government to intervene. This is a dangerous game. The Italians are clearly already irritated. If it is not careful, this could turn into a diplomatic spat!”
Enforcement picking up
Operators are claiming that enforcement has stepped up since the Chamber started making noise about this issue a few weeks ago. There are normally Customs agents at the terminal whenever a ferry arrives, but full enforcement teams are rare.
One company said last week his trailer was stopped at the gate and followed all the way to his client.
“There were about 11 people in all, from the police, Customs, sanitation and consumer affairs. We have been stopped in the past but they just used to ask to see documentation and verified the contents. In this case, they escorted us all the way to the client, which made them rather concerned.
Nothing was found to be out of order, including the expiry dates.
“I have no objection to being checked when they have any suspicions. It actually works in my favour as it keeps the drivers on their toes and ensures they are not tempted to abuse, by, for example, carrying stuff for friends,” the company director said.