Constituted bodies shoot down MLP 'fresh' referendum plans

Alfred Sant's proposal to hold another EU referendum once elected to power was greeted with a chorus of disapproval by the constituted bodies which warned yesterday that such a strategy would prolong the period of uncertainty.

Some of the constituted bodies also warned that Malta's international reputation would be at stake should the membership application once again be frozen.

On Thursday, Dr Sant confirmed that a new Labour government would hold a referendum giving the electorate the choice between "full" membership and a "partnership" with the EU.

The Labour leader came under fire from various sectors after he ignored the 53.6 per cent yes majority in the March 8 referendum and instead claimed victory for his "partnership" strategy.

Malta Hotels and Restaurants Association president Winston Zahra said he believed the holding of another referendum would serve no other purpose than to waste public funds on an exercise that has already been carried out.

The MHRA feels the result of the March 8 referendum is "unequivocal" and not subject to any interpretation.

"Irrelevant of who is in government, any change to Malta's EU accession process would seriously dent our credibility and plunge the country into a period of instability - something we simply cannot afford," Mr Zahra warned.

He said that following the objective and professional reports drawn up, the MHRA had no doubt that EU accession would be critical for the future success of the country, including the 40,000 families that relied on the tourism industry.

Malta Employers' Association director general Joe Farrugia agreed and said Malta would not be taken seriously if it opted out of membership at this eleventh hour. Even foreign investors would keep away should such a decision be taken.

He said EU ambitions would be derailed if Malta failed to turn up for the signing of the accession treaty on April 16. It was therefore useless giving the electorate a choice between membership and "partnership".

"Dr Sant has publicly admitted that some form of alternative agreement with the EU could take up to 10 years to negotiate. Are we going to wait so long to decide?" he asked.

Federation of Industry director general Edwin Calleja said Dr Sant's idea of calling another referendum was extremely hypothetical.

It assumed that he would have the chance to start immediate negotiations on a fresh package with the EU. Knowing the timescale employed in the completion of negotiations of partnership agreements between the EU, EFTA and Mediterranean countries, Dr Sant could be talking of several years down the line before a new package for Malta was finalised, Mr Calleja said.

This could be even more complicated when one considered that, once the next enlargement was over, there would be 24 member states to negotiate with instead of the current 15.

Such long-term prospects could only mean extending the current uncertainty. The FOI felt this would be detrimental to industry's future well-being.

Moreover, it would delay the benefits of membership that industry was aiming to start receiving in a year's time. It would also deprive the economy of the benefits of participation in the EU institutions and programmes, the single market and economic and monetary union.

Union Haddiema Maghqudin secretary general Gejtu Vella did not mince his words.

"Such antics used by the politicians shouldn't be sustained any longer. Thanks to this 'in out, in out' strategy, Malta's credibility at an international level is now at stake."

Mr Vella said people had spoken loud and clear in the referendum and this result should be respected.

Constituted bodies had left no stone unturned and had drawn up well-researched reports which confirmed that EU membership would benefit the economy.

Malta, he said, should now dedicate its energies to making the best use of the financial and technical aid available from the EU.

Mr Vella urged the electorate to realise that by dabbling with its EU policy, Malta could be risking a repeat of the VAT removal "fiasco". Years after condemning the tax, the Labour Party had now realised that VAT was the best tax policy.

"Taking out our players for a rematch is an insult to the constituted bodies, but more importantly to the people and the country in general."

Chamber of Commerce president Reginald Fava believes that any government reserves the right to take the decisions it deems necessary so long as they are congruent with the political manifesto on which it is elected.

However, Mr Fava expressed concern that, despite a clear result, the referendum did not serve its purpose of eliminating, or at least reducing, the uncertainty in the country about EU membership.

He warned that a further referendum after the election was a recipe for the prolonging of uncertainty. The business community could not afford this.

Vince Farrugia, director general of the Association of General Retailers and Traders (GRTU), said the uncertainty could not be prolonged, especially for the sake of the business community.

He said one had to take into consideration that the enlarged EU could change in future, and that a new package would not be negotiated overnight.

The GRTU, he added, had worked together with the government to squeeze out the best package from the EU, in line with the mandate given.

The GRTU would do the same should another government have a different mandate and opt for a different strategy.

But, Mr Farrugia warned, should the electorate once again be called for a referendum, they would simply have to be asked whether they agreed or not with the "partnership" strategy. It was hypothetical to ask about membership, since by then, the issue would not be on the cards.

"The same thing happened in the March 8 referendum. The issue to be decided was not one between membership and partnership," Mr Farrugia said.

He said the roadmap with membership was clearly defined. There were two clear dates - April 16 for the signing of the accession treaty and May 1, 2004 for EU membership.

"At least this way we can make our business plans," he said.

GWU secretary general Tony Zarb said Dr Sant's proposal was a political promise which would be decided upon in the coming election.

"And we will always respect any decision taken by the electorate."

He had no further comment to make.