PM "very bitter" over bribery case

In an interview with Jesmond Bonello, Prime Minister Eddie Fenech Adami says the referendum on EU membership could be held at any time after the EU summit in Copenhagen in December. The November budget, he stresses, will be positive, but there will be no election gimmicks. And on whether he has prejudiced the position of the two judges by stating they had received money, Dr Fenech Adami says he does not regret what he has done.

It has turned out to be quite an eventful year. What are your general reflections?

Notwithstanding the difficulties the country has been facing over the past four years, it has been able to move on. I am thinking, in particular, of the economic difficulties facing Malta in view of the downturn in the international economic situation. We have managed to sustain our economy and have reasonable growth. Most significantly, we have managed to keep our unemployment figures at a satisfactory level.

For instance, in December 1998, the number of registered unemployed under part one of the register was 7,437. In the last week of August, the figure was 6,748 - a drop of 689.

We had set clear targets four years ago: creation of wealth, confidence in our country and giving a sense of direction. The government has managed to achieve these aims.

You mention the ETC figure of unemployment. However, the Labour Force Survey issued last week shows that unemployment up to March rose sharply to 7.7 per cent. What is the real situation?

That is a survey, not a head count. It is not comparing like with like in terms of the definition of unemployed and in terms of the labour supply. The labour supply in terms of the survey includes a working population defined as people aged between 15 and 64. It is well known that a 15-year-old cannot work in Malta while the current retirement age in Malta is 61. There are variables that have to be taken into consideration which change the whole scenario. When we are talking of the registered unemployed, however, we are not talking of estimates but of exact figures of people who have declared that they are out of a job and are seeking one.

So while the survey is seen as something positive and is done in practically all developed countries in terms of ILO statistical information and even EU information, it only gives you a trend.

I agree that global unemployment was on the rise in the middle part of this year, even in Malta. But lately we have seen a reversal of that trend. I think the situation is under control and there is no current need for people to worry. Obviously, however, the sooner we see an upturn in the international economy, the better. Very few economies are as open to international conditions as ours is.

Figures just released by the National Statistics Office show a rise in government debt and structural deficit. Does this mean that the government's targets are not being met?

I met the finance minister on Monday and heard his views, including on the point you are raising. He assured me that we are on track and that unless something extraordinary happens we will reach the targets set for this year.

You have said that as the referendum and the election get closer, uncertainty could increase...

I mean that it is always the case.

Agreed. But I was going to ask you whether this could prompt you to bring the date of the referendum and the election even further forward?

The referendum has to take place as soon as can be after the conclusion of negotiations with the EU. Though I cannot fix a definite date yet, one should not expect the referendum to be held later than necessary. What is necessary is that we know exactly which direction the country will be taking.

As regards the general election, technically it can be held as late as the second week of January, 2004. I have always preferred not to go to the last day or near enough to the last day because people tend to hold back from taking decisions. I would take a final decision in terms of what suits Malta best, in order to cause the least possible disruption to the economy while starting on a fresh mandate from the electorate as soon as can be.

Any specific period in mind?

I cannot talk about dates because I have not decided and will not decide until the time is ripe.

There is speculation that the referendum could be held as early as February. Is it a correct assessment?

There are still a number of unknowns, including the result of the German elections later this month, the elections in Sweden, the extremely important referendum in Ireland and, of course, the conclusions of negotiations and the EU Summit in Copenhagen in December which will determine which countries will form the coming enlargement. We have to be patient and wait for the conclusion of negotiations and the summit. From then on it will be hectic and one can expect a referendum any time after that.

Basically, you are implying that the launch of the campaign for the referendum will take place after the summit.

We are always campaigning in Malta. Even in terms of the referendum, even if there is no official campaign yet. If we had to look at what the opposition and the anti-lobby are doing, they started their campaign long ago.

Now that we are practically months away from the referendum and election, have you made up your mind whether you will hold them together or separately?

My preference, based on logic, is that the two should not be held together in order to separate the political issues which have to be decided in a general election from the national issue of EU accession, which has to be decided through a referendum. Of course, I will have to take account of the final position of the opposition, both with regard to the referendum and the election.

Do you still think there is a majority in favour of EU accession?

All the indications are that there is still a substantial majority in favour.

What about the outcome of the election?

It is too early to say. The PN is strongly of the opinion that there is still a majority in favour of the party.

The November budget is potentially the last for this legislature. Is it going to be an 'election budget'?

It will be a budget that suits the nation at this point in time.

Can you elaborate?

We have to continue generating confidence in the country and that Malta is on the move. The message will be positive but there will be no election gimmicks.

Do you think the resignation of Police Commissioner George Grech and the resignation of former chief justice Noel Arrigo and Judge Patrick Vella will have a bearing on the outcome of the election and/or the referendum?

No, I don't think so. But they do have a bearing on the confidence of the people in the national institutions.

As regards Mr Grech, that was something personal and I don't think it had a bearing on the institutions themselves.

The fact that the chief justice and another judge have been arraigned does not help in maintaining the traditional full trust and confidence that the Maltese people have in the judiciary. But the institutions have proved that they are strong enough to withstand such events and this is evidenced by the fact that the institutions continued to work fully. I do not want to be too explicit in my opinions but the fact that you have a chief justice and a judge going through this process shows that we are all equal before the law.

Do you think people have lost faith in the judiciary?

It has made people think. Speaking for myself, I would never have thought that a case like this could have happened. So in that regard, I see this case as extraordinary. But it does not mean that I have lost confidence in the judiciary. The fact that someone may have erred... that's life and it shows that we are all human beings. But the institutions have not failed and I am sure that they will not fail.

You speak about values and yet people are faced with cases such as that of the former police commissioner and the two judges. Personally I am becoming more cynical about this country and I don't think I am alone in thinking this way. Where are we going as a nation?

We are going through what all other nations have been going through for quite a long time. In his book 'The Great Disruption', Dr Francis Fukuyama focused on the disruption that has taken place in terms of values and how this has been a process which has been taking shape since the mid-sixties. It means that values have been undermined, as libertarian attitudes have increased, divorce has become very common, people are cohabiting in a much larger number than ever before and single parents have become a phenomenon even in Malta.

In terms of attitudes, there has been this great disruption of values - not only moral values but values as regards the way society should live. One of the points in his book is that we have moved from a sense of community to a society. In a community, people know each other, help each other, have a common culture and share common values. That is no longer the case and even in Malta we have become more individualistic and selfish.

The situation is not positive, I must admit. I have been talking about values for a long time and my great worry is that we have lost many. I do not think we have gone beyond the point of no return but I have to sound a note of alarm. Not enough is being done. We all speak about rising GDPs but the truth is that a small country like Malta will be in for a very difficult time indeed if we lose the moral stature that has characterised the Maltese for a very long time.

The issue of values should be stressed even more as the country is facing a crisis of confidence - also because of the situation of the judiciary.

The answer to all this is 'let's all get down to basics and to the fundamentals on which society is based'. And here I would put emphasis on the family. Even in Malta, the concept of the family is breaking up and people's attitude is that this break-up is something normal and it is almost becoming a fashion. It is a shame that nowadays a person is described as old-fashioned, conservative and not broad-minded if he speaks of values. This is completely wrong.

Editorialists, column writers and other people say that either you or the cabinet - or both - made the wrong judgment in appointing Judge Arrigo as chief justice. What is your opinion and do you think the procedure to appoint the chief justice should be changed?

Ultimately, one has to shoulder responsibility and that responsibility falls on me and the cabinet. That is what is in our Constitution and it should not be changed.

What is important is that more people must be prepared to serve the country. When practising lawyers are asked to become a judge, more often than not the answer is a polite no - because they earn much more in private practice.

As regards that particular appointment, post-factum we can argue a lot. But if I were to judge on the criteria of whether the person is proficient in the law, has the required experience and has all the requisites to perform the functions of chief justice... those criteria were there. The fact that one or more may have faltered does not mean that the appointments should not have been made; rather it is the case that whoever is appointed should live up to the appointment. Unfortunately, that does not always happen.

You mentioned the legal background and expertise but do you take into consideration other criteria...?

Very definitely.

Were they taken into consideration in that case?

Yes, of course.

People seem to be asking whether these other criteria were taken into account in this case.

With regard to my own personal feelings, I would have never thought that this could have happened to anyone who accepts to be appointed to the Bench.

How do you personally feel about the case?

I feel very, very bitter indeed. It has affected me profoundly. I believe this case will continue to dominate public opinion until we reach the end of the story.

What do you mean?

That is, until justice is done.

You are being accused of having prejudiced the position of the two judges by stating that they had received money.

There is a court case going on, but I have very definite views on the subject. Let me say that I don't regret what I did.

Do you assume responsibility over this issue?

Sure.

What is your opinion on Alfred Sant's attitude to the case?

I consulted the leader of the opposition before breaking the news. He understood immediately in a very honourable way the implications of this momentous event. Since then, I sense that he has somewhat tinged the whole process with partisan politics, which is not good. But I still believe that Dr Sant will continue to consider the issue as one of national importance. I do not expect him to stoop to the lowest level, playing politics with the issue.

Many have commented that the bishops' statement on the European Parliament resolution on abortion was alarmist - especially since it is a known fact that European Parliament resolutions are not legally binding. Your reflections?

I was not happy with that statement and the government reacted immediately.

I am sure the bishops were doing what they believed in their conscience that the faithful expected of them. But, on the other hand, one has to take into account the interpretations - or misinterpretations - that such a statement may lead to.

I am in agreement with the substance of their statement. But it was alarmist and wrong to give the impression that Malta would have to legislate in favour of abortion if it joined the EU, and the government immediately clarified the situation.

The government has stated on a number of occasions that it is against legalising abortion.

The European Movement recently wrote to you and the leader of the opposition proposing an amendment to the Constitution on the issue of abortion. Do you have an opinion on this issue?

One has to examine the issue more profoundly. It is very easy to say 'let's have a Constitutional provision on this issue and this would solve the problem.' The real issue, however, is whether the Maltese want to keep the situation as it is and whether politicians can be trusted not to vote in favour of a law that would bring in abortion. The ball is completely in our court.

In an interview with The Times, the EU commissioner for enlargement Gunther Verheugen expressed concern over the domestic situation in Malta and also said that the Labour Party has become a single-issue opposition. Your reflections?

The attitude of the Labour Party, particularly since losing the 1998 election, has been one of outright opposition to whatever the government does. In other words, opposing for the sake of opposing. It is simply very partisan politics at its worst.

Last week, the opposition refused to nominate members on the Electoral Commission. What are the consequences of such a move, considering we are approaching the referendum and the election?

I believe that Dr Sant is trying to pre-empt the result of the referendum and election and now he is saying that the whole process is vitiated. I cannot understand where the vitiation lies. But, very evidently, the fact that he has not fulfilled his Constitutional obligation - because I am obliged to consult him which means he too is under a Constitutional obligation - speaks volumes of the attitude of the opposition leader at this point in time.

Is the government justified in employing a foreign CEO for Air Malta and to agree to pay him an annual salary in the region of Lm100,000?

I have been insisting that Air Malta should have a CEO since I became prime minister in 1987.

This time, Air Malta issued an international call for applications and the number of applications was very large indeed. There was a short listing of applicants which included some Maltese. The choice finally fell on this person. His credentials, in fact, speak for themselves.

Obviously, the financial package is higher than a Maltese would receive; not because of any discrimination but because of the forces of the international market.

I believe that Air Malta negotiated the best package in the circumstances but I am not saying the figures quoted in some sections of the media were correct. Some reports were quite far from the real package.

I expect there will be full cooperation with the CEO at all levels of administration. This is a three-year appointment at a crucial point in the history of the international aviation industry and it is up to all of us, including everyone doing a job for Air Malta, to ensure the experience is positive and that we will be able to reap the results.

Dr Sant keeps repeating claims that Freeport chairman Marin Hili has a conflict of interest after his company acquired a significant shareholding in the Venice port. What is your opinion?

Mr Hili has been wanting to leave his post for years. No one is indispensable and that includes Mr Hili. However, I have always maintained the view that Mr Hili should be retained as chairman. When one talks of a conflict of interest or whether one should resign or not, one has to go into whether the person involved has informed whoever nominated him about his interest. The government, including myself, were informed about all possible conflicts of interest.

My view and the view of the government, including the ministers involved, is that Marin Hili is still needed in the job. Mr Hili is again insisting that he should leave - not because of any conflict of interest but because he has given enough to the Freeport and has his own private investments which he needs to look into and control. So he is only there because we have asked him to stay. The day is approaching when we will have to say to Mr Hili 'Yes... OK, we will let you go.'

What is your opinion on the restructuring which is taking place at the shipyards?

I believe that substantial progress has been made over the past 12 months. Over 700 have taken the option to leave the 'yard and that is very positive in itself. However, although we are far from the point at which we could say that the 'yards have become viable, we are on the right track and cannot lose momentum.

In other words, we have to continue with the process of restructuring. The Malta Shipbuilding and the Malta Drydocks have to become viable and we believe they can. But we have to take the right decisions. That implies striking a balance so far as the labour force is concerned.

There are numerous reports saying what the labour force should be like. We have to ensure that nobody loses his job, and is uncertain of his future.

On the other hand, decisions have to be taken. In other words, restructuring has to take place and we have to ensure that workers' rights will be maintained and that whoever leaves the 'yard is doing so either voluntarily or knowing that he is not simply being discharged and is being left on his own.

We are actively formulating the next step in the restructuring policies and I hope that in the next few months, with the cooperation of everyone, including the unions - through the task force - we will be able to announce the steps which will eventually make the 'yards efficient and viable.

Will these measures include a further reduction in the labour force?

It inevitably means reducing the workforce further for it to reach the levels already specified in many reports.

It seems that little has been done regarding the pension reforms since the resignation of Anthony Galdes as chairman of the welfare reform commission earlier this year. What is the situation with regard to the commission and its work?

The new chairman, Joseph Schembri, is working hard and I expect to have a report - not the final one - over the coming months. This report is expected to lay out the possibilities of reform for the future. The work is on-going.

As you are well aware, The Times carries out interviews with the leader of the opposition and yourself to mark every anniversary of the legislature. Is this the last interview of the sort for this legislature?

You are talking in terms of having an election before September next year. I would say that this could be the last interview of the sort before the election although I do not rule out the possibility of holding an election after September. In that case it would be up to you to come to interview me during the election campaign.