Sins of omission

Can you imagine the governor of the Bank of England trying to rubbish the policies of the Opposition party?

Can you ever dream of the Chairman of the British FSA as well as the chairman of the Stock Exchange attending and sitting in for a heated political debate organised by the pro-EU political movement? Can you dream of a leading Bank of England consultant accepting to address a political mass meeting or rally organised by one of Britain's major political parties to indulge in jaundiced and biased views on the European issue particularly when the country is split right down the middle over the matter?

I am quite sure that in your heart of hearts the answer is a definitive "no".

And yet this is exactly what is happening in Malta while the EU referendum campaign reaches dizzy heights and an almost fever pitch.

Months ago we had the governor of the Central Bank denigrating the Labour Party's option on future relations with the EU during the Institute of Financial Services' annual dinner.

The other week we had Professor Bannister, the MFSA chairman, and Alfred Mallia, chairman of the Stock Exchange, attending a lop-sided political discussion on the EU organised by the IVA Movement - albeit on financial and economic matters.

And last Sunday we had a former Central Bank chief economist and now senior consultant to the bank itself standing on the podium in Dingli Street, Sliema, to address a Nationalist Party mass meeting on the EU referendum issue.

What irked me more than Professor Godwin Cordina's presence at the meeting were his politically biased comments which in no way conveyed the concerns on the impact of membership which some of his commissioned reports spelt out in no uncertain terms.

If he had the decency to convey a balanced appraisal of the pros and cons of EU membership then one might have reassessed his questionable presence at the PN mass meeting. But this was not to be.

To cite a few examples; when he commented on the effects of EU membership on the Maltese worker arising out of the EU Research and Technology Development Policy in January 2000 he stated:

"While Malta has to rely on imported foreign technology in this area and that our counting would remain a net contributor to the EU's research and technology development programmes, in addition, the adoption of the 'Mobility of Researchers' programme could lead to the emigration of our best scientists and professors to European universities, firms and research centres."

He added: "Besides these issues, there are serious doubts regarding the efficacy of the EU's research and technology development programmes particularly when according to the 1998 annual Report or the European Union's Court of Auditors, the auditors found errors and inaccuracies in half the payments they sampled in the Commission's spending on research."

Commenting on the effects of EU membership on the Maltese worker arising out of the EU energy policy, Professor Cordina stated: "The privatisation of the petroleum and to a lesser extent the gas divisions could be contemplated," adding that "the provision of gas and petroleum is to an extent becoming increasingly subject to competitive pressures. As Enemalta loses market share, it could also end up with redundancies in its gas and petroleum divisions. Ideally, workers laid off in this way could be taken up by new providers in this sector.

"On the other hand, it is to be considered that the quest for efficiency could generate the use of labour-saving technologies, that would adversely impact employment in the sector, including ancillary workers. The use of more sophisticated technology could create a limited number of jobs in the area. It thus appears that employment in the energy sector could to an extent be negatively influenced by the adoption of the EU energy policy."

On the effects of EU membership on the Maltese workers arising out of the EU Industrial Policy Professor Cordina states that if Malta were to join the EU, the large operating aid now given to the Drydocks would be ruled to be incompatible with the Common Market. State aid to the ship-repair sector is only allowed for restructuring, closure, investments under regional aid schemes, innovation and research and development and environmental protection.

He remarked in the same paper that "although much of the emphasis in the industrial policy area is concentrated on the Maltese shipbuilding and ship-repair industry, the adoption of the single market and the removal of protective levies will have serious impacts on several at her manufacturing sectors."

On industry per se he said: "The alignment of commercial policy with that of the EU may also hurt some sectors. The added costs to the Maltese manufacturing industry arising from EU regulations must be offset if this sector is to survive the challenge posed by competitors from the lower cost industrial regions of eastern Europe at the highly productive Asian economies."

Regarding transport policy, "the liberalisation of air services and ground handling operations will put Air Malta, the national airline under considerable competitive pressures coming especially from no-frills small airline companies."

He also remarked: "The implementation of the Community acquis will have a negative impact on Air Malta employees, in that the company will probably lose part of its ground handling operations. The national carrier will probably have to restructure extensively..."

Besides, Government "will be foreclosed from aiding the company in any direct way. Thus the national airline may have to resort to strategic alliances with foreign carriers, which may involve some loss of domestic control over the company and its activities."

On the Gozo Channel issue, "the ferry service across the Gozitan shamble will have to be liberalised and a public tender will have to be carried out at least every five years. Spaces at the Cirkewwa, Sa Maison and Mgarr harbours will have to be allotted to competitors of Gozo Channel, unless the Maltese government obtains a derogation from EU regulations."

Throughout the same paper Prof-essor Cordina went on to speak of:

1) the abolition of the Port Workers' Scheme.

2) the significant part of the Lm2.9 million which the MMA received in shipping registration fees are expected to disappear as ship owners register their ships in other countries.

3) The decline in the national airline's profits.

As March 8 fast approaches, many masks will be shed as more people come to the fore airing their views on the EU. If they do so fairly and objectively, good luck to them. However, in the majority of cases they are key personalities of some of the major institutions on the island - people who should expect, demand and command the respect of one and all, which now seems to be no longer the case.