Updated 1.20pm
Financial regulator chief Joe Bannister had already indicated he intended to step aside by the end of the year, Prime Minister Joseph Muscat said today.
Dr Muscat said Prof. Bannister had told him about his intention earlier this year, with a decision taken for him to stay on through the EU Council presidency period before he gradually bowed out.
The Prime Minister was speaking after Nationalist Party leader Simon Busuttil indicated a PN government would pick a new face to head the Malta Financial Services Authority if elected.
Speaking at a press conference, Dr Muscat said his political rival was “shooting from the hip” when he indicated that a PN government would be picking someone other than Prof. Bannister to head the MFSA.
“Regulators have security of tenure,” the Prime Minister said, “it is not up to a Prime Minister to replace them. Even if it's possible, which I have my doubts, it's a dangerous precedent.”
According to Maltese laws, the head of the MFSA does not enjoy security of tenure and is expected to offer their resignation upon a change in government.
Dr Muscat said the Labour government had already drafted a law to ensure the next MFSA chair would be grilled by parliament.
The draft bill had already been approved by Cabinet and was ready to be presented to parliament if his government was re-elected, the Prime Minister said.
The Prime Minister said Dr Busuttil's proposal to have a high-level expert group to make recommendations concerning the financial services sector was “a good one, which we implemented four years ago.”
He said such a group already existed and included representatives of the Big Four auditing firms and other key sector stakeholders.
Dr Muscat said the PL would defend the financial services sector from attacks, and indicated he would be willing to meet Dr Busuttil provided the PN leader “stopped talking down Malta”.
Malta Files: ‘No indication we’re doing anything illegal’
Asked about Malta's reputational management following the Malta Files investigation which broke across European media, Dr Muscat insisted that “nobody is saying Malta has broken any European directive.”
“Our system has been in place for years and has passed European Commission scrutiny. Our system is more transparent that those of Luxembourg and German, for example. There is absolutely no indication that Malta is doing anything illegal.”
He used the example of payday loan companies registered in Malta.
“If they're not registered here, they’re registered elsewhere. If this is a discussion about the morality of these companies, that's another issue. But there is nothing illegal. They’re attacking us because we are competitive. God forbid we weren't.”
PL to push ahead with blockchain strategy
Dr Muscat, flanked by PL candidates Stefan Zrinzo Azzopardi and Silvio Schembri, said a PL government would be making a concerted push towards fostering a local fintech sector, with blockchain technology at its core.
He mentioned the existing land registry system and hospitals’ handling of medical records as two sectors which could serve as pioneers for implementing blockchain technology.
No tax on inheriting family home
Dr Muscat also highlighted the PL's proposal to exempt residential homes children inherited from their parents from tax, saying it went hand-in-hand with the government’s previous scheme to apply a reduced tax rate when family businesses were passed down a generation within families.
He also committed a PL government to finding ways of reducing tax paid on overtime, though he said his party would not commit to a definite tax rate before consulting stakeholders and running the necessary simulations.