Go Back
Statement by the Minister of Economic Services, the Hon. Josef Bonnici
PR1510
30/09/1996
30/09/1996
| Dr Alfred Sant recently claimed that my response to him regarding | his "analysis" of the electronics sector and the impact of EU membership, was less than frank, ridiculous and disgraceful. Unfortunately, Dr. Sant seems to have, once more, ignored many factors and, instead, based his conclusions on partial and unfocused assessment. If Labour's position on EU membership is based on such lopsided assessments, it becomes clearer and clearer that the Labour Party cannot be trusted with Malta's future without risking a repetition of the events which occurred in the early 1980s, when we faced a collapse in manufacturing, losing around 4,000 jobs in the space of two years, precisely when Dr Alfred Sant was in charge of industrial policy. |
| Dr Sant has chosen to ignore completely the facts already stated in | my press release, namely that the EU provides protection to some parts of its electronics and manufacturing sector. Dr Sant seems to be under the wrong impression that Malta, as a non-member country, can be used as a conduit to by-pass such protection. This is not only false, but it would be most unwise for our country's manufacturing sector to depend on a situation where it remains competitive only because it can by-pass such tariffs. Furthermore, Dr Sant has conveniently side-stepped the main issue that once our products are exported to the EU, they still face protective levies on the components that have an anti-dumping levy imposed by the EU. Dr Sant is clearly out of touch with facts on this matter. |
| To explain further, let us consider the case of some inputs, used | by Dedicated Micros, which are subject to an anti-dumping levy by the EU. After all, it was only following a visit to this company, which is currently planning a major expansion, that Dr. Alfred Sant developed his theory about the electronics sector. One particular component, used by this company, that is imported from the Far East and is subject to an anti-dumping levy, relates to plastic casings. While we do not have such a levy on imports to Malta, once the finished product is exported to the EU, a levy is applied on this component of the finished product. In other words, the approach of the EU is not to let third countries frustrate its protection policy. If this is what Dr Sant has in mind when he talks about a special relationship with the EU, then he has in effect built his EU policy on quick-sand. |
| Dr Sant has jumped to unwarranted conclusions and in the process | exposed the shallowness in the Labour Party's position on EU membership. Indeed, it is much wiser for Malta to be a member and be covered by such protection policies than to struggle against such policies as a non-member country. Suffice it to point out that for several products it is impossible to have protective levies by the E.U. completely lifted. The only way this can be achieved is through full membership. |
| Lack of depth was also displayed in Dr Sant's treatment of the | General System of Preferences issue. He claims that it is disgraceful for me, as the Minister responsible for Economic Services, to state that as our standard of living increases, GSP status will be lost. Dr Sant knows that this is the truth and it is a truth well known by professionals in this area. Surely, Dr Sant is not suggesting that I should not tell the truth to the Maltese public? Is this the kind of transparency that the "new" Labour goes by? For Dr. Alfred Sant to suggest that my statement is "an invitation to the US to remove without delay the treatment it gave the electronics industry in Malta", is ludicrous, an insult to the intelligence of the general public, and should convince the public, more than ever, that Dr Sant is not suitable to become Prime Minister of these islands. |
| With regard to his various questions on SGS-Thompson and the | Ramboll report, I would like to clearly state that it is the policy of government to build on our successes and not limit them. Today, SGS-Thomson is producing advanced, high-tech products in Malta and its future plans are very important for the country. In this regard, we have close contacts with the company and keep abreast with its plans for the future. For example, earlier this year, I myself led a delegation to SGS Research Centre, in Agrate near Milan, for high level discussions regarding future prospects. Indeed, there is a lot of potential in expanding further sectors related to SGS, both for direct export and as an input into the local electronics industry. Dr. Sant is way out when he suggests that there is no serious dialogue with SGS-Thompson. This is another unfounded claim which can only do harm to Malta, just as his unfounded criticism of the Freeport has done. |
Share this Press Release
Other Press Releases:
PR261891en
PRESS RELEASE BY THE MINISTRY FOR ENERGY, THE ENVIRONMENT AND THE REGENERAT...
PR261891
STQARRIJA MILL-MINISTERU GĦALL-ENERĠIJA, L-AMBJENT U R-RIĠENERAZZJONI TAL-P...
