MALTA ARBITRATION CENTRE OFFICIAL INAUGURATION: GOVERNMENT PROPOSES TO INTRODUCE AN ARBITRATION INCENTIVE SCHEME

At a brief ceremony at the Museum of Fine Arts in Valletta, the Malta Arbitration Centre was officially inaugurated today by Prime Minister, Dr. Eddie Fenech Adami, in the presence of the Minister for Justice and Local Government Dr. Austin Gatt, and other distinguished guests including judges, diplomats and representatives of the professional and commercial communities.

Prime Minister Fenech Adami said that the setting up of the Centre was part of the reform process of the justice system. The Government proposes to introduce an incentive scheme to encourage people to resort to arbitration where this is possible. In this way, an inexpensive alternative to court litigation will become available to the public thereby relieving the courts of some of the considerable number of cases currently before them.

Dr. Fenech Adami added that "since it is also Government's policy to make Malta a hub for various international services, provision has also been made for the conduct of international commercial arbitration in Malta".

In this field, he continued, Malta will have to face stiff competition from other well-established commercial arbitration centre. Nevertheless, Malta looks forward to a share of the international arbitration market in view of the many advantages that Malta has to offer. Among these, the Prime Minister mentioned certain innovative beneficial fiscal advantages to non-Maltese residents through the formation of Arbitration Chambers with Maltese nationals.

Earlier on during the ceremony, the Chairman of the Board of Governors of the Centre, Professor David Attard, delivered a welcome address.

He said that the new Arbitration Act is based on internationally accepted standards and designed to cope with the contemporary needs of society. Awards delivered in Malta under the Act would not be subject to appeal and would through the Malta Arbitration Centre be enforceable in over 120 States.

Professor Attard stressed the Centre's commitment to develop Malta as a centre for the conduct of international commercial arbitration. An international Advisory Committee, composed of the most eminent legal practitioners, had already been set up to advise the Centre on attracting arbitrations to Malta.

After Professor Attard's welcoming address and the Prime Minister's reply, Dr. Fenech Adami, Minister for Justice Dr. Austin Gatt and the members of the Board of Governors of the Centre proceeded to Palazzo Laparelli, also in South Street, where the Centre is situated.

Dr. Fenech Adami unveiled a commemorative plaque and viewed the premises.

Notes on The Malta Arbitration Centre

The Malta Arbitration Centre was set up in terms of the Arbitration Act 1996. The Act and subsequent amending legislation were passed through Parliament with the full support and cooperation of both sides of the House.

Its main function is to promote Malta as a centre for international commercial arbitration, to provide for the conduct of international commercial arbitration in Malta and to encourage domestic arbitration as a means of settling disputes by providing the necessary facilities.

A Board of Governors is responsible for the policy and general administration of the affairs and business of the Centre. The Board is appointed by the President of Malta but is independent of Government.

Arbitration awards under the Arbitration Act, duly registered at the Centre, are legally binding and will have the force of a court judgement. Such awards will be final and not subject to appeal.

The Malta Arbitration Act is internationally recognised and incorporates the Model Law on International Commercial Arbitration adopted in 1985 by the United Nations Commission on International Trade Law (UNCITRAL). Malta will shortly become a party to the UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) and all awards registered at the Malta Arbitration Centre will be enforced world-wide.

For further information one may contact the Registrar, Mr. Godfrey de Marco, on telephone number 222557, fax number 230672 or on e-mail at godfrey.demarco@magnet.mt