SPEECH BY MR RICHARD CACHIA CARUANA, CHAIRMAN, CORE NEGOTIATING GROUP, ON THE OCCASION OF THE CONFERENCE "THE MALTESE LOCAL AUTHORITIES IN THE RUN-UP TO THE ENLARGEMENT OF THE EUROPEAN UNION", AT THE NEW DOLMEN HOTEL, BUGIBBA.

Politics and policies often form along the lines of real or perceived differences. We are all aware that modern politics are heir to the class conflicts of earlier decades, but there are also older, perhaps more deeply-set differences that shape the way we take decisions today – differences of religion or culture. There are also differences rooted in one's physical environment: countryside or city, industrial or urban neighbourhoods, ancient towns or modern tenements.

If it is true that even in a country the size of our islands these differences are real and tangible – north and south, harbour and inland – they cannot but be at least just as true in a Europe with a population set to hit the 500 million mark over the coming decade.

It is this sense of immense scale that spurred the birth of the principle of subsidiarity. If here in Malta we can plainly see that priorities of San Lawrenz cannot be the same as those of Valletta. It does not take much to imagine the range of choices that Enna, Gdansk, Brussels and Aberdeen can come up with.

European nations recognise that they must act on the needs of their component regions, cities and counties. With European integration, scales and stakes are higher. In Maastricht, a vision was put forward of local authorities as the building blocks of the future of the continent. The benefits of dismantling national borders have to be matched with the benefits of securing partnerships between the regions of Europe.

Here in Malta the pattern is much the same. Malta's Local Councils Act was approved by Parliament in 1993 and while 1993 might appear recent to towns brandishing mediaeval charters across Europe, in truth, however, our law was heir to an ancient tradition of autonomy as rich and ancient as any other in Europe, interrupted by a fairly brief period of modern centralised thinking.

I am proud to have been deeply involved in the preparation of this legislation as well as the roll-out of the Local Councils themselves. For the record, the European Union was involved in this experience through its Med-Urbs programme. For the record also, Malta's legislation sees local authorities as a living testimony to grass-roots democracy and as a means to increase the efficiency and transparency of government.

Malta's Local Councils have their legislative, executive and consultative functions entrenched in the law. They have the right to issue byelaws that are binding within a locality. They are also responsible for certain public services and represent the residents of a locality in the exchange of views between a locality and central Government. The evolution of local government in Malta is an on-going process, with central Government regularly devolving additional powers to Local Councils.

In the coming years, the importance of regional authorities in Europe will also increase considerably. You are no doubt aware that the European Union is looking at ways to move on from simply decentralising administrative competences, to ensuring a genuine autonomy for Government at the regional level.

The Committee of Regions, which brings together representatives of regional and local authorities from the member states, acts as a bridge linking the European institutions to the regions and communes – known here as Local Councils. Members of the Committee have a dual mandate: their regional or local mandates, and their European mandate. They serve to convey information from the European Union to its citizens and act as the mouthpiece of the regions and local authorities within the Union. This is the challenge that Malta's local authorities will have to take up upon accession.

The Committee of Regions formulates opinions, not only on issues directly relating to its own area of responsibility but also on a range of important topics which have a prominent place in the European Union agenda. The Committee's opinion on the Intergovernmental Conference on institutional reform is part of the proof of this. The local authorities of EU Member States are not passive players in the decision making process of the Union; they are given a voice through the Committee of Regions that is the guardian of the European Union principle of subsidiarity. According to this principle, decisions are taken at a regional or local level wherever possible.

Whilst retaining their present responsibilities under the Local Councils Act, local authorities in Malta can also expect to assume additional responsibilities. These will be in connection with the implementation of certain European Union policy areas, in particular that of regional policy. Some of the structural fund operations, at regional or local council level, will constitute an additional challenge for Local Councils.

Accession to the European Union will increasingly accentuate the consultative function of Local Councils and, in practice, local authorities will be consulted on matters broadly concerning the socio-economic development of the locality in question and, more specifically, on matters concerning project formulation, project management and control, as well as follow-up and evaluation.

This consultation process will call for a closer, reinforced partnership and dialogue with central Government, other local authorities, the private sector and civil society.

Local and central government will need to work together and channel their energies into long-term schemes, making projects of common interest possible which will also sometimes cross national borders. Such cross-border cooperation has already become a reality for certain local authorities that are currently involved in a number of twinning projects. Local authorities will also be encouraged to promote projects within their localities, both with central Government as well as the private sector. Closer partnership will enable local actors to play a fundamental role in implementing programmes.  In this scenario, I point out the need for local authorities to make efficient use of the information and communication technologies that become available to help them meet the challenges which will arise from the devolution of public administration. This is an area where central Government has already made available considerable financial resources.

One of the European Union's strategic objectives coincides very closely with the priorities of all Local Councils. Enlargement will bring an internal market of over 500 million consumers and an open, frontier-free area where goods and services can circulate freely. This will be a major factor in helping to create jobs and economic growth. But it is not an easy process. It will require the solid support of the citizens of both the member states and the candidate countries. The best guarantee for this to succeed is to ensure that people are well informed and participate in the process.

Europe's institutions must be strong enough to handle the enlarged Union. They must also be democratically legitimate, transparent, accountable and efficient because they need to enjoy the full confidence of citizens. In this context, local authorities have a contribution to offer. They bring with them a wealth of experience from the various systems of government that have been set up in each country, according to its specific needs and traditions. I believe that this is where local authorities can contribute to the shaping of a future Europe.