SPEECH BY THE HON JOHN DALLI, MINISTER OF FINANCE, AT THE INAUGURATION OF THE NEW FEXCO REGIONAL OFFICE IN GOZO

It is a pleasure for me to be here today to inaugurate FEXCO's new Regional Office in Gozo.

The FEXCO operations in Malta commenced as a direct result of the enactment, in 1994, of a comprehensive package of legislation that established the financial services industry within the Maltese economic framework. I initially piloted that legislative package through a process of bi-party discussions until Government and the Opposition reached consensus on the importance of the industry for Malta. In these discussions, Government and the Opposition reached agreement on the scope, content and form of the new legislation. As a result, this legislative initiative is distinguished by the unanimity of its approval upon its eventual submission to the House of Representatives.

Those developments during 1994 gave birth to a new industry in Malta – one that today accounts for a significant portion of Malta's GDP and offers secure and attractive employment opportunities to an increasing number of Maltese persons. Today, the concept that the Maltese economy is principally dependent on three main pillars – manufacturing, tourism and financial services – is already an established fact. I firmly believe that the financial services sector still faces enormous opportunities for additional growth, and will be one of our primary stimuli to economic growth in the years to come.

FEXCO's operations arose as a result of those developments in 1994, and I am pleased to see that a company addressing an opportunity born out of political consensus seven years ago has now progressed, developed and is looking at further expansion in the years to come.

FEXCO itself is also noteworthy due to the nature of its corporate identity. The company is a joint venture between a leading provider of financial services in the Republic of Ireland and a Maltese conglomerate. At the time of the company's formation, both parties had the vision and foresight to anticipate the commercial potential offered by the new developments, and made a firm commitment to seize this opportunity.

The Irish joint venture partner in this entity is a model for a number of Maltese businesses. Ireland is, in many respects, similar to Malta. It is a small island on the periphery of the European mainland, and like Malta, its business community has a long tradition of entrepreneurial initiative. The growth of FEXCO's operations in Malta is a reality that exhibits the potential of such vision and initiative.

I also understand that, in the past year, FEXCO's operations in Malta have diversified through the introduction of investment services in the company's portfolio. This has been, at least in part, attributable to the prospects of future changes following our country's accession to the European Union.

It is, for myself, extremely gratifying to note that FEXCO has been one of the many Maltese entities that examined the prospects of post-accession commercial operations, and took the necessary initiatives to prepare for such future developments. There may be a tendency, in certain quarters at least, to look upon change as an argument against accession. This should not be so.

Change is inevitable, irrespective of EU accession. It is our attitudes to change that are key to our future success or failure. This administration has never denied that the EU will imply significant and extensive changes in our way of doing business. We hold, however, that Malta is as capable as any other nation of preparing for change and benefiting from such change.

FEXCO is a role model in this regard. The company has had the vision to consider its future outlook, focus on the possible environmental changes, and identify not the difficulties that change would bring about, but rather, the opportunities presented by such change. It took the initiative to adjust, to seek new methods of operation, and is now in a position to benefit from its new business development.

Such initiative is at the core of Malta's ongoing economic expansion. I congratulate the entrepreneurial vision of both promoters of this initiative, and augur further success and growth in future years.

Thank you.