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The true story of the new tax system advertising campaign

PR2371
Date Icon 11/12/1997
Plus Advertising Ltd were awarded the New Tax SystemAdvertising Campaign in compliance with Government procedures and the country's regulations. Dr. Austin Gatt has his figures wrong which might go to explain why his conclusions are incorrect and misleading. Dr. Gatt's main thrust lies with figures related to the distribution of advertisments in the visual media. Dr. Gatt incorrectly quotes the sum of Lm150,307 spent on Super 1 TV and Lm31,530 on TVM. The simple truth is that Super 1 TV were given Lm125,870 in adverts, whereas TVM availed themselves of Lm110,488. The disparity between these two stations stems from the fact that while Super 1 TV accepted all advertising offers on a same day service basis, TVM adopted a different system through which they failed to avail themselves of all the adverts offered.
The allegation regarding Government's decision to award thecontract to Plus Advertising Ltd to finance the Labour Party out of public funds is groundless and libellous. The whole advertising campaign comprised the services of TV stations, Radio Stations, the print media, mail shots and information meetings across the Maltese islands. Even here Dr. Gatt offers incorrect figures. He alleges that the campaign expenses amounted to Lm730,000. The campaign actually amounted to Lm577,129.47. A substantial share of this amount was targeted to keep the public informed on developments reflecting the new prices of products and services. The thrust here was to inform the general public on the situation wherein the prices of many products had remained stable while a large variety of products and services actually showed a decrease in price.
Dr. Austin Gatt opted to omit mentioning the fact that IndependencePrint (the PN's official newspapers) also benefitted during the Information Exercise on the New Tax System. The actual figures show that Independence Print were awarded Lm25,949.15, UnionPress were given Lm26,389.20 worth of adverts and Allied Newspapers received a total award of Lm25,688.20 in adverts. The Nationalist Party received Lm29,146.15 on their print and radio media, while the Malta Labour Party on the same media received Lm24,531.95. The fact that the Nationalist Party could not enjoy funds allocated to TV adverts can only be attributed to the fact that the PN had no Party Television Station.
The correctness of the Department of Information in this exercisemust be underlined. In February of this year the DOI sought quotations from advertising agencies that could offer a fresh concept design for the whole campaign. These agencies were expected to offer concepts reflecting a new message for the new Tax System. Obviously companies who had been involved and manifestly interested in launching the VAT system were not included.
The Department of Information contacted three new agencies for aone minute video spot and for a full page colour print media advert. Subsequently, the Department of Information informed the Finance Ministry that the most advantageous quotation was that submitted by Plus Advertising Ltd. The Finance Ministry gave its approval.
On 12 May 1997 the Department of Information sought quotations forservices in connexion with an advertising campaign on the Customs and Excise Tax Act, 1997 with accent on a fresh concept design. This campaign included 1 minute TV and Radio Commercials, full page media adverts, the origination of an information booklet on the new tax system, colour leaflets illustrating the various aspects of the new tax system, outside broadcasts for TV and Radio purposes and the printing of letter heads for campaign invitations.
The Department of Information selected Visual Trends & Co,Velprint Ltd and Plus Advertising Ltd to provide quotations for the foregoing services. These three companies accordingly were asked to drop quotations in sealed envelopes at the Department of Contracts, Floriana. The Contracts Department subsequently forwarded these quotations to the DOI for adjudication purposes.
The quotations received were respectively examined and analysed bythe Adjudication Board duly appointed. This Board recommended Plus Advertising Ltd since this agency had submitted the cheapest tender in all the requested items.
On 15 May 1997, the Acting Director of Information informed theDirector of Contracts that he was in agreement with the Board's recommendations on the selection of the contract. The Director of Contracts on 19 May 1997 informed Plus Advertising Ltd that Government had accepted the company's quotation. Moreover the services afforded by PlusAdvertising Ltd were of excellent quality in all aspects as evinced by the general public.
The above goes to show that the contracts in question were awardedaccording to Government procedure and belies all the unfounded allegations made by Dr. Austin Gatt over the last weeks.

TRANSLATION in MALTESE:

L-Istorja vera tal-kampanja pubblicitarja dwar is-sistema l-gdidata' tassazzjoni
Il-Plus Advertising Ltd nghatat f'idejha il-KummissjoniPubblicitarja dwar is-sistema l-Gdida tal-Gvern skond il-proceduri tal-Gvern u r-regolamenti tal-pajjiz. Dr Austin Gatt ghandu l-figuri zbaljati li x'aktarx minhabba fihom il-konkluzjonijiet tieghu huma hziena u mizinformanti. L-ghan ewlieni ta' Dr Gatt f'dan l-ezercizzju jinsab fil-figuri marbutin mat-tqassim tal-pubblicita` fil-medja viziva. Dr Gatt b'mod skorrett semma s-somma ta' Lm150,307 minfuqa fis-Super 1 TV u l-Lm31,530f'TVM. Il-verita` semplici hija li s-Super 1 TV nghataw Lm125,870 f'pubblicita` waqt li t-TVM hadu Lm110,488. Id-differenza bejn dawn iz-zewg stazzjonijiet gejja mill-fatt li waqt li Super 1 TV hadu l-offerti pubblictarji fuq bazi ta' servizz mil-lum ghal-lum, TVM imxiet b'sistema differenti li minhabba fiha ma setghetx tiehu l-pubblicita` kollha offruta.
L-allegazzjoni dwar id-decizjoni tal-Gvern li jaghti l-kuntrattlill-Plus Advertising Ltd biex jiffinanzja lill-Partit Laburista mill-fondi pubblictarji hija infondata u libelluza. Il-kampanja pubblicitarja kollha kienet thaddan is-servizzi ta' l-istazzjonijiet tat-TV u tar-Radju, l-istampa, l-ittri bil-posta, u l-laqghat ta' taghrif madwar il-Gzejjer Maltin fost l-ohrajn. Hawnhekk ukoll Dr Gatt jaghti figuri zbaljati. Huwa jallega li l-kampanja qamet Lm730,000. Fil-fatt qamet Lm577,129.47. Sehem qawwi minn din is-somma kien mahsub biex jgharraf lill-pubbliku dwar zviluppi li jirriflettu l-prezzijiet il-godda tal-prodotti u tas-servizzi. L-ghan ewlieni hawnhekk kien li l-pubbliku generali jkun imgharraf bis-sitwazzjoni li fiha l-prezzijiet ta' bosta prodotti baqghu stabbli waqt li varjeta` kbira ta' prodotti u servizzi fil-fatt kienu rohsu.
Dr Austin Gatt ghazel li jhalli barra l-fatt li l-IndependencePrint (il-gurnali ufficjali tal-PN) hadu beneficcju wkoll mill-Ezercizzju ta' l-Informazzjoni dwar is-sistema l-gdida tat-tassazzjoni. Il-figuri veri juru li l-Independence Print nghataw Lm25,949.15, il-Union Press nghataw Lm26,389.20 u l-Allied Newspapers hadu Lm25,688.20 fi hlas ghall-pubblicita`.
Il-Partit Nazzjonalista ha Lm29,146.15 bil-medja ta' l-istampa utar-radju, waqt li l-Partit Laburista, bl-istess medja ha Lm24,531.95. Il-fatt li l-Partit Nazzjonalista ma hax fondi allokati ghall-pubblicita` televiziva gej biss mill-fatt li l-PN ma kellux stazzjon televiziv tal-Partit.
Il-korrettezza tad-Dipartiment ta' l-Informazzjoni f'dan l-ezercizzjutrid tigi sottolineata. Fi Frar ta' din is-sena, id-DOI fittex kwotazzjonijiet mill-agenziji tal-pubblicita` li setghu joffru disinn koncettwali gdid lill-kampanja kollha. Dawn l-agenziji kienu mistennija joffru kuncetti li jirriflettu messagg gdid ghas-Sistema l-Gdida tat-Tassazzjoni. M'ghandniex xi nghidu kumpanniji li kienu mdahhlin u wrew interess bil-miftuh fit-tnedija tat-Taxxa tal-VAT ma kinux inkluzi.
L-Agent Direttur tad-Dipartiment ta' l-Informazzjoni kellem tlietagenziji godda dwar videospot ta' minuta u dwar pubblicita` fl-istampa ta' pagna shiha bil-kulur. Imbaghad, id-Dipartiment ta' l-Informazzjoni gharraf lill-Ministeru tal-Finanzi li l-aktar kwotazzjoni vantaggjuza kienet dik imressqa mill-Plus Advertising Ltd. Il-Ministeru tal-Finanzi ta l-approvazzjoni tieghu.
Fit-12 ta' Mejju 1997, id-Dipartiment ta' l-Informazzjoni talabkwotazzjonijiet ghas-servizz marbut mal-kampanja pubblictarja dwar il-Ligi tad-Dazju u s-Sisa b'accent fuq disinn koncettwali gdid. Din il-kampanja kellha fiha pubblicita` ta' minuta fuq it-TV u fuq ir-Radju, pubblicita` ta' pagna shiha fil-gurnali, il-holqien ta' ktejjeb ta' taghrif fuq is-sistema l-gdida tat-taxxa, fuljetti bil-kulur dwar l-aspetti varji tas-sistema l-gdida tat-taxxa, xandir ta' barra ghal ghanijiet televizivi u radjofonici u l-istampar ta' letter heads ghall-istediniet tal-kampanja pubblicitarja, fost l-ohrajn.
Id-Dipartiment ta' l-Informazzjoni ghazel il-Visual Trends &Co, il-Velprint Ltd u l-Plus Advertising Ltd biex jaghtuh kwotazzjonijiet ghal dan is-servizz. Dawn it-tliet kumpanniji kienu mitluba jressqu l-kwotazzjonijiet taghhom f'envelopes issigillati lid-Dipartiment tal-Kuntratti fil-Furjana. Dan id-Dipartiment imbaghad baghat dawn il-kwotazzjonijiet lid-DOI ghal ghanijiet ta' gudizzju.
Il-kwotazzjonijiet milqugha kienu mbaghad mistharrga u analizzatimill-Bord imwaqqaf mid-Direttur ta' l-Informazzjoni. Dan il-Bord irrakkomanda l-Plus Advertising Ltd billi din l-agenzija ressqet l-orhos offerta fl-items kollha mitluba.
L-Agent Direttur ta' l-Informazzjoni fil-15 ta' Mejju 1997 gharraflid-Direttur tal-Kuntratti li hu kien jaqbel mar-rakkomandazzjonijiet tal-Bord dwar l-ghazla tal-kuntratt. Id-Direttur tal-Kuntratti fid-19 ta' Mejju 1997 gharraf lil Plus Advertising Ltd li l-Gvern kien laqa' l-kwotazzjoni tal-kumpannija. Barra minn hekk, is-servizzi moghtija mill-Plus Advertising Ltd kienu ta' kwalita` mill-aqwa kif kien juri l-qbil tal-pubbliku generali.
Dan kollu juri li l-kuntratti msemmija nhargu skond il-proceduratal-Gvern u jgiddeb l-allegazzjonijiet infondati kollha maghmula minn Dr Austin Gatt tul il-gimghat li ghaddew.
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