CLOSING SPEECH BY THE HON. GEORGE HYZLER, PARLIAMENTARY SECRETARY IN THE MINISTRY FOR ECONOMIC SERVICES, ON THE OCCASION OF THE TAIEX SEMINAR ON NOTIFICATION OF TECHNICAL REGULATIONS AND STANDARDS INCLUDING INFORMATION SOCIETY SERVICES, AT THE AUBERGE D'A

Mr Chairman

Distinguished Speakers

Ladies and Gentlemen,

The many challenges posed by globalisation as well as the demands by a society in a state of rapid social and technological development, have resulted in a dramatic change in the way Governments and administrators seek to address socio-economic, political and cultural issues.

The legislator is increasingly facing the need for legislation that addresses solutions to a wide range of issues and problems. Needless to say, in a society which is increasingly dependent on technology and also increasingly susceptible to the effects of this technology, modern legislation is often seen as complimentary to technology in dealing with the answers to the new challenges of such issues.

It is a fact that an accurate measure of the level of development of a country can be assessed after considering two components, namely the degree of national legislation which is of a technical nature, and the degree which is harmonised with international norms. A high level of the former indicates that the country is facing complex issues typical of a modern and well-functioning economy. A high level of the latter, demonstrates that the country is synchronised with the rest of the developed world and is keeping up with the pace set by its competitors.

Malta is certainly no exception to this rule. Since 1987 and as a result of Malta's application to join the European Union, our legislative framework has seen enormous development in almost every sector. Our quest to join the Union has given government and its people the drive to modernise its legislation in line with other developed countries.

Our legal system is currently undergoing a phase of rapid change, not only in format, quantity or principle, but also, and increasingly so, in its orientation and underlying philosophy. Malta's stated goal to align its legislation with the acquis communautaire of the European Union is the major catalyst for this transformation. However, it is certainly not the only one. Malta forms part of a global market and the calls for international harmonisation in an increasing range of areas have become more strident than ever. Modern commerce knows no boundaries but it is also true that commercial operators must function within the confines of national jurisdictions and subject to national laws. Differences and incompatibilities between national technical regulations and standards can easily turn out to be as formidable an obstacle to free trade as other, perhaps more obvious and blatant barriers to trade. These technical barriers may, at times, prove to be more persistent. Their main reason for being so is not an overtly protectionist one, or at least not admittedly. It could very well be that a technical regulation or standard which was ostensibly designed to solve a particular problem in another area, for example the protection of health, safety or the environment, could turn out to be a barrier to trade, whether directly or de facto. The modern legislator must therefore exercise great caution and prudence in attempting to balance these essential and legitimate requirements with the other imperative of maintaining the free flow of goods and services.

In no other area is this more obvious than in the area of services connected to the Information Society. If progress in other fields has been rapid and has taken place in a matter of decades, here the pace is certainly nothing short of extraordinary. Modern administrations are having to grapple with a vast array of new issues and regulatory requirements which were not even contemplated a few years ago. Certainly, we must face the fact that without regulation, the very success of the information society might turn out to be its downfall. The Information Society, through its very nature makes many traditional forms of regulation inappropriate or ineffective. Governments must keep up with this pace and quickly find answers that are based on today's needs. This cannot be done in splendid isolation but only through the opportunities offered by harmonization and international co-operation.

The Directive, which we have discussed today, namely 98/34/EC provides an information procedure in the area of technical standards and regulations, as amended by Directive 98/48/EC which extends the scope of the former Directive to cover Information Society Services. This is an excellent example of a practical and effective way in which national administrators can collaborate in ensuring that fundamental trade freedoms are respected and put into practice while at the same time ensuring that legitimate safeguards for the preservation of essential interests are maintained. This is perhaps one of the most visible ways in which the European Union has managed to exercise the concept of shared sovereingty and its basic freedoms. One cannot conceive the proper operation of the Internal Market without a system of shared information which in return facilitates networking and coordination in sectors where standards and technical regulations are being drafted by the various competent authorities. This fact has been confirmed by the importance attached to these Directives by the Member States and the European Commission as well as through the jurisprudence of the European Courts of Justice. The latter have, in numerous judgements, underlined the fundamental importance of notification as an essential tool in meeting the basic obligations of the Treaty.

For its part, Malta sees great advantages in taking on the requirements and procedures of this Directive.

Not only as part of its goal to form part of the Union and participate in the Internal Market but also, and perhaps more importantly, to send a clear and precise message to the country and to public administrators in particular, regarding the reality and the conditions in which they must operate so as to achieve their aims in a more modern and effective way.

The message is very simple: legislation and associated administrative measures must be limited in scope to the essential requirements and must be effective in their action. They should present the least possible burdens to society and trade and be harmonized with international standards wherever possible. The purpose behind the Legal Notice which has been drafted by the Malta Standards Authority and, which will shortly be submitted for approval, is precisely to ensure that these requisites as well as a high level of collaboration and sharing of information between the many departments and authorities form the backbone of public administration. The role of the Malta Standards Authority, through its two Technical Directorates, will be to ensure this co-ordination, as well as to support the various Authorities through the provision of independent and competent scientific advice. Our primary aim should be that of establishing such a system internally thus preparing the way for an eventual connection to the Union system at the opportune time. We must also bear in mind that this will be a two-way system. Besides notifying its own technical regulations and standards, Malta will also be receiving those forwarded by the other Member States and will therefore have the right to examine and comment on these drafts in the light of the Treaty. The better our level of preparation at this stage, the greater the benefit which we stand to gain from the application of this Directive.

Mr Chairman,

Ladies and Gentlemen,

Initiatives such as this Seminar serve to send new messages to those concerned with the effective and efficient administration in public affairs. Co-ordination, exchange of information network sytems, clear and transparent interaction between the different Ministries when standards and technical regulations are being drafted are the immediate and effective results of the implementation of the Directive you have just discussed.

I am confident that by the year 2001 our country will be well prepared to fully implement this Directive in terms of Notification Procedures which will avoid breaches of the Treaty and the consequent costly and lengthy legal proceedings and exposure to sanctions. On the other hand the Malta Standards Authority will be in a much better position to pass on all notifications emanating from other Member States to the pertinent local authorities.

In conclusion I wish to thank TAIEX for making this seminar possible and all those who organised this meeting.

Thank you.