“There have been on-going discussions on the method of implementation and clarification of practical difficulties posed by different legal interpretation” said the FOI.

It was, it said, incorrect and unfair for anyone to say government had made a U-turn because it had postponed the implementation of the law.

On the contrary, said the FOI, the change in attitude boded well towards finding just solutions to the problems created by lack of prior consultation. The FOI thanked Prime Minister Lawrence Gonzi, Rural Affairs and Environment Minister George Pullicino and parliamentary secretary Tonio Fenech for their sincere efforts to find equitable solutions to the problems encountered.

“The FOI understands government’s social obligations to safeguard the environment by making polluters pay. However, it is insisting that a balance be found for the proposed eco-contribution, through compensatory measures,” it said.

The federation said such an approach will send a clear message to every enterprise and consumers alike that this is not just another excuse for government to increase taxation, but a genuine effort towards solving the country’s environment problems.

The federation said it had been assured by government that exemptions will be granted from the provisions of the eco-contribution law for certain schemes submitted by the private sector that benefit the environment. “This should include all packaging and products that are collected, recycled, re-used or exported and that contribute to a reduced impact on Malta’s waste stream,” said the federation.

The FOI urged government to make allowances for the lack of economies of scale that it claims will increase difficulties in the private sector’s efforts to improve the environment, given the size and volume limitations that are dictated by our particular geographic and demographic realities.

Industry and business in general should be relieved of certain government-induced costs and exaggerated bureaucracy to compensate for the new eco measures, said FOI.

“Otherwise, there is bound to be an increase in the cost of living that will continue to reduce the workers’ spending power and industry’s competitiveness,” the federation concluded.