MLP spokesman Josè Herrera praised the bill and said that it fills a void in the law. Dr Herrera, himself a lawyer, cautioned however that trustees should never be a limited liability company, making the point that trustees should be liable for the management of trusts.

He mentioned a trust fund that was established when Princess Diana died. He said that the trust was basically used to sustain the fees of the trustees and staff that are managing it, rather than towards the charity it was created for. In this respect, Dr Herrera said Malta should learn from the mistakes made in other countries in the best interests of the Maltese people.

MLP speaker Angelo Farrugia, while stating that the opposition is in agreement with the government on the bill, commented that there were other related laws that should also be priorities. He said that while the Trust Bill was useful, the regulation of voluntary organisations should take precedence. He said that until now, despite the fact that the government promised to take up the NGO bill during the previous legislature, nothing has been done yet.

The legislation is needed to safeguard the integrity of these organisations, including political parties, he pointed out. It only takes one rotten apple in the basket for the rest to be given a bad name, he said. Dr Farrugia explained that the concept of a trust is very much related to the regulation of NGOs, since the basic premise is to regulate the person or persons who manage funds or property entrusted to them under specific conditions or for set aims.

Parliamentary Secretary Tonio Fenech said that given the changes contemplated in the bill, it can be said that a new law is being passed. Mr Fenech commented on the fact that the government and the opposition always sought consensus to enact laws in the financial services sector, saying that this was a major contributor to the sector’s progress over the years.

Mr Fenech said that the sector has grown rapidly over the years and now represents 12 per cent of the national revenue cake. Mr Fenech criticised an article carried in The Guardian, in which the newspaper claimed that Malta was a tax haven. The article’s claims are, in fact, lies, he said.

The bill, Mr Fenech pointed out, will make Malta attractive in terms of foreign trusts managed in Malta. This will be so through Malta’s reputation of quality and not because the Maltese legislation is loose and promotes money laundering or tax evasion.

The Maltese economy will benefit from this act and the sector will expand, creating work for a number of professions, he said. Reacting to Dr Farrugia, Mr Fenech said that the government was contemplating regulation on NGOs, adding that there were NGOs which could make use of the new Trust Act regulations.

MLP spokesman Leo Brincat said that Malta at the moment is at a crossroads, in the sense that it is faced with a decision as to whether it should give more priority to the manufacturing or the services sector, or whether a balance should be achieved. “I feel that with regard to foreign direct investment we are not doing enough to attract the needed investment in the manufacturing sector.”

On the other hand, the government is doing well to continue supporting the financial services sector which, with the exception of the property sector, is the only sector that is doing well. The financial services sector expanded thanks to the skills of the private enterprise, Mr Brincat said, adding that the consensus on the sector’s legislation was also an important contributor.

Mr Brincat recalled how, when the Labour government was going through difficult times in 1998, important legislation regulating the insurance sector was passed. Mr Brincat stressed that regulation should be monitored closely, adding that there should be a constant effort to update the law in a way that it remains advantageous for the people.

In the adjournment, PN MP Jason Azzopardi spoke of the need to improve the country’s legislation with regard to the cultural sector. He recounted that he was recently given the opportunity to visit Paris on a study-trip. During his short stay, Dr Azzopardi had the opportunity to meet the Louvre museum director, who Dr Azzopardi said, made him realise that Malta had a lot to learn from the French in the field of culture.

In the next 10 years the Louvre projected that the number of Chinese tourists will grow considerably and therefore they are already preparing their marketing strategies for it, he said. Commenting on Grand Master Jean de la Valette’s sword, taken by Napoleon during his brief stay in Malta, Dr Azzopardi said that following the government’s insistence, the French will probably agree to give Malta a replica of the sword.

Regarding the legislation covering the cultural sector, Dr Azzopardi said that the French legislation in this regard was among the most advanced in the world. He said that the French have implemented legislation by which private companies sponsoring a cultural event or work of art are given substantial tax cuts, adding that in Malta the contribution of the private sector in the field was practically non-existent.

Another measure Dr Azzopardi mentioned was that holders of historic property would be forced by government to maintain their property, for which the government will then give tax rebates. He also mentioned that the Louvre director agreed to an exchange of curators between Heritage Malta and the prestigious museum.