The Malta Independent 31 August 2026, Monday
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Charles Mangion: More pragmatic and realistic economic policies

Malta Independent Sunday, 7 January 2007, 00:00 Last update: about 21 years ago

If Dr Charles Mangion can run for hours in the marathons he takes part in, he is also able to speak for hours about politics. And it is with the same enthusiasm and dynamism of a marathon runner that the deputy leader of the Labour Party for parliamentary affairs agreed to discuss his views on the actual economic policies and the solutions his party proposes to improve the situation. He also mentions the new relations of the Labour Party with the socialist group in the EU, declaring that it is now important to make the most of the integration of Malta in the EU.

When did you start being involved in politics and why?

It’s a little difficult to identify the exact time when I began to be involved in politics, but I was quite young as in the early seventies I was already involved in the young socialist league. It was a very active section of the Labour Party. The late sixties and early seventies, the time of my youth, were times of change. Maltese society was experiencing substantial change. The spillover effect of the student protests of the late sixties, which occurred primarily in France and then all over Europe, were being felt also in Malta. It could also be that there were few other things for young people to do and this early experience of politics was very exciting for me. Paceville didn’t exist! We were living in closer communities. The Church still dominated Maltese society... and I developed a passion for politics. I graduated as a lawyer in 1981 when I also contested my first general election. I have represented my constituency on the Labour ticket since 1987.

Why did you choose to support the Labour Party? What are the main differences with the Nationalist Party that pushed you to follow this way?

I come from a Labour Party background. So when I chose the Labour Party, my family background more or less influenced my decision to join Labour. But it was more than that. As I grew older and started making my own assessment, I felt that the Labour Party was the more progressive party, as it tackled vital social issues such as social housing, free health services, minimum wage etc. These issues appealed to me and I felt that I ought to contribute to their realisation at the time and help maintain them in the future.

In your opinion, is it still the most progressive party?

Yes. In my youth, the Labour Party was always very much identified as being the party of the working class. While not abandoning its origins, things now have to be assessed differently. Globalisation and technology have brought about a new reality. Resisting the reality of globalisation is nothing more than a waste of time. However, I believe that we have to work hard in order to make globalisation work favourably for all categories of people who earn a living through employment. I consider all employees as workers even if they have different roles in the work they do. We all have certain basic aspirations to attain, through our work, a good standard of living and a better future for our children and ourselves.

I think that within this context the Labour Party still is the more progressive party. Now we are part of the EU and our policies have to be compatible with those of the EU. In this perspective, the Labour Party takes a very active part in the socialist group, which is the only group trying to find a third way to neutralise the negative effects of globalisation on the employed workers. For me, the term worker embraces each category of salaried and wage earning employees regardless of the work they do. This does not mean or imply that investors and entrepreneurs need to be seen as the natural adversaries of the employees. Each person has a function and the role of politics is to reconcile the different economic roles in order to get society functioning smoothly – as much as humanly possible. I feel that this makes our party an all-inclusive one in its approach to the present and foreseeable challenges ahead.

What are these negative effects of globalisation you mentioned?

Globalisation has intensified competition in world trade. The transfer of capital and labour has become faster and it has been accelerated by the information technology revolution. In my opinion, the main effect is the fact that large corporations and banks are getting richer but the conditions of employees have not really improved as much. Yet, globalisation is a reality and you can’t stop it. It is something you have to face in a liberalised economy. The creation of wealth has to continue, but then we have to find some means to distribute that wealth in a more equitable way.

That’s how I see politics today. We have to be very pragmatic and realistic, encouraging economic growth and the creation of wealth. But we have to ensure that the wealth generated is enjoyed by and spread throughout our society. The government has two main responsibilities. First, it has to create an environment of efficiency, finding the right balance between taxation and incentives to create wealth. Its second task is to ensure that the social fabric that has been built over the years will be maintained, fostered and improved so that all people can live decently. As socialists we cannot remain indifferent to any person who is or risks being emarginated. This belief drives us hard to create a more inclusive and caring society. This might sound idealistic but it’s a goal worth striving for.

You mentioned your participation in the EU. Did the Labour Party change its mind about the EU since Malta is part of it?

The Labour Party was never anti-Europe. We had proposed a partnership agreement with the EU in order to have more time to absorb the changes that had to be made. We believed this was the best way forward in our relations with the EU. The people have freely chosen a different option and we accepted the people’s choice; now we are working hard within the structures of the EU to get as much possible from the EU in order to mitigate the negative effects brought about by adherence to EU policies and practices.

Up to now, what were the main effects of Malta’s membership of the EU?

The funds that have been allocated to us for the years 2007 to 2013 have to be utilised well so that when these funds decrease as from 2013 our economy will be in very good shape. Getting real value-for-money through the proper utilisation of these funds is necessary for a sustained economic growth that underpins all social progress.

How could you use it properly? What needs to be improved?

Our physical infrastructure, including our tourist facilities, definitely needs to be improved. We need to ensure that our bays are clean, our seas are not polluted and our beaches are better than they are. We have to take care of the whole environment, both for the sake of our own people as well as for the tourists who visit us.

We also have a problem in our educational system. We spend substantial sums of money on education, but we are also the worst performers or achievers in education in the whole of Europe. About 42 per cent of our children leave school early. It is a great loss, a real waste of human and financial resources. This phenomenon holds us back from enhancing our advantages and makes us less competitive. Secondly, when it comes to students studying IT, science subjects, engineering and so on, we have one of the smallest skills pool in Europe. We haven’t improved over the past years. Why? Because the present government has not focused on getting the results from our educational system. Our government prides itself on high spending per capita, but fails to acknowledge that we are not achieving enough as a result of this spending. The Labour Party published a document on education mainly saying that we need to monitor our students in primary and secondary schools. We also need to provide more professional guidance. For instance, if we need more engineers, we have to make sure that we persuade more students to enrol in engineering courses. Today, we have many young people graduating in subjects where there are no job opportunities and this creates considerable frustration. We have to provide proper vocational guidance to help our children make the right choices.

Moreover, we have to be sure that nobody leaves school at 16 without basic literacy and numeric skills. To achieve this we need to assist families who are struggling with other economic and social priorities so that they give the necessary attention to their children’s educational needs. We have to attack the roots of the problem.

Both the document on education and the document on the family address these realities.

How do you see Malta’s role on the international scene? Do you think that Malta should stay as neutral as possible?

Being a neutral country has gained us respect in the international field. Other European countries, like Ireland, hold fast to their neutrality and I think we ought to do the same. As a small nation we do not have the clout to influence effectively bigger and more powerful nations. By maintaining a neutral status, as defined in our Constitution to which all parties adhere, we contribute to our economic, social and political stability. This stability promotes a better environment for investment. Even as members of the EU we are free to develop relations and exploit opportunities in countries to the south of us. Furthermore, within the concept of the global village we have also to look further afield to enhance relations and seek opportunities far beyond our immediate neighbours. Maintaining our neutrality will help us realise these goals.

How do you consider the problem of illegal immigration in Malta and what would you propose to solve the problem?

I support the government in its work to address this problem. I understand the desire of these immigrants to pursue a better life and I pity them. But Malta has serious limitations and we must be very firm with the EU. The EU has to share the problem because since we became members, we are now the southernmost frontier of the EU facing the influx of immigrants trying to leave North Africa to come to Europe to have a better life. It is an international problem that we have to deal with. We must be human but we can’t destroy Malta’s social fabric. The influx of large numbers of illegal immigrants has created anti-immigrant reactions, which are not fair of course, but I also understand the people’s concerns and fears.

But do you think that the arrival of the immigrants has had a real impact on Malta’s economy? Many people, for example, fear that these immigrants are taking their jobs.

It is more complex than that. We have some immigrants from deprived countries who are married to Maltese. They have integrated well in our society and they work here legally. On the other hand, the illegal immigrants are often exploited and are not even paid the statutory minimum wage. We can’t allow that, first because they are treated like slaves and secondly, if they are underpaid they will actually be taking the employment opportunities of others. The real problem is mainly a question of enforcement of our laws and labour regulations. We will have to see how this situation develops.

But the problem of unemployment is more complex. For example, in the manufacturing sector we are losing jobs that are not replaced by others through new investment. This sector is getting more and more sophisticated but there is a lack of workers with appropriate skills. We need to remedy this situation as quickly as possible. The tourist sector is also very important but we are not creating enough employment in this sector. There are many sectors that are doing well; however, the leaders of these industries often complain that they do not find the necessary number of qualified workers to work in these sectors. It is not only a question of supply and demand. Our economy is not performing as well as it should. For example, we are failing to improve performance in the export-oriented industries. Our current account deficit in the foreign trade is growing and has become very significant.

Which resources in Malta are not fully exploited and could be better used to improve the Maltese economy?

We don’t use our human resources enough. We need a strong plan, starting with the creation of work. Our economy is small but we have strong components. The manufacturing sector, for example, is an area that can grow and that we should better develop. We have to encourage what we already have and invest more. Furthermore, the employees have to be better trained. All human resources have to be skilled. Our tourist industry must grow as well as the infrastructures that identify Malta as unique. Our seas are polluted for example, and we recycle very little of our waste. We really have to act efficiently now.

Malta can also develop a strong marine services industry. We have big docks and a strategic location in the busiest sea of the world. There are so many things to develop in this area. Ship management is becoming a more important industry in the context of new international regulations with which ship owners have to comply. We also have to improve our engineering services overseas, as well as our financial services, which will be helped by our EU membership. We must identify our targeted economic sectors for growth and ensure that bureaucratic restrictions are reduced to a minimum.

We have more than our fair share of regulatory bodies but not all of them seem to be adding value to what we do as a nation. Of course, we need to adhere to minimum standards and regulations but certain regulatory provisions are simply bureaucratic and therefore unacceptable. While we all admit that accountability is important, few people are really held accountable for what they do. Our recent tourism plans have failed and now we need a rescue plan. People need to know why the first plan failed. Substantial sums of money were wasted. We also have to improve the healthcare system which didn’t change. We need to define a sustainable plan for economic growth in order to improve our performance. We have to define what needs to be done and prioritise our actions.

If the Labour Party is elected the next time, what will be your first priorities?

The first thing we will do will be to improve the tourism sector because it is a means to promote economic growth in the short term. Then we will look at other sectors of the economy. Our second priority will be the education area and then the health system. All these fields are interlinked, therefore we will need an integrated plan. We are confident that a Labour government will provide the necessary leadership to the economy so that in a few years’ time the quality of life of our people will be much better than it is today.

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