The setting up of a new foundation with the primary aim of promoting Maltese financial services throughout the world is undoubtedly a step in the right direction. Although Malta has been in the financial services field for over 20 years, a co-ordinated marketing strategy has been lacking. This task was left to individual practitioners and their firms, who successfully attracted to Malta many businesses, some with prestigious names. The promotion of Maltese financial services has had its success in the past because Maltese practitioners believed in our own products and felt confident in investing in this sector. The evolution from an offshore jurisdiction to onshore, has brought credibility and now, as members of the European Union, we have established ourselves on the world map. Yet Malta's financial services have a long way to go for it to be a well known and recognisable product. Foreign players in this field are still happily surprised at what Malta can offer potential clients, once this is explained to them.

It would be correct to highlight that Maltese practitioners are in a position to market their individual services due to the fact that there exist sensible pieces of legislation. This is one sector in which both political parties have worked hand in hand and it is fair to say that there is political stability in this sector. Neither of the two parties has threatened to rock the boat or even include it in their political debate. Legislation, even the last amendments in our tax legislation, has seen a smooth transition hitting very few headlines. The Prime Minister, Dr Lawrence Gonzi, has listed the financial sector as one of his ambitions of growth. In the last PN General Council he set the target of 2015 for Malta to be one of the major jurisdictions in Europe in the financial services field.

I believe this is also attainable and within our grasp. The set up and investment of Finance Malta is one of the measures to achieve Dr Gonzi's shared ambition.

For the past few years Malta has enjoyed a reputable regulation regime. Competent people have filled posts that have both facilitated investment and also managed to establish and execute rules and regulations that reassure foreigners making use of Maltese corporate vehicles. This is vital for Malta to establish itself as a major player in banking, taxation and corporate services. Striking a balance between being practical and assuring seriousness has its pluses. Foreign nationals start to think of moving their operations to another jurisdiction because of the over regulation that exists in their country, which is expensive and time consuming. Tax incentives could have less importance in their priorities. They will move to Malta, if we guarantee that there will be no such burden.

Speed has been another element that assists our financial services. The fact that we can incorporate a company in two days is a vital asset. This has to be sustained in the event that Malta attracts volume. MFSA has to have the manpower and expertise to service all enquiries, applications and regulatory demands. I feel that attracting foreign professionals, who may be employed by regulators, should not be excluded a priori. It is true that the University of Malta is producing well prepared graduates; but foreign employment at all levels is another way to get a long-term return. We have a mistaken view that the financial services sector is not labour intensive, which will not be the case when we attract volume.

This is because that is what we need now, volume. Banks, asset managers, insurance brokers, and so many specialised reputable firms will be attracted to Malta if there is volume. Big names will continue to flow to Malta and establish permanent offices on these islands if there is a considerable number of clientele. The expense to set up shop will only be justified if the turnover has impressive figures. I believe that in order for Malta to succeed these players in the international banking and financial services sector would have to be represented in Malta. It is very well that most of them have corresponding firms in Malta, and pass on enquiries and clients, but it would be the true jewel in the crown if they actually acquire offices in Malta, employ staff and actively promote Malta. In this case they would have a vested interested and a reputation to maintain. Their directors and managers will have to justify their exorbitant salaries to their boards and shareholders.

So Finance Malta will be an essential element to Malta's success. It will have to remain aloof from any government entity and be flexible in the use of resources and strategy. We cannot emulate what went on in the tourist industry when it was expected that every strategy had to be perfect from the outset. What is important is that it must be left to create and change strategies to the need not only of the time, but also according to jurisdiction and sector. Consultation is important, but a protracted discussion will only mean lost opportunities. This can be seen in many other sectors of our economy and politics. I would dare to say that the government should pump in the money but take a calculated risk in having very little control.

Dr Mifsud is a PN Candidate on the 1st District and is a member of the PN Administrative Council.