Yesterday, parliament continued debating the amendments to the Port Workers Ordinance.

In his winding up speech, Competitiveness and Communications Minister Censu Galea said that the debate on the amendments to the Port Workers Ordinance had been one of the shortest parliamentary debates ever. The amendments proposed would give a legal structure to the agreement reached between the Malta Maritime Authority and the Malta Dockers’ Union.

Mr Galea said that it is important to understand that the amendments are necessary for the improvement of our ports.

He pointed out that there have been huge investments in the Freeport, and other investments are being made in Grand Harbour. Such investments, he said, are necessary in order to make the port more efficient and to increase productivity.

The Bill was given a second reading and sent to Committee stage.

The amendments to the Value Added Tax Act was the next item on the agenda. Parliamentary Secretary in the Finance Ministry Tonio Fenech said that the object of the Bill was to impose a duty on goods in transit to be supported by the necessary documents.

Although only two amendments are being proposed, they are important for ensuring that the economic activity in the country is carried out in a fair way between the operators involved. The amendments seek to ensure an level playing field so that those who operate in the market bear the same responsibilities.

Mr Fenech said that competition is important and we must do our utmost to encourage it so that the consumer benefits. Fiscal abuse and tax evasion undermine the legitimacy of those who operate according to the law.

He pointed out that the VAT Commissioner is being given wider powers. Any person who transports goods in the course of an economic activity, on his own behalf or on behalf of or to third parties, shall be in possession at any time of a tax invoice or a delivery note or a transport document. In the course of an inspection, a copy of such a document shall be produced to the Commissioner or to any other officer authorised by the Commissioner. A person who fails to produce the required documents shall be liable to heavy fines.

Parliamentary Secretary Edwin Vassallo said that business has become “easy”. However, it is important that everything is carried out in a legal manner. He remarked that the amendments are necessary in order to strengthen auditing within the VAT department.

Labour MP José Herrera said that the Labour Party is in favour of the amendments and that, in substance, he agrees with what the previous speakers from the government side have said. He said that we are being strict in our laws and we are right to do so.

However, when comparing the bureaucracy involved in such an area to the bureaucracy that exists in neighbouring countries such as in Sicily and Southern Italy, one notices that the bureaucracy is lesser in those places than in Malta.

Dr Herrera said that Article 53 of the Value Added Tax Act already gave the VAT Commissioner powers of search. The amendments will widen the powers available to the Commissioner and to those to whom he may delegate authority. An important factor, Dr Herrera remarked, is that, as Mr Fenech had said, the inspectors will not be people employed at the port but will be selected at random.

Dr Herrera took the opportunity to discuss the constitutional crisis delineating the functions of the Attorney General. He said that the Constitution treats the Attorney General as if he was one of the judges presiding over the superior courts whereas he is, in fact, an autonomous figure. The recent government statements saying that government has appealed against the court decisions regarding the dismissal of the two ADT workers, so that the sentences imposed are more severe, are a shock to democracy.

Government as an executive should not assume the functions of the judiciary, said Dr Herrera. The separation of powers between the three organs of the state has to be observed in a democratic society. It is within the Attorney General’s ambit to appeal against such a decision.

Labour Finance Spokesman Dr Charles Mangion also remarked that there is a consensus on the amendments between the two parties of the House.

Dr Mangion focused his contribution to the debate on the VAT regime and said that it was the government that had increased VAT from 15 per cent to 18 per cent. Notwithstanding Labour’s past criticism of the VAT regime, Dr Mangion said that the Opposition will be voting in favour of the amendments.

In his short winding up speech, Mr Fenech noted that the amendments are being proposed following an agreement between the GRTU and the Chamber of Commerce.

The Bill was given a second reading and went to Committee stage. The Bill was then approved at Committee stage and will be given a third reading.