Blanche Gatt interviews PN candidate John Dalli, ex Minister of Economic Affairs, Finance and Foreign Affairs, about his years as a member of government and his current bid for re-election to Parliament.

Three years after your resignation as Minister of Finance because of allegations now proven to have been false, you are standing for re election as a PN candidate in the Qormi and Sliema districts. Can you explain why you haven’t turned your back on the Nationalist Party after that experience?

I have never abandoned the Nationalist Party and have remained active within the party even though there were limitations on my contribution. I still feel that the Nationalist Party is the best alternative for Malta and I am currently doing my utmost to realise the re-election of the party to government. I myself still have got a lot to contribute to the country within the next Nationalist Government.

Many Nationalist supporters credit you with being the architect of Malta’s modern economy. Do you accept that description and which of your achievements do you think validates it.

It is a fact that I spearheaded most of the economic reform since 1987. It is very hard to define any one achievement as the most important, but if I had to mention one definitive measure it would be the creation of the financial services industry, which today is the main motor of our economic development. We have managed to turn our economy from a socialist to a market economy by curtailing government involvement and motivating private enterprise. We have liberalised and privatised public services and companies and we have upgraded our industrial base and created new economic sectors, especially in financial services and eCommerce.

You held government and Cabinet posts from 1987: Parliamentary Secretary for Industry and then Minister for Economic Affairs, followed by 10 years as Minister for Finance and a short spell as Minister of Foreign Affairs until your resignation in 2004. Do you feel this enhances your bid for re-election to Parliament and why?

I believe my experience in the various ministerial positions and the positive track record that I hold do enhance my current campaign to be re-elected to Parliament. I have 16 years of experience in government positions and I must say, this three-year sabbatical has given me a deeper understanding of the expectations of our citizens, and renewed vigour to find new ways to improve our efficiency in servicing the needs of this nation.

Now that Malta has achieved the goals of EU membership and euro adoption, having introduced the relevant fiscal reforms and structures necessary for sustainability of these positions, what should Malta’s focus for the future be?

Our next step is a quantum leap in quality. We have now absorbed the changes that EU membership brought about. We are appreciating the opportunities that European Union membership presents to us. The EU is funding us to improve our infrastructure and we have to ensure that quality should underpin all our actions, and that the right education and formation of all our citizens, both young and old, should emphasise awareness and understanding of quality issues in anything that we embark upon. Quality improvement should be experienced in our relationships among ourselves; in the way we function, in the protection and enhancement of our environment and generally in the ethics of all our actions.

Financial Services is one of the areas where Malta is showing steady and impressive growth. What do you feel has made Malta so attractive to investors in this sector, and how can the island ensure it continues?

First of all the setting up of this financial services sector was carried out after extensive research and the result has proven to be an excellent one. Our structure has been such that we could defend it and retain it throughout our negotiations with the EU and afterwards. We have marketed this sector well and from the start took the right decision to go for quality rather than volume. Our policy thrust was stated in our motto, which stated: “Malta is to be used not be abused”. This sector needs to continue to grow through innovation. We have to keep legislating and organising ourselves for new services so that we will continue to be on the cutting edge of this sector on a global level.

As the minister responsible for the economy and later for finance through the 1990s and until 2004, you led the privatization process that is said to have kick-started Malta’s economic re-birth. What were the specific effects of privatisation on the economy, and why did this make such an impact on performance?

We never viewed privatisation as a financial exercise but rather took the view that this was an economic one and sought to have economic paybacks in terms of inputs on which our economy could grow. We always thought strategically, trying to choose partners that would not only make a success of the particular company we privatised but would also expand our exposure and markets internationally. We sought to make big improvements in our standards and in our technology. This has resulted in more efficiency in the companies concerned, better service to the other sectors of the economy and, in many instances, cheaper prices for the citizens of Malta.

The liberalisation of trade and telecommunications that took place under your Ministry are heralded as milestones in Malta’s progress. Can you explain the significance of these issues and how they impact on the ordinary man-in-the-street?

The liberalisation of trade and telecoms gave our citizens the freedom of choice they were previously denied. Liberalisation of trade and telecoms also supplied our citizens with quality products and services and brought about competition, which drove prices down significantly.

The modernisation of the taxation system, the introduction (twice) of VAT and the controls on spending of government departments and organisations formed an essential core of the overall economic reform Malta has undergone through the last decade and a half. How significant is it that this process continues into the future?

During my tenure as Minister of Finance I headed a massive reform of the tax system that sought to increase fiscal morality, reduce taxation and reduce the bureaucracy of tax collection. The result was a lowering of the percentage, which every individual paid in tax over his total income, while at the same time substantially increasing government revenue. Concurrently, we rationalised government expenditure and dedicated our resources to worthwhile projects. Today we can boast that we are achieving positive fiscal results. This is only possible because of the momentum generated by these reforms and the fact that the system that I put in place is efficient in translating economic growth into government revenue without the need of additional taxation measures. We should continue this process of tax reform by reducing taxation and improving the efficiency of tax collection as this will result in a much more stable environment, which in itself will enhance our economic performance and enable us to sustain a caring and socially just society.

What do you feel are the issues that will dictate the outcome of the forthcoming election and how are you planning to address these issues?

The main issue will be quality of life as expressed in economic activity, environment and education. Stability within the EU and progressive tax policies as well as an in depth reform in bureaucratic attitudes will ensure economic growth, which in turn will provide opportunities such as well-paying jobs and new business prospects. We will be investing heavily in both education and the environment to ensure we have all the resources needed to advance knowledge and sustain our environment.

You are now asking voters in two districts to select you to represent their interests in government. What are the main reasons you believe they should do so?

As I have said before, I stand on my track record. I look back on my past performance with great satisfaction. I look ahead with a vision for the future with excitement and an urge to get going. I believe that this country can be one of the best countries in Europe. We are on the right track and we must be innovative and proactive. A journalist once said that, with me, “what you see is what you get”. This is true. I have no hidden agendas, no masks and no screens and I always stand by what I say. I am once again offering my services to the electorate. I offer commitment and the capability to understand and solve problems not only at national level but also on local and personal levels. My credentials are there for all to see. I offer my full commitment and I will be putting that commitment and dedication to work once more in the service of our people, our country.