When I was shadowing finance under John Dalli we were both in agreement that one should not abide strictly by IMF observations and recommendations as these could easily erode our social network and quality of life given the mindset of the key players that run the Fund. This was particularly so if we were to implement their suggestions to the letter

But now that government has chosen to arbitrarily use the recent IMF Report as something to boast about in the PN-friendly media as well as during the PM’s recent party activities, I feel duty bound to expose the arbitrary manner in which the PN lifted quotes from the IMF purely for political and partisan ends.

Suffice to say that while they merely limited their quotes to a summarised PIN – public information notice – they found no time or inclination to quote a far lengthier report prepared by the fund under the title of ‘Malta: 2010 article IV consultation – staff report’ which carried the same date as the summarised report.

The report made some starling conclusions.

That:

• Further policy effort is needed to fully exploit the benefits offered by EU and euro membership;

• Strong and sustainable growth requires a strategic policy approach and prudent risk management;

• Although Malta experienced a cyclical upswing, momentum is expected to fade;

• Investment, especially in construction, decelerated sharply and remains sluggish;

• Competitiveness needs to be reinforced;

• With elevated house prices and higher mortgage debts, housing affordability has decreased;

• Uncertainty remains high and the risks of contagion tilted to the downside;

• Some banks, involved mainly in international business, are exposed to euro area debt securities that have recently faced significant price pressures;

• Real estate weakness could turn out deeper and more protracted than expected;

• There are significant risks that deficit adjustment may fall short of targets;

• Further tax amnesties may result in moral hazard and harm tax collection over the medium-term;

• Although the Maltese banking sector has weathered the global financial crisis, relatively well, vulnerabilities are rising;

• Profitability in the banking sector is coming increasingly under pressure;

• The upward trend in npls (non performing loans) calls for close monitoring and adequate provisioning;

• Employment rates, in particular for women, remain low;

• Support for higher education should increase but a high quality public primary and secondary education system is also critical to reduce skill mismatch and ensure good employment and income opportunities for all.

By the time of writing I have seen no references to this report in the PN leaning media although I quoted extensively from it last Monday during Inkontri on ONE TV.

Bearing in mind that Gonzi has been boasting that we are now out of a recession that he never ever admitted being in, it seems we are heading for what one may best term as post-recession blues.

Will the environment and development parliamentary committee focus on the environment?

The first meeting of the recently revamped committee was well-chaired by parliamentary colleague Jesmond Mugliett and the interventions by all members present were all valid and to the point.

My only concern is that in spite of the new name tag of the committee as an environment and development parliamentary committee it will remain primarily development driven, with mere lip service being given to purely environmental matters, issues and concerns.

If this proves to be the case as far as I am concerned it will be nothing but a personal time waster and a mockery of its title and remit.

This is the same challenge that both parties will be facing when the House will shortly come to legislate on sustainable development.

Will development be as it should be, at the service of the environment, or will it, as all pointers seem to indicate right across the board, be a case of more business as usual – with the environment subservient as in the past to development. Relegated once again with the tacit consent of many to the role of a cinderella in spite of the original mission statement of Mepa itself when set up under Nationalist Minister M. Falzon who is currently fronting the pro-development lobby. In spite of his commitment then to strike a fine balance between environmental and development issues and concerns.

Alas, as Prof. Axiak once pointed out the only instance in Malta when the environment came first was when Mepa’s name was coined. Since the Environment was mentioned before Planning.

The same mockery has been repeated when the Parliamentary Environment and Development Committee was recently established.

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www.leobrincat.com

Leo Brincat is the Shadow Minister for the Environment, Sustainable Development & Climate Change