It was bad enough that the Nationalist leaning media tried to cash in on the Libya crisis by trying to revive Gonzi’s flagging and waning support by hyping him up as a steady ‘safe pair of hands.’ It was the same way that Sarkozy and Cameron did on their home fronts
But it was even worse that the government has now decided to adopt a deceitful twin-track strategy by trying to play down the impact of the Libyan crisis on the local economy while raising hopes of the enormous economic opportunities that are bound to present themselves once the Libyan crisis blows over.
If proof was needed of these two irresponsible statements one need hardly look beyond two particular interviews: The interview in Il-Mument with Alan Camilleri, the Malta Enterprise chairperson on 27 March as well as Thursday’s interview in the Business Supplement of The Times with Minister Tonio Fenech, wherein the Finance Minister stated daringly that the impact of the Libyan crisis on the local economy is only limited.
These two interviews, compounded with the way the PN-friendly media tried to hype up Gonzi’s image, shows that while we have been seeing much military posturing and even intensive military action on the Libyan front, in Malta itself, government and PN spin doctors are busy at work trying to shore up another regime: The Gonzi administration – that, from what I have learnt from inner PN circles, is already thinking seriously of succession planning at some stage. If not formally, at least within certain PN quarters.
Some have even gone to the extent – which I do not find that credible at this stage – that not only must Gonzi go but also that ideally he should go before the forthcoming general elections.
Whichever way the Nationalists intend to react that is their problem. And none of my business.
Please allow me to comment on the Camilleri-Fenech interviews.
Camilleri led his readers and the business community to believe that when the Libyan crisis ends, there will be big opportunities for Maltese companies since once the situation normalises itself there will be an urgent need of a process of massive reconstruction in Libya... while (wait for it) ‘ix-xogħol li kien għaddej irid jitkompla...” (the work that was being carried out must continue). Such words imply that Camilleri is even cheekily suggesting that a business as usual mode could easily set in again.
The figures that Mr Camilleri quoted of Maltese working in Libya are understated, since he tends to exclude those Maltese employees who actually work in Malta itself but who depend almost entirely on companies with Libyan investment whose main market is the Libyan market itself.
He equally seems to ignore the unquantified number of Maltese who work, or rather worked, in Libya for foreign owned companies as well as those Maltese engaged not only in companies with Libyan investment but also in Libyan related trade.
It is rather strange that ME claims to have all the right databases on our economic activity with Libya and yet cannot quantify the extent of Maltese investment in Libya.
While I agree with Camilleri that the impact on all those companies operating in Libya is immediate, since in his own words the country is in a virtual state of war, I also agree with his claim that all trading activities equally grind to a halt in such a scenario. I am personally aware of a number of Maltese located firms who have been hit this way due to their extensive trade exposure with Libya.
What I find wishy-washy and over simplistic is Camilleri’s claim that the clearer the air becomes the easier it will be to ascertain what is really happening. Eureka!
As things stand not only are we light years away from the normalisation of the situation in Libya, but in my personal opinion our economic relations are facing a lose-lose situation at least in the near term, since I cannot foresee a business as usual approach reactivating itself overnight. That some business community members still believe this to be the case is equally disconcerting.
ME is claiming to be facilitating the cash flow of a number of companies hit by the Libyan crisis; to what extent I do not know yet. But it seems that the main focus is on companies processing pending orders.
From what I can tell the best government can do to improve their cash flow is to ease government induced burdens like VAT, social security, tax elements etc. at least at the immediate collection stage.
What I find pathetic and saddening is that while only a few months ago Bondi+ (which now seems to be rooting for regime change almost more than the Brits and the French are doing) was glorifying a prominent and successful company with Libyan capital on the eve of its bond issue in such a manner that the programme came across as a promo rather than an investigative bit of journalism, another glossy local magazine only a few weeks ago had dedicated most of its pages to leading Maltese entrepreneurs who had broken successfully into the Libyan market. I do not recall Western democratic credentials, human rights issues or transparency and anti-graft considerations featuring in any way in their equation.
Camilleri was mistaken too when he misled readers into believing that the majority of Maltese industries in Libya were construction related. Downplaying the amount of those who broke into retail and such other tertiary sectors as medical services and ICT related activities and logistics.
In last Thursday’s interview, the Finance Minister had the cheek to boast that he thinks that the situation is manageable and that the impact is not as huge as was expected. And yet, meanwhile, he still seems to be at the stage of admitting that his ministry is still in the process of trying to assess the impact of the Libyan crisis on those companies like Medavia that are directly dependent on Libya. The same goes for the majority of companies that form part of the Libyan Arab Maltese Holding Company.
Technically, Mr Fenech might be correct when he said that the Maltese government could support businesses by dealing with the new government in Libya when one is formed, to ensure that any dues are fully paid, but if the Minister thinks this will happen overnight he must be living in cuckoo land.
Things in Libya are still at the stage where diplomats are still trying to figure out how much meaning and depth is there in the vision statement by the Libyan National Council while latest reports from varied sources ranging from Der Spiegel to leading US publications, imply that while the Gaddafi government is experiencing some fragmentation, chaos and uncertainty continue to prevail in Libya’s revolutionary leadership, while concurrently cities like Benghazi remain home to hit squads of both rebels and Gaddafi loyalists. Other leading newspapers speak of death squads running around on both sides.
The UK Independent last Thursday hinted that Libya could soon experience what Afghanistan did. Primarily when in the latter case US weapons supplied to the mujahedin are now being used by the Taliban against American forces.
No wonder that reports continue to filter in that in Libya the CIA is busy gathering intelligence on the rebels as the coalition partners move closer to providing direct military aid or guidance to their army. I do not blame them for doing so. The allies need to assess whether rebel leaders could be reliable partners if the administration opts to begin funneling in money or arms.
Meanwhile Malta Enterprise and our Minister of Finance have opted to continue dreaming on! Or rather make people do so!
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www.leobrincat.com
Leo Brincat is the Shadow Minister for the Environment, Sustainable Development & Climate Change