People 07/07/2002

The lion waiting in the shadows

Shadow Finance Minister Leo Brincat speaks to RAY ABDILLA about Malta’s internal problems, his surprise appointment as finance minister after Lino Spiteri and Alfred Sant’s ‘human touch’

I meet Labour Party shadow finance minister Leo Brincat before the Labour leader’s second article in The Times in which Dr Sant explains that what he had suggested a week earlier did not imply ditching the party’s EU partnership option.

Inevitably I ask Mr Brincat for his reaction to Dr Sant’s comments.

"Dr Alfred Sant was in no way implying that the party shall be ditching the European partnership option. He had in mind that we come across more and more people of different political leanings who feel inundated with all this talk of EU membership and/or the partnership option," Mr Brincat explains. He continues, "These people feel that we should instead focus on purely domestic issues as a priority, particularly since the EU does not offer the key for a better environment, for a stronger industrial base, for a more diversified tourist market, for a sounder infrastructure, for better cleanliness as well as for better service provision in the health and education sectors."

The photogenic Mr Brincat insists, "Had we decided to drop the partnership option we would not have been pushing PBS to ensure that our promotional ads are given the airing allocated to us by the Broadcasting Authority in order to try and remedy the strong media bias that we are facing on EU matters."

Ironically the EU debate characterises Mr Brincat’s initial involvement in politics. He speaks about how he got involved in the Labour Party somewhat by default. Apparently the then Labour League of Youth were invited to a conference on the EU way back in 1973 - a subject on which they hardly had any specialists at the time.

Since Mr Brincat had written a couple of articles on the then European Economic Community for the Daily News he had been invited to participate. Although at the time he was not even a member of the Labour Party’s youth section.

Executive or bureau, from then on he decided to join the League and become an active member. It all followed naturally from that point onwards.

I ask Leo if he comes from a Labourite family, to which he responds; "not really, I must admit that although my family respect my views only a minority of them are Labour supporters. This applies to both my mother's and father's side. It nevertheless does not keep us back from having a healthy relationship - as normal citizens should do."

Mr Brincat first ran for elections in 1976. He mustered a few votes primarily from the San Gwann area where he had only just took up residence two years earlier. In 1981 he won a seat in Parliament on the strength of a ninth district casual election following Patrick Holland's election from two districts. From there on he was always returned directly, having also got elected from two districts (the 9th and 10th) in 1987 when the boundaries had been drawn differently. He has been a 9th District MP ever since.

In the eighties he was made Parliamentary Secretary for Housing which was a key post at the time and in the eight months before the 1987 general elections Mr Brincat had the task of seeing that housing estates in Gzira, St Patricks, St Andrews, St George's, Pembroke and Tigne' were allocated to needy families.

I raise the issue of the highly controversial housing scandals during that period. Mr Brincat says that the MLP government gave preference to those families who had the longest standing housing files. He admits that there were a few cases, which could have been better handled administratively. Plots issued were subject to PAPB approval: the original list of plots targeted for public issue had been drastically halved by the PAPB purely for environmental reasons. Mr Brincat acknowledges that the environment was unfortunately not as highly rated an agenda item as it is today - something for which all of politicians must be somehow blamed.

Regarding the three leaders he worked with, Dom Mintoff, Karmenu Mifsud Bonnici and Alfred Sant, Leo Brincat says that he learnt and respected all of them.

Although he totally disagrees with Mintoff's antics in parliament in the long hot summer of 1998 he will never belittle his achievements.

"He instilled such confidence in budding politicians that he made close associates feel ten feet tall. His methods might have been somewhat unorthodox - particularly with the benefit of hindsight - but his strategy was masterful and his foresight was unquestionable - particularly when it came to his visionary approach to foreign affairs, especially prior to the naval base closure in 1979," Mr Brincat says of Mintoff.

Mr Brincat describes Karmenu Mifsud Bonnici as the Neil Kinnock of the Maltese Labour Party - he began a quiet revolution which led to a smooth transition in Labour's thinking although not everyone agreed with his foreign policy stances which many considered to be too Libyan leaning.

"He nevertheless had succeeded in mending bridges with many foreign personalities and journalists who had become estranged with Malta at the time of the Mintoff government," Mr Brincat elaborates.

On the current leader Mr Brincat has the benefit of knowing Alfred Sant well since his time as party president. Both had travelled overseas together on various occasions, and had also been jointly responsible for getting Willy Brandt to accept the MLP proposal for the setting up of a Mediterranean working group.

"From a distance he might seem uncommunicative but he is a warm person who cares very much not only about our personal wellbeing but also about the welfare of our family members," Mr Brincat says.

The Labour MP explains that he experienced Dr Sant’s ‘human touch’ when Mr Brincat's mother was suffering from Alzheimer's Disease and when his daughter was going through her University studies.

"He is sharp, incisive, forward looking, a good strategist but also contrary to public perception, a good listener and a flexible person," Mr Brincat emphasises.

What about today’s Labour Party when compared to the past?

Mr Brincat says that the MLP is far more in tune with the requirements and exigencies of civil society. It has a wider outreach, is more communicative with the social partners including the business community, and has a social democratic platform that is modern without going back on basic principles and beliefs. This is what made him enjoy co-ordinating the recent update on the economy and finance.

The finance shadow minister adds that when in government there were some Labour Party supporters who were sceptical about the party because they did not understand what it really stood for.

But Mr Brincat feels that now Labour has successfully reached out to these people and also managed to take them on board. "Former ministers and parliamentarians today publicly admit that they feel part of the same 'family.' I do not know of any of them who feel left out anymore. The same applies to party rank and file," Mr Brincat says so with a certain confidence because every week he makes it a point to visit all the village party clubs of the areas he gets elected from.

Nevertheless, Mr Brincat believes that there are some issues where the MLP needs to push it's policies harder - particularly on the need to reduce state dependence as well as on the importance of privatisation so long as it enhances efficiency and boosts productivity.

He also agrees that today there are more floating voters around. In the long run he thinks it is a healthy characteristic since it should make politicians try harder and become less complacent and cocksure.

His appointment as minister of finance during the last Labour government, came as something of a surprise. He had been occasionally asked to deputise for his predecessor Lino Spiteri - on his recommendation - in international fora. Lino Spiteri often used to tell him with tongue planted firmly in cheek that he should brush up on his reading on financial matters. Nevertheless coming as it did so early on after the change in government in 1996 there was no doubt a surprise element in the appointment itself.

Regarding Alfred Mifsud as being a possible finance minister himself under a Labour government, Mr Brincat says that Alfred Mifsud is somebody he has known since time immemorial. Apart from having had a good working relationship when Alfred Mifsud was Mid Med Chairman and Brincat was 'his' Minister they both shared the same office in Mid Med's Research and Advisory Unit way back between 1980-81. According to Mr Brincat, Alfred Mifsud is a very valid person and has a lot to contribute to the Labour Party. Mr Brincat has never considered colleagues a threat not even when they happen to be running on the same district. If both manage to get elected - as they both stand a chance of doing – who gets which portfolio will be Alfred Sant's prerogative.

The Labour Party continuously harps about the increased tax burden, but will it reduce taxes if in government?

"The new Labour government will have to restore the balance between taxes collected and recurrent expenditure levels' exorbitant growth," he answers diplomatically.

Mr Brincat continues, "As things stand we have a confused fiscal policy where taxes are constantly increasing, yet at the same time proving inadequate to keep pace with the upswing in recurrent expenditure." He adds, "We have to go for a value for money approach in the public sector and if need be instil some of the methods which the private sector has used successfully over the years. The pity is that we are virtually on election eve and hardly anything tangible has been done regarding private public partnerships or public sector benchmarking."

Mr Brincat explains that one of the priorities of a new Labour government will be to carry out an extensive review of taxation levels to be able to ensure more justice and equity in their application. "While the plight of the working class and middle class people will be our priority at the same time we have to ensure that we do not harm the environment that is needed to generate business confidence," Mr Brincat says.

What will the MLP government do to ensure that public expenditure is reigned in?

He responds, "I was recently shocked when senior officials of the Foundation of Medical Services were unable to provide me as Public Accounts Committee Chairperson with specific replies as to the estimated cost of the new hospital project as well as to the extent of the amounts paid out and or committed to foreign consultancies on the same project. Does this augur well for a value for money approach?"

Mr Brincat states that VAT brought about an economic slowdown. All self-employed believe so - including those who might find VAT refunds convenient.

"There was an upswing in the making in early 1998 but the Mintoff saga soon deflated any expectations we might have had. Nevertheless our public finance figures were much healthier by early September then they ended up presented by Minister Dalli after he arbitrarily doctored them," Mr Brincat hits out.

The MLP is committed to bring in a whole team of private sector auditors to make sure that an intensive audit of public finances will be carried out as of day one. The National Audit Office is presently not adequately staffed to tackle such a task with the same speed. Mr Brincat insists that the MLP in government need to have the right financial information at its fingertips during the first hundred days of office to make sure that no creative accounting will be allowed to run amuck in this sensitive area.

"After all Enron scandals can also surface in the public sector areas," Mr Brincat says.

On the state of the economy Mr Brincat remarks, "When the Minister of Finance complains that certain business sectors are over invested it shows that investments are not being made in those areas where we have most potential. It is worth asking ourselves why. One of the reasons is that many people tend to go for what they consider the quick buck rather than planning ahead strategically. "

Mr Brincat argues that the current business climate is not one to allow you to think adventurously and innovatively particularly since all key players - the government, the business community and consumers are feeling the crunch of the credit squeeze and cash flow problems.

He doesn't believe that the political division over the EU membership application is affecting productivity negatively. He quotes in support a recent FOI survey where only a small percentage of those interviewed blamed the downturn of the economy on the political situation.

He says that Malta needs more discipline, fewer Mafia style dealings, a higher degree of flexibility and more innovativeness. "We need to maximise our skills without kidding ourselves that we are the, be all or do all of the Mediterranean," Mr Brincat says.

Above all he believes that Malta needs a self-respecting Government with a clear agenda that has economic and export led growth as its priority task without sacrificing its ever-growing social needs.

Mr Brincat is for splitting the baby on environment: "Tourism needs the right mix of product and infrastructure development. We need a medium term strategy that does not ignore sustainability while at the same time we need to have certain amenities such as golf courses, which nowadays even North African competitors of ours have. There is still room for more animation activities as well as embellishment of such tourist areas as Paceville amongst others."

He's also for full disclosure of the facts. " We also need to start calling a spade a spade, particularly since certain people that matter recently chose to keep mum when occupancy figure projections for May-August 2002 became available to them."