People • 24 November 2002

Wanting to be there to offer his experiences

SAVIOUR BALZAN talks to Finance Minister John Dalli and asks him for his views about a number of issues, a day before announcing his budget

VALLETTA - As expected he was tight-lipped about Monday’s budget, so I started by asking him, if there was a difference between John Dalli the politician and the person.

He replied that he is a reflection of a multitude of experiences. It works both ways he said, the fact that I am and was a Minister with certain responsibilities had an impact on his personality.

“From the very first days of my youth, I experienced work. My work experience in the private sector imbued me with a work ethic which I have never abandoned.”

Working abroad he continued helped him appreciate what professionalism was all about.

“That is why I am so direct and yes, I try to be honest and transparent about my decisions. With me, everyone knows where I stand.”

The 1996 election led John Dalli back to the opposition benches; the introduction of VAT was seen as one of the reasons for the Labour party’s success at the polls. Returned to government in 1998, John Dalli entered the history books for being the only Finance Minister to have introduced VAT twice.

“I introduced VAT two months after we were returned to government. It was not only that, there were many other things that the previous government had stalled or stopped.

“Namely the Inland Revenue reforms, ill-planned government decisions that augmented spending and the amendments to the pension law.”

“For example, the changes made at Mater Dei in those two years will end up with an extra Lm100 million bill. This is no joke, and this was the fruit of bad decision making.”

In government he recalls how the first hurdle was negotiating the collective agreement for the public sector.

“For all their talk of social justice, they had refused to tackle this issue.”

Mr Dalli claims that he knew that the government would fall in 1998 after he saw the Leo Brincat budget.

“There was no direction and the budget was based on text book solutions. Our country has a different dynamic to its economy; this was completely discarded.”

I turned to the past, how had things changed since his first days in politics.

“There are fundamental changes to the way power is perceived and managed in the Malta of today.

“I am a believer in subsidiarity, where people are owners and not servants of diktats. Today, the employees have the power of mobility and of negotiating better salaries.

“I see the change in education not only for younger people but older individuals. The way youth have changed, the way they deliver. The awareness of environmental and health issues.

“This government believes in staying in the background as society is given the chance to manage its talents and ideals – without a government intent on applying brakes. The government should be a partner with society and not a police officer.”

I asked John Dalli about the past.

“If I had a guarantee that those ugly incidents would not repeat themselves, then I should choose to forget the past. The Gospel says from their fruit you will know them.

“All that has changed is the colour of their skin, otherwise they are the same people who led this country into unnecessary confrontation.

“No one needs confirmation that they will return to their old ways, just see their intimidation tactics with the Central Bank Governor and a University Lecturer.”

He opined that the Malta Labour Party’s form of politics was based on the premise that what they say must be followed.

If the Nationalist Party represents all sectors of society then what should the MLP stand for.

“First of all we cannot view politics in terms of ideology and words, politics is about managing things.

“Today Malta is one big middle class, an upper and lower middle class. We have to cater for this reality.

“If the Labour party wants to be valid, it must come up with a realistic way to implement policies that are socially coherent.

“Eddie Fenech Adami succeeded, I believe in dismantling the perception that the Nationalist party is a sectoral party. Under his leadership, we have definitely moved ahead. The Labour party is still set in the class struggle mode. They tried to shed this image in 1996 but it simply did not fit. Today they are back to the old mould.”

I returned to finances and said that this country is obsessed with its deficit and debt when other countries had similar problems.

“No, the deficit must be balanced for a growth in any economy.”

“I dream of a situation when Malta will only spend as much as it earns and any loans we choose to take are for building the future. We are getting there. Today, the country is paying Lm60 million in interest alone to service debt repayment.

There is much talk of investment and stagnation in the economy. How will John Dalli tackle this problem?

“Our economy is modelling itself on services. We want investment to generate employment and work.

“When we talk of services we have to look at production, and value added. Are we aware of what goes on into a factory expansion or creating new hotel’s, as is happening today.

“Is this not investment?”

He turned to the Malta Financial Services Centre.

“There are many companies that have registered in Malta, we insist that they are not simply names but that they are based in Malta.

“In one year we have seen 400 trading companies registered here.

From the quality and type of investments at present we sense that there is an appreciation in the belief that Malta is in the right spot for building on one’s own business.”

He pauses, and I ask him whether he still believes that Malta can serve as he once said, the capital of the Mediterranean.

“I dream of opportunities where the economy can expand. This will lead to better services and more jobs.

“When Malta embarked on mass tourism years ago, we missed this opportunity. Being such a centre will lead to spin-offs that will generate wealth.”

Is he not preoccupied that with European Union accession Malta will lose its right to govern and decide for itself.

“Maltese politics will be determined by the Maltese. But let not us not for one minute imagine that we can go it alone. See how Russia is acting together with NATO and let us not forget how the US had to tone down its war drums on Iraq when other nations called for more restraint. In an ever-

changing world, interdependence is the key word.

“We cannot make politics by being mavericks as the Cubans and Taleban have done.

“In the European Union, we will still have the right to decide for ourselves. And more than that, when decisions are taken that will have a bearing on our future, we will be there to decide with others.

“On the other hand it does not mean that we should have it our way all the time.

“With Europe, the Maltese and Gozitan citizens will be one step ahead of Maltese politicians. Even though the government will not lose its right to govern. This trend of checks and balances is what makes Europe.

“This equation is what irks Labour most, the fact that they want to be the absolute Sultans of their own countrymen.”

What about his political aspirations, how does he look to the future.

“ I have been in politics for over 15 years. I can say that I have learnt and accumulated a number of varied experiences.

“ I have much to offer and look to the future. I have a positive vision for this country and I believe we will make big inroads. This country will become a European Union member and I want to be there to offer my experience to make this opportunity a success.”